Argan, Inc.
Industrials · Construction & Engineering
Structural: pure-play EPC on US gas-fired power buildout. Hyperscaler datacenter load is forcing utilities to add dispatchable baseload faster than nuclear/SMR can deliver - gas combined-cycle is the 2026-2030 bridge. Gemma is one of a handful of qualified EPCs (alongside $PWR Quanta, $MTZ MasTec, Bechtel) and runs lean (no merchant exposure, paid against contracted milestones).
- Backlog above $1B and rising as datacenter PPAs trigger new CCGT awards
- Net cash balance sheet (~$500M+ cash, no debt); EPC capex-light vs IPP peers
- Pricing power: skilled-labor and gas-turbine ($GE Vernova) supply constraints let EPCs reprice
- APC Ireland leg captures EU datacenter buildout (Dublin power crunch)
- Microcap with no sell-side coverage - re-rating optionality if power-thesis names sweep in
- Lumpy revenue: single project slip can swing a quarter 20%+
- Customer concentration (top 3 IPP/utility clients regularly >60% of revenue)
- Gas-turbine lead times now 3-4 yrs ($GEV backlog) - could delay new project starts
- Carbon policy / IRA reversal risk if gas CCGT permitting tightens
- No moat vs $PWR $MTZ on large jobs; wins on price discipline and execution speed
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