Argan, Inc. Expands Share Repurchase Program to $150 Million and Declares Quarterly Dividend Amid Strong Growth Momentum
Argan, Inc., a leading provider of construction and related services to the power industry, announced today that its Board of Directors has authorized an increase in the Company’s share repurchase program. The approved expansion raises the repurchase capacity from $125 million to $150 million, reaffirming the Company’s proactive approach to capital return and commitment to enhancing long-term shareholder value.
In addition to the expanded repurchase authorization, the Board declared a regular quarterly cash dividend of $0.375 per common share. This dividend will be payable on April 30, 2025, to shareholders of record as of the close of business on April 22, 2025.
Reinforcing Shareholder Value through Buybacks and Dividends
“Expanding our share repurchase program reflects the Board’s confidence in Argan’s ability to drive long-term growth and reinforces our commitment to delivering long-term value to shareholders,” said David Watson, President and Chief Executive Officer of Argan, Inc. “We’re also pleased to announce a regular quarterly cash dividend of $0.375 per common share.”
Watson’s comments underscore Argan’s consistent performance and robust balance sheet, which enables the company to deploy capital strategically. The buyback program, in particular, is designed to return value to shareholders by reducing the number of shares outstanding, thereby increasing earnings per share and providing a more efficient capital structure.
This dual-pronged approach to capital allocation—through dividends and share repurchases—signals a strong commitment to maintaining shareholder-friendly policies while simultaneously investing in growth and operational excellence.
Operational Momentum Driven by Major Project Wins
In addition to financial announcements, Argan also highlighted recent operational developments that reflect its growing momentum in the energy construction sector. Earlier in the week, Argan announced that its subsidiary, Gemma Power Systems, had received a “notice to proceed” on a previously disclosed contract with Sandow Lakes Energy Company, LLC. The contract covers engineering, procurement, and construction (EPC) services for a 1.2-gigawatt ultra-efficient natural gas-fired power plant, with full-scale activities expected to begin in the summer of 2025.
This large-scale project is a testament to Gemma’s continued leadership and reliability in the energy infrastructure market. The new power plant is expected to contribute significantly to the region’s energy grid, providing around-the-clock reliable electricity while leveraging advanced natural gas technologies that aim to reduce emissions and increase efficiency.
“We are energized by our record backlog and the strong pipeline of opportunities we are seeing now and in future years,” Watson said. “We believe our well-recognized capabilities and track record of success leave us well-positioned as our industry gears up to build the high-quality energy assets needed to address the growing demand for reliable 24/7 power.”
Strategic Positioning for the Future of Power Infrastructure
Argan’s current trajectory is supported by a diversified portfolio of subsidiaries that bring specialized capabilities across various segments of infrastructure development.
- Gemma Power Systems, the company’s flagship subsidiary, specializes in utility-scale power projects with a strong emphasis on natural gas-fired and renewable energy power plants.
- Atlantic Projects Company, another Argan subsidiary, brings deep expertise in international power plant construction, offering specialized services to global clients.
- The Roberts Company, which Argan acquired to expand its industrial services footprint, provides integrated construction, fabrication, and plant maintenance solutions across several heavy industries, including energy, chemical, and pulp and paper.
- SMC Infrastructure Solutions focuses on the growing need for telecommunications infrastructure, providing critical services in network design, fiber optics installation, and related connectivity solutions.
This multi-pronged business structure gives Argan a resilient operating model and allows the company to tap into various secular growth trends—from the shift to cleaner energy sources and modernization of legacy infrastructure to the growing demand for digital and telecommunications networks.
Financial Strength Supports Capital Returns and Project Execution
Argan’s ability to declare regular dividends and increase its share repurchase program is rooted in its consistently strong financial performance. With a robust balance sheet, significant cash reserves, and minimal debt, the company is well-equipped to pursue large-scale projects while returning capital to shareholders.
This financial strength also enables Argan to be selective in project acquisition, prioritizing high-margin and strategically aligned contracts. The Sandow Lakes Energy project, for example, fits neatly within Argan’s long-term vision of supporting the clean and efficient evolution of energy production.
Moreover, Argan’s record project backlog—signaling confirmed work to be performed in the future—provides strong visibility into revenue generation and reinforces investor confidence. The backlog not only reflects Argan’s execution capabilities but also signals a healthy pipeline of future business opportunities across both domestic and international markets.
Market Trends and Industry Outlook
The energy infrastructure market is currently undergoing transformative changes. Increasing energy demand, the shift toward cleaner fuels, the aging of existing power plants, and the electrification of transportation and industry are all driving renewed investment in power generation and delivery assets.
Natural gas remains a vital component of this transition, serving as a flexible and lower-carbon alternative to coal while supporting the intermittency challenges associated with renewable energy. Projects like the one at Sandow Lakes exemplify how companies like Argan are at the forefront of building the bridge to a cleaner, more resilient energy future.
Additionally, federal incentives, regulatory reforms, and sustainability mandates are further boosting opportunities for companies with the technical expertise and operational scale to deliver large energy infrastructure projects. Argan’s proven track record in EPC services and strategic investments in talent and technology place it in a strong position to capitalize on these trends.
With a strong project pipeline, increasing backlog, and a balanced approach to capital allocation, Argan, Inc. is well-positioned for sustainable growth. The recent decisions by the Board to enhance shareholder returns through an increased repurchase program and a continued quarterly dividend speak volumes about the company’s confidence in its strategic direction and operational capabilities.
As the demand for reliable, modern energy infrastructure continues to grow, Argan stands out as a trusted partner capable of delivering large-scale, technically complex, and environmentally responsible projects.
About Argan, Inc.
Argan, Inc. is a publicly traded holding company whose primary business is the engineering, procurement, and construction of energy-related facilities through its various subsidiaries. Headquartered in Rockville, Maryland, Argan operates through a diverse portfolio that includes:
- Gemma Power Systems – A leader in utility-scale natural gas and renewable energy power projects.
- Atlantic Projects Company – An international provider of specialist engineering and construction services.
- The Roberts Company – An industrial contractor offering fabrication, construction, and maintenance solutions.
- SMC Infrastructure Solutions – A provider of critical telecom infrastructure services.
With a proven track record, financial strength, and commitment to excellence, Argan delivers value for clients, communities, and shareholders alike.
Forward-Looking Statements
This press release may include forward-looking statements that involve risks and uncertainties. These statements are based on current expectations, estimates, forecasts, and projections about the industries in which the company operates. Actual results may differ materially due to a variety of factors, including but not limited to:
- The successful execution of new and existing contracts
- Timely receipt of project-related approvals and notices to proceed
- Execution risks related to large-scale construction projects
- Economic and regulatory conditions affecting the energy sector
Investors are encouraged to review Argan’s most recent filings with the Securities and Exchange Commission, including its Form 10-K and quarterly reports on Form 10-Q, for a comprehensive discussion of the company’s risk factors and business outlook.
