Argan, Inc. (AGX): PESTLE Analysis [Nov-2025 Updated]

You're trying to map out Argan, Inc.'s (AGX) next move, and the external environment is sending two very strong signals: a massive tailwind from federal spending and a stiff headwind from inflation. Right now, the Inflation Reduction Act (IRA) is fueling a clean energy boom that has locked in an estimated backlog near $1.1 billion for AGX, which is defintely a strong position. But, you still have to navigate the reality of high interest rates making project financing expensive and a severe skilled labor shortage that is eating into the margins of those fixed-price contracts. Let's dig into the Political, Economic, Social, Technological, Legal, and Environmental forces that will determine if AGX can turn that backlog into maximum profit in 2025 and beyond.

Argan, Inc. (AGX) - PESTLE Analysis: Political factors

Federal infrastructure spending drives new power and industrial projects.

You are seeing a massive, government-backed capital flow into the energy sector, which is the primary tailwind for Argan, Inc. (AGX). The core driver is the convergence of the Bipartisan Infrastructure Law (BIL) and the need to power a rapidly electrifying economy-think data centers and reshoring manufacturing.

The US power sector alone is slated to require approximately $1.4 trillion in investment between 2025 and 2030, a figure that highlights the scale of the opportunity. Utility capital expenditure (capex) is already on a steep curve, projected to reach at least $194 billion in 2025. The BIL specifically allocated $65 billion for power infrastructure, including $21.5 billion for the grid, creating a stable pipeline for AGX's Power and Industry Services segment.

This isn't just a forecast; it's already in the backlog. AGX's consolidated project backlog hit a record of approximately $2.0 billion as of July 31, 2025. That gives you solid revenue visibility for the next few years. The government is defintely writing the checks for this cycle.

Inflation Reduction Act (IRA) tax credits boost clean energy development, favoring AGX's focus.

The Inflation Reduction Act (IRA) is the single biggest policy factor reshaping AGX's market, providing an estimated total support exceeding $430 billion from 2022 through 2031. For AGX, the key is the shift to technology-neutral tax credits starting January 1, 2025, which replace the old Production Tax Credit (PTC) and Investment Tax Credit (ITC).

The new Section 45Y Clean Electricity Production Credit and Section 48E Clean Electricity Investment Credit apply to any zero-emission power plant, which is a powerful incentive for the 29% of AGX's backlog dedicated to renewables. The IRA has already driven over $422 billion in announced private-sector investments across 750 projects between 2022 and early 2025. But, to be fair, the political landscape introduces volatility. A new administration has already expressed intent to repeal some subsidies, though a full repeal of business-facing credits is unlikely due to bipartisan support for domestic manufacturing.

Regulatory stability for natural gas-fired power remains a key factor in project approval.

Natural gas projects, which make up the largest portion of AGX's business-approximately 61% of the $2.0 billion backlog-benefit directly from a recent regulatory pivot. The new administration, in June 2025, proposed to repeal the 2024 Carbon Pollution Standards (CPS) and the 2015 New Source Performance Standards (NSPS) for fossil fuel-fired power plants.

This action, if finalized, would eliminate the stringent requirements for new natural gas plants to implement Carbon Capture and Storage (CCS). For AGX, this means a significant reduction in project complexity and compliance costs, which the EPA estimates could yield approximately $1.2 billion annually in regulatory cost savings starting in 2026 across the industry. This regulatory streamlining is a clear positive for the near-term execution of AGX's gas-fired power plant contracts, which are critical for grid reliability amid surging demand from data centers and electrification.

Geopolitical tensions affect global supply chains for specialized construction materials.

Geopolitical tensions translate directly into higher material costs and longer project timelines for AGX. The re-emergence of protectionist trade policies has created significant headwinds for the industrial construction sector.

For example, the new trade policy implemented in April 2025 included a 10% baseline tariff on multiple trade partners, with targeted tariffs on critical materials like steel and aluminum. This contributed to a 9.7% annualized rise in input costs for US construction firms in the first quarter of 2025. For AGX's power projects, shortages of specialized electrical components are also a concern:

• Steel and aluminum prices are volatile due to tariffs.
• Shortages persist for electrical products, notably transformers and switchgears, driven by hyperscale data center demand.

