Argan Inc (AGX) 2025 Q3 法說會逐字稿

Good evening, ladies and gentlemen, and welcome to the Argan, Inc. earnings release conference call for the third fiscal quarter ended October 31, 2024. This call is being recorded. (Operator Instructions)

女士們、先生們，晚上好，歡迎參加 Argan, Inc. 截至 2024 年 10 月 31 日的第三財季財報電話會議。此通話正在錄音。（操作員說明）

At this time, it is my pleasure to turn the floor over to your host for today, Jennifer Belodeau of IMS Investor Relations. Please go ahead.

現在，我很高興將發言權交給今天的東道主，IMS 投資者關係部的 Jennifer Belodeau。請繼續。

Thank you. Good evening, and welcome to our conference call to discuss Argan's results for the third fiscal quarter ended October 31, 2024. On the call today, we have David Watson, Chief Executive Officer; and Josh Baugher, Chief Financial Officer.

謝謝。晚上好，歡迎參加我們的電話會議，討論 Argan 截至 2024 年 10 月 31 日的第三財季業績。今天的電話會議有執行長 David Watson；和財務長喬許鮑爾。

I will take a moment to read the safe harbor statements. Statements made during this conference call and presented in the presentation that are not based on historical facts are forward-looking statements. Such statements include, but are not limited to, projections or statements of future goals and targets regarding the company's revenues and profits. These statements are subject to known and unknown factors and risks.

我將花點時間閱讀安全港聲明。本次電話會議期間所做的以及簡報中提出的並非基於歷史事實的陳述均為前瞻性陳述。此類陳述包括但不限於有關公司收入和利潤的未來目標和目標的預測或陳述。這些陳述受到已知和未知的因素和風險的影響。

The company's actual results, performance, or achievements may differ materially from those expressed or implied by these forward-looking statements, and some of the factors and risks that could cause or contribute to such material differences have been described in this afternoon's press release and in Argan's filings with the US Securities and Exchange Commission. These statements are based on information and understandings that are believed to be accurate as of today, and we do not undertake any duty to update such forward-looking statements.

本公司的實際結果、業績或成就可能與這些前瞻性陳述中明示或暗示的結果、業績或成就存在重大差異，並且可能導致或促成此類重大差異的一些因素和風險已在今天下午的新聞稿和Argan 向美國證券交易委員會提交的文件。這些陳述是基於截至目前被認為準確的資訊和理解，我們不承擔更新此類前瞻性陳述的任何責任。

Earlier this afternoon, the company issued a press release announcing its third quarter fiscal 2025 financial results and filed its corresponding Form 10-Q report with the Securities and Exchange Commission.

今天下午早些時候，該公司發布新聞稿，宣布其 2025 財年第三季財務業績，並向美國證券交易委員會提交了相應的 10-Q 表格報告。

Okay. With that out of the way, I will turn the call over to David Watson, CEO of Argan. Go ahead, David.

好的。解決這個問題後，我會將電話轉給 Argan 執行長 David Watson。繼續吧，大衛。

Thanks, Jennifer, and thank you, everyone, for joining today. I'll start by reviewing some of the highlights of our operations and activities; and Josh Baugher, our CFO, will go over our financial results for the third fiscal quarter ended October 31, 2024. Then we'll open up the call for a brief Q&A.

謝謝詹妮弗，也謝謝大家今天的加入。首先，我將回顧我們營運和活動的一些亮點；我們的財務長 Josh Baugher 將審查截至 2024 年 10 月 31 日的第三財季的財務表現。然後我們將打開電話進行簡短的問答。

Our third quarter results were the second highest in company history, and I'm very proud of our team's accomplishment. We are looking forward to continued success in the coming years. We delivered strong execution in the quarter, as evidenced by consolidated revenue growth of 57% to $257 million, with gross margin of 17.2%, substantially improved net income of $28 million, or $2 per diluted share, and EBITDA of $37.5 million.

我們第三季的業績是公司史上第二高的，我為我們團隊的成就感到非常自豪。我們期待在未來幾年繼續取得成功。我們本季的執行力強勁，綜合營收成長 57%，達到 2.57 億美元，毛利率為 17.2%，淨利潤大幅提高，達到 2,800 萬美元，即稀釋後每股收益 2 美元，EBITDA 達到 3,750 萬美元。

Our power services segment had a particularly strong quarter, as evidenced by revenue growth of 75% to $212 million, with a gross margin of 18.3%, demonstrating our ability to drive enhanced profitability on our renewable as well as on our natural gas projects.

我們的電力服務部門的季度表現特別強勁，營收成長了 75%，達到 2.12 億美元，毛利率為 18.3%，這表明我們有能力提高再生能源和天然氣項目的獲利能力。

TRC has delivered a solid quarter with revenue growth of 8%, and our telecommunications segment recorded revenue performance consistent with last year's third quarter.

TRC 的季度業績表現強勁，營收成長了 8%，我們的電信部門的營收表現與去年第三季一致。

Project backlog of $0.8 billion at the close of the quarter represents an increase of 6% compared to backlog at the beginning of the year, and includes $478 million of renewable projects, reflecting the market appeal of our energy-agnostic capabilities and our ability to diversify our backlog mix.

截至本季末，未完成項目為 8 億美元，較年初增加了 6%，其中包括 4.78 億美元的可再生能源項目，反映了我們與能源無關的能力和多元化能力的市場吸引力我們的積壓組合。

Additionally, our balance sheet reflected $506 million of cash and investments, net liquidity of $281 million, and no debt at October 31, 2024.

