AGAN, INC.

June 2010

June 2011

December 2017

2

Disclaimer

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

Investment Highlights

Consistent strong operational performance

Large bidding pipeline

Compelling financial results

Strong balance sheet - substantial liquidity and no leverage

Solid long term annual rate of return 5yr/3yr = 28%/24%*

Annual regular dividend of $1.00 per share in 2017, with quarterly

dividend of $0.25 per share beginning in 2018

Experienced management team

*As of 12/5/2017

4

Company Overview

Headquarters – Rockville, MD

NYSE: AGX

Holding company for four 100% controlled subsidiaries

Market capitalization (12/5/17) – $0.9 billion

Strong balance sheet at 10/31/17

– No leverage

– Cash & short-term investments - $484 million

– Adjusted net liquidity - $291 million

Backlog (10/31/17) – $0.5 billion

*Attributable to the Stockholders of AGX

Quarter Ended Trailing Twelve

October 31, 2017 Months (TTM)

Revenues $ 233 $ 930

Net Income* 17 85

EBITDA* 30 137

(in millions)

5

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

TTM Revenues by Subsidiary

88.5%

1.4%

2.6%

7.5%

6

Growing Revenues

$142

$279

$227

$383 $413

$675

$930

$-

$100

$200

$300

$400

$500

$600

$700

$800

$900

$1,000

2012 2013 2014 2015 2016 2017 2018**

$ M

illio

ns

*TTM through October 31, 2017

NOTE: Except where noted otherwise, the years presented throughout this presentation relate to Argan’s fiscal

year-end, which is January 31.

7

Growing Net Income*

$9.3

$23.3

$40.1

$30.4

$36.3

$70.3

$85.3

$-

$10

$20

$30

$40

$50

$60

$70

$80

$90

2012 2013 2014 2015 2016 2017 2018**

$ M

illio

ns

* Attributable to the Stockholders of AGX

** TTM through October 31, 2017

8

Growing EBITDA*

$12.9

$37.7

$66.3

$52.2

$62.9

$110.6

$136.8

0%

5%

10%

15%

20%

25%

30%

35%

$-

$20

$40

$60

$80

$100

$120

$140

$ M

illio

ns

EBITDA EBITDA Margins

EBITDA CAGR ≅ 48%

2012 2013 2014 2015 2016 2017 2018**

* Attributable to the Stockholders of AGX

** TTM through October 31, 2017

9

Growing Book Value

$5.87 $7.16

$9.50 $11.29 $11.58

$16.08

$19.67

$0.50

$1.10

$1.85

$2.55 $3.25

$4.25

$5.25

$-

$5.00

$10.00

$15.00

$20.00

$25.00

2012 2013 2014 2015 2016 2017 10/31/2017

Tangible Book Value* & Cumulative Dividends Per Share

Tangible Book Value Per Share Cumulative Dividends Per Share

*Tangible Book Value = Total Stockholders’ equity – Goodwill – Other Intangible assets

10

Superior Long Term Return

What $100 invested on 1/31/2012 would be now

$100

$134

$210 $230

$232

$579

$461

$100 $117

$142 $162 $161

$193

$224

$120 $139

$98 $91

$130 $132

$-

$100

$200

$300

$400

$500

$600

1/31/12 1/31/13 1/31/14 1/31/15 1/31/16 1/31/17 12/5/17

Argan, Inc. S&P 500 Dow Jones US Heavy Construction

11

Quarter Financial Highlights

(in thousands, except per share data)2017 2016 Change % Change

For the Quarter Ended:

Revenues 232,945$ 175,444$ 57,501$ 32.8%

Cost of revenues 195,227 138,866 56,361 40.6

Gross profit 37,718 36,578 1,140 3.1

Gross margins 16.2% 20.8% (4.6%) (22.1)

Net Income attributable to stockholders of the

Company 17,229$ 18,073$ (844)$ (4.7)

Diluted per share 1.09 1.16 (0.07) (6.0)

EBITDA attributable to stockholders of the

Company 30,275 27,024 3,251 12.0

Diluted per share 1.92 1.73 0.19 11.0

October 31, January 31,

2017 2017

As of:

Cash, cash equivalents and short-term investments 483,681$ 522,994$ (39,313)$ (7.5)%

Billings in excess of costs and estimated earnings 146,863 209,241 (62,378) (29.8)

Backlog 509,000 1,011,000 (502,000) (49.7)

October 31,

12

Quarterly Financial Drivers

Revenues of $233 million as GPS reached peak and post-peak construction

activities on four large, natural gas-fired power plants. However, revenues for each

of GPS’s four major projects will decline over the next several quarters as they

progress beyond peak construction in their project life-cycles.

