ARGAN INC
For the period ended Jul 31, 2026. Filed Sep 2, 2026.
View on SEC.govAbout this filing
A company's report for each of its first three quarters. The financial statements are not audited. It shows how the business has moved since the last annual report, and what management says changed.
Jul 31, 2026 · Filed Sep 2, 2026
AGX$277.50+6.2%Stored close · as of Nov 6, 2026
What changed in Management’s Discussion and Analysis?
Read the current filingPrevious report: 10-Q
Period ended 2026-04-30; filed 2026-06-04.
0001104659-26-070536
Item 2. MANAGEMENT’S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONSCurrent report: 10-Q
Period ended 2026-07-31; filed 2026-09-02.
0001104659-26-104745
Item 2. MANAGEMENT’S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONSThe baseline is this issuer’s latest earlier reporting period of the same form that was filed before the current report. A previous 10-Q is a different quarter, not a year-over-year comparison. Amendments are excluded.
Compared 93 previous paragraphs and 121 current paragraphs.
59 unchanged; 29 reworded; 25 added; 3 removed; 2 previous and 8 current paragraphs rearranged.
Tables are not compared: 2 previous and 18 current tables excluded. Dates, whitespace, punctuation and numbering changes are ignored; changes to financial figures remain significant.
A changed paragraph is not evidence that risk increased or decreased. An unchanged paragraph does not establish that risk stayed the same.
Added paragraphs (25)
Current report
These statements relate to future events or our future financial performance and involve known and unknown risks, uncertainties, and other factors that may cause our actual results, levels of activity, performance, or achievements to be materially different from any future results, levels of activity, performance, or achievements expressed or implied by these forward-looking statements. Although we believe the expectations reflected in the forward-looking statements are reasonable when made, we cannot guarantee future results, levels of activity, performance, or achievements.
Current report
There are a number of important factors that could cause our actual results to differ materially from the results anticipated by our forward-looking statements, which include, but are not limited to:
Current report
Additional factors include those described in our Annual Report on Form 10-K for the fiscal year ended January 31, 2026, including under the captions Risk Factors, Management’s Discussion and Analysis of Financial Condition and Results of Operations, and Business, in our quarterly reports on Form 10-Q, including under the captions Risk Factors and Management’s Discussion and Analysis of Financial Condition and Results of Operations, and in our subsequent filings with the SEC.
Current report
There may be other risks and uncertainties that we are unable to predict at this time or that we currently do not expect to have a material adverse effect on our business, and we undertake no obligation to update or revise any forward-looking statements except as required by law. You should not place undue reliance on any forward-looking statements that we may make.
Current report
Acquisition
Current report
On July 31, 2026, we acquired all of the membership interests of ValCor for total consideration of approximately $9.4 million, consisting of $8.0 million in cash, $0.5 million of our common stock issued from treasury, and $0.9 million for the acquisition-date fair value of contingent consideration. ValCor is reported within our Teledata segment. See Note 14 to the accompanying condensed consolidated financial statements.
Current report
The acquisition extends the geographic reach of our Teledata segment into New England and adds a customer base of defense and aerospace organizations that complements the segment’s existing commercial, industrial, and government customers. Because the acquisition closed on the last day of the quarter, ValCor did not contribute revenues or earnings to our results of operations for the three and six months ended July 31, 2026. The acquisition was not material to our condensed consolidated financial statements, and we do not expect it to have a material effect on our consolidated results of operations or financial condition.
Current report
Sandow Lakes Power Station (“1.2 GW Power Station”)
Current report
The revenues of the Teledata segment were $6.6 million for the three months ended July 31, 2026, compared with revenues of $4.7 million for the three months ended July 31, 2025.
Current report
We recorded income tax expense for the three months ended July 31, 2025 in the net amount of approximately $0.4 million. Our effective income tax rate for the three months ended July 31, 2025 was 1.0%, which differed from the U.S. federal statutory rate due primarily to the favorable tax benefit resulting from stock option exercises during the period.