此外，截至 2024 年 10 月 31 日，我們的資產負債表反映了 5.06 億美元的現金和投資，淨流動性為 2.81 億美元，並且沒有債務。

During the quarter, our Board of Directors approved a 25% increase in our quarterly dividend amount to $0.375 per common share, or $1.50 annually, from the previous quarter dividend amount of $0.30 per common share. This increase comes just one year after our previous dividend raise and reflects our confidence in the business and our favorable view of the growing pipeline of opportunities we're seeing as the industry mobilizes to build the facilities, both traditional gas-fired and renewable, that will be needed to meet the anticipated surge in energy demand that has been widely projected.

本季度，我們的董事會批准將季度股息金額從上一季每股普通股 0.30 美元的股息金額增加 25% 至每股普通股 0.375 美元，即每年 1.50 美元。這一增長是在我們上次提高股息一年後發生的，反映了我們對業務的信心，以及我們對隨著行業動員建設傳統燃氣和可再生設施而不斷增長的機會的樂觀看法。廣泛預測的能源需求的預期激增。

Now on to the operational review. Slides 4 and 5 present our three reportable business segments. Power industry services is comprised of our Gemma Power Systems and Atlantic Projects Company operating units, which focus on the construction of multiple types of power facilities, including efficient gas-fired power plants, solar energy fields, biomass facilities, and wind farms.

現在進行操作審查。投影片 4 和 5 介紹了我們的三個可報告業務部門。電力產業服務由我們的 Gemma Power Systems 和 Atlantic Projects Company 營運單位組成，專注於多種類型電力設施的建設，包括高效能燃氣發電廠、太陽能發電場、生質能設施和風電場。

Power industry services revenues increased 75% to $212 million for the current quarter, as compared to $121.3 million for the third quarter of fiscal 2024. The segment represented 83% of our third quarter revenues and reported pretax book income of $36 million.

本季電力產業服務營收成長 75%，達到 2.12 億美元，而 2024 財年第三季為 1.213 億美元。該部門占我們第三季收入的 83%，稅前帳面收入為 3,600 萬美元。

Industrial construction services, which is represented by TRC, had a solid quarter, with revenue growth of 8% to $41.3 million, or 16% of our third quarter consolidated revenues, and pretax book income of $2.7 million. TRC primarily provides solutions for industrial construction projects with a concentration in agriculture, petrochemical, pulp and paper, water and power, and has seen a great deal of market interest for our capabilities as a project partner, as many companies onshore or expand their US manufacturing operations. TRC has a strong footprint in the Southeast region of the US, which is a notably high-growth region for its focus industries.

以 TRC 為代表的工業建築服務季度表現強勁，營收成長 8%，達到 4,130 萬美元，占我們第三季合併收入的 16%，稅前帳面營收為 270 萬美元。 TRC主要為農業、石化、紙漿和造紙、水和電力領域的工業建設項目提供解決方案，隨著許多公司在美國本土或擴大其製造業務，我們作為項目合作夥伴的能力受到了極大的市場興趣。TRC 在美國東南部地區擁有強大的影響力，該地區是其重點行業的高成長地區。

Finally, we have our telecommunications infrastructure services group, our smallest segment, which contributed 1% of our third quarter revenues. SMC Infrastructure Solutions is our operating brand in this segment, providing outside construction services for the utility and telecommunications sectors, as well as inside-the-premises wiring services, primarily for federal government locations and military installations requiring high-level security clearance.

最後，我們還有電信基礎設施服務部門，這是我們最小的部門，占我們第三季營收的 1%。SMC 基礎設施解決方案是我們在該領域的營運品牌，為公用事業和電信業提供外部施工服務，以及室內佈線服務，主要為需要高級別安全許可的聯邦政府所在地和軍事設施提供服務。

During the past year, we have commented, and many media and industry publications have noted, that energy demand in the US and around the globe is expected to grow substantially in the near term. In the US, as more data centers come online and manufacturing operations are reshored, our power grid is going to need additional energy resources to function reliably and securely in generating high-quality power to meet 24/7 demand.

在過去的一年裡，我們評論道，許多媒體和行業出版物也指出，美國和全球的能源需求預計在短期內將大幅增長。在美國，隨著越來越多的資料中心上線和製造業務回流，我們的電網將需要額外的能源資源才能可靠、安全地運行，產生高品質的電力，以滿足 24/7 的需求。

Additionally, EVs are steadily increasing as a percentage of new cars sold, and with that growth, we can expect more homes and commercial spaces to install EV chargers, adding another element of demand to the power grid. With these considerations in mind, it is widely acknowledged that energy infrastructure needs to be expanded and strengthened to meet anticipated increased capacity demands.

此外，電動車在新車銷售中所佔的比例正在穩步增長，隨著這種增長，我們預計會有更多的家庭和商業空間安裝電動車充電器，從而增加電網的另一個需求要素。考慮到這些因素，人們普遍認為需要擴大和加強能源基礎設施，以滿足預期增加的容量需求。

With our energy-agnostic capabilities, Argan is uniquely positioned to facilitate the construction of any type of power facility. So as it has become more evident that the most efficient way to ensure stable grids and reliable power generation is through a combination of traditional gas-fired power plants as well as renewables, we're well suited for any and all projects that bolster energy generation.

