Argan, Inc. · NYSE:AGX
Argan — Investor Presentation (December 2024)
30 slides from Argan's investor presentation, December 2024
Slide 1: Investor Presentation December 2024
IN VESTOR PR ESE N TATIO N P RES ENT AT ION NYSE: AGX December 2024
Slide 2: Safe Harbor Statement
Safe Harbor Statement All statements in this presentation that are not historical are forward-looking statements within the meaning of Section 21E of the Securities Exchange Act of 1934. Such forward -looking statements may be identified by words such as “believe,” “intend,” “expect,” “may,” “could,
Slide 3: Investment Highlights
Investment Highlights • Growing energy demand and aging power-generating infrastructure driving increased repowering and replacement opportunities Argan • Consolidated revenues grew 57% to $257 million in 3Q25 with gross margin of 17.2% Positioned Argan • Healthy backlog of over $0.8 billion as of 1
Slide 4: Argan At-A-Glance
Argan At-A-Glance Power Industry Servic es Industrial Co nstruc tion Teleco mmunications Se rvice s Infrastructure S ervic es Building innovative power solutions for the Servicing heavy and light industrial Constructing and connecting transition to low-carbon/zero-carbon emissions: clients, particul
Slide 5: Business Segments
Business Segments Industrial Construction Telecommunications Power Industry Services Services Infrastructure Services 83% 16% 1% Q3 Revenues: $212M Q3 Revenues: $41M Q3 Revenues: $4M Pre-Tax Income: $36M Pre-Tax Income: $3M Pre-Tax Income: $0.2M Growth Drivers: Growth Drivers: Growth Drivers: • Elec
Slide 6: Demand in Electricity Projected to Surge
Demand in Electricity Projected to Surge Natural Gas & Renewables will be Needed to Support Increased Demand for Reliable Energy AI & Data Centers Electric Vehicles & Charging Solar & Battery Factories The growth of generative AI is driving the Federal incentives and state mandates are Federal tax i
Slide 7: Enabling the Shift to Low-/Zero-Carbon Emissions
Enabling the Shift to Low-/Zero-Carbon Emissions Argan ’s b ac klo Industry Drivers g s Industrial up • Growing demand for reliable and affordable 8% po electricity rts • Aging power plants – 83 GW of planned retirements Natural Gas tran in the next 10 years1 32% • Availability of cheap, domestic na
Slide 8: Healthy Project Backlog
Healthy Project Backlog 1200 $1.03B $824M $3M 1000 $714M $822M $757M $800M $22M $7M $71M 800 $2M $ Millions 600 $335M $937M $730M $673M $619M $631M 400 $349M 200 $124M $128M $120M $92M $45M $66M 0 $3M $3M $2M $2M $2M $3M FY2022 FY22 FY2023 FY23 FY2024 FY24 1Q25 1Q25 2Q25 2Q25 3Q25 3Q25 Telecom Indus
Slide 9: Select Highlighted Projects
Select Highlighted Projects Project Estimated Business Segment Project Description Location Size Start Completion Natural gas-fired combined cycle power station Trumbull Energy Center 2 gas-fired turbines with heat recovery steam Ohio 950 MW Nov 2022 2026 generators and one steam turbine Gas Power P
Slide 10: Power Industry Services
Power Industry Services 73% FY24 Revenue: $416M Percent of FY24 revenues 10
Slide 11: Project Spotlight: Trumbull Energy Center – Ohio
Project Spotlight: Trumbull Energy Center – Ohio • Gemma Power Services is executing an EPC services contract for a 950MW natural gas-fired power plant in Lordstown, Ohio • The combined cycle power station will consist of two gas-fired, high efficiency, combustion turbines with two heat recovery ste
Slide 12: Project Spotlight: Gas Turbine Project – Louisiana LNG Facility
Project Spotlight: Gas Turbine Project – Louisiana LNG Facility • Gemma leading the project in collaboration with TRC and APC to install five 90 MW gas turbines • Project represents 450 MW of electrical power and is expected to be completed during calendar year 2025 12
Slide 13: Project Spotlight: Solar Project – Illinois
Project Spotlight: Solar Project – Illinois • Gemma received full notice to proceed on a 405 MW utility scale solar field • Teams have begun erecting panels on a site encompassing 2,123 acres; our largest solar project to date • Multi-phased project includes solar-tracking panels that can be stowed
Slide 14: The Competitive Landscape
The Competitive Landscape Major EPC service providers for new fixed-price gas-fired power plant projects across the United States 14