Current report
Revenues
Current report
Power Segment
Current report
The revenues of the Power segment increased by 47.7%, or $170.6 million, to $527.9 million for the six months ended July 31, 2026 compared with revenues of $357.3 million for the six months ended July 31, 2025 as the construction activities increased for the 1.4 GW Thermal Project, the 700 MW Combined-Cycle Project, the 1.2 GW Power Station, and the 860 MW Thermal Project. The primary drivers for this segment’s revenues for the six months ended July 31, 2025, were the construction of the 405 MW Midwest Solar Project and the 700 MW Combined-Cycle Project. The revenues of this business segment represented approximately 78.2% of consolidated revenues for the six months ended July 31, 2026 and 82.8% of consolidated revenues for the corresponding prior year period.
Current report
Industrial Segment
Current report
Teledata Segment
Current report
The revenues of the Teledata segment were $12.6 million for the six months ended July 31, 2026, compared with revenues of $8.9 million for the six months ended July 31, 2025.
Current report
Cost of Revenues
Current report
Selling, General and Administrative Expenses
Current report
These costs were $33.1 million and $26.7 million for the six months ended July 31, 2026 and 2025, respectively, and represented 4.9% and 6.2% of corresponding consolidated revenues, respectively.
Current report
Other Income, Net
Current report
Provision for Income Taxes
Current report
We recorded income tax expense for the six months ended July 31, 2025 in the net amount of approximately $7.6 million. Our effective income tax rate for the six months ended July 31, 2025 was 11.6%, which differed from the U.S. federal statutory rate due primarily to the favorable tax benefit resulting from stock option exercises during the period.
Current report
In connection with the ValCor acquisition, we may be required to pay contingent consideration in cash over the three-year period following the closing upon the satisfaction of specified conditions, and to pay additional cash and issue shares of our common stock under a three-year deferred compensation arrangement with a key employee of ValCor upon the achievement of specified performance targets. The purchase price also remains subject to customary post-closing adjustments, including those related to net working capital and indemnification obligations. We do not expect these amounts to have a material effect on our liquidity or capital resources.
Current report
Deferred Tax Assets and Liabilities
Current report
We maintain a valuation allowance against certain deferred tax assets of our U.K. subsidiary, consisting primarily of net operating loss carryforwards. Our U.K. operations have generated taxable income in recent periods, and it is reasonably possible that we could release all or a portion of this valuation allowance within the next 12 months. A full or partial release would result in a material income tax benefit in the period of release and would reduce our effective income tax rate for that period. See Note 11 to the accompanying condensed consolidated financial statements.
Removed paragraphs (3)
Previous report
Our forward-looking statements, by their nature, involve significant risks and uncertainties (some of which are beyond our control) and assumptions. They are subject to change based upon various factors including, but not limited to, the risks and uncertainties described in this Quarterly Report on Form 10-Q and our Annual Report. Should one or more of these risks or uncertainties materialize, or should any of our assumptions prove to be incorrect, actual results may vary in material respects from those projected in the forward-looking statements. We undertake no obligation to publicly update or revise any forward-looking statements, whether as a result of new information, future events or otherwise.
Previous report
Sandow Lakes Power Station
Previous report
The revenues of Teledata segment were $6.0 million for the three months ended April 30, 2026, compared with revenues of $4.1 million for the three months ended April 30, 2025.
Reworded paragraphs (29)
Previous wording
The following discussion summarizes the financial position of Argan, Inc. and its subsidiaries as of April 30, 2026, and the results of their operations for the three months ended April 30, 2026 and 2025, and should be read in conjunction with (i) the unaudited condensed consolidated financial statements and notes thereto included elsewhere in this Quarterly Report
Current wording
The following discussion summarizes the financial position of Argan, Inc. and its subsidiaries as of July 31, 2026, and the results of their operations for the three and six months ended July 31, 2026 and 2025, and should be read in conjunction
Previous wording
on Form 10-Q and (ii) the consolidated financial statements and accompanying notes included in our Annual Report on Form 10-K for Fiscal 2026 that was filed with the SEC on March 26, 2026 (the “Annual Report”).
Current wording
with (i) the unaudited condensed consolidated financial statements and notes thereto included elsewhere in this Quarterly Report on Form 10-Q and (ii) the consolidated financial statements and accompanying notes included in our Annual Report on Form 10-K for Fiscal 2026 that was filed with the SEC on March 26, 2026 (the “Annual Report”).