憑藉我們與能源無關的能力，Argan 具有獨特的優勢，可促進任何類型電力設施的建設。因此，越來越明顯的是，確保穩定電網和可靠發電的最有效方法是結合傳統燃氣發電廠和再生能源，我們非常適合任何和所有促進能源發電的專案。

We're optimistic about the pipeline of opportunities we're seeing and look forward to playing a leading role in the ensuing buildout of the power resources we need in order to meet the expected significant growth in demand.

我們對所看到的一系列機會感到樂觀，並期待在隨後建立我們所需的電力資源方面發揮主導作用，以滿足預期的需求大幅增長。

We have been a long-time leader in supporting the establishment of cleaner power resources. Renewable projects represented approximately $478 million of our $0.8 billion backlog at October 31, 2024, and 92% of our current project backlog supports 0 or low carbon emissions.

長期以來，我們一直是支持建立清潔電力資源的領導者。截至 2024 年 10 月 31 日，再生能源專案約占我們 8 億美元積壓專案中的 4.78 億美元，我們目前積壓專案的 92% 支持零排放或低碳排放。

Over the last few years, the company has intentionally diversified our backlog to include increasing portion of renewable projects. Nonetheless, we expect gas-fired and other thermal power plants to remain the core of our business for many years to come, especially as the industry seeks to provide consistent and high-quality power sources. We are committed to adding additional power plant construction jobs over the next eight months, and we'll focus on executing for our customers while growing our team to ensure we're well-staffed for the opportunities ahead.

在過去的幾年裡，該公司有意使我們的積壓項目多樣化，以包括越來越多的再生能源項目。儘管如此，我們預計燃氣發電廠和其他火力發電廠在未來許多年仍將是我們業務的核心，特別是在該行業尋求提供一致和高品質的電力來源的情況下。我們致力於在未來八個月內增加額外的發電廠建設工作，我們將專注於為客戶執行任務，同時發展我們的團隊，以確保我們擁有充足的人員來迎接未來的機會。

As I mentioned earlier, our team drove strong execution this quarter, and I'd like to provide some project updates. Gemma is at peak construction on the Trumbull Energy Center project in Lordstown, Ohio, where we're providing EPC services for a 950-megawatt natural gas-fired power plant.

正如我之前提到的，我們的團隊在本季度推動了強勁的執行力，我想提供一些專案更新。Gemma 位於俄亥俄州洛茲敦的特朗布爾能源中心項目正處於建設高峰期，我們正在為該項目的一座 950 兆瓦天然氣發電廠提供 EPC 服務。

Trumbull is a combined cycle power station that will assist in fulfilling electricity needs as the region phases out several coal-fired plants. From start to finish, the project will entail design, procurement, construction, and commissioning. Trumbull is designed to be one of the cleanest and most efficient combined cycle gas turbine projects in the PJM market, and we expect to complete it in the fourth quarter of fiscal 2026.

特朗布爾是一座聯合循環發電站，將有助於滿足該地區逐步淘汰幾座燃煤電廠的電力需求。該項目從開始到結束將包括設計、採購、施工和調試。Trumbull 旨在成為 PJM 市場上最乾淨、最高效的聯合循環燃氣渦輪機項目之一，我們預計將於 2026 財年第四季完成。

A shorter-term project we're currently working on is for the installation of five 90-megawatt gas turbines at a LNG facility in Louisiana. This is a Gemma-run project with collaboration from both TRC and APC, and demonstrates our ability to bring comprehensive solutions to the market quickly. We began this LNG project earlier this year and expect completion during calendar 2025.

我們目前正在進行的一個短期項目是在路易斯安那州的一個液化天然氣工廠安裝五台 90 兆瓦燃氣渦輪機。這是由 Gemma 運營的項目，由 TRC 和 APC 合作，展示了我們將全面解決方案快速推向市場的能力。我們在今年稍早啟動了這個液化天然氣項目，預計將於 2025 年完工。

We also have full notice to proceed on a utility-scale solar field in Illinois that will provide 405 megawatts of electrical power and will use preexisting transmission and utility infrastructure from a nearby retired coal power plant. Spanning more than 2,000 acres, this is our largest solar project to date. Given the current energy demand environment, it is an opportune time to be an established, well-regarded, full-service construction partner with proven expertise for both traditional and renewable power projects. We're excited by the pipeline of opportunities we're seeing and optimistic about what the future holds for Argan.

我們也全面通知將在伊利諾伊州建造一個公用事業規模的太陽能發電場，該發電場將提供 405 兆瓦的電力，並將使用附近一家退役燃煤發電廠現有的輸電和公用設施基礎設施。這是我們迄今為止最大的太陽能項目，佔地超過 2,000 英畝。鑑於當前的能源需求環境，現在是成為在傳統和再生能源專案方面擁有成熟專業知識、備受推崇的全方位服務建築合作夥伴的最佳時機。我們對看到的一系列機會感到興奮，並對摩洛哥堅果的未來感到樂觀。

With that, I'll turn the call over to Josh Baugher to take us through the third quarter financials. Go ahead, Josh.

接下來，我將把電話轉給喬許·鮑爾 (Josh Baugher)，讓他向我們介紹第三季的財務狀況。繼續吧，喬許。

Thanks, David, and good afternoon, everyone. On slide 11, we present our consolidated statements of earnings for the third quarter of fiscal 2025. Third quarter revenues increased 57% to $257 million, reflecting particularly strong performance in our power industry services segment and solid growth in our industrial construction segment as compared to the third quarter of fiscal 2024, as David detailed earlier.

