April 2020

2

Safe Harbor Statement

All statements in this presentation that are not historical are forward-looking

statements within the meaning of Section 21E of the Securities Exchange Act of

1934. Such forward-looking statements may be identified by words such as

“believe,” “intend,” “expect,” “may,” “could,” “would,” “will,” “should,” “plan,”

“project,” “contemplate,” “anticipate,” or similar statements. Because these

statements reflect the current views of Argan, Inc. (“Argan” or the “Company”)

concerning future events, these forward-looking statements are subject to risks and

uncertainties. Argan’s actual results could differ materially from those anticipated

in these forward-looking statements as a result of many factors, which are

described under the caption “Risk Factors” in Argan’s most recent Form 10-K filed

with the Securities and Exchange Commission. Argan undertakes no obligation to

update publicly any forward-looking statements contained in this presentation.

3

Company Overview

⚫ NYSE: AGX

⚫ Holding company for four 100% controlled subsidiaries

⚫ Market capitalization (4/8/20) – $0.6 billion

⚫ Quarterly dividend $0.25 per share

⚫ Safe balance sheet at 1/31/20

– No leverage– Cash & short-term investments - $328 million– Net liquidity - $278 million

⚫ RUPO* (1/31/20) – $0.8 billion

⚫ Project backlog (1/31/20) – $1.3 billion

⚫ Signed EPC services contracts for approximately 7.3 GW of rated power represented by natural gas-fired power plants, with a total contract value in excess of $3.0 billion

⚫ Strong safety record with RIR** of 0.4 and 0.54 the last two years

* The amount of remaining unsatisfied performance obligations (“RUPO”) represents the unrecognized amounts of transaction price for

active contracts with customers, which is a subset of project backlog.

** OSHA reportable incident rates weighted by hours worked for all of our subsidiaries, with results significantly below national averages.

4

Business Overview – Holding Company

⚫ Gemma Power Systems (“GPS”) provides

engineering, procurement and construction

(“EPC”) services to power generation and

renewable energy markets

⚫ The Roberts Company (“TRC”) is

principally an industrial steel fabricator and

field services provider serving both light and

heavy industrial organizations

⚫ Atlantic Projects Company (“APC”)

provides turbine, boiler, large rotating

equipment installation, commissioning and

outage services to the global power industry

⚫ SMC Infrastructure Solutions (“SMC”)

provides telecommunications data

infrastructure services

2020* Revenues by Subsidiary

27.3%**

3.6%

29.5%39.6%

* Fiscal year ended January 31, 2020

** Historically, GPS has generated the majority of the Company’s revenues.

5

Revenues*

$142

$279

$227

$383 $413

$675

$893

$482

$239

$-

$100

$200

$300

$400

$500

$600

$700

$800

$900

2012 2013 2014 2015 2016 2017 2018 2019 2020

$ M

illio

ns

* With several major projects completed in the year ended January 31, 2019, our revenues and several other financial metrics

were lower during Fiscal 2020 compared to prior years, however the increasing construction activities for the Guernsey Power

Station should result in improved revenues over the coming year.

6

Net Income (Loss)*

$9.3

$23.3

$40.1

$30.4

$36.3

$70.3 $72.0

$52.0

($42.7)

$(50)

$(40)

$(30)

$(20)

$(10)

$-

$10

$20

$30

$40

$50

$60

$70

$80

2012 2013 2014 2015 2016 2017 2018 2019 2020

$ M

illio

ns

* Attributable to the Stockholders of AGX.

** The net loss excluding the effect of the TeesREP job and impairment losses at APC and TRC is $3.5 million for

Fiscal 2020.

($3.5) **

7

Project Backlog / RUPO*

RUPO $1.0

RUPO $0.4

RUPO $0.1

RUPO $0.8

$1.0

$0.4

$1.1

$1.3

$0.0

$0.2

$0.4

$0.6

$0.8

$1.0

$1.2

$1.4

2017 2018 2019 2020

$ B

illio

ns

As of January 31,

* The amount of remaining unsatisfied performance obligations (“RUPO”) represents the unrecognized amounts of transaction price for

active contracts with customers, which is a subset of project backlog.

