Argan : April 10, 2017 - ARGAN, INC. ANNOUNCES FOURTH QUARTER RESULTS.

Argan, Inc. Reports Year-End and Fourth Quarter Results

April 10, 2017 - ROCKVILLE, MD - Argan, Inc. (NYSE: AGX) ("Argan" or the "Company") today announced financial results for its fiscal year and fourth quarter ended January 31, 2017. For additional information, please read the Company's Annual Report on Form 10-K, which the Company intends to file today with the U.S. Securities and Exchange Commission (the "SEC"). The Annual Report can be retrieved from the SEC's website at www.sec.gov or from the Company's website at www.arganinc.com.

Summary Information: (dollars in thousands, except per share data): For the Fiscal Year Ended:

January 31,

2017 2016 Change % Change

Revenues	$ 675,047	$ 413,275	$ 261,772	63%
Gross profit	146,711	99,465	47,246	48
Gross margins	21.7%	24.1%	(2.4)%	(10)
Net income attributable to the
stockholders of the Company	$ 70,328	$ 36,345	$ 33,983	94
Diluted per share	4.50	2.42	2.08	86
EBITDA attributable to the	110,64
stockholders of the Company	0	62,905	47,735	76
Diluted per share	7.09	4.19	2.90	69

For the Quarter Ended (unaudited):

$ 206,760	$ 116,386	$ 90,374	78%
37,819	23,543	14,276	61
18.3%	20.2%	(1.9)%	(9)
$ 20,351	$ 6,728	$ 13,623	202
1.29	0.45	0.84	190
31,344	12,777	18,567	145
1.99	0.85	1.14	135

Revenues Gross profit Gross margins

Net income attributable to the stockholders of the Company

Diluted per share EBITDA attributable to the stockholders of the Company

Diluted per share

As of:

Cash, cash equivalents and short-term

investments $ 522,994 $ 275,007 $ 247,987 90%

Billings in excess of costs and

estimated earnings 209,241 105,863 103,378 98

Backlog 1,011,000 1,163,000 (152,000) (13)

2017 Fiscal Year Results:

Revenues increased to an annual record $675 million, up 63% compared to the prior year, primarily due to Gemma Power Systems (GPS) ramping up work on four large, gas-fired power plants and the final completion of two large power plants. The increase also reflects a full year of revenues from Atlantic Projects Company (APC) and The Roberts Company (TRC), which were acquired in May and December 2015, respectively.

The power industry services segment continues to drive our financial results and represents 87% of consolidated revenues for the year ended January 31, 2017 (Fiscal 2017), a diversification improvement compared to 94% in the prior year. Gross profit increased 47% to $147 million, primarily due to the increased revenues, while gross margin percentage decreased from 24.1% to 21.7% compared to the prior year, which reflected primarily the changes in the mix and progress of our various power plant projects and the differences in their respective gross margins during the two comparative years, as well as lower margins contributed by our two new subsidiaries, APC and TRC.

Selling, general and administrative expenses increased $7 million to $32 million, primarily due to a full year of expenses related to APC and TRC, but decreased as a percentage of revenue to 4.8% from 6.1% in the prior year. Net income attributable to non-controlling interests decreased 49% to $7 million as activity wound down on two large power plant projects completed by joint ventures. These factors and a relatively consistent effective income tax rate result in net income attributable to our stockholders for Fiscal 2017 increasing 94% to $70 million, or $4.50 per diluted share, from $36 million, or $2.42 per diluted share, compared to the prior year. EBITDA attributable to our stockholders for Fiscal 2017 also increased 76% to $111 million, or $7.09 per diluted share, from $63 million, or $4.19 per diluted share, for the prior year.

Our balance sheet continues to strengthen. As of January 31, 2017, our cash, cash equivalents and short- term investments totaled $523 million and net liquidity was $237 million; plus, we had no bank debt.

Our contract backlog was $1.0 billion as of January 31, 2017.

Fourth Quarter Results:

Revenues increased 78% over the prior year's fourth quarter to a quarterly record $207 million, primarily due to the ramp up of construction work on four large, gas-fired power plants by GPS. Gross profit increased 61% to $38 million while gross margin percentage decreased from 21.2% to 18.3% compared to the prior year's fourth quarter, reflecting lower margins at the power plant projects in progress and at our two new subsidiaries, APC and TRC.

