Argan's Q2 Beat Shows Power Strength as Industrial Margins Stay Soft

Argan, Inc. (AGX) reported strong Q2 fiscal 2027 results with earnings up 50.4% and revenue up 61.5%, beating consensus estimates. The Power segment drove margin strength with a 52.9% revenue increase and improved gross margins to 22.4%. However, Industrial revenues doubled but margins fell to 7.3% due to worsening project completion estimates. Management expects Industrial margins to remain below historical norms for another 1-2 quarters.