Argan Q3 revenue rises 39% to $164 million, but net income falls to $5.5 million on Kilroot loss
Argan reported results for the three months ended October 31, 2023, with revenue up 38.9% to $163.8 million. Net income fell to $5.5 million, or $0.40 per diluted share, from $7.8 million, or $0.56, a year earlier, as a Kilroot project pre-tax loss of approximately $10.7 million and a lower gross margin of 11.7% weighed on profit. The company also raised its quarterly cash dividend 20% to $0.30 per share.
- Quarterly revenue rose $45.9 million, or 38.9%, to $163.8 million, led by the Shannonbridge, Trumbull and ESB FlexGen projects
- Net income was $5.5 million, or $0.40 per diluted share, versus $7.8 million, or $0.56, a year earlier; gross margin fell to 11.7% from 18.8%
- Kilroot project pre-tax loss of approximately $10.7 million; the company expects to complete the project by early next year
- Project backlog was $730 million at October 31, 2023, down from $822 million at January 31, 2023; quarterly dividend raised to $0.30 from $0.25