PR

OJ

EC

T B

AC

KL

OG

8

Book Value

$5.87 $7.16

$9.50 $11.29 $11.58

$16.08

$20.34

$22.83

$19.59

$0.50

$1.10

$1.85

$2.55 $3.25

$4.25

$5.25

$6.25

$7.25

$-

$5.00

$10.00

$15.00

$20.00

$25.00

$30.00

2012 2013 2014 2015 2016 2017 2018 2019 2020

Tangible Book Value* & Cumulative Dividends Per Share

Tangible Book Value Cumulative Dividends

* Tangible Book Value = Total Stockholders’ Equity – Goodwill – Other Intangible Assets

9

Annual Financial Results

(1) We define Net Liquidity, or working capital, as our total current assets less our total current liabilities.

(2) The amount of remaining unsatisfied performance obligations (“RUPO”) represents the unrecognized amounts of transaction price

for active contracts with customers, which is a subset of project backlog.

(in thousands, except per share data)

2020 2019 Change

For the Fiscal Year Ended:

Revenues 238,997$ 482,153$ (243,156)$

Gross (loss) profit (6,820) 82,438 (89,258)

Gross margins (2.9)% 17.1% (20.0)%

Net (loss) income attributable to stockholders of the Company (42,689)$ 52,036$ (94,725)$

Diluted per share (2.73) 3.32 (6.05)

As of:

Cash, cash equivalents and short-term investments 327,862$ 296,531$ 31,331$

Net Liquidity (1)

277,721 335,032 (57,311)

RUPO (2)

781,400 99,400 682,000

Project backlog 1,334,000 1,094,000 240,000

January 31,

10

Annual Financial Drivers

⚫ Revenues declined $243.2 million, with decreases at all of our subsidiaries. The primary reason is the

delayed starts of new GPS projects, though the Guernsey power project did begin late in Fiscal 2020 and is

expected to increase revenues in Fiscal 2021. Additionally, two major APC projects either concluded or

decreased in activity from the prior year to the current year.

⚫ Gross profits decreased in part due to the reduction in consolidated revenues between years, but more

significantly, because of the large contract loss incurred during the current year by APC in the amount of

$33.6 million, primarily recognized in the first quarter, which caused us to report a consolidated gross loss of

$6.8 million for the year.

⚫ Increased SG&A of $3.2 million due to the carry costs of maintaining core GPS staff.

⚫ Increased impairment loss of $3.4 million. Remaining APC goodwill write off and additional reduction of

TRC goodwill.

⚫ In the prior year, we completed a yearlong detailed review of the activities performed by the engineering staff

of GPS on major EPC services projects in order to identify and quantify the amounts of research and

development credits. Based on this review, we booked a $16.6 million tax benefit in the prior year.

⚫ Our balance sheet remains strong. As of January 31, 2020, our cash, cash equivalents and short-term

investments totaled $328 million and adjusted net liquidity was $278 million; plus, we had no debt.

⚫ Our RUPO rose to $0.8 billion as of January 31, 2020 from $0.1 billion at the end of the prior year, driven by

the Guernsey power project start. Currently, we have signed EPC services

contracts for approximately 7.3 GW of rated power represented by natural gas-fired

power plants, with a total contract value in excess of $3.0 billion.

11

COVID-19

⚫ APC - Almost all planned power plant outage and maintenance projects for APC have been postponed for

an indefinite period other than emergency tasks, which necessitated the temporary lay-off of the majority of

APC’s workers. Construction on the TeesREP project was suspended on March 24, 2020 due to the

COVID-19 pandemic. At the time of the suspension of work on the TeesREP project, APC had completed

approximately 90% of its subcontracted work.