Gross profit increased 3% to $38 million, primarily due to the increased revenues,

while gross margin percentage decreased from 20.8% to 16.2% compared to the

prior year quarter, which primarily reflected the achievement of final completion of

two natural gas-fired power plant projects in the prior year period, as well as the

effects of increased labor and subcontractor cost estimates in the current period for

certain projects.

Taxes increased due to a 1.5% increase in the estimated annual effective tax rate to

36.7% driven by a decrease in non-controlling interests as compared to the prior

year quarter and unfavorable adjustments.

Our balance sheet remains strong. As of October 31, 2017, our cash, cash

equivalents and short-term investments totaled $484 million and adjusted net

liquidity was $291 million; plus, we had no bank debt.

13

Overview of Gemma Power Systems

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

has generated cumulative EBITDA since acquisition of over $565

million, or ~17x cash on cash and an IRR in excess of 75%

Business – engineering, procurement and construction of natural

gas-fired and alternative power energy facilities

Employees – Over 20% of staff employees are veterans

Customers – Independent power producers and utilities

Safety Record – In seven of the past ten years, Gemma has incurred

no lost time injuries and Gemma’s OSHA recordable injury rate is

significantly below the national average

14

Industry Drivers

Gas Powered Electricity Growing - Over the last 10 years, the amount of electricity generated by

natural gas-fired power sources increased by 69%; the amount of electric power generated by coal-

fired plants declined by 38%.

Cheap Gas - Major advances in horizontal drilling and the practice of hydraulic fracturing have led

to the boom in natural gas supply. The abundant availability of cheap, less carbon-intense and

higher efficiency natural gas should continue to be a significant factor in power capacity additions.

Clean, Cheap and Reliable Electricity - Natural gas and renewable energy sources will still be the

top choices for new electricity generation plants in the future significantly due to low natural gas

prices in the United States. Announcements by electric utilities of the retirement of coal-fired and

nuclear power plants continue, citing the availability of cheap natural gas, environmental

regulations and the significant costs of refurbishment and relicensing.

Modest Power Demand - Demand for electrical power remains modest, as government forecast

project an annual increase in power generation of less than 1% per year for the next 25 years.

Transition Will Take Time - The retirement of older and inefficient plants and coal-fired generation

facilities (average age 39 years) and nuclear plants (36 years) will continue to drive future investment

in new gas-fired generation capacity. The amount of natural gas used for power generation during

2016 reached an all-time high; however, the transition from coal to natural gas will take time.

15

GPS Track Record

More than 14,500 megawatts of generating capacity installed and under contract on an EPC basis

40 major turnkey engineering, procurement and construction projects

Power experience includes combined and simple cycle, combustion turbines, coal/wood fueled projects, wind plants, solar facilities and waste recovery facilities

Project development support of 2,600 megawatts of natural gas-fired generating capacity

Project development support of 240 megawatts of biomass-fired power plants

Renewable fuels experience includes bio-diesel, biomass and environmental facilities

More than 435 megawatts of wind power facility development

More than 370 million gallons per year of installed renewable fuels capacity

16

National Footprint

GPS has the ability to provide EPC services to customers

throughout the United States

Project Locations

States in which GPS has current or completed projects.

17

Extensive Project Portfolio

Power facilities – combined cycle solution

– Panda Liberty Energy Project

– Panda Patriot Energy Project

– Caithness Moxie Freedom Generating Plant

– CPV Towantic Energy Center

– NTE Kings Mountain Energy Center

– NTE Middletown Energy Center

– 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

18

Significant Current Projects

(1) Full Notice to Proceed (“FNTP”) represents the formal notice provided by the project owner instructing us to commence

the activities covered by the corresponding EPC contract.

Project Location Size of FacilityDate FNTP

Received(1)

Scheduled

Completion

Caithness Moxie Freedom

Generating StationPennsylvania 1,040 MW Nov-15 2018

CPV Towantic Energy Center Connecticut 785 MW Mar-16 2018

NTE Middletown Energy Center Ohio 475 MW Oct-15 2018

NTE Kings Mountain Energy Center North Carolina 475 MW Mar-16 2018

Exelon West Medway II Facility Massachusetts 200 MW Apr-17 2018

19

Development Activities

Purpose – Gemma opportunistically participates in power plant

project development and related financing activities to 1) solidify

a proprietary pipeline for future EPC activities, 2) secure

exclusive rights to EPC contracts, and 3) generate profits through

interest and success fees.

