Argan’s subsidiary Gemma Power Systems secured full notice to proceed on a 1,350‑MW combined‑cycle power plant in Ward County, Texas, for CPV Basin Ranch Holdings LLC, an affiliate of Competitive Power Ventures. The plant will use GE 7HA.03 turbines in a 2–1×1 configuration and includes an option for carbon capture.
The contract is one of the largest EPC projects in the U.S. power sector and is expected to generate substantial cash flow over the next several years. Construction is slated to begin in the fall of 2025 and is scheduled for completion in 2028, with operations expected to start in 2029.
The win adds to Argan’s record backlog, which exceeded $2 billion as of October 31, 2025, and reinforces the company’s position in the natural‑gas power market. The project will power the equivalent of 850,000 West Texas homes and is the largest project financed by the Texas Energy Fund, receiving a $1.1 billion low‑interest loan.
In its latest quarterly report, Argan posted Q2 FY2026 revenue of $237.7 million and earnings per share of $2.50, beating estimates. The company’s gross margin improved to 18.6% from 13.7% year‑over‑year, and its Power Industry Services segment generated $197 million in revenue, up 13% and accounting for 83% of total revenue. Management highlighted strong demand from data centers and industrial expansion in Texas as key drivers of the company’s growth.
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