⚫ GPS - Continues to progress the works on the Guernsey Power Station. GPS has implemented measures to

help keep workers safe as required under the Ohio state order. To the extent possible under the

circumstances, current work on the project, which includes primarily site preparation efforts, design

engineering and early phases of construction, has continued. However, as the project ramps-up into heavier

construction phases later this year, COVID-19 impacts could become more meaningful. GPS is monitoring

supply-chain issues for impacts on equipment delivery delays related to the COVID-19 health crisis. The

ultimate impacts of the health crisis on this major GPS project and the related future revenues and financial

performance are not known. The force majeure clauses of the Company’s fixed-price construction contracts

provide certain relief that helps to mitigate these adverse effects.

⚫ TRC/SMC - Their operational activities have not been meaningfully affected by the COVID-19 outbreak

yet. Nonetheless, revenues of these businesses for the first few quarters of the fiscal year ending January 31,

2021 are expected to be less than revenues of the comparable periods of Fiscal 2020.

⚫ All - We intend to pursue where possible government assistance to help offset the negative impacts of

COVID-19 on our employees and on the operations and performance of the Company.

12

Overview of Gemma Power Systems

⚫ History – acquired by Argan in December 2006 for $33 million and

has generated cumulative EBITDA since acquisition of approximately

$628 million, or ~19x cash on cash and an IRR of ~75%

⚫ Business – engineering, procurement and construction of natural gas-

fired and alternative power energy facilities throughout the United

States

⚫ Track Record – Installed capacity exceeding 15 gigawatts of mostly

domestic power-generating capacity

⚫ Safety Record – 10 million safe hours achieved over the past seven

years. Gemma’s OSHA recordable injury rate is significantly below

the national average

⚫ Employees – Many of our employees are veterans

⚫ Customers – Independent power producers and utilities

13

Extensive Project Portfolio

⚫ Power facilities – combined cycle solution

– Guernsey Power Station

– Caithness Moxie Freedom Generating Plant

– CPV Towantic Energy Center

– NTE Kings Mountain Energy Center

– NTE Middletown Energy Center

– Panda Liberty Energy Project

– Panda Patriot Energy Project

– Colusa Generating Station

– Roseville Energy Park

– Hines PB-2 Power Project

– Rowan County Power Project

– Effingham County Power Project

– Richmond County Phase II Power Project

– Dighton Power Project

⚫ Pollution solutions

– Brayton Point Power Station

– La Rosita SCR Project

⚫ Biomass power facilities

- Woodville, Texas

⚫ Solar facilities

- Canton, MA

- Carver, MA

- Beaumont Solar

⚫ Power facilities – simple cycle solution

– Exelon West Medway II Facility

– CPV Sentinel Energy Project

– A.L. Pierce Re-powering Project

– Vandolah Power Project

– DeSoto County Power Project

– Indigo Energy Facility

– Larkspur Energy Facility

– Richmond County Phase I Power

– Monroe Power Project

– Richland Peaking Project

– Rocky Road Unit 4 Project

– Broad River Energy Center

– Middletown, CT Project

⚫ Process facilities – biodiesel

– Renewable BioFuels Port Neches

– Galena Park

– Green Earth Fuels Houston LLC

⚫ Process facilities – ethanol

– Carleton Ethanol Facility

⚫ Wind Facilities

- LaSalle County, Illinois

- Vantage, Washington

- Henry County, Illinois

- Ebensburg, Pennsylvania

14

Construction Services Peer Group

Source: Stifel - Engineering, Construction and Infrastructure Newsletter (4/14/2020)

Stock 12 Month LTM LTM Return

Price Total Market Debt/ LTM Gross EBITDA on Avg.