Also, the new Foreign Entity of Concern (FEOC) rules, effective after July 4, 2025, deny the new clean energy tax credits (45Y and 48E) to projects that use too many components from certain foreign entities, primarily China. This forces AGX and its clients to meticulously vet supply chains to ensure tax credit eligibility, adding a layer of compliance risk to renewable projects.

Next Step: Operations: Review all active project supply contracts for critical components (e.g., transformers, steel) and quantify the cost impact from the Q1 2025 tariff-driven price increases by the end of the month.

Argan, Inc. (AGX) - PESTLE Analysis: Economic factors

Argan, Inc. reported a substantial backlog, estimated near $2.0 billion, securing near-term revenue.

You need to look past the macro-level economic noise-the real story for Argan, Inc. is the massive, non-cyclical demand for power infrastructure. The company's financial position is exceptionally strong, which gives them a huge advantage in this environment. Specifically, Argan's consolidated project backlog reached a record high of approximately $2.0 billion as of July 31, 2025, securing revenue visibility for the next few years.

This backlog is not just a big number; it reflects a strategic mix of projects. About 61% is weighted toward natural gas-fired facilities, and 29% is in the renewables sector, showing Argan's ability to capture opportunities across the entire energy transition spectrum. The company's balance sheet is defintely a source of strength, operating with virtually no debt and holding a cash, cash equivalents, and investments balance of $572 million as of July 31, 2025.

High interest rates increase project financing costs, potentially delaying contract awards.

While Argan, Inc. is debt-free, the elevated interest rate environment is a headwind for its customers-the project developers. Higher rates directly increase the cost of capital for new power and industrial facilities, which can slow down the final investment decision (FID) process and delay contract awards. Construction loan rates are now typically ranging between 7.5% and 9.5%, a massive jump from the sub-4% rates seen just a few years ago.

Here's the quick math: that rate increase fundamentally changes the internal rate of return (IRR) on long-term power projects, pushing some from feasible to unfeasible. This is why you see enhanced due diligence and longer lead times for financing approvals. Argan's robust pipeline suggests that critical projects are still moving forward, but the risk of marginal projects being shelved is real. The company's financial strength, however, allows it to be selective, avoiding low-margin work.

Labor and material cost inflation pressures fixed-price Engineering, Procurement, and Construction (EPC) contracts.

The construction industry is still grappling with cost inflation, and this is a significant risk for Argan's core business of fixed-price Engineering, Procurement, and Construction (EPC) contracts. When you lock in a price years in advance, any spike in input costs eats directly into your margin. Construction costs overall are projected to rise between 5% and 7% in 2025.

The pressure points are clear and measurable:

• Material Costs: Steel prices are up over 125% from early 2020 levels, and building materials costs have climbed 35.6% since the pandemic began.
• Labor Costs: Labor wages have increased by an average of 4.1% over the past year, driven by a persistent shortage of skilled trades.
• Supply Chain: Long lead times for specialized components like turbines and heavy electrical equipment-strained by the surge in energy project construction-add both cost and schedule risk.

What this estimate hides is the execution risk. Argan must maintain exceptional project discipline to manage these volatile costs and protect its gross margin, which was 18.6% in the second quarter of fiscal year 2026.

Strong demand for grid reliability and industrial decarbonization creates a robust market.

The secular demand trends are a powerful economic tailwind that outweighs many of the near-term inflation risks. The U.S. power grid is undergoing a massive, multi-year infrastructure buildout driven by two major forces: reliability and the 'Electrification of Everything.'

This is not a theoretical market; it's being driven by concrete, immediate needs:

• Data Center Boom: The massive energy consumption of AI and data center buildouts is driving urgent demand for new, reliable power generation.
• Aging Infrastructure: An estimated 12.3 GW of aging power plant capacity is expected to retire in 2025 alone, creating an immediate need for replacement facilities.
• Industrial Decarbonization: The onshoring of manufacturing and expansion of electric vehicle use are creating new, concentrated pockets of high energy demand that Argan's industrial and power segments are directly addressing.

The strong market demand is the primary reason Argan's backlog has surged, reflecting a robust pipeline of new business opportunities in both natural gas (for baseload stability) and renewables (for carbon reduction).

