ROCKVILLE, Md. - Argan , Inc. (NYSE: NYSE:AGX), a company specializing in construction services for the power industry, has announced the passing of long-time board member W.G. Champion Mitchell on Monday. Mitchell, who had been a part of Argan's Board of Directors since October 2003, was known for his extensive experience in corporate governance and his significant contributions to the company's growth.
During his tenure, Mitchell served on the Executive Committee and the Nominating/Corporate Governance Committee. His career spanned various leadership roles, including positions on the boards of Direct Brands, Inc., The 41st Parameter, Inc., the board of governors for RTI International, and the University of North Carolina system.
William F. Leimkuhler, Chairman of the Board of Argan, expressed the board's profound sorrow at Mitchell's passing, recognizing his substantial impact on the company's management and operations. David Watson, President and CEO of Argan, also paid tribute to Mitchell's advisory role, leadership qualities, and his engaging personality that left a lasting impression on the company's culture.
Argan's core business involves the construction of natural gas-fired power plants and renewable energy facilities. The company operates through its subsidiaries, Gemma Power Systems and Atlantic Projects Company, offering a range of services including engineering, procurement, construction, commissioning, maintenance, and consulting. Argan also owns The Roberts Company and SMC Infrastructure Solutions, expanding its reach into fabrication, construction, industrial plant services, and telecommunications infrastructure.
The company's statement, based on a press release, underlines the void left by Mitchell's departure, both in terms of professional expertise and personal camaraderie. The management and employees of Argan extend their deepest sympathies to Mitchell's family, friends, and associates.
"In other recent news, Argan, Inc. reported a substantial increase in its quarterly cash dividend by 25%, reflecting its robust financial growth. This decision comes on the heels of the company's strong Q2 results, with a significant increase in consolidated revenue by 61% to $227 million. Additionally, Argan's net income rose to $18 million, with EBITDA standing at $25 million.
The company's project backlog exceeds $1 billion, with a strong focus on renewable energy projects valued at approximately $570 million. Argan's balance sheet remains solid, with $485 million in cash and investments, net liquidity of $260 million, and no debt. These recent developments indicate a healthy financial standing for the company.
Argan anticipates having multiple gas power plants under contract in the next 5 to 10 months and expects completion of some solar battery projects by the end of the fiscal year. Despite a decline in gross profit due to changes in project mix, the company maintains an optimistic outlook, particularly for growth in the gas sector. This outlook is supported by a record quarter for its TRC business, which generated over $170 million in revenue over the last 12 months."
InvestingPro Insights
As Argan, Inc. (NYSE: AGX) mourns the loss of a key board member, the company's financial performance and market position remain strong. According to InvestingPro data, Argan's revenue growth has been impressive, with a 48.03% increase over the last twelve months as of Q2 2025. This robust growth aligns with the company's core business in power plant construction and renewable energy facilities.
InvestingPro Tips highlight that Argan holds more cash than debt on its balance sheet, indicating a solid financial position. This strong liquidity is crucial for a company in the construction services sector, enabling it to take on large-scale projects and weather potential economic uncertainties.
The company's commitment to shareholder value is evident in its dividend policy. An InvestingPro Tip notes that Argan has raised its dividend for 3 consecutive years, demonstrating confidence in its financial stability and future prospects. This is particularly relevant given the company's focus on growth and expansion in the power industry.
Argan's market performance has been noteworthy, with a significant 145.16% price total return over the past year. This impressive return suggests that investors are optimistic about the company's direction and growth potential in the renewable energy and power plant construction sectors.
For investors seeking a more comprehensive analysis, InvestingPro offers 21 additional tips for Argan, providing a deeper understanding of the company's financial health and market position.
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