Marcellus Shale Region – Gemma has partnered with Moxie

Energy to take principal positions in the initial stages of

development for three projects in the Marcellus Shale Region.

All three developmental efforts have successfully been executed

resulting in Gemma securing the rights for EPC contracts for

large scale power plants. Project development efforts were

successfully completed for the Panda Liberty Project and the

Panda Patriot Project in 2013 and most recently, the Caithness

Moxie Freedom Project in 2015. Success fees related to these

three projects totaled ~$31 million.

20

Renewable Energy

Wind & Solar – Gemma Renewable Power (GRP) has installed

wind and solar projects throughout North America. GRP has the

unique capability to self-perform the construction work associated

with our projects. This approach ensures direct control of labor,

safety, quality and schedule for each project. GRP provides state-of-

the-art technology coupled with advanced project management tools

to ensure every job is completed on-time, within budget, and to the

highest standards of excellence.

– GRP has constructed more than 435MW of wind power

facility capacity.

– GRP has successfully completed the design coordination,

procurement and installation of ground mounted photovoltaic

panels supporting 12MW of solar power facilities.

Alternative Fuels – Gemma Power Systems (GPS) has accepted

assignments to design and build facilities to produce alternative

fuels. To date, GPS has performed the process design, detail

engineering, procurement and construction of more than 370 million

gallons per year of installed alternative fuels capacity.

21

Competitive Landscape

Larger Projects / Natural Gas Smaller Projects / AlternativeFuels

22

Growth Strategy

Capitalize on long-term relationships throughout the

industry to aggressively build backlog of traditional and

renewable energy projects

Make strategic investments in power plant development

projects as a means to create greater opportunities to build

backlog of large scale EPC contracts

Make additional strategic acquisitions that complement our

unique market position

23

Investment Summary

Consistent strong operational performance

Large bidding pipeline

Compelling financial results

Strong balance sheet - substantial liquidity and no leverage

Solid long term annual rate of return 5yr/3yr = 28%/24%*

Annual regular dividend of $1.00 per share in 2017, with quarterly

dividend of $0.25 per share beginning in 2018

Experienced management team

*As of 12/5/2017

24

FinancialsConsolidated Income Statements - Quarter

(in thousands except per share amounts)

Revenues $ 232,945 $ 259,803 $ 230,489 $ 206,760 $ 175,444

Cost of revenues 195,227 208,396 190,393 168,941 138,866

Gross Profit 37,718 51,407 40,096 37,819 36,578

Gross Profit % 16.2% 19.8% 17.4% 18.3% 20.8%

Selling, general and administrative expenses 10,119 10,799 9,489 8,049 9,848

Income from operations 27,599 40,608 30,607 29,770 26,730

Other income, net 1,692 1,311 1,218 995 690

Income before income taxes 29,291 41,919 31,825 30,765 27,420

Income tax expense 12,062 14,601 11,076 9,984 8,194

Net income 17,229 27,318 20,749 20,781 19,226

Net income attributable to noncontrolling interests - 179 124 430 1,153

Net income attributable to the stockholders of AGX $ 17,229 $ 27,139 $ 20,625 $ 20,351 $ 18,073

EPS attributable to the stockholders of Argan, Inc.

Basic $ 1.11 $ 1.75 $ 1.33 $ 1.33 $ 1.19

Diluted $ 1.09 $ 1.72 $ 1.31 $ 1.29 $ 1.16

Weighted average number of shares outstanding

Basic 15,545 15,514 15,467

Diluted 15,793 15,787 15,771

Cash dividends per share $ 1.00 $ - $ - $ - $ 1.00

15,738

31-Jan-17 31-Oct-16

15,137

15,601

31-Oct-17

Three Months Ended

31-Jul-17

15,340

30-Apr-17

25

FinancialsReconciliations to EBITDA – Consolidated

(dollars in thousands)

31-Oct-17 31-Jul-17 30-Apr-17 31-Jan-17 31-Oct-16

Net income 17,229$ 27,318$ 20,749$ 20,781$ 19,226$

Less EBITDA attributable to noncontrolling interests - (179) (124) (430) (1,153)

Income tax expense 12,062 14,601 11,076 9,984 8,194

Depreciation 726 638 572 600 525

Amortization of purchased intangible assets 258 334 183 410 232

EBITDA attributable to the stockholders of Argan, Inc. 30,275$ 42,712$ 32,456$ 31,345$ 27,024$