謝謝大衛，大家下午好。在投影片 11 中，我們展示了 2025 財年第三季的合併損益表。正如David 先前詳細介紹的那樣，第三季營收成長了57%，達到2.57 億美元，反映出與2024 財年第三季相比，我們的電力產業服務部門表現尤為強勁，以及工業建築部門的穩健增長。

Project-wise, the increase in revenues primarily related to increased quarterly construction activities for the Midwest Solar and Battery Projects, the Trumbull Energy Center, the 405-megawatt Midwest solar project, and Louisiana LNG facility.

從專案角度來看，營收的成長主要與中西部太陽能和電池專案、特朗布爾能源中心、405兆瓦中西部太陽能專案和路易斯安那州液化天然氣設施的季度建設活動增加有關。

For the three-month period ended October 31, 2024, Argan reported consolidated gross profit of approximately $44.3 million, which represented a gross margin of approximately 17.2% and reflected contributions for all three reportable business segments.

截至 2024 年 10 月 31 日的三個月期間，Argan 報告的綜合毛利約為 4,430 萬美元，毛利率約為 17.2%，反映了所有三個可報告業務部門的貢獻。

Consolidated gross profit for the comparative quarter ended October 31, 2023, was $19.2 million, representing a gross margin of 11.7%. The increased gross profit and improved gross margin percentage for the current year quarter reflects the changing mix of projects, including increased US-based revenues, strong execution, and certain positive job closeouts.

截至 2023 年 10 月 31 日的比較季度的綜合毛利為 1,920 萬美元，毛利率為 11.7%。本季毛利的增加和毛利率的提高反映了專案組合的變化，包括美國收入的增加、強勁的執行力和某些積極的工作結束。

During the prior year third quarter, gross profit was negatively impacted by a loss on the Kilroot project, which reduced gross profit by approximately $10.7 million.

去年第三季度，毛利受到基爾魯特計畫虧損的負面影響，毛利減少了約 1,070 萬美元。

Selling, general, and administrative expenses of $14 million for the third quarter of fiscal 2025 increased as compared to SG&A of $11.4 million for the comparable prior year period. But these expenses decreased as a percentage of revenues to 5.4% for the third quarter of fiscal 2025, as compared to 6.9% of the third quarter of fiscal 2024.

2025 財年第三季的銷售、一般和管理費用增加了 1,400 萬美元，而去年同期的銷售、一般和管理費用為 1,140 萬美元。但 2025 財年第三季這些費用佔營收的百分比下降至 5.4%，而 2024 財年第三季為 6.9%。

Net income for the third quarter of this fiscal year was $28 million, or $2 per diluted share, compared to $5.5 million, or $0.40 per diluted share, for the last year's comparable quarter.

本財年第三季的淨利為 2,800 萬美元，即稀釋後每股收益 2 美元，而去年同期淨利為 550 萬美元，即稀釋後每股收益 0.40 美元。

EBITDA, earnings before interest, taxes, depreciation, and amortization, for the quarter ended October 31, 2024, was $37.5 million, compared to $12.2 million reported for the same period of last year.

截至 2024 年 10 月 31 日的季度，息稅折舊攤提前利潤 (EBITDA) 為 3,750 萬美元，而去年同期為 1,220 萬美元。

Other income for the three months ended October 31, 2024, was $6.6 million, and included investment income of $4.8 million, compared to other income of $3.7 million in the prior year period.

截至 2024 年 10 月 31 日的三個月其他收入為 660 萬美元，其中包括 480 萬美元的投資收入，而去年同期的其他收入為 370 萬美元。

Looking at our year-to-date performance, revenues for the first nine months of fiscal 2025 increased by 57% to $642 million, as compared to revenues of $409 million for the prior year period. The overall improvement in revenues was due to increased revenues in all three of our reportable segments.

從我們今年迄今的業績來看，2025 財年前九個月的營收成長了 57%，達到 6.42 億美元，而去年同期的營收為 4.09 億美元。收入的整體改善是由於我們所有三個可報告部門的收入增加。

Our consolidated gross margin of 14.6% for the first 9 months of the fiscal 2025 increased, as compared to gross margin of 14% in the first nine months of fiscal 2024, primarily due to the same reasons described for the quarter.

2025 財年前 9 個月的綜合毛利率為 14.6%，而 2024 財年前 9 個月的毛利率為 14%，這主要是由於與本季所述的相同原因。

Gross margins in our power industry services, our industrial services, and our telecommunications infrastructure services segments were 14.8%, 12.5%, and 26.8%, respectively, for the first nine months of fiscal 2025, as compared to 14%, 12.8%, and 25.1%, respectively, for the first nine months of the prior fiscal year.

2025 財年前9 個月，我們的電力產業服務、工業服務和電信基礎設施服務領域的毛利率分別為14.8%、12.5% 和26.8%，而2025 財年的前9 個月，我們的毛利率分別為14%、12.8% 和上一財年的前九個月分別成長了 25.1%。

SG&A expenses increased to $37.8 million for the first nine months of fiscal 2025, as compared to $32.5 million for the first nine months of fiscal 2024, but decreased 25% as a percentage of revenues. Net income for the first nine months of this fiscal year was $54.1 million, or $3.91 per diluted share, compared to $20.3 million, or $1.50 per diluted share, for the first nine months of last fiscal year.

