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PRESENTATION Second Quarter Fiscal 2027 Results
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Safe Harbor Statement All statements in this presentation that are not historical are forward-looking statements within the meaning of Section 21E of the Securities Exchange Act of 1934. Such forward-looking statements may be identified by words such as “believe,” “intend,” “expect,” “may,” “could,” “would,” “will,” “should,” “plan,” “project,” “contemplate,” “anticipate,” or similar statements. Because these statements reflect the current views of Argan, Inc. (“Argan” or the “Company”) concerning future events, these forward-looking statements are subject to risks and uncertainties. Argan’s actual results could differ materially from those anticipated in these forward-looking statements as a result of many factors, which are described under the caption “Risk Factors” in Argan’s most recent Form 10-K filed with the Securities and Exchange Commission. Argan undertakes no obligation to update publicly any forward-looking statements contained in this presentation. 2 The Company prepares its financial statements in accordance with accounting principles generally accepted in the United States (“GAAP”). Within this presentation, the Company makes reference to earnings before interest, taxes, depreciation and amortization (“EBITDA”), Adjusted EBITDA, and Adjusted EBITDA margin, each of which is a non-GAAP financial measure. The Company defines Adjusted EBITDA as EBITDA adjusted to exclude the impact of non-cash stock-based compensation expense. Adjusted EBITDA margin is calculated by dividing Adjusted EBITDA by total revenues. The Company believes these non-GAAP financial measures provide useful supplemental information to management and investors in evaluating the Company's operating performance because they exclude certain items that may not be indicative of the Company's core operating results or may affect comparability between periods or among companies with different capital structures, tax positions, depreciation policies, or equity compensation practices. Adjusted EBITDA and Adjusted EBITDA margin exclude stock-based compensation expense, a non-cash item that management believes impacts the comparability of operating results between reporting periods. These non-GAAP financial measures should be considered in conjunction with, and not as substitutes for, the GAAP financial information. These measures have limitations as analytical tools because they exclude certain items, including interest, income tax expense, depreciation and amortization expense, and in the case of Adjusted EBITDA and Adjusted EBITDA margin, stock-based compensation expense. The methods used by the Company to calculate these non-GAAP financial measures may differ from methods used by other companies and, as a result, may not be comparable to similarly titled measures reported by other companies. Financial tables at the end of this presentation provide reconciliations of these non-GAAP financial measures to the most directly comparable GAAP measures. Non-GAAP Financial Measures
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Q2 2027 Highlights 3 • Record quarterly revenue of $384M; increase of 62% with gross margin of 19.3% • Record earnings per diluted share of $3.76 in Q2, up $1.26 year over year • Record adjusted EBITDA of $70M, or 18.2% as a percentage of revenue • Project backlog of $2.5B at July 31, 2026 • Solid balance sheet: cash and investments of $1B and net liquidity of $440M; no debt • Paid quarterly dividend of $0.50 per common share • Teledata segment acquired ValCor Communications • Increased its geographic presence to include New England • Expanded customer base to include Fortune 500 technology companies as well as defense and aerospace clients in the region
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Business Segments 4 Power 78% Q2 Revenues: $301M Pre-Tax Income: $66M 20% Industrial Q2 Revenues: $76M Pre-Tax Income: $4M Teledata 2% Q2 Revenues: $7M Pre-Tax Loss: $0.2M Financial information presented for quarter ended July 31, 2026
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0 500 1000 1500 2000 2500 3000 FY 2024 FY 2025 FY 2026 2Q 2027 Teledata Industrial Power Significant Backlog 5 • Project backlog as of July 31, 2026, is fully committed by customers and actively being worked on today $3M $128M $626M $0.8B $4M $53M $1.3B $1.4B $8M $253M $2.7B $2.9B $2.5B $2.3B $210M $9M
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Enabling the Electrification of Everything Industry Drivers • Growing demand for reliable and affordable electricity driven by data centers, EVs, and manufacturing • U.S. data center power demand is projected to nearly triple to 134.4GW by 20301 • Peak electricity demand is expected to increase 25% by 2035 and 57% by 2050 2 • Massive infrastructure replacement needed as decades-old power assets require urgent upgrades or replacements • Aging powerplants — 104GW of expected retirements by 20303 Natural Gas 80% Industrial 8% 6 91% Backlog Supports the Electric Economy Renewable 11% 1 S&P Global 451 Research Report, October 2025 2 ICF, Fast Forward: Electricity Demand Expected to Grow 25% by 2035, June 2026. Demand increase from 2026 levels. 3 U.S. Department of Energy Resource Adequacy Report, July 2025 Backlog percentages at July 31, 2026
