Argan: Growth Outlook Remains Solid

Argan, Inc. remains a buy as growth drivers broaden beyond gas-fired power into industrial/data-center opportunities, supported by a robust balance sheet. AGX's backlog is anchored by over 4.1 GW of U.S. gas-fired projects, with industrial/data-center work providing a second growth lever and risk diversification. Despite a premium valuation at ~34x NTM EBITDA, AGX's earnings are positioned to ramp significantly by FY30, potentially justifying the current multiple. Key risks include project award delays or margin normalization, which could trigger a rapid derating given the stock's elevated valuation.

My previous investment thought on Argan, Inc. (AGX) was a buy rating because Q4 had already shown that growth was recovering, backlog visibility remained solid, and the balance sheet gave AGX room to