Slide 15: Industrial Construction Services
Industrial Construction Services 25% FY24 Revenue: $143M Percent of FY24 revenues 15
Slide 16: Driving Sustained Success of Industrial Construction Services Segment
Driving Sustained Success of Industrial Construction Services Segment • Diversified heavy industrial contractor in U.S. • Industry leaders providing full-service turnkey construction services • Expertise in emergency and scheduled plant turnarounds • Custom industrial pipe and vessel fabrication in
Slide 17: Project Spotlight: Wastewater Pre-Treatment Facility North Carolina
Project Spotlight: Wastewater Pre-Treatment Facility North Carolina, USA • Lump sum contract including 90 workers at 50 working hours per week • TRC managing engineering, procurement, and construction • Crucial facility responsible for treatment and discharge of high-strength pharmaceutical industri
Slide 18: Telecommunications Infrastructure Services
Telecommunications Infrastructure Services 2% FY24 Revenue: $14M Percent of FY24 revenues 18
Slide 19: Comprehensive Technology Cabling and Utility Construction Solutions in Mid-Atlantic Region
Comprehensive Technology Cabling and Utility Construction Solutions in Mid-Atlantic Region Services include: • Trenchless directional boring • Installation of buried lines • Structural cabling • Termination and connectivity for high-speed data, voice and security networks Repeatable revenues: • Subs
Slide 20: Financial Review
FINANCIAL REVIEW i 4 af
Slide 21: Summary Income Statement: Third Quarter Fiscal 2025
Summary Income Statement: Third Quarter Fiscal 2025 Three Months Nine Months Ended October 31, October 31, (Unaudited) ($ in millions, except per share amounts) 2024 2023 2024 2023 Revenues $257 $164 $642 $409 Gross Profit $44 $19 $93 $57 Gross margin % 17.2% 11.7% 14.6% 14.0% SG&A $14 $11 $38 $32 N
Slide 22: Balance Sheet Strength
Balance Sheet Strength Balance Sheet Data October 31, 2024 January 31, 2024 Cash, cash equivalents, and investments $506 M $412 M Net liquidity1 $281 M $245 M Debt Nil Nil Shareholders’ equity $329 M $ 291 M Shares outstanding 13,569,000 13,243,000 1 Total current assets minus total current liabilit
Slide 23: Long-Term Value Creation
Long-Term Value Creation Tangible Book Value1 & Cumulative Dividends Per Share 3Q25 $22.02 $14.33 2Q25 $20.60 $13.95 1Q25 $19.70 $13.65 FY2024 $19.69 $13.35 FY2023 $18.62 $12.25 FY2022 $19.34 $11.25 $12.25 FY2021 $18.38 $10.25 FY2020 $19.59 $7.25 FY2019 $22.83 $6.25 FY2018 $20.34 $5.25 FY2017 $16.08
Slide 24: Long-Term Growth Strategy
Long-Term Growth Strategy Organic growth and thoughtful expansion via disciplined M&A Partner of choice for the low carbon economy and growing power demands Disciplined risk management Leverage core platform to address market opportunity 24
Slide 25: Outlook
Outlook • Partner of choice for innovative energy solutions as demand on power grid intensifies • Well-positioned for growth with strong and diversified backlog • Multiple industry growth drivers • Strong balance sheet also supports M&A opportunities • Argan remains confident in its strategy to prom
Slide 26: Q&A
Q&A
Slide 27: Appendix
APPENDIX
Slide 28: Summary Income Statement: FY2024 & 2023
Summary Income Statement: FY2024 & 2023 For the Fiscal Years Ended January 31, ($ in millions, except per share amounts) 2024 2023 Revenues $ 573 $ 455 Gross Profit 81 86 Gross Margin % 14.1% 19.0% SG&A 44 45 Net Income $ 32 $ 33 Diluted per share 2.39 2.33 EBITDA Attributable To Stockholders of Arg
Slide 29: Reconciliation of Consolidated Net Income to EBITDA
Reconciliation of Consolidated Net Income to EBITDA Three Months Ended Nine Months Ended October 31, October 31, ($ in thousands) 2024 2023 2024 2023 Net income, as reported $ 28,010 $ 5,464 $ 54,090 $ 20,340 Income tax expense 8,968 6,129 18,482 11,616 Depreciation 433 489 1,376 1,524 Amortization
Slide 30: Reconciliation of Consolidated Net Income to EBITDA Continued
Reconciliation of Consolidated Net Income to EBITDA Continued For The Fiscal Years Ended January 31, ($ in thousands) 2024 2023 Net income, as reported $ 32,358 $ 34,704 Income tax expense 16,575 11,296 Depreciation 2,013 2,983 Amortization of intangible assets 392 732 EBITDA 51,338 49,715 EBITDA of