Other factors contributing to an increased bottom line between the fourth quarter of Fiscal 2017 and the prior year's fourth quarter included a reduced amount of net income shared with non-controlling interests ($2 million), a lower effective income tax rate ($1.5 million), reduced selling, general and administrative expenses ($1 million) and increased other income ($0.8 million). As a result, net income attributable to our stockholders for the three months ended January 31, 2017 increased 202% to $20 million, or $1.29 per diluted share, compared to $7 million, or $0.45 per diluted share, for the prior year's fourth quarter. EBITDA attributable to our stockholders for the fourth quarter increased 145% to

$31 million, or $1.99 per diluted share, from $13 million, or $0.85 per diluted share, for the prior year's fourth quarter.

Commenting on Argan's results, Rainer Bosselmann, Chairman and Chief Executive Officer, stated, "The record success of the Company during the year could not have been achieved without the operational excellence of our employees. Our continuing focus on safety and quality, cost containment, investing in our employees and ensuring the satisfaction of our customers is enabling us to progressively grow our business and to continue to post strong financial results. We believe we are well positioned for the future given our liquidity, strong balance sheet and project backlog of $1.0 billion."

About Argan, Inc.

Argan's primary business is providing a full range of services to the power industry including the engineering, procurement and construction of gas-fired power plants, along with related commissioning, operations management, maintenance, project development and consulting services, through its Gemma Power Systems and Atlantic Projects Company operations. Argan also owns Southern Maryland Cable, which provides telecommunications infrastructure services, and The Roberts Company, which is a fully integrated fabrication, construction and industrial plant services company.

Certain matters discussed in this press release may constitute forward-looking statements within the meaning of the federal securities laws and are subject to risks and uncertainties including, but not limited to: (1) the continued strong performance of our power industry services business; (2) the Company's ability to successfully and profitably integrate acquisitions; and (3) the Company's ability to achieve its business strategy while effectively managing costs and expenses. Actual results and the timing of certain events could differ materially from those projected in or contemplated by the forward- looking statements due to a number of factors detailed from time to time in Argan's filings with the SEC. In addition, reference is hereby made to cautionary statements with respect to risk factors set forth in the Company's most recent reports on Form 10-K and 10-Q, and other SEC filings.

Company Contact: Investor Relations Contact:

Rainer Bosselmann DavidWatson

301.315.0027 301.315.0027

ARGAN, INC. AND SUBSIDIARIES CONSOLIDATED STATEMENTS OF EARNINGS (In thousands, except per share data) REVENUES

19,707 15,260 78,994

Three Months Ended January 31, Fiscal Year Ended Janua1r5y,23610,

2017 2016 2017 2016

(Unaudited) (Unaudited)

Power industry services Industrial fabrication and field services	$ 184,013	$ 99,688	$ 586,628
Telecommunications infrastructure services	3,040	1,438	9,425
Revenues	206,760	116,386	675,047
COST OF REVENUES Power industry services	150,459	76,204	452,599
Industrial fabrication and field services	15,863	15,527	68,354
Telecommunications infrastructure services	2,619	1,112	7,383

387,636

10,379

413,275

290,823

15,527

7,460

313,810

Cost of revenues 168,941 92,843 528,336

99,465
Selling, general and administrative expenses	8,049	9,082	32,478	25,060
Impairment loss		-		-		1,979		-
INCOME FROM OPERATIONS	29,770	14,461	112,254	74,405
Other income, net		995		156		2,278		1,101
INCOME BEFORE INCOME TAXES	30,765	14,617	114,532	75,506
Income tax expense		9,984		5,457		37,106		25,302
NET INCOME	20,781	9,160	77,426	50,204
Net income attributable to noncontrolling interests		430		2,432		7,098		13,859
NET INCOME ATTRIBUTABLE TO
THE STOCKHOLDERS OF ARGAN, INC.		$	20,351		$	6,728		$ 70,328		$	36,345

GROSS PROFIT 37,819 23,543 146,711 EARNINGS PER SHARE ATTRIBUTABLE TO THE STOCKHOLDERS OF ARGAN, INC.

Basic		$	1.33		$	0.45		$	4.67		$	2.46
Diluted		$	1.29		$	0.45		$	4.50		$	2.42

WEIGHTED AVERAGE NUMBER OF SHARES OUTSTANDING

Basic		15,340		14,829		15,066		14,757
Diluted		15,731		15,063		15,625		15,024

CASH DIVIDENDS PER SHARE - - $ 1.00 $ 0.70