2025 財年的前 9 個月，SG&A 費用增加至 3,780 萬美元，而 2024 財年前 9 個月的銷售費用為 3,250 萬美元，但佔收入的百分比下降了 25%。本財年前 9 個月的淨利為 5,410 萬美元，即稀釋後每股收益 3.91 美元，而上一財年前 9 個月的淨利潤為 2,030 萬美元，即稀釋後每股收益 1.50 美元。

EBITDA was $74.2 million for the first nine months ended October 31, 2024, compared with EBITDA of $33.8 million for the first 9 months of fiscal 2024.

截至 2024 年 10 月 31 日的前 9 個月，EBITDA 為 7,420 萬美元，而 2024 財年前 9 個月的 EBITDA 為 3,380 萬美元。

With that, I'll turn the call back to David.

說完，我會把電話轉回給大衛。

Thanks, Josh. Turning to slide 12. Our consolidated project backlog was $0.8 billion at October 31, 2024, representing growth of 6%, compared to the prior fiscal year end.

謝謝，喬許。轉到投影片 12。截至 2024 年 10 月 31 日，我們的綜合項目積壓金額為 8 億美元，較上一財年末成長 6%。

As expected, backlog is down slightly sequentially from the $1 billion recorded at July 31, 2024, due to the conversion of backlog into revenue and the timing of new project contracts and starts. Nonetheless, as I've said in the past, while the project pipeline continues to strengthen, it takes some time to win and negotiate the contracts for the large and complex projects we compete for.

正如預期的那樣，由於積壓訂單轉化為收入以及新項目合約和啟動的時間安排，積壓訂單較 2024 年 7 月 31 日記錄的 10 億美元略有下降。儘管如此，正如我過去所說，雖然專案儲備繼續加強，但我們競爭的大型複雜專案的合約需要一些時間來贏得和談判。

Our backlog includes a healthy group of longer-term, fully committed projects in both the power industry services segments and industrial construction segment, and as I mentioned earlier, approximately $478 million of the backlog is comprised of renewable projects.

我們的積壓項目包括電力產業服務領域和工業建築領域的一組健康的長期、完全承諾的項目，正如我之前提到的，積壓項目中約 4.78 億美元由再生能源項目組成。

On slide 13, we show certain major projects currently included in our project backlog. Earlier, I discussed the Trumbull Energy Center in Ohio, and we continue to make progress at the three solar plus battery projects in Illinois, which have full notices to proceed. Additionally, we have the full notice to proceed on a utility-scale solar field in Illinois that will provide 405 megawatts of electrical power. On this slide, you'll also see our full notice to proceed on a subcontract to install 590-megawatt gas turbines to provide dedicated power to an LNG facility in Louisiana.

在投影片 13 上，我們展示了目前項目積壓中包含的某些主要項目。早些時候，我討論了俄亥俄州的特朗布爾能源中心，我們在伊利諾伊州的三個太陽能+電池項目上繼續取得進展，這些項目已收到充分的通知以進行。此外，我們還收到全面通知，將在伊利諾伊州建造一個公用事業規模的太陽能發電場，該發電場將提供 405 兆瓦的電力。在此幻燈片上，您還將看到我們關於繼續安裝 590 兆瓦燃氣渦輪機的分包合約的完整通知，以便為路易斯安那州的液化天然氣設施提供專用電力。

We've included here a 1.2-gigawatt natural gas project in Texas that is currently under letter of intent, and we've listed two separate water treatment plant projects being performed by TRC.

我們在此列出了德克薩斯州的一個 1.2 吉瓦天然氣項目，該項目目前正在簽訂意向書，我們還列出了 TRC 正在實施的兩個獨立的水處理廠項目。

Over in Ireland, the three ESB FlexGen Peaker power plants and the Shannonbridge thermal plants are complete. There is undoubtedly growing urgency around standing up the infrastructure we need to meet the forecasted growth in energy demand, and as a result, the industry is seeing strong demand, particularly for natural gas projects. We believe our backlog illustrates the scope of our expertise and capabilities, and the ongoing demand for our services around traditional gas-fired builds and renewable projects. Our balance sheet remains strong.

在愛爾蘭，三座 ESB FlexGen Peaker 發電廠和 Shannonbridge 熱電廠已完工。毫無疑問，建立滿足能源需求預測成長所需的基礎設施的緊迫性越來越大，因此，該行業的需求強勁，尤其是天然氣項目。我們相信，我們的積壓訂單說明了我們的專業知識和能力的範圍，以及對我們圍繞傳統燃氣建築和可再生項目的服務的持續需求。我們的資產負債表仍然強勁。

At October 31, 2024, we had approximately $506 million in cash, cash equivalents, and investments generating meaningful investment yields. Our net liquidity was $281 million, and we had no debt. Stockholders' equity was $329 million at October 31, 2024. This liquidity bridge demonstrates that our business model ordinarily requires a low level of capital expenditures. Our net liquidity of $281 million at October 31, 2024, has increased $36.1 million compared with net liquidity at January 31, 2024.

截至 2024 年 10 月 31 日，我們擁有約 5.06 億美元的現金、現金等價物及產生有意義投資收益的投資。我們的淨流動資金為 2.81 億美元，且沒有債務。截至 2024 年 10 月 31 日，股東權益為 3.29 億美元。這種流動性橋樑表明我們的商業模式通常需要較低的資本支出。截至2024年10月31日，我們的淨流動資金為2.81億美元，與2024年1月31日的淨流動資金相比增加了3,610萬美元。

Since November 2021, we have returned a total of approximately $101.6 million to shareholders as we've repurchased approximately 2.7 million shares of our common stock, or approximately 17% of shares outstanding, at the beginning of the program at an average price of $37.67 per share.