Previous wording
Our forward-looking statements, financial position and results of operations, are based on our current expectations and beliefs concerning future developments and their potential effects on us. There can be no assurance that future developments affecting us will be those that we anticipate. All comments concerning our expectations for future revenues and operating results are based on our forecasts for existing operations that do not include the potential impacts of any future acquisitions.
Current wording
All comments concerning our expectations for future revenues and operating results are based on our forecasts for existing operations that do not include the potential impacts of any future acquisitions.
Previous wording
Industrial: Our Industrial segment provides on-site services that support new plant construction and additions, maintenance turnarounds, shutdowns, and emergency mobilizations for industrial operations primarily located in the Southeast region of the U.S. and that may include the fabrication, delivery, and installation of metal components such as piping systems and pressure vessels.
Current wording
Industrial: Our Industrial segment provides on-site services that support new plant construction and additions, maintenance turnarounds, shutdowns, and emergency mobilizations for industrial operations primarily located in the Southeast region of the U.S. The segment also fabricates, delivers, and installs metal components such as piping systems and pressure vessels. Its customers include datacenter developers and companies in the power, petrochemical, biopharmaceutical, pulp and paper, and specialty chemical industries, among other industrial end markets.
Previous wording
Teledata: Our Teledata segment provides project management, construction, installation, maintenance, repair, and emergency response services across power distribution and information, communications, and data networks. The segment’s customers include commercial and industrial organizations, as well as state and federal government agencies, primarily throughout the Mid-Atlantic region of the U.S.
Current wording
Teledata: Our Teledata segment provides project management, construction, installation, maintenance, repair, and emergency response services across power distribution and information, communications, and data networks. The segment’s customers include commercial and industrial organizations, as well as state and federal government agencies, primarily throughout the Mid-Atlantic and New England regions of the U.S.
Previous wording
Most of our consolidated revenues relate to performance in the U.S. by the Power segment, which provides EPC services to design, build, and commission large-scale energy projects. In the U.S., electricity demand has reached its highest level in two decades, driven by the build-out of data centers supporting artificial intelligence technologies, the adoption of electric vehicles, and the reshoring of manufacturing activities. Keeping up with growing energy demand is further challenged by the aging fleet of traditional power facilities that are at or nearing the end of their operational lives.
Current wording
Most of our consolidated revenues relate to performance in the U.S. by the Power segment, which provides EPC services to design, build, and commission large-scale energy projects. In the U.S., electricity demand has reached its highest level in two decades, driven by the build-out of data centers supporting artificial intelligence technologies, the adoption of electric vehicles, and the reshoring of manufacturing activities. Keeping up with growing energy demand is further challenged by the aging fleet of traditional power facilities that are at or nearing the end of their operational lives. Throughout the U.S., the risk of electricity shortages is rising as the retirement of traditional power plants outpaces their replacements. Grid operators have emphasized the need for additional dispatchable, reliable power sources to support system stability, particularly during periods of peak demand or reduced renewable output. Natural gas-fired power plants are expected to remain a key component of future capacity additions due to their cost-effectiveness, reliability, and ability to support intermittent energy sources.
Previous wording
While utility-scale solar, wind, and battery storage projects continue to expand their prevalence – supported by declining capital costs, improved energy storage systems, and policy incentives – they often cannot provide the same level of consistent, around-the-clock power generation as thermal plants. Despite their increasing cost competitiveness and their rapid deployment over the past several years, the long-term trajectory of renewables may be influenced by shifts in energy policy, evolving regulatory frameworks, and grid integration challenges.
Current wording
consistent, around-the-clock power generation as thermal plants. Despite their increasing cost competitiveness and their rapid deployment over the past several years, the long-term trajectory of renewables may be influenced by shifts in energy policy, evolving regulatory frameworks, and grid integration challenges.
Previous wording
The pace of new power generation development continues to be constrained by a limited number of experienced EPC contractors, equipment supply limitations, interconnection delays, and specialized labor availability. These dynamics have contributed to a supply-constrained environment for large-scale power generation construction, which we believe supports a strong pipeline of project opportunities for contractors with demonstrated execution experience. Our backlog growth over the past year reflects these conditions and the continued demand for experienced contractors capable of executing complex power generation projects. However, the timing and extent of future project awards remain subject to a variety of factors, including regulatory developments, financing conditions, permitting timelines, equipment availability, and broader economic conditions, any of which could affect the pace at which new power generation projects move forward.
