By Katherine Hamilton

Shares of Argan slipped after the completion of two major projects resulted an unexpected third-quarter sales decline.

The stock fell 11%, to $316.33, after hours Thursday. Through the close, the stock has nearly tripled this year.

The power-plant company recorded a 2.3% decline in revenue, to $251.2 million. That missed the $263.8 million estimated by analysts, according to FactSet.

The decrease in revenue was driven by the timing of work performed and project mix, Argan said. Two major projects that were driving revenue last year are now wrapping up. More recently awarded contracts have just begun construction, and have not yet yielded much revenue.

"The early days of any project typically generate limited revenue which begins to ramp as we have more and more people on site," Chief Executive David Watson told analysts.

Argan completed an LNG project in Louisiana and is nearly finished with the Trumbull Energy Center in Ohio. Both projects generated significant revenue last year and their completions were the primary factor driving the sales decline in the quarter, Watson said.

Project start dates are determined by developers and the timing of project ends and starts can be more staggered than expected, Watson said.

Argan recorded a profit of $30.7 million, or $2.17 a share, in the quarter ended Oct. 31, compared with $28 million, or $2 a share, the year before.

Write to Katherine Hamilton at katherine.hamilton@wsj.com

(END) Dow Jones Newswires

December 04, 2025 17:33 ET (22:33 GMT)

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