September 2019 Safe Harbor Statement All statements in this - PowerPoint PPT Presentation

September 2019

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. 2

Company Overview NYSE: AGX  Holding company for four 100% controlled subsidiaries  Market capitalization (9/11/19) – $0.7 billion  Quarterly dividend $0.25 per share   Quarter Ended Trailing Twelve (in millions) July 31, 2019 Months (TTM) Revenues $ 63 $317 Net Income* 1 2 EBITDA* (4) (13) Strong balance sheet at 7/31/19  No leverage – Cash & short-term investments - $234 million – Net liquidity - $294 million – Project backlog (7/31/19) – $1.4 billion  Received Full Notice to Proceed on the Guernsey Power  Station project in August 2019. 3 * Attributable to the Stockholders of AGX

Business Overview – Holding Company Gemma Power Systems (“GPS”) provides  TTM Revenues by Subsidiary engineering, procurement and construction (“EPC”) services to power generation and renewable energy markets 37.1% The Roberts Company (“TRC”) is  32.3% 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 3.4% outage services to the global power industry 27.2%* SMC Infrastructure Solutions (“SMC”)  provides telecommunications data infrastructure services 4 * Historically, GPS has generated the majority of the Company’s revenues.

Revenues* $900 $893 $800 $700 $675 $600 $500 $ Millions $482 $400 $413 $383 $300 $317 $279 $200 $227 $142 $100 $- 2012 2013 2014 2015 2016 2017 2018 2019 2020** * As expected, with several major projects completed in the year ended January 31, 2019, our revenues and several other financial metrics were lower in the first two quarters of Fiscal 2020 compared to prior years. ** TTM through July 31, 2019. 5 NOTE: Except where noted otherwise, the years presented throughout this presentation relate to Argan’s fiscal year-end, which is January 31.

Net Income* $80 $70 $72.0 $70.3 $60 $50 $52.0 $39.1 $ Millions $40 $40.1 $36.3 $30 $30.4 $23.3 $20 $10 $9.3 $2.0 $- 2012 2013 2014 2015 2016 2017 2018 2019 2020** * Attributable to the Stockholders of AGX. 6 ** TTM through July 31, 2019. The dotted line reflects net income excluding the effect of the TeesREP job and related impairment loss.

Project Backlog $1.4 $1.4 $1.2 $1.1 $1.1 $1.0 $1.0 $ Billions $0.8 $0.6 $0.4 $0.4 $0.2 $0.0 2017 2018 2019 4/30/2019 7/31/2019 As of January 31, 7

Book Value Tangible Book Value* & Cumulative Dividends Per Share $30.00 $6.25 $25.00 $6.75 $5.25 $20.00 $4.25 $15.00 $3.25 $2.55 $22.83 $1.85 $20.68 $20.34 $10.00 $16.08 $1.10 $0.50 $11.58 $11.29 $5.00 $9.50 $7.16 $5.87 $- 2012 2013 2014 2015 2016 2017 2018 2019 2020 Tangible Book Value Cumulative Dividends 8 *Tangible Book Value = Total Stockholders’ Equity – Goodwill – Other Intangible Assets

Overview of Gemma Power Systems History – acquired by Argan in December 2006 for $33 million and  has generated cumulative EBITDA since acquisition of over $630 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 and under-contract capacity for 15 gigawatts  of mostly domestic power-generating capacity including 65 gas turbines comprising 40 projects 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 – Over 20% of staff employees are veterans  Customers – Independent power producers and utilities  9

Extensive Project Portfolio Power facilities – combined cycle solution Power facilities – simple cycle solution   Exelon West Medway II Facility Guernsey Power Station – – Caithness Moxie Freedom Generating Plant CPV Sentinel Energy Project – – CPV Towantic Energy Center A.L. Pierce Re-powering Project – – NTE Kings Mountain Energy Center Vandolah Power Project – – NTE Middletown Energy Center DeSoto County Power Project – – Indigo Energy Facility Panda Liberty Energy Project – – Panda Patriot Energy Project Larkspur Energy Facility – – Colusa Generating Station Richmond County Phase I Power – – Roseville Energy Park Monroe Power Project – – Hines PB-2 Power Project Richland Peaking Project – – Rocky Road Unit 4 Project Rowan County Power Project – – Effingham County Power Project Broad River Energy Center – – Richmond County Phase II Power Project – Middletown, CT Project – Dighton Power Project – Process facilities – biodiesel  Pollution solutions  Renewable BioFuels Port Neches – Brayton Point Power Station – Galena Park – La Rosita SCR Project Green Earth Fuels Houston LLC – – Biomass power facilities Process facilities – ethanol   - Woodville, Texas Carleton Ethanol Facility – Solar facilities   Wind Facilities - Canton, MA - LaSalle County, Illinois - Carver, MA - Vantage, Washington - Beaumont Solar - Henry County, Illinois 10 - Ebensburg, Pennsylvania