Ticker 4 /10 /2 0 2 0 Return Cap Equity Revenue Margin Margin Equity

AGX $ 37.89 % (23.3) % $ 592.3 0.0 X* $ 239.0 NEG

% NEG % NEG

%

FLR 7.86 (79.5) 1,101.8 1.2 18,520.5 NEG NEG NEG

GVA 16.75 (60.7) 761.8 0.4 3,389.8 5.5 0.3 NEG

J 81.31 8.6 10,818.3 0.4 13,014.1 19.7 7.5 6.8

KBR KBR, Inc. 22.22 13.4 3,161.8 0.8 5,639.0 11.6 6.7 11.2

ORN 2.29 (18.2) 67.8 0.8 708.4 9.0 4.7 NEG

TPC 7.17 (62.2) 361.9 0.6 4,450.8 5.4 0.9 NEG

PRIM 16.91 (20.5) 816.0 1.0 3,106.3 10.7 7.3 13.3

TSX: SNC 16.83 (30.9) 2,954.7 0.7 7,336.4 3.7 4.1 9.1

STRL 9.30 (27.0) 258.9 2.0 * 1,126.3 9.6 5.8 20.3

Mean (30.0)% 0.7x 9.4% 4.7% 12.1%

NEG: Negative, * Excluded from mean ca lculation

Sterl ing Construction Co. Inc.

Company Name

Argan, Inc.

Fluor Corporation

Granite Construction Incorporated

Jacobs Engineering Group Inc.

Orion Group Holdings , Inc.

Tutor Perini Corporation

Primoris Services Corporation

SNC-Laval in Group Inc.

15

Corporate Data

Websites

NYSE Listing

Common: AGX

Investor Relations

Investor Relations

301-315-0027

info@arganinc.com

Argan, Inc.

www.arganinc.com

Gemma Power Systems

www.gemmapower.com

The Roberts Company

www.robertscompany.com

Atlantic Projects Company

www.atlanticprojects.com

SMC Infrastructure Solutions

www.smcinc.biz

Corporate Headquarters

Argan, Inc.

One Church Street, Suite 201

Rockville, Maryland 20850

301-315-0027

16

AppendixConsolidated Income Statements – Quarter

(in thousands except per share amounts)

Revenues $ 67,988 $ 58,406 $ 63,059 $ 49,544 $ 87,658

Cost of revenues 62,739 52,414 60,094 70,570 80,912

Gross profit (loss) 5,249 5,992 2,965 (21,026) 6,746

Gross margin % 7.7% 10.3% 4.7% -42.4% 7.7%

Impairment loss 2,823 — — 2,072 1,491

Selling, general and administrative expenses 12,364 12,135 10,038 9,588 9,548

Loss from operations (9,938) (6,143) (7,073) (32,686) (4,293)

Other income, net 603 3,578 1,642 2,252 1,860

Loss before income taxes (9,335) (2,565) (5,431) (30,434) (2,433)

Income tax (benefit) expense (2,117) 1,996 (6,411) (521) (142)

Net (loss) income (7,218) (4,561) 980 (29,913) (2,291)

Net (loss) income attributable to noncontrolling interests (30) 2,294 (174) (113) (84)

Net (loss) income attributable to the stockholders of AGX $ (7,188) $ (6,855) $ 1,154 $ (29,800) $ (2,207)

EPS attributable to the stockholders of Argan, Inc.

Basic $ (0.46) $ (0.44) $ 0.07 $ (1.91) $ (0.14)

Diluted $ (0.46) $ (0.44) $ 0.07 $ (1.91) $ (0.14)

Weighted average number of shares outstanding

Basic 15,634 15,633 15,633 15,583 15,573

Diluted 15,634 15,633 15,757 15,583 15,573

Cash dividends per share $ 0.25 $ 0.25 $ 0.25 $ 0.25 $ 0.25

31-Jan-20

Three Months Ended

31-Oct-19 31-Jul-19 30-Apr-19 31-Jan-19

17

AppendixConsolidated Income Statements – Year

(in thousands except per share amounts)

Revenues $ 238,997 $ 482,153 $ 892,815

Cost of revenues 245,817 399,715 743,490

Gross profit (loss) (6,820) 82,438 149,325

Gross margin % -2.9% 17.1% 16.7%

Impairment losses 4,895 1,491 584

Selling, general and administrative expenses 44,125 40,710 41,764

Loss from operations (55,840) 40,237 106,977

Other income, net 8,075 6,981 5,648

Loss before income taxes (47,765) 47,218 112,625

Income tax (benefit) expense (7,053) (4,651) 40,279

Net (loss) income (40,712) 51,869 72,346

Net (loss) income attributable to noncontrolling interests 1,977 (167) 335

Net (loss) income attributable to the stockholders of AGX $ (42,689) $ 52,036 $ 72,011

EPS attributable to the stockholders of Argan, Inc.