Current wording
The pace of new power generation development continues to be constrained by a limited number of experienced EPC contractors, equipment supply limitations, interconnection delays, and specialized labor availability. Lead times for large gas turbines, transformers, and other grid equipment have extended meaningfully beyond historical norms as manufacturer order books have expanded, and equipment costs have risen accordingly. Competition for skilled craft labor has also intensified, as data center, semiconductor, liquefied natural gas, and industrial construction activity often draw from the same regional labor pools. These dynamics have contributed to a supply-constrained environment for large-scale power generation construction, which we believe supports a strong pipeline of project opportunities for contractors with demonstrated execution experience. Our backlog growth over the past year reflects these conditions and the continued demand for experienced contractors capable of executing complex power generation projects. However, the timing and extent of future project awards remain subject to a variety of factors, including regulatory developments, financing conditions, permitting timelines, equipment availability, and broader economic conditions, any of which could affect the pace at which new power generation projects move forward. For example, community opposition to new large-scale data center development has contributed to moratoria and other restrictions recently adopted or proposed in several states and localities, which could moderate the pace of load growth in affected markets, although these measures are directed at data center development rather than power generation.
Previous wording
As of April 30, 2026 and January 31, 2026, our consolidated project backlog amounts of $2.8 billion and $2.9 billion, respectively, consisted substantially of projects within our Power segment.
Current wording
As of July 31, 2026 and January 31, 2026, our consolidated project backlog amounts of $2.5 billion and $2.9 billion, respectively, consisted substantially of projects within our Power segment.
Previous wording
In August 2024, we received FNTP on an EPC services contract to construct a utility-scale solar field in Illinois with the capacity to provide 405 MW of electrical power. Project completion is scheduled for the fiscal year ending January 31, 2027 (“Fiscal 2027”).
Current wording
In August 2024, we received FNTP on an EPC services contract to construct a utility-scale solar field in Illinois with the capacity to provide 405 MW of electrical power. The project is expected to reach substantial completion during the fiscal quarter ending October 31, 2026.
Previous wording
Between January and early May 2024, we received FNTPs for three state-of-the-art solar energy and battery energy storage facilities in Illinois. The three projects will cumulatively represent 160 MW of electrical power and 22 MW of energy storage. Two of these projects were completed in Fiscal 2025. Substantial completion for the remaining project was achieved during the first quarter of Fiscal 2027.
Current wording
Between January and early May 2024, we received FNTPs for three state-of-the-art solar energy and battery energy storage facilities in Illinois. The three projects will cumulatively represent 160 MW of electrical power and 22 MW of energy storage. Two of these projects were completed in Fiscal 2025. Substantial completion for the remaining project was achieved during the first quarter of the fiscal year ending January 31, 2027 (“Fiscal 2027”), and final completion was achieved subsequent to July 31, 2026.
Previous wording
As of April 30, 2026, the Industrial segment’s project backlog was approximately $225.5 million as compared to $253.0 million on January 31, 2026. In November 2025, we were awarded a contract for the fabrication of approximately 2,000 horizontal pressure vessels intended for use in thermal energy storage and chilled water buffer cooling systems at the customer's data center facilities. To support execution of this contract, we purchased land in Farmville, North Carolina for construction of an additional fabrication facility, which is expected to be completed during the third quarter of Fiscal 2027.
Current wording
As of July 31, 2026, the Industrial segment’s project backlog was approximately $209.6 million as compared to $253.0 million on January 31, 2026. In November 2025, we were awarded a contract for the fabrication of approximately 2,000 horizontal pressure vessels intended for use in thermal energy storage and chilled water buffer cooling systems at the customer's data center facilities. To support execution of this contract and future orders, we purchased land in Farmville, North Carolina for construction of an additional fabrication facility, which is expected to be completed during the third quarter of Fiscal 2027.
Previous wording
The revenues of the Power segment increased by 41.4%, or $66.3 million, to $226.7 million for the three months ended April 30, 2026 compared with revenues of $160.4 million for the three months ended April 30, 2025 as the quarterly construction activities increased for the 1.4 GW Thermal Project, the 700 MW Combined-Cycle Project, the Sandow Lakes Power Station, and the 860 MW Thermal Project. The increase in revenues between quarters was partially offset by decreased construction activities associated with the Trumbull Energy Center. The revenues of this business segment represented approximately 77.9% of consolidated revenues for the quarter ended April 30, 2026 and 82.8% of consolidated revenues for the corresponding prior year quarter.