自2021 年11 月以來，我們總共向股東返還了約1.016 億美元，因為我們在計劃開始時以每股37.67 美元的平均價格回購了約270 萬股普通股，即約17% 的已發行股票。

Additionally, in September 2024, we increased the company's quarterly dividend 25% from $0.30 to $0.375 per share, reflecting the strength of our business and increasing our annual run rate to $1.50 per share. This increase comes just a year after we raised our dividend to $0.30 per share in September 2023. Together, these two dividend increases represent an aggregate 50% increase in our annual dividend run rate in less than two years. Our company is dedicated to driving long-term value creation for our shareholders.

此外，2024 年9 月，我們將公司的季度股息從每股0.30 美元提高了25%，從每股0.30 美元增加到0.375 美元，這反映了我們業務的實力，並將我們的年運行率提高到每股1.50 美元。這一增長是在我們於 2023 年 9 月將股息提高至每股 0.30 美元一年後發生的。這兩次股息增加意味著我們的年度股息率在不到兩年的時間內總共增加了 50%。我們公司致力於為股東創造長期價值。

While our operating results can vary from quarter-to-quarter related to the timing of contracts, our pipeline is stronger than it has ever been, and we remain focused on delivering long-term value to shareholders. Since 2008, we have increased our tangible book value and cumulative dividends per share considerably. This is a very exciting time for our company.

雖然我們的經營業績因合約時間的不同而有所不同，但我們的管道比以往任何時候都更強大，並且我們仍然專注於為股東提供長期價值。自 2008 年以來，我們的有形帳面價值和每股累積股利大幅增加。對於我們公司來說，這是一個非常令人興奮的時刻。

With the forecasted significant growth in energy demand, Argan is one of only a few companies with the capabilities and experience to build all types of power facilities. Gemma is well known as a partner of choice for not only complex combined cycle natural gas plants, but also for its expertise with renewable projects. Both types of energy resources will need to be built in the coming years to meet the projected demand for reliable, high-quality power, and we stand ready to help our customers build them.

隨著能源需求預計將顯著成長，Argan 是少數擁有建造各類電力設施的能力和經驗的公司之一。Gemma 不僅是複雜的聯合循環天然氣工廠的首選合作夥伴，而且還因其在再生能源專案方面的專業知識而聞名。這兩種類型的能源資源都需要在未來幾年內建設，以滿足對可靠、高品質電力的預期需求，我們隨時準備好幫助我們的客戶建造它們。

To close, we remain focused on our long-term growth strategy: leverage our core competencies to capitalize on existing and emerging market opportunities; maintain disciplined risk management with the goal of improving our project management effectiveness and minimizing costly project overruns; strengthen our position as a partner of choice in the construction of low and net-zero emission power generation facilities as the industry transitions to cleaner energy alternatives while maintaining grid reliability; and last but not least, drive organic growth while also being alert for acquisition opportunities that make sense for our business through thoughtful capital allocation.

最後，我們仍然專注於我們的長期成長策略：利用我們的核心能力來利用現有和新興市場的機會；維持嚴格的風險管理，以提高專案管理效率並最大限度地減少代價高昂的專案超支；隨著產業向清潔能源替代品轉型，同時保持電網可靠性，加強我們作為低排放和淨零排放發電設施建設首選合作夥伴的地位；最後但並非最不重要的一點是，推動有機成長，同時透過深思熟慮的資本配置，警惕對我們的業務有意義的收購機會。

To date, in fiscal 2025, we have delivered strong execution across our business segments, and we remain focused on driving the momentum we're seeing in our industry and our business. We are energized to continue leveraging our core skillset and proven track record to maximize the opportunities we're seeing across our pipeline of traditional natural gas-fired and renewable power projects. Additionally, as reshoring and manufacturing operations continue to gain traction, we're also seeing a robust project pipeline for our Industrial segment.

到目前為止，到 2025 財年，我們在各個業務部門都實現了強有力的執行力，並且我們仍然專注於推動行業和業務的發展勢頭。我們有動力繼續利用我們的核心技能和良好的業績記錄，最大限度地利用我們在傳統天然氣和再生能源專案中看到的機會。此外，隨著回流和製造業務持續成長，我們的工業部門也看到了強勁的專案儲備。

I'd like to thank our employees for their dedication to executing each job on time and on budget, and to thank our shareholders for their continued support. With that, operator, let's open it up for questions.

我要感謝我們的員工按時按預算執行每項工作的奉獻精神，並感謝我們的股東的持續支持。那麼，操作員，讓我們開始提問吧。

(Operator Instructions) Chris Moore, CJS Securities.

（操作員指令）Chris Moore，CJS 證券。

Gooid afternoon, guys. That was an impressive quarter. That's for sure. All right. Maybe we can start with the gross margins. The overall gross margin was probably 300 basis points higher than I was thinking about.

下午好，夥計們。這是一個令人印象深刻的季度。這是肯定的。好的。也許我們可以從毛利率開始。整體毛利率可能比我想像的高出300個基點。

Power Industry Services, 18.3%. It's early for Trumbull to be getting excess margins. So can you break down a little bit further where that 18.3% in Power Industry came from?

電力業服務，18.3%。特朗布爾獲得超額利潤還為時過早。那麼，您能否進一步細分一下電力產業的 18.3% 來自何處？

Yeah. In short, Chris, strong execution across the board, certain positive project closeouts, the project mix and the shift towards domestic revenues, and economies of scale. You've heard me say this before, but we are, first and foremost, focused on project success. And success for our customers is the number one way to get repeat business and future gross margins.

