AGX just beat revenue estimates by 14% and EBITDA by 44%.
Revenue $291M vs $256M consensus. Adjusted EBITDA $56.4M vs $39.1M expected. Not a single analyst had the number right. The highest estimate was $263M. They printed $291M.
The thesis in one paragraph from management:
"The electrification of everything, the onshoring of domestic manufacturing, and the proliferation of data centers continue to create an urgent need for additional energy infrastructure. Gas-fired plants remain the ideal solution for delivering reliable, uninterrupted power needed, and only a limited number of firms are able to successfully execute these complex projects."
Read that last line again. Only a limited number of firms can do this work. That is pricing power.
The data center angle is expanding. AGX was awarded a data center contract for fabrication of pressure vessels. They are building a new fabrication facility in North Carolina to handle the demand, expected to complete Q3 FY27.
Project backlog $2.8 billion. Pipeline described as robust. Management said the demand environment allows them to be disciplined in choosing projects.
This is not an AI software name trading at 40x revenue. This is the company that builds the physical infrastructure the AI economy runs on. They just told you demand is outstripping the number of firms that can execute.
$AGX . The picks and shovels behind the power build.
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