Argan Subsidiary Secures $100M Power Plant Contract
Ticker: AGX · Form: 8-K · Filed: Dec 9, 2024 · CIK: 100591
Sentiment: bullish
Topics: contract-award, construction, power-plant
TL;DR
Argan's Gemma Power Systems just landed a $100M deal for a new gas plant. Big win!
AI Summary
Argan Inc. announced on December 9, 2024, that its subsidiary, Gemma Power Systems, has been awarded a new construction contract valued at approximately $100 million. This contract is for the engineering, procurement, and construction of a natural gas-fired power plant.
Why It Matters
This significant contract award for Gemma Power Systems is expected to contribute positively to Argan Inc.'s revenue and profitability in the coming periods.
Risk Assessment
Risk Level: low — The filing is a routine announcement of a new contract award, which is generally positive news with no immediate negative implications.
Key Numbers
- $100M — New Contract Value (Awarded to Gemma Power Systems for power plant construction)
Key Players & Entities
- Argan Inc. (company) — Registrant
- Gemma Power Systems (company) — Subsidiary awarded contract
- $100 million (dollar_amount) — Value of new construction contract
- December 9, 2024 (date) — Date of report
FAQ
What is the specific type of natural gas-fired power plant being constructed?
The filing does not specify the exact type or capacity of the natural gas-fired power plant.
When is the expected completion date for this project?
The filing does not provide an expected completion date for the power plant construction.
Does this contract include any performance guarantees or penalties?
The filing does not detail specific terms regarding performance guarantees or penalties.
What is the geographic location of the new power plant?
The filing does not disclose the geographic location where the power plant will be built.
Are there any other subsidiaries of Argan Inc. involved in this project?
The filing specifically mentions Gemma Power Systems as the awarded entity, with no mention of other subsidiaries' involvement.
Filing Stats: 420 words · 2 min read · ~1 pages · Grade level 11.5 · Accepted 2024-12-09 08:30:46
Key Financial Figures
- $0.15 — e on Which Registered: Common Stock, $0.15 Par Value AGX New York Stock Exchan
Filing Documents
- agx-20241209x8k.htm (8-K) — 45KB
- 0001558370-24-016086.txt ( ) — 162KB
- agx-20241209.xsd (EX-101.SCH) — 3KB
- agx-20241209_lab.xml (EX-101.LAB) — 16KB
- agx-20241209_pre.xml (EX-101.PRE) — 10KB
- agx-20241209x8k_htm.xml (XML) — 5KB
01. Other Events
Item 8.01. Other Events. Today, Argan, Inc. ("Argan" or the "Company") reports that its wholly owned subsidiary Gemma Power Systems entered into an engineering, procurement and construction services contract and received the corresponding full notice to proceed with a customer for an approximately 700 MW combined-cycle natural gas-fired power plant located in the United States. The full amount of the contract value will be added to the Company's project backlog during the quarter ending January 31, 2025.
SIGNATURES
SIGNATURES Pursuant to the requirements of the Securities Exchange Act of 1934, the Registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized. ARGAN, INC. Date: December 9, 2024 By: /s/ Joshua S. Baugher Joshua S. Baugher Senior Vice President, Chief Financial Officer and Treasurer