是的。簡而言之，克里斯，全面的強大執行力、某些積極的項目收尾、項目組合以及向國內收入和規模經濟的轉變。您以前聽過我說過這句話，但我們首先關注的是專案的成功。我們客戶的成功是獲得重複業務和未來毛利率的首要方法。

So based on our -- historically, I've told you we fluctuate between 13% and 20% based on our 10/31 project backlog, which is a significantly larger portion of T&M and renewable work than we normally have, gross margins are likely to be more in line with the average of the last two quarters we just completed, meaning in that 14% to 16% range or slightly higher over the next couple of quarters, but this quarter was really strong and it really came down to strong execution.

因此，根據我們的歷史記錄，我已經告訴過您，我們根據10/31 專案積壓在13% 到20% 之間波動，這比我們通常佔T&M 和再生能源工作的比例要大得多，毛利率可能會與我們剛完成的前兩個季度的平均水平更加一致，這意味著接下來的幾個季度在14% 到16% 的範圍內或略高，但本季度真的很強勁，這實際上取決於強大的執行力。

Got it. You have previously discussed being able to handle perhaps four to five good-sized natural gas projects simultaneously at different stages of construction. Just what's the limiting factor? Is it skilled labor? And how much of a crossover is the labor pool between the natural gas projects and your renewable projects?

知道了。您之前討論過能夠在不同的施工階段同時處理四到五個大型天然氣專案。到底限制因素是什麼？是熟練勞動力嗎？天然氣專案和再生能源專案之間的勞動力資源交叉程度如何？

Yes. We've been making headway by adding headcount to the business in anticipation of this natural gas buildout, in addition to maintaining our renewable footprint and continuing to execute really strongly there. Is there some crossover between gas and renewable? The answer is yes.

是的。除了保持我們的再生能源足跡並繼續在那裡強有力地執行之外，我們還透過增加業務人員來應對天然氣的擴建，從而取得了進展。天然氣和再生能源之間是否存在交叉？答案是肯定的。

But primarily, we're trying to keep the renewable teams together and the gas teams together, but we do have certain labor that has the skillset to do both, including project managers. So the number of projects that we can do at any given time holistically is in probably that 10-plus range, if you blend the gas and renewables. And of course, it depends on the size of projects as well.

但首先，我們正在努力讓再生能源團隊和天然氣團隊保持在一起，但我們確實有一定的勞動力具備這兩方面的技能，包括專案經理。因此，如果將天然氣和再生能源混合在一起，我們在任何特定時間內可以完成的專案數量可能總體上在 10 多個範圍內。當然，這也取決於專案的規模。

Makes sense. Backlog $800 million, down about $200 million. You had indicated that likely after Q2. Any expectations -- I know you're looking for some big projects in calendar '25. Expectations for Q4, probably down a little bit further before coming back in calendar '25? Or just any thoughts there?

有道理。積壓 8 億美元，減少約 2 億美元。您曾表示這可能會在第二季之後發生。任何期望 - 我知道您正在尋找 25 個日曆中的一些大項目。對第四季的預期可能會進一步下降一點，然後才會在 25 年曆中回歸？或只是有什麼想法？

Yeah. If you recall, last quarter, I gave some guidance of 5 to 10 months as the general timeline. We're now sitting here in the beginning of December and the guidance that I said earlier in my prepared remarks was we're expecting to start multiple gas-fired jobs over the course of the next eight months and expect our backlog to be significantly in excess of $1 billion by early next year and beyond.

是的。如果您還記得，上個季度，我給出了 5 到 10 個月的指導作為總體時間表。我們現在在 12 月初坐在這裡，我之前在準備好的發言中所說的指導是，我們預計在未來八個月內啟動多個燃氣工作，並預計我們的積壓工作將大幅減少到明年初及以後將超過10 億美元。

So, as you can note, I've dropped the lower end of the floor. So we're working really hard, but you got to remember, we don't control the start of these new projects, but we really remain bullish as to our ability to convert a number of these opportunities into jobs again over the course of the next eight months.

所以，正如你所注意到的，我已經放下了地板的下端。因此，我們非常努力地工作，但你必須記住，我們無法控制這些新項目的啟動，但我們確實仍然看好我們在整個過程中將其中一些機會再次轉化為就業機會的能力。月。

Got it. I'll leave it there.

知道了。我會把它留在那裡。

(Operator Instructions) Rob Brown, Lake Street Capital.

（操作員說明）Rob Brown，Lake Street Capital。

Good afternoon. Congratulations on a strong quarter.

午安.恭喜季度表現強勁。

Thanks, Rob.

謝謝，羅布。

You talked a little bit about the pipeline over the next eight months, but how has the activity level changed since you last updated things? Is it the same projects you're working on, and timing is always hard to predict? Or are there new things coming in and is activity increasing in terms of bidding and work and such?

您談到了未來八個月的管道，但自您上次更新以來，活動水平發生了怎樣的變化？您正在從事的專案是否相同，但時間總是很難預測？或是有新事物出現，投標和工作等方面的活動是否有增加？

There continues to be new opportunities that come in. And the opportunities are throughout the United States with a large nexus in Texas, as you can imagine. A lot of the jobs that we have been tracking and/or negotiating continue to progress through all their development hurdles. And so we remain really excited about what things look like for us over the coming eight months and then looking out further. So I would say that the -- I guess, in short, the level of activity remains extremely elevated.

