AGX ARGAN INC

Overview and Growth

ARGAN INC generated $944.61M of revenue in fiscal 2025, with net income of $137.77M and an operating cash inflow of $414.72M. At $944.61M, the top line establishes the operating scale supporting the company’s profit and cash-flow profile. Compared with $874.18M in fiscal 2024, revenue recorded a 8.1% year-over-year increase. On a per-share basis, diluted EPS was $9.74, which connects the reported earnings outcome with the company’s diluted share count. Diluted EPS increased by 58.4% from $6.15 in fiscal 2024, showing how the earnings change reached shareholders on a per-share basis. Asset turnover was 0.8x, relating the company’s annual revenue directly to the total assets reported at the period end.

Profitability

The first profit layer was $193.68M of gross profit, the amount available after reported direct revenue costs to absorb operating expenses. Gross profit represented 20.5% of revenue, showing how much of the top line remained after direct costs. Operating income was $134.70M, the earnings remaining from reported operations after the company’s recognized operating cost structure. Relative to revenue, operating income represented 14.3%, showing how efficiently sales converted into operating profit. Net income came to $137.77M, completing the progression from revenue through gross and operating profitability to the final reported result. The final earnings result represented 14.6% of revenue, connecting the absolute net income figure with the company’s top-line scale. Before income taxes, the company reported $160.51M of earnings, providing a bridge between the operating result and final net income. Pretax income represented 17.0% of revenue, placing earnings before tax in the context of the company’s operating scale. The reported income-tax provision was $22.73M, the amount recognized between pretax income and the final net-income result. The effective relationship between income tax and positive pretax income was 14.2%, without assuming a statutory-rate comparison. The relationship between net income and period-end equity was 29.8%, indicating the profitability achieved on book capital. Return on period-end assets was 11.6%, connecting net income with the company’s total asset base.

Liquidity and Capital Structure

The company held $1.19B of assets against $724.09M of liabilities and $462.26M of equity, revealing how the asset base was financed. The near-term balance sheet paired $1.13B of current assets with $711.26M of current liabilities at the reporting date. At 1.59x, the current ratio shows that short-term assets were greater than short-term liabilities at period end. The company held $339.48M in cash and equivalents, a narrower liquidity measure than total current assets. Cash and equivalents represented 47.7% of current liabilities, showing the portion of near-term obligations matched by reported cash alone. Liabilities represented 61.0% of total assets, quantifying the liability-funded share of the company’s resource base. Cash and equivalents equaled 28.6% of total assets, showing the liquid cash component within the company’s broader resource base. Total assets were 41.9% higher than fiscal 2024 assets of $836.23M, measuring the company’s own balance-sheet change.

Cash Flow and Earnings Quality

The company reported $414.72M of operating cash flow, a cash inflow that shows the cash generated by operations. Against net income, operating cash flow measured 3.01x, showing the relationship between accrual earnings and operating cash. Capital expenditures used $3.88M, identifying the reported investment outflow deducted from operating cash flow in the free-cash-flow calculation. Relative to operating cash flow, capital expenditures measured 0.9%, connecting investment intensity with the company’s cash-generation base. The combination of operating cash flow and capital spending produced $410.84M of positive free cash flow for the period. The free-cash-flow margin was 43.5%, measuring cash remaining after capital spending against revenue. The free-cash-flow-to-assets relationship was 34.6%, comparing post-investment cash with the balance-sheet asset base.

Based on the annual report for the fiscal year ending Jan 31, 2026. Analysis generated Oct 21, 2026.