Argan, Inc. (AGX) - PESTLE Analysis: Social factors

Growing public and corporate demand for clean energy and decarbonization solutions.

The social push for a cleaner energy grid is a massive tailwind for Argan, Inc. You are seeing this demand translate into concrete, multi-billion-dollar projects that drive the backlog for subsidiaries like Gemma Power Systems. The US decarbonization market is expected to grow at a Compound Annual Growth Rate (CAGR) of 10.8% from 2025 to 2030, with the market projected to reach $835,467.5 million by 2030. That's a clear signal for sustained, long-term infrastructure spending.

In 2025, cleantech energy supply spending-which includes renewable power generation, green hydrogen, and carbon capture-is expected to reach $670 billion, surpassing investment in upstream oil and gas for the first time. This trend is not just about renewables; it's about reliable, flexible power. Argan, Inc. is well-positioned because its subsidiaries build both utility-scale solar and gas-fired plants, which are critical for grid stability as intermittent renewable capacity grows.

• US energy transition investment hit $338 billion in 2024.
• 54 GW of new renewable capacity came online in 2024, a 29% jump.
• Argan's subsidiary, Gemma Power Systems, is actively securing new projects, including a 1.2 GW natural gas-fired plant in Texas starting construction in the summer of 2025.

Significant skilled labor shortages in the US construction sector, raising wage costs.

The labor market is the single biggest near-term risk to project margins. The demand for skilled craft labor-welders, pipefitters, electricians-far outstrips supply in the US, and this directly impacts Argan, Inc.'s ability to execute its large, complex EPC (Engineering, Procurement, and Construction) contracts on time and on budget. The Associated Builders and Contractors (ABC) estimates the US construction industry needs to attract an additional 439,000 net new workers in 2025 just to keep up with anticipated demand.

This shortage is driving up project costs. US average hourly earnings in construction reached $38.76 in March 2025, representing a year-over-year increase of 4.5%. For field craft professionals, the average hourly wage of $36.54 is about an 18% premium over the typical private-sector wage of $30.84. You have to factor this wage inflation into your bid models, or you will lose money on fixed-price contracts. The number of open construction jobs was still high at 306,000 as of July 2025. It's a seller's market for skilled hands.

Community opposition to new transmission lines or power plants can extend project timelines.

The social factor of 'Not In My Backyard' (NIMBYism) is now a critical execution risk, especially for the high-voltage transmission lines and large-scale power plants Argan, Inc. builds. Local opposition and restrictive ordinances are now cited as a leading cause of project delays and cancellations, on par with grid interconnection issues. This isn't just a minor headache; it's a major capital expenditure risk.

A survey of developers found that community opposition leads to the cancellation of about a third of wind and solar applications, and causes delays of six months or more for about half of all projects. The cost of failure is significant, with unrecovered expenses from cancellations averaging around $2 million per solar project and $7.5 million per wind project. The sheer volume is staggering: 378 renewable energy projects across 47 states have faced significant opposition. The US built just over 300 miles of high-capacity transmission lines last year, a fraction of the 5,000 miles needed annually.

Here's the quick math on the social cost of project opposition:

Focus on worker safety and health standards remains paramount in industrial construction.

In heavy industrial construction, worker safety is a non-negotiable social and financial metric. A poor safety record-measured by the Total Recordable Incident Rate (TRIR)-can disqualify a contractor from bidding on major projects for utilities and Independent Power Producers (IPPs). Argan, Inc.'s subsidiary, Gemma Power Systems, states that its safety performance metrics consistently beat the national average for the industry, which is a key selling point for securing new contracts.

While specific 2025 TRIR data for Argan, Inc. is not public, the overall energy infrastructure sector remains high-risk. Between 2021 and 2023, annual fatalities from pipeline incidents alone stayed level at 12, with an average of 30 injuries per year. Maintaining a best-in-class safety culture is essential for controlling insurance premiums, minimizing project downtime, and protecting the company's reputation with major clients.

• A low TRIR is a critical pre-qualification hurdle for large EPC contracts.
• Safety failures directly increase project costs via insurance, fines, and schedule delays.
• Argan, Inc. must continuously invest in training and site-specific safety plans to mitigate risk.

