ROCKVILLE, Md. - Argan , Inc. (NYSE: NYSE:AGX), a company specializing in engineering and construction services, today announced the upcoming retirement of its Chief Financial Officer, Richard H. Deily. After a 40-year career in senior financial management, Deily will retire on September 15, 2024. Josh Baugher, currently Vice President and Corporate Controller, is set to succeed him.
Deily's career with Argan began in October 2007 when he joined as Corporate Controller. He advanced to Vice President, Corporate Controller in January 2015 and has been serving as the CFO since August 2022. His previous experience spans various industries, including construction and telecommunications.
David Watson, President and CEO of Argan, expressed gratitude for Deily's contributions over his 17-year tenure, highlighting his role in establishing a top-tier finance organization. Watson noted Deily's commitment to Argan's success and mentioned that he would continue to assist in a reduced capacity to ensure a smooth transition.
Baugher, Deily's successor, has nearly two decades of financial leadership and accounting experience. Before his time at Argan, he was responsible for financial reporting and technical accounting at Charles River Associates. Baugher's career began at CohnReznick, where he managed a diverse client portfolio. A Certified Public Accountant in Maryland, he holds a Bachelor of Science in accounting from George Mason University.
Watson is confident in Baugher's abilities, citing his strong financial accounting and reporting skills, and understanding of Argan's capital allocation priorities. The appointment is seen as a reflection of the company's robust team and strategic succession planning.
The press release also contained a safe harbor statement, cautioning that certain statements might be forward-looking and subject to risks and uncertainties. It referenced the company's SEC filings for a detailed discussion of potential risk factors affecting its financial performance.
This announcement is based on a press release statement from Argan, Inc.
In other recent news, Argan Inc. has reported a robust start to fiscal year 2025, with consolidated revenues seeing a 52% increase to $157.7 million and an EBITDA of $11.9 million. The company's first-quarter project backlog reached $824 million, including a significant $300 million in renewable energy projects. Argan also reported a strong balance sheet with $416 million in cash and no debt. The company's gross profit for the quarter was $17.9 million, reflecting a gross profit percentage of 11.4%. Argan also saw a significant increase in net income to $7.9 million, up from the previous year's $2.1 million.
Argan's subsidiary, Gemma Power Systems, has secured a release for its work on a significant solar power project in Illinois, capable of generating 405 megawatts of electricity. The project is currently in the initial stages of development. Additionally, Gemma Power Systems has secured a subcontract to install five 90 MW gas turbines at a liquefied natural gas (LNG) facility in Louisiana.
Lake Street Capital Markets has raised the price target for Argan shares to $85.00, maintaining a Buy rating on the stock. The firm anticipates several new large natural gas power plants and renewable projects to be awarded in the next three to nine months. They expect Argan to experience increased activity over the next 12 to 24 months, with a steady flow of new project awards anticipated.
InvestingPro Insights
As Argan, Inc. (NYSE: AGX) prepares for a significant leadership transition with the upcoming retirement of CFO Richard H. Deily, the company's financial health and market performance remain pivotal for investors and stakeholders. Reflecting on Argan's current standing, InvestingPro data and tips provide a deeper understanding of the company's financial dynamics.
InvestingPro data shows that Argan has a market capitalization of approximately $981.81 million, underscoring its presence as a substantial player within the engineering and construction services sector. The company's P/E ratio, a key indicator of investor expectations, stands at 25.64, suggesting a moderate valuation relative to near-term earnings growth. Moreover, the company has experienced a robust revenue growth of 36.84% over the last twelve months as of Q1 2023, indicating a strong upward trajectory in its financial performance.
In line with the positive financial data, InvestingPro Tips highlight several key aspects of Argan's business. Analysts have revised their earnings upwards for the upcoming period, reflecting optimism about the company's profitability and growth prospects. Furthermore, the company is praised for holding more cash than debt on its balance sheet, which is a strong indicator of financial stability and resilience. This could provide a cushion for the new CFO to navigate the company's financial strategy effectively.
The insights also reveal that Argan has maintained dividend payments for 14 consecutive years, demonstrating a commitment to delivering shareholder value consistently. This may reassure investors of the company's financial discipline and long-term outlook, even as it undergoes a change in financial leadership.
For a more comprehensive analysis of Argan's financial health and future prospects, investors can explore additional InvestingPro Tips available at https://www.investing.com/pro/AGX. There, they can find a total of 12 tips, including insights on Argan's gross profit margins, liquidity, and return on assets, all of which can inform investment decisions and provide a richer context for the company's transition period.
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