Current wording
The revenues of the Power segment increased by 52.9%, or $104.3 million, to $301.2 million for the three months ended July 31, 2026 compared with revenues of $196.9 million for the three months ended July 31, 2025 as the quarterly construction activities increased for the 1.4 GW Thermal Project, the 700 MW Combined-Cycle Project, the 1.2 GW Power Station, and the 860 MW Thermal Project. The primary drivers for this segment’s revenues for the three months ended July 31, 2025, were the construction of the 405 MW Midwest Solar Project, the Midwest Solar and Battery Projects, and the Trumbull Energy Center. The revenues of this business segment represented approximately 78.4% of consolidated revenues for the quarter ended July 31, 2026 and 82.8% of consolidated revenues for the corresponding prior year quarter.
Previous wording
The revenues of Industrial segment increased by $29.1 million, or 99.8%, to $58.3 million for the three months ended April 30, 2026 compared to revenues of $29.2 million for the three months ended April 30, 2025, as the amounts of field services construction activities and vessel fabrication work increased between periods. For the three months ended April 30, 2026 and 2025, the revenues of this segment represented 20.0% and 15.1% of consolidated revenues for the corresponding periods, respectively.
Current wording
The revenues of the Industrial segment increased by $40.1 million, or 111.2%, to $76.2 million for the three months ended July 31, 2026 compared to revenues of $36.1 million for the three months ended July 31, 2025, as the amounts of field services construction activities and vessel fabrication work increased between periods. For the three months ended July 31, 2026 and 2025, the revenues of this segment represented 19.8% and 15.2% of consolidated revenues for the corresponding periods, respectively.
Previous wording
Due primarily to the increase in consolidated revenues for the three months ended April 30, 2026 compared with revenues for the three months ended April 30, 2025, consolidated cost of revenues also increased. These costs were $229.8 million and $156.8 million for the three-month periods ended April 30, 2026 and 2025, respectively.
Current wording
Due primarily to the increase in consolidated revenues for the three months ended July 31, 2026 compared with revenues for the three months ended July 31, 2025, consolidated cost of revenues also increased. These costs were $309.8 million and $193.5 million for the three-month periods ended July 31, 2026 and 2025, respectively.
Previous wording
For the three-month period ended April 30, 2026, we reported a consolidated gross profit of approximately $61.1 million, which represented a gross profit percentage of approximately 21.0% of corresponding consolidated revenues. For the three-month period ended April 30, 2025, we reported a consolidated gross profit of approximately $36.9 million, which represented a gross profit percentage of approximately 19.0% of corresponding consolidated revenues. The gross profit percentage increased between periods primarily due to the changing mix of projects and contract types, as well as strong execution on the final Midwest Solar and Battery Project, which enabled us to reach substantial completion ahead of schedule. The gross profit percentages of corresponding revenues for the Power, Industrial, and the Teledata segments were 23.6%, 11.8% and 11.0%, respectively, for the quarter ended April 30, 2026. The gross profit percentages of corresponding revenues for the Power, Industrial, and the Teledata segments were 20.6%, 10.8% and 18.0%, respectively, for the quarter ended April 30, 2025.
Current wording
For the three-month period ended July 31, 2026, we reported a consolidated gross profit of approximately $74.2 million, which represented a gross profit percentage of approximately 19.3% of corresponding consolidated revenues. For the three-month period ended July 31, 2025, we reported a consolidated gross profit of approximately $44.3 million, which represented a gross profit percentage of approximately 18.6% of corresponding consolidated revenues. The gross profit percentage increased between periods primarily due to the changing mix of projects and contract types and strong execution in our Power segment. The increase in gross profit percentage was partially offset by decreased performance on certain projects in our Industrial and Teledata segments. The gross profit percentages of corresponding revenues for the Power, Industrial, and the Teledata segments were 22.4%, 7.3% and 16.6%, respectively, for the quarter ended July 31, 2026. The gross profit percentages of corresponding revenues for the Power, Industrial, and the Teledata segments were 19.6%, 12.5% and 24.7%, respectively, for the quarter ended July 31, 2025.