不斷有新的機會出現。正如您可以想像的那樣，機會遍布美國各地，其中在德克薩斯州有很大的聯繫。我們一直在追蹤和/或談判的許多工作繼續克服所有發展障礙。因此，我們對未來八個月的情況仍然感到非常興奮，然後進一步展望。所以我想說，簡而言之，我想，活動水平仍然非常高。

Yes. Okay. And then, in the Texas gas plant, particularly that you have an LOI for, what's the timing of that? And is that one of the 2025 opportunities?

是的。好的。然後，在德州天然氣廠，特別是您有意向書的地方，具體時間是什麼時候？這是 2025 年的機會之一嗎？

Yeah. And I guess as a reminder to all the callers, if there is a new job, we will always put out either a press release and/or an 8-K, because we want to provide updates since these jobs are meaningful. So as for that Texas job that we have the letter of intent on, again, they continue to meet their developmental milestones. And we have been working closely with them to help them with that, and hope to have an executed EPC contract and start at least doing some work on that job over the next couple of months.

是的。我想提醒所有來電者，如果有新工作，我們總是會發布新聞稿和/或 8-K，因為我們希望提供更新，因為這些工作很有意義。至於我們已經簽署意向書的德州工作，他們再次繼續實現他們的發展里程碑。我們一直在與他們密切合作，幫助他們實現這一目標，並希望能夠簽署一份已執行的 EPC 合同，並在接下來的幾個月內至少開始做一些這項工作。

Okay, great. And then maybe on the backlog burn rate on the solar projects versus the gas projects, what's your average or typical quarterly? Or if you have so much backlog in solar, how long does it take to burn off versus a gas job?

好的，太好了。然後，也許就太陽能專案與天然氣專案的積壓燃燒率而言，您的平均或典型季度是多少？或者，如果您在太陽能方面積壓了這麼多，那麼與天然氣工作相比，需要多長時間才能燒完？

Yeah. That's a tough question to answer because we have different sized solar jobs, and they tend to burn at different rates. Typically, though, the more small-to medium-sized solar jobs, and small solar jobs for us are still relatively meaningful. They're going to typically be completed within a year, a little bit longer than that. But for our larger solar jobs, they can last a couple of years, if not a little bit more.

是的。這是一個很難回答的問題，因為我們有不同規模的太陽能工作，而且它們往往以不同的速度燃燒。不過，通常情況下，中小型太陽能工作以及小型太陽能工作對我們來說仍然相對有意義。它們通常會在一年內完成，甚至比這要長一點。但對於我們更大的太陽能工作來說，它們可以持續幾年，甚至更長一點。

So yeah, I think that their consistency of backlog converting into revenue is a little bit more even versus the more peakishness of a gas job, since gas jobs really reflect a bell curve of revenue. Solar jobs are a little bit more consistent.

所以，是的，我認為他們將積壓訂單轉化為收入的一致性與天然氣工作的高峰期相比更加均勻，因為天然氣工作確實反映了收入的鐘形曲線。太陽能工作更加一致。

Okay. That's helpful. And then maybe on the industrial business a little bit. I know that will jump around each quarter. But how is that looking in terms of the pipeline in the industrial side? And can that continue to grow into, call it, $200 million annual revenue business if the environment supports that direction?

好的。這很有幫助。然後也許會涉及一點工業業務。我知道每季都會跳動。但從工業方面的管道來看，情況如何呢？如果環境支持這個方向，它能否繼續發展成為年收入 2 億美元的業務？

Yes. They've generated $41 million of revenues this past quarter, and they've generated $175 million of revenues on a TTM basis. But to what you're pointing out, their backlog has dropped down to about $66 million or so. And based on current visibility, I do expect revenues to come down some for the next couple of quarters for this segment, and that backlog may continue to reduce some before rebounding in Q1 and Q2 of fiscal 2026.

是的。他們上個季度的收入為 4,100 萬美元，以 TTM 計算，他們的收入為 1.75 億美元。但正如您所指出的，他們的積壓訂單已降至約 6,600 萬美元左右。根據目前的情況，我確實預計該細分市場未來幾個季度的收入將有所下降，並且積壓訂單可能會繼續減少，然後在 2026 財年第一季和第二季反彈。

And that's really based on the expected timing of future project awards. I just had a long call with my team there this morning, and they're super excited about the number of opportunities that they're seeing and have already bid right now. And so we do expect for there to be a meaningful rebound there.

這實際上是基於未來項目獲獎的預期時間。今天早上我剛剛與我的團隊進行了一次長時間的通話，他們對看到的東西並已經競標的機會數量感到非常興奮。因此，我們確實預期那裡會出現有意義的反彈。

Thank you. With no other questions at this time, I would now like to hand the call back to David Watson for closing remarks.

謝謝。目前沒有其他問題，我現在想將電話轉回大衛·沃森（David Watson），讓他發表結束語。

Well, thank you all for participating in today's call, and I hope everyone had a great Thanksgiving. We wish everyone a happy and healthy holiday season and look forward to speaking with you again when we report our fourth quarter fiscal 2025 results. Have a great evening.

好的，謝謝大家參加今天的電話會議，希望大家感恩節過得愉快。我們祝福大家有個快樂健康的假期，並期待在我們報告 2025 財年第四季業績時再次與您交談。祝您有個美好的夜晚。

Thank you. This does conclude today's conference. You may disconnect your lines at this time. Have a wonderful day. Thank you for your participation.

謝謝。今天的會議到此結束。此時您可以斷開線路。祝你有美好的一天。感謝您的參與。