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7 Strong Backlog Composition Business Segment Project Description Location Size Project Start Estimated Completion CPV Basin Ranch Energy Center Full notice to proceed on 2-1x1 combined-cycle power plant Texas 1,350 MW 2025 2029 Sandow Lakes Power Station Full notice to proceed on ultra-efficient combined- cycle natural gas-fired plant Texas 1,200 MW 2025 2028 860 MW Thermal Project Full notice to proceed on natural gas-fired power plant Texas 860 MW 2025 2028 700 MW Combined-Cycle Project Full notice to proceed on combined-cycle natural gas-fired power plant USA ~700 MW 2024 2028 405 MW Midwest Solar Project Full notice to proceed on solar project Illinois 405 MW 2024 2026 Tarbert Next Generation Power Plant EPC services contract for biofuel power plant Ireland 300 MW 2025 2027 170 MW Thermal Project EPC services contract for biofuel power plant Ireland 170 MW 2025 2028 Data Center Project Contract to fabricate thermal expansion and energy storage tanks for data centers USA $125 million 2026 2028 Recycling and Water Treatment Plant Contract for the electrical and water treatment scope of work Alabama $100 million 2025 2027
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8 Consolidated Financial Results 2026 2025 2026 2025 Revenues $384 $238 $675 $431 Gross Profit $74 $44 $135 $81 Gross margin % 19.3% 18.6% 20.1% 18.8% SG&A $17 $14 $33 $27 SG&A as a % of revenue 4.5% 6.0% 4.9% 6.2% Net Income $53 $35 $99 $58 Diluted earnings per share $3.76 $2.50 $7.01 $4.09 Adjusted EBITDA $70 $38 $126 $70 Adjusted EBITDA as a % of revenue 18.2% 16.2% 18.7% 16.2% Cash dividends per share $0.500 $0.375 $1.00 $0.750 Weighted average shares outstanding - diluted 14,164 14,131 14,181 14,122 Three Months Ended July 31, Six Months Ended July 31, ($ in millions, shares in thousands)
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Strong Balance Sheet 9 Strong cash position and no debt provide significant bonding capacity to support future growth and shareholder value $247 $260 $281 $301 $315 $344 $377 $421 $421 $440 $293 $308 $329 $352 $364 $393 $420 $462 $474 $507 $416 $485 $506 $525 $546 $572 $727 $895 $974 $1,028 $0 $100 $200 $300 $400 $500 $600 $700 $800 $900 $1,000 $1,100 1Q25 2Q25 3Q25 4Q25 1Q26 2Q26 3Q26 4Q26 1Q27 2Q27 $ in Millions Net liquidity Shareholders' equity Cash, cash equivalents, and investments
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YTD Fiscal 2027 Net Liquidity Bridge 10 Given the variability of our cash balance due to prepayments and the cash flow cycle of our long-term projects, we believe net liquidity provides a conservative measure of unencumbered liquid capital; we have no debt. Flexible business model with minimal capital expenditures $99.4 ($20.3) ($8.0) ($14.0) ($37.7) $440.4 $421.0 1/31/2026, Net Liquidity + Net Income +/- Other, net - Acquisition, net of cash acquired - Dividends Paid - Share Repurchases / Net Settlements 7/31/2026, Net Liquidity $ in Millions $0 $50 $100 $150 $200 $250 $300 $350 $400 $450 $500 $550 Increase Decrease Total Operations Return of CapitalM&A
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Disciplined Capital Allocation 11 Invest in organic growth - Strategically increasing headcount to meet demand and staff projects appropriately - Constructing new fabrication facility within Industrial segment to address demand Paid quarterly dividend $0.50 per common share during 2Q27 - Annual dividend rate of $2.00 per common share - Three straight years of dividend increases, cumulatively representing a 100% increase compared to June 2023 Opportunistic and active share repurchases - $123.8 million returned to shareholders since November 2021 through share repurchase program M&A to grow or expand the platform - Teledata segment acquired ValCor Communications, a Connecticut- based provider of installation and repair services for information, communication, and data networks
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Outlook 12 • Partner of choice for innovative energy solutions as demand on power grid intensifies • Backlog of diversified projects positions the Company for continued growth • Proven track record of exceptional execution; disciplined risk management • Electrification of everything, AI data center needs, and onshoring of manufacturing activities creating a strong demand environment • Strong balance sheet also supports M&A opportunities • Argan remains confident in its ability to drive increasing revenues through an expanding pipeline 1 ICF, Fast Forward: Electricity Demand Expected to Grow 25% by 2030, June 2025. Demand increase from 2023 levels. Argan is positioned to support the growth in electricity demand: Demand expected to increase 25% by 2030 and 78% by 20501
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Q & A
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APPENDIX
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15 Reconciliation of Consolidated Net Income to Adjusted EBITDA Three Months Ended July 31, Six Months Ended July 31, 2026 2025 2026 2025 Revenues $383,976 $237,743 $674,930 $431,403 Net income, as reported $53,302 $35,275 $99,365 $57,825 Provision for income taxes 13,586 361 21,292 7,597 Depreciation 645 491 1,204 906 Amortization of intangible assets 75 98 150 196 EBITDA 67,608 36,225 122,011 66,524 Stock-based compensation expense 2,422 2,265 4,458 3,453 Adjusted EBITDA $70,030 $38,490 $126,469 $69,977 Adjusted EBITDA margin 18.2% 16.2% 18.7% 16.2% ($ in thousands)