Previous wording
These costs were $15.7 million and $12.5 million for the three months ended April 30, 2026 and 2025, respectively, and represented 5.4% and 6.5% of corresponding consolidated revenues, respectively.
Current wording
These costs were $17.4 million and $14.2 million for the three months ended July 31, 2026 and 2025, respectively, and represented 4.5% and 6.0% of corresponding consolidated revenues, respectively.
Previous wording
For the three months ended April 30, 2026 and 2025, the net amounts of other income were $8.4 million and $5.4 million, respectively, which primarily reflected income earned during the periods on investments, cash and cash equivalent balances. The increase in other income, net, period-over-period was driven by higher average balances of cash and invested funds, partially offset by a lower weighted average annual yield during the three months ended April 30, 2026 compared to the same period in the prior year.
Current wording
For the three months ended July 31, 2026 and 2025, the net amounts of other income were $10.1 million and $5.6 million, respectively, which primarily reflected income earned during the periods on investments, cash and cash equivalent balances. The increase in other income, net, period-over-period was driven by higher average balances of cash and invested funds, partially offset by a lower weighted average annual yield during the three months ended July 31, 2026 compared to the same period in the prior year.
Previous wording
We recorded income tax expense for the three months ended April 30, 2026 in the net amount of approximately $7.7 million. Our effective income tax rate for the three months ended April 30, 2026 was 14.3%. This effective tax rate differed from the U.S. federal statutory rate of 21% dueprimarily to the favorable tax benefits resulting from the vesting of restricted stock units and stock option exercises during the period.
Current wording
We recorded income tax expense for the three months ended July 31, 2026 in the net amount of approximately $13.6 million. Our effective income tax rate for the three months ended July 31, 2026 was 20.3%. This effective tax rate differed from the U.S. federal statutory rate of 21% due primarily to the favorable tax benefit resulting from stock option exercises and other share-based award settlements during the period.
Previous wording
We recorded income tax expense for the three months ended April 30, 2025 in the net amount of approximately $7.2 million. Our effective income tax rate for the three months ended April 30, 2025 was 24.3%. This effective tax rate differed from the U.S. federal statutory rate of 21% due primarily to the typically unfavorable estimated effects of state income taxes.
Current wording
We recorded income tax expense for the six months ended July 31, 2026 in the net amount of approximately $21.3 million. Our effective income tax rate for the six months ended July 31, 2026 was 17.6%. This effective tax rate differed from the U.S. federal statutory rate of 21% dueprimarilyto the favorable tax benefit resulting from stock option exercises and other share-based award settlements during the period.
Previous wording
As of April 30, 2026 and January 31, 2026, our balances of cash and cash equivalents were $355.8 million and $339.5 million, respectively, which represented an increase of $16.3 million during the current fiscal quarter.
Current wording
As of July 31, 2026 and January 31, 2026, our balances of cash and cash equivalents were $364.5 million and $339.5 million, respectively, which represented an increase of $25.0 million during the current fiscal year.
Previous wording
The net amount of cash provided by operating activities for the three months ended April 30, 2026 was $113.4 million. Our net income for the three months ended April 30, 2026, adjusted favorably by the net amount of non-cash income and expense items, represented a source of cash in the total amount of $49.4 million. The increase in contract liabilities of $51.8 million and the increase in the combined level of accounts payable and accrued expenses in the amount of $17.5 million represented sources of cash during the period. The decrease in contract assets of $6.5 million and the decrease in accounts receivable in the amount of $2.9 million also represented sources of cash during the period. The increase of other assets of $14.6 million represented uses of cash during the period.
Current wording
The net amount of cash provided by operating activities for the six months ended July 31, 2026 was $210.4 million. Our net income for the six months ended July 31, 2026, adjusted favorably by the net amount of non-cash income and expense items, represented a source of cash in the total amount of $106.6 million. The increase in contract liabilities of $113.1 million and the increase in the combined level of accounts payable and accrued expenses in the amount of $41.1 million represented sources of cash during the period. The decrease in contract assets of $7.8 million also represented a source of cash during the period. The increase in accounts receivable of $44.5 million and the increase in other assets in the amount of $13.7 million represented uses of cash during the period.
