Argan (AGX 27.22%) stock absolutely crushed the markets on Friday, surging 34.4% in early morning trading and hitting a 52-week high. As of 11:15 a.m. ET Friday, the little-known small-cap stock, with a market capitalization of about $1.2 billion, was still up 26%.

Argan, which primarily builds energy plants like natural-gas power and renewable energy facilities, fueled investor interest in its stock today after reporting torrid revenue and earnings growth for its second quarter. Here’s all you need to know.

Argan’s impressive earnings report

Here are some key numbers from Argan’s Q2 earnings report worth noting (all changes are year over year):

• Revenue: Up 61% to $227 million.
• Gross margin: 13.7% versus 16.8% in the year-ago quarter.
• Net income: Up 43% to $18 million.

Management credited the strong top-line growth to sustained demand for renewables, which drove sales for its power construction business, Gemma Power Systems. Successful delivery of projects also boosted revenue for its industrials construction subsidiary, The Roberts Company.

Argan stock looks intriguing

A deeper dive into Argan’s earnings report reveals what a big role renewable energy could play in the company’s growth.

To put some numbers to that, Argan ended Q2 with a backlog of $1 billion, which includes $70 million on renewable projects. Management believes data centers, electric vehicles, and the onshoring of manufacturing operations could be the biggest drivers of demand for power in the coming years and open up new business opportunities for Argan.

Argan also ended the second quarter with more cash, around $485 million versus $412 million as of Jan. 31, 2024. With the company also paying a dividend, Argan stock could remain on investors’ radar.