Shares of Argan Inc. (AGX) surged nearly 38% on Friday following a robust quarterly earnings report that exceeded analysts’ expectations. The engineering firm, which specializes in power plant construction, reported a 13% year-over-year revenue increase to $262 million for its fiscal Q4, ending January 31. Notably, net income soared 57% to $49 million, translating to $3.47 per share, significantly surpassing the consensus estimate of $1.98.

This impressive performance is underpinned by a growing demand for energy infrastructure, particularly driven by the rise of artificial intelligence and data centers. Argan’s gross margin improved to 25% from 20.5% in the prior-year quarter, reflecting operational efficiency as key projects, such as the Trumbull Energy Center, near completion. The company’s project backlog now stands at $2.9 billion, indicating a strong pipeline for future growth.

Investors should note Argan’s solid financial position, with $895 million in cash and no debt, positioning the company well to capitalize on the increasing demand for reliable power solutions amid ongoing infrastructure challenges.

Source: fool.com