Construction Services Peer Group Stock 12 Month LTM LTM Return Price Total Market Debt/ LTM Gross EBITDA on Avg. 8/30/2019 Ticker Company Name Return Cap Equity Revenue Margin Margin Equity AGX $41.31 % 5.4 % $645.8 0.0 X $390.3 11.0 % 2.5 % 4.8% Argan, Inc. FLR 17.67 (68.7) 2,472.5 0.8 17,746.2 NEG NEG NEG Fluor Corporation GVA 28.44 (36.9) 1,332.1 0.4 3,357.3 7.2 2.1 NEG Granite Construction Incorporated JEC 88.86 22.8 12,040.4 0.2 16,741.7 18.4 6.4 5.9 Jacobs Engineering Group Inc. KBR KBR, Inc. 25.52 22.6 3,612.5 0.8 5,370.0 9.1 7.1 11.0 MDR 4.72 (75.7) 857.8 5.4 8,710.0 7.2 3.2 NEG McDermott International Inc. ORN 4.14 (51.1) 122.3 0.8 533.4 2.2 NEG NEG Orion Group Holdings, Inc. TPC 9.99 (50.2) 502.3 0.7 4,390.2 10.4 5.8 NEG Tutor Perini Corporation PRIM Primoris Services Corporation 19.54 (21.1) 996.2 1.0 3,238.1 10.6 7.3 14.2 TSX: SNC 16.41 (68.7) 2,880.8 4.6 9,772.9 1.0 1.2 NEG SNC-Lavalin Group Inc. STRL 11.19 (22.9) 296.2 0.5 1,034.5 10.1 4.4 14.4 Sterling Construction Co. Inc. Mean (31.3)% 1.4x 8.7% 4.5% 10.1% NEG: Negative Source: Stifel - Engineering, Construction and Infrastructure Newsletter (9/3/2019) 11

Corporate Data Investor Relations Websites Investor Relations Argan, Inc. 301-315-0027 www.arganinc.com info@arganinc.com Gemma Power Systems www.gemmapower.com Corporate Headquarters The Roberts Company Argan, Inc. www.robertscompany.com One Church Street, Suite 201 Atlantic Projects Company Rockville, Maryland 20850 www.atlanticprojects.com 301-315-0027 SMC Infrastructure Solutions NYSE Listing www.smcinc.biz Common: AGX 12

Appendix Consolidated Income Statements - Quarter Three Months Ended (in thousands except per share amounts) 31-Jul-19 30-Apr-19 31-Jan-19 31-Oct-18 31-Jul-18 Revenues $ 63,059 $ 49,544 $ 87,658 $ 116,459 $ 136,670 Cost of revenues 60,094 70,570 80,912 86,927 105,962 Gross Profit 2,965 (21,026) 6,746 29,532 30,708 Gross Profit % 4.7% -42.4% 7.7% 25.4% 22.5% Selling, general and administrative expenses 10,038 9,588 9,548 11,147 10,378 (Loss) Income from operations (7,073) (32,686) (4,293) 18,385 20,330 Other income, net 1,642 2,252 1,860 1,429 2,928 (Loss) Income before income taxes (5,431) (30,434) (2,433) 19,814 23,258 Income tax (benefit) expense (6,411) (521) (142) (12,560) 6,314 Net Income (Loss) 980 (29,913) (2,291) 32,374 16,944 Net loss attributable to noncontrolling interests (174) (113) (84) (60) (28) Net Income (Loss) attributable to the stockholders of AGX $ 1,154 $ (29,800) $ (2,207) $ 32,434 $ 16,972 EPS attributable to the stockholders of Argan, Inc. Basic $ 0.07 $ (1.91) $ (0.14) $ 2.08 $ 1.09 Diluted $ 0.07 $ (1.91) $ (0.14) $ 2.07 $ 1.08 Weighted average number of shares outstanding Basic 15,633 15,583 15,573 15,569 15,568 Diluted 15,757 15,583 15,573 15,702 15,673 Cash dividends per share $ 0.25 $ 0.25 $ 0.25 $ 0.25 $ 0.25 13