Previous wording
During the three months ended April 30, 2026, we used $67.5 million for investing activities, including $45.0 million, net of maturities, to invest in AFS securities consisting of U.S. Treasury notes. We also used $20.0 million, net of maturities, to invest in CDs issued by the bank. We also used $2.4 million for purchases of property, plant, and equipment.
Current wording
During the six months ended July 31, 2026, we used $130.7 million for investing activities, including $85.1 million, net of maturities, to invest in AFS securities consisting of U.S. Treasury notes. We also used $30.0 million, net of maturities, to invest in CDs. We also used $7.7 million for purchases of property, plant, and equipment. We also used $8.0 million, net of cash acquired, for the acquisition of ValCor.
Previous wording
For the three months ended April 30, 2026, we used $33.7 million in cash for financing activities, including $23.7 million for share-based award settlements, which represented payments for withholding taxes reimbursed by shares of common stock, net of proceeds received from stock option exercises. We also used $7.0 million for the payment of regular cash dividends and $3.0 million used to repurchase shares of common stock pursuant to our share purchase program. As of April 30, 2026, there were no restrictions with respect to intercompany payments between the holding company and all subsidiaries.
Current wording
For the six months ended July 31, 2026, we used $51.7 million in cash for financing activities, including $28.1 million for share-based award settlements, which represented payments for withholding taxes reimbursed by shares of common stock, net of proceeds received from stock option exercises. We also used $14.0 million for the payment of regular cash dividends and $9.6 million used to repurchase shares of common stock pursuant to our share purchase program. As of July 31, 2026, there were no restrictions with respect to intercompany payments between the holding company and all subsidiaries.
Previous wording
In order to monitor the actual and necessary levels of liquidity for our business, we focus on net liquidity, or working capital, in addition to our cash balances. During the three months ended April 30, 2026, our net liquidity increased by $0.4 million to $421.4 million from $421.0 million as of January 31, 2026, due primarily to our net income, partially offset by the payment of cash dividends, common stock repurchases, and settlements of share-based awards, net of withholding taxes paid. Our working capital levels are less subject to the volatility that affects our cash and cash equivalents because we carry no debt service obligations, fixed asset acquisitions in a reporting period are typically low, and our net liquidity includes short-term investments and AFS investments.
Current wording
In order to monitor the actual and necessary levels of liquidity for our business, we focus on net liquidity, or working capital, in addition to our cash balances. During the six months ended July 31, 2026, our net liquidity increased by $19.4 million to $440.4 million from $421.0 million as of January 31, 2026, due primarily to our net income, partially offset by the payment of cash for the ValCor acquisition, payment of cash dividends, common stock repurchases, and settlements of share-based awards, net of withholding taxes paid. Our working capital levels are less subject to the volatility that affects our cash and cash equivalents because we carry no debt service obligations, fixed asset acquisitions in a reporting period are typically low, and our net liquidity includes short-term investments and AFS investments.
Previous wording
As of April 30, 2026, we did not have any outstanding borrowings under the Credit Agreement. However, the Bank has issued a letter of credit in the total outstanding amount of $0.5 million as of April 30, 2026. The comparable outstanding total amount of letters of credit at January 31, 2026 was $0.3 million.
Current wording
As of July 31, 2026, we did not have any outstanding borrowings under the Credit Agreement. However, the Bank has issued a letter of credit in the total outstanding amount of $0.5 million as of July 31, 2026. The comparable outstanding total amount of the letter of credit at January 31, 2026 was $0.3 million.
Previous wording
As of April 30, 2026, the estimated amount of our unsatisfied bonded performance obligations, covering all of our subsidiaries, was approximately $1.0 billion. In addition, as of April 30, 2026, the outstanding amount of bonds covering other risks, including warranty obligations and contract payment retentions related to completed activities, was $37.9 million.
Current wording
As of July 31, 2026, the estimated amount of our unsatisfied bonded performance obligations, covering all of our subsidiaries, was approximately $0.9 billion. In addition, as of July 31, 2026, the outstanding amount of bonds covering other risks, including warranty obligations and contract payment retentions related to completed activities, was $104.3 million.
