Argan Remains Bullish As Underlying Power Demand Is Still Very Healthy

Redfox Capital Ideas719 FollowersFollow5ShareSavePlay(8min)CommentsSummaryArgan delivered strong Q4 2026 results, with revenue up 12.7% and gross margin expanding to 25%.AGX maintains a robust $2.9 billion fully committed backlog, supporting revenue visibility for the next 3+ years.Demand for gas-fired power plants remains strong, with a favorable mix shift expected to drive further margin expansion.I reiterate my buy rating on AGX, citing backlog strength, margin improvement, and sustained sector demand.owngarden/iStock via Getty Images Investment summary My previous investment thought on Argan, Inc. (AGX) was a buy rating because the backlog visibility was solid, the business still has a very strong balance sheet to fund this growth, and I didn'tThis article was written byRedfox Capital Ideas719 FollowersFollowI focus on long-term investments while incorporating short-term shorts to uncover alpha opportunities. My investment approach revolves around bottom-up analysis, delving into the fundamental strengths and weaknesses of individual companies. My investment duration is the medium to long-term. Ultimately, I aim to identify companies with solid fundamentals, sustainable competitive advantages, and growth potential.Analyst’s Disclosure: I/we have no stock, option or similar derivative position in any of the companies mentioned, and no plans to initiate any such positions within the next 72 hours. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article. Seeking Alpha's Disclosure: Past performance is no guarantee of future results. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. Any views or opinions expressed above may not reflect those of Seeking Alpha as a whole. Seeking Alpha is not a licensed securities dealer, broker or US investment adviser or investment bank. Our analysts are third party authors that include both professional investors and individual investors who may not be licensed or certified by any institute or regulatory body.