Basic $ (2.73) $ 3.34 $ 4.64

Diluted $ (2.73) $ 3.32 $ 4.56

Weighted average number of shares outstanding

Basic

Diluted

Cash dividends per share $ 1.00 $ 1.00 $ 1.00

2020

15,621

15,621

Years Ended Janaury 31,

2019

15,569 15,522

15,780

2018

15,693

18

AppendixReconciliations to EBITDA – Consolidated

Years Ended January 31,

2020 2019 2018

Net (loss) income $ (40,712) $ 51,869 $ 72,346

Less EBITDA attributable to noncontrolling interests (1,977) 167 (335)

Interest expense — 659 —

Income tax (benefit) expense (7,053) (4,651) 40,279

Depreciation 3,513 3,422 2,779

Amortization of purchased intangible assets 1,136 1,012 1,032

EBITDA attributable to the stockholders of Argan, Inc. (45,093)$ 52,478$ 116,101$

Weighted average diluted shares 15,621 15,693 15,780

EBITDA per diluted share (2.89)$ 3.34$ 7.36$

31-Jan-20 31-Oct-19 31-Jul-19 30-Apr-19 31-Jan-19

Net (loss) income $ (7,218) $ (4,561) $ 980 $ (29,913) $ (2,291)

Less EBITDA attributable to noncontrolling interests 30 (2,294) 172 115 84

Interest expense — — — — —

Income tax (benefit) expense (2,117) 1,996 (6,411) (521) (142)

Depreciation 903 899 882 829 957

Amortization of purchased intangible assets 272 272 293 299 253

EBITDA attributable to the stockholders of Argan, Inc. (8,130)$ (3,688)$ (4,084)$ (29,191)$ (1,139)$

Weighted average diluted shares 15,634 15,633 15,757 15,583 15,573

EBITDA per diluted share (0.52)$ (0.24)$ (0.26)$ (1.87)$ (0.07)$

Three Months Ended

19

AppendixConsolidated Balance Sheets – Assets

(dollars in thousands) January 31, 2020 January 31, 2019

ASSETS

CURRENT ASSETS

Cash and cash equivalents $ 167,363 $ 164,318

Short-term investments 160,499 132,213

Accounts receivable, net 37,192 36,174

Contract assets 33,379 58,357

Other current assets 23,322 25,286

TOTAL CURRENT ASSETS 421,755 416,348

Property, plant and equipment, net 22,539 19,778

Goodwill 27,943 32,838

Other purchased intangible assets, net 5,001 6,137

Deferred taxes 7,894 1,257

Rights-of-use and other assets 2,408 290

TOTAL ASSETS $ 487,540 $ 476,648

20

AppendixConsolidated Balance Sheets – Liabilities and Equity

(dollars in thousands) January 31, 2020 January 31, 2019

LIABILITIES AND EQUITY

CURRENT LIABILITIES

Accounts payable $ 35,442 $ 39,870

Accrued expenses 35,907 33,097

Contract liabilities 72,685 8,349

TOTAL CURRENT LIABILITIES 144,034 81,316

Other noncurrent liabilities 2,476 960

TOTAL LIABILITIES 146,510 82,276

STOCKHOLDERS’ EQUITY

Common stock 2,346 2,337

Additional paid-in capital 148,713 144,961

Retained earnings 189,306 247,616

Accumulated other comprehensive loss (1,116) (346)

TOTAL STOCKHOLDERS’ EQUITY 339,249 394,568

Non-controlling interests 1,781 (196)

TOTAL EQUITY 341,030 394,372

TOTAL LIABILITIES AND EQUITY $ 487,540 $ 476,648