Shares of Argan Inc. (NYSE: AGX) are surging 19.85% in pre-market trading on Friday, following the release of its exceptional fourth-quarter fiscal 2025 results and an analyst upgrade. The engineering and construction company significantly outperformed analyst expectations, demonstrating robust financial performance across key metrics.

Argan reported a remarkable 149.44% year-over-year increase in earnings per share (EPS), reaching $2.22 compared to $0.89 in the same quarter last year. This figure impressively beat the analyst consensus estimate of $1.15 by 93.04%. Revenue for the quarter also showed strong growth, climbing 41.28% to $232.5 million from $164.6 million in the prior year period, surpassing analyst projections of $197.5 million by 17.71%.

The company's stellar performance was driven by several factors, including a 65% year-over-year increase in sales from its power industry services segment. Argan also reported a record full-year diluted EPS of $6.15 and EBITDA of $113.5 million for fiscal 2025. Additionally, the company's project backlog grew impressively, increasing 80% to $1.4 billion as of January 31, 2025. This strong backlog, coupled with a healthy balance sheet showing $525 million in cash and investments with no debt, positions Argan well for future growth.

Adding to the positive sentiment, Lake Street Capital upgraded Argan from Hold to Buy, setting a price target of $150. This upgrade reflects growing confidence in the company's growth prospects and its ability to capitalize on the increasing demand for reliable energy infrastructure.

David Watson, President and Chief Executive Officer of Argan, expressed optimism about the company's future prospects, citing a strong pipeline of projects and increased demand for reliable energy infrastructure. With these positive developments and the company's strong execution across all business segments, Argan appears poised for continued success in the coming quarters.