Previous wording
We believe that EBITDA is a meaningful presentation that enables us to assess and compare our operating performance on a consistent basis by removing from our operating results the impacts of our capital structure, the effects of the accounting methods used to compute depreciation and amortization and the effects of operating in different income tax jurisdictions. Further, we believe that EBITDA is widely used by investors and analysts as a measure of performance.
Current wording
We believe that EBITDA is a meaningful presentation that enables us to assess and compare our operating performance on a consistent basis by removing from our operating results the impacts of our capital structure, the effects of the
Previous wording
The following tables present the determinations of EBITDA for the three months ended April 30, 2026 and 2025, respectively (amounts in thousands):
Current wording
The following tables present EBITDA for the three and six months ended July 31, 2026 and 2025, respectively (amounts in thousands):
Rearranged current paragraphs (8)
Current report — wording carried from elsewhere
While utility-scale solar, wind, and battery storage projects continue to expand their prevalence – supported by declining capital costs, improved energy storage systems, and policy incentives – they often cannot provide the same level of
Current report — wording carried from elsewhere
Comparison of the Results of Operations for the Six Months Ended July 31, 2026 and 2025
Current report — wording carried from elsewhere
The following schedule compares our operating results for the six months ended July 31, 2026 and 2025 (dollars in thousands):
Current report — wording carried from elsewhere
The revenues of the Industrial segment increased by $69.2 million, or 106.1%, to $134.5 million for the six months ended July 31, 2026 compared to revenues of $65.2 million for the six months ended July 31, 2025, as the amounts of field services construction activities and vessel fabrication work increased between periods. For the six months ended July 31, 2026 and 2025, the revenues of this segment represented 19.9% and 15.1% of consolidated revenues for the corresponding periods, respectively.
Current report — wording carried from elsewhere
Due primarily to the increase in consolidated revenues for the six months ended July 31, 2026 compared with revenues for the six months ended July 31, 2025, consolidated cost of revenues also increased. These costs were $539.6 million and $350.3 million for the six-month periods ended July 31, 2026 and 2025, respectively.
Current report — wording carried from elsewhere
For the six-month period ended July 31, 2026, we reported a consolidated gross profit of approximately $135.3 million, which represented a gross profit percentage of approximately 20.1% of corresponding consolidated revenues. For the six-month period ended July 31, 2025, we reported a consolidated gross profit of approximately $81.1 million, which represented a gross profit percentage of approximately 18.8% of corresponding consolidated revenues. The gross profit percentage increased between periods primarily due to the changing mix of projects and contract types and strong execution in our Power segment. The increase in gross profit percentage was partially offset by decreased performance on certain projects in our Industrial and Teledata segments. The gross profit percentages of corresponding revenues for the Power, Industrial, and the Teledata segments were 23.0%, 9.2% and 13.9%, respectively, for the six months ended July 31, 2026. The gross profit percentages of corresponding revenues for the Power, Industrial, and the Teledata segments were 20.0%, 11.8% and 21.6%, respectively, for the six months ended July 31, 2025.
Current report — wording carried from elsewhere
For the six months ended July 31, 2026 and 2025, the net amounts of other income were $18.5 million and $11.0 million, respectively, which primarily reflected income earned during the periods on investments, cash and cash equivalent balances. The increase in other income, net, period-over-period was driven by higher average balances of cash and invested funds, partially offset by a lower weighted average annual yield during the six months ended July 31, 2026 compared to the same period in the prior year.
Current report — wording carried from elsewhere
accounting methods used to compute depreciation and amortization and the effects of operating in different income tax jurisdictions. Further, we believe that EBITDA is widely used by investors and analysts as a measure of performance.
Rearranged previous paragraphs (2)
Previous report — wording carried elsewhere
Throughout the U.S., the risk of electricity shortages is rising as the retirement of traditional power plants outpaces their replacements. Grid operators have emphasized the need for additional dispatchable, reliable power sources to support system stability, particularly during periods of peak demand or reduced renewable output. Natural gas-fired power plants are expected to remain a key component of future capacity additions due to their cost-effectiveness, reliability, and ability to support intermittent energy sources.
Previous report — wording carried elsewhere
The primary drivers for this segment’s revenues for the three months ended April 30, 2025, were the construction of the Trumbull Energy Center and the 405 MW Midwest Solar Project.