Argan: We Need To Be Realistic Here And Wait For A Pullback

2026-01-17 02:59:35 ET

AGX: three units, one core business

Argan, Inc. ( AGX ) is a 70-year-old US engineering company based in Virginia. Like most entities, AGX has several business units, but, as often, these units are not equally important for the company’s bottom line. In the case of AGX, as shown by Figure 1 below, most of the revenue comes from the Power Industry Services unit. If these terms look opaque to you, this basically means that AGX designs, builds, and maintains power producing facilities. These facilities can be the supplier of the electricity you are consuming on a daily basis or dedicated power sources for industrial production sites. Many industrial sites indeed have their own source of power, as it is simply cheaper than relying on grid electricity. This Power Industry Services business unit constitutes the core of AGX’s activity and accounted for no less than 78% of the company’s revenue in Q3 2025. AGX is also involved in engineering works related to water treatment facilities, via its Industrial Construction Services, and, marginally, to telecommunications infrastructure, but keep in mind that the company is above all an engineering company dealing with power plants....

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