EBITDA per diluted share 1.92$ 2.71$ 2.06$ 1.99$ 1.73$

Three Months Ended

26

FinancialsConsolidated Balance Sheets - Assets

(dollars in thousands)

ASSETS October 31, 2017 January 31, 2017

CURRENT ASSETS

Cash and cash equivalents $ 149,708 $ 167,198

Short-term investments 333,973 355,796

Accounts receivable, net 83,681 54,836

Costs and estimated earnings in excess of billings 10,197 3,192

Prepaid expenses and other current assets 6,236 6,927

TOTAL CURRENT ASSETS 583,795 587,949

Property, plant and equipment, net 15,257 13,112

Goodwill 34,913 34,913

Other Intangible assets, net 7,405 8,181

Deferred taxes 383 241

Other assets 548 92

TOTAL ASSETS $ 642,301 $ 644,488

27

FinancialsConsolidated Balance Sheets – Liabilities and Equity

(dollars in thousands)

LIABILITIES AND EQUITY October 31, 2017 January 31, 2017

CURRENT LIABILITIES

Accounts payable $ 114,448 $ 101,944

Accrued expenses 31,005 39,539

Billings in excess of costs and estimated earnings 146,863 209,241

TOTAL CURRENT LIABILITIES 292,316 350,724

Deferred taxes 1,788 1,195

TOTAL LIABILITIES 294,104 351,919

STOCKHOLDERS’ EQUITY

Common stock 2,333 2,319

Additional paid-in capital 141,766 135,426

Retained earnings 204,095 154,649

Accumulated other comprehensive loss (8) (762)

TOTAL STOCKHOLDERS’ EQUITY 348,186 291,632

Noncontrolling interests 11 937

TOTAL EQUITY 348,197 292,569

TOTAL LIABILITIES AND EQUITY $ 642,301 $ 644,488

28

FinancialsAdjusted Net Liquidity

(dollars in thousands) 10/31/2017 7/31/2017 4/30/2017 1/31/2017 10/31/2016

Cash and cash equivalents 149,708$ 153,225$ 167,347$ 167,198$ 170,775$

Short-term investments 333,973 403,925 396,092 355,796 275,545

Less: Billings in excess of costs and

estimated earnings (146,863) (190,581) (234,344) (209,241) (160,985)

Less: JV adjustment (27) (27) (2,023) (1,770) (5,510)

336,791 366,542 327,072 311,983 279,825

Less: Current working capital adjustments (45,339) (78,640) (70,103) (76,528) (75,898)

Adjusted Net Liquidity 291,452$ 287,902$ 256,969$ 235,455$ 203,927$

Quarterly Liquidity Growth 3,550$ 30,933$ 21,514$ 31,528$

Quarterly Liquidity Growth % 1.2% 12.0% 9.1% 15.5%

29

Construction Services Peer Group

Source: Stifel - Engineering, Construction and Infrastructure Newsletter (11/28/2017)

Stock 12 Month LTM LTM Return

Price Total Market Debt/ LTM Gross EBITDA on Avg.

Ticker 11/2 4 /2 0 17 Return Cap Equity Revenue Margin Margin Equity

AGX $59.80 % -6.4 % $929.5 0.0 X $872.5 19.0 % 15.0 % 28.6%

FLR $46.89 -12.0 $6,558.8 0.5 $19,308.5 2.4 2.9 3.4

GVA $64.37 6.1 $2,565.2 0.3 $2,855.1 10.3 4.9 5.7

JEC $63.29 3.7 $7,624.3 0.1 $10,009.5 17.3 6.4 5.2

KBR KBR, Inc. $18.26 8.8 $2,557.9 0.6 $4,463.0 2.0 0.2 NEG

MDR $7.32 12.8 $2,078.9 0.3 $2,508.4 15.6 12.1 4.5

ORN $7.85 -21.7 $221.4 0.4 $584.5 11.0 5.3 NEG

TPC $23.30 -13.5 $1,159.9 0.5 $4,944.2 9.1 5.1 6.7

PRIM $26.74 14.8 $1,375.7 0.5 $2,302.4 11.2 7.1 9.5

TSX-SNC $44.21 1.1 $7,757.2 0.2 $6,281.6 14.3 6.6 6.9

STRL $17.35 119.3 $469.3 0.7 $773.8 7.7 3.0 NEG

Mean 10.3% 0.4x 10.9% 6.2% 6.0%

Sterl ing Construction Co. Inc.

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30

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