Next Step: Operations: Review all active project contracts for skilled labor wage escalation clauses against the 4.5% YoY wage increase data.

Argan, Inc. (AGX) - PESTLE Analysis: Technological factors

The technological landscape for Argan, Inc. (AGX) in 2025 is defined by the energy transition, forcing a pivot toward hybrid power solutions and advanced construction methods. You see the company's competitive edge tied directly to its ability to execute complex, next-generation projects-specifically those integrating storage and carbon-reduction readiness.

Argan's Power Industry Services segment is the primary growth engine, with revenue jumping 45% to $160 million in the first quarter of fiscal year 2026 alone, directly reflecting this technological shift. The overall project backlog hit a record of $1.9 billion as of April 30, 2025, and is expected to cross $2 billion by the end of the year, with 91% of that backlog supporting zero or low carbon emissions. That's a clear signal of where the money is moving.

Increased integration of Battery Energy Storage Systems (BESS) into power projects.

The market for Battery Energy Storage Systems (BESS) is no longer a niche; it is essential infrastructure. The global BESS market size is estimated to be around $50.81 billion in 2025, driven by the need to stabilize grids overloaded with intermittent solar and wind power. Argan, Inc. is actively participating in this integration, which is critical for securing future renewable energy contracts.

For example, Argan's subsidiary, Gemma Power Systems, is executing multiple solar-plus-storage projects. A notable project in Illinois involves a 405 MW utility-scale solar farm paired with a significant 22 MW of battery storage capacity. This dual-asset approach maximizes the value of the solar generation by allowing energy to be dispatched during peak demand, not just when the sun is shining. This technical capability is key to maintaining a strong market position in the fastest-growing power segment in North America, which has a projected compound annual growth rate (CAGR) of 27.12%.

Advancements in carbon capture and sequestration (CCS) technology for gas-fired plants.

While Argan, Inc. is heavily invested in natural gas-fired power plants, its strategy is to ensure these assets are future-proofed against stricter emissions regulations. This is achieved by designing new facilities to be 'carbon capture ready.'

The EPC contract for the 1,350 MW CPV Basin Ranch Energy Center in Texas, awarded to Gemma Power Systems, is explicitly being designed with the option to include a carbon capture capability. This is a smart defensive move. Furthermore, the new 1.2 GW Sandow Lakes Power Station in Texas and the CPV Basin Ranch facility both feature advanced gas turbines that are capable of operating on hydrogen with only minor modifications. This hydrogen-readiness positions Argan to capitalize on the next wave of low-carbon dispatchable power. Globally, the operational carbon capture capacity is over 50 million tonnes of CO₂ per year, but the pipeline is set to reach around 430 Mt CO₂ per year by 2030, showing the massive scale of the impending CCS buildout.

Here is a quick view of Argan's major low-carbon-ready projects announced in 2025:

Digital transformation through Building Information Modeling (BIM) improves project efficiency.

The complexity of integrating BESS, CCS, and hydrogen-ready systems demands a digital transformation in project execution. Building Information Modeling (BIM) is the standard for this. BIM, which is a process of creating and managing a digital representation of physical and functional characteristics of a facility, is critical for Argan's large-scale Engineering, Procurement, and Construction (EPC) contracts.

Firms that fully integrate BIM workflows see productivity gains of up to 25% and can reduce costly project errors by as much as 30% by catching clashes between mechanical, electrical, and structural systems in the design phase, not on the job site. Given Argan's high-value, fixed-price EPC contracts, any reduction in rework directly improves the segment's gross margin, which hit 19% in Q1 FY2026. If you are not using BIM, you are losing margin.

Modular construction techniques reduce on-site labor needs and speed up deployment.

Modular construction, where components are fabricated off-site in a controlled factory environment, is a necessary response to rising on-site labor costs and a persistent skilled labor shortage in the US construction market. This approach is highly compatible with the standardized components used in power projects, such as turbine enclosures, electrical skids, and BESS containers.

The industry data shows modular methods can accelerate project timelines by up to 50% and reduce on-site manpower requirements by up to 40%. For Argan, Inc.'s subsidiaries, adopting this approach for balance-of-plant components can significantly de-risk project schedules and cost overruns, which is a major investor concern for multi-year EPC projects. The use of modularization is a direct action to mitigate execution risk on projects like the 950 MW Trumbull combined-cycle gas plant nearing completion.

• Accelerate project completion by up to 50%.
• Cut overall construction costs by as much as 20%.
• Reduce on-site labor needs by up to 40%.

The next concrete step for Argan, Inc. is to publicly quantify the efficiency gains from the implementation of BIM and modular techniques on a major project like the Sandow Lakes Power Station. This will translate technological capability into clear shareholder value.

Argan, Inc. (AGX) - PESTLE Analysis: Legal factors

Environmental permitting processes, like the National Environmental Policy Act (NEPA), can cause significant delays.

The permitting process, especially under the National Environmental Policy Act (NEPA), remains a significant legal headwind for large-scale energy infrastructure projects, which are Argan, Inc.'s core business. While the federal government is attempting to streamline reviews, the risk of delays is still real. Historically, completing the NEPA Environmental Impact Statement (EIS) process for utility-scale wind projects required an average of 45 months, and solar projects took an average of 27 months, compared to an average of 54 months for all project types.

To be fair, recent federal actions are pushing for faster reviews. The Federal Energy Regulatory Commission (FERC) and the Department of Energy (DOE) both revised their procedures in mid-2025 to align with new directives. The Federal Responsibility Act (FRA) now sets a statutory time limit of two years for completing an EIS and one year for an Environmental Assessment (EA). This is a clear action to mitigate the legal risk, but any project requiring complex federal land use or multi-agency sign-off still faces the risk of litigation that can stretch timelines and increase pre-construction costs.

Stricter enforcement of Occupational Safety and Health Administration (OSHA) regulations.

As a major Engineering, Procurement, and Construction (EPC) contractor, Argan, Inc. operates in an industry under constant scrutiny by the Occupational Safety and Health Administration (OSHA). The financial risk from non-compliance has increased in 2025. OSHA has significantly raised its civil penalty amounts, with fines for a serious violation now reaching up to $16,550, and willful or repeated violations soaring as high as $165,514 per incident.

The construction industry's most cited violation for the 2025 fiscal year remains Fall Protection (General Requirements), accounting for 5,914 violations. This is the number one violation for the 15th consecutive year. Argan, Inc.'s subsidiaries, however, have historically demonstrated strong safety performance. For example, the company's OSHA reportable incident rates have been significantly better than the national average for the industry (NAICS - 2379), with a rate of 0.60 in calendar year 2022 compared to the industry average.

Here's a quick look at the increased cost of non-compliance and the company's historical performance:

Contract law risks in managing fixed-price EPC agreements against rising inflation.

Argan, Inc. predominantly uses fixed-price EPC contracts, especially in its power industry services segment, which generated $693.0 million in revenue in Fiscal Year 2025. This contract structure legally transfers the risk of cost overruns to the company. While this can lead to higher margins if costs are controlled, it poses a major legal and financial risk against persistent inflation in materials and labor.

The company has successfully managed this risk, as evidenced by a consolidated gross profit margin of 19.0% in the first quarter of Fiscal Year 2026 (ended April 30, 2025), which is healthy for the EPC sector. Their primary mitigation strategy is a legal and contractual one:

• Early Procurement: Procure the majority of equipment and construction supplies during the early phases of a project to legally lock in prices and avoid material cost surprises.
• Subcontractor Management: Carefully manage subcontracts to pass down some inflation risk and ensure project management discipline.

Honestly, the success of a fixed-price model hinges entirely on how well they execute this early procurement and risk transfer. One problematic project, like a major turbine delay or an unexpected spike in steel prices, could easily wipe out the margin on a multi-year, multi-hundred-million-dollar contract.

Varying state-level renewable portfolio standards (RPS) create fragmented market opportunities.

The fragmented legal landscape of state-level Renewable Portfolio Standards (RPS) and Clean Energy Standards (CES) dictates where Argan, Inc.'s renewable and gas-fired power plant opportunities arise. As of 2025, 28 States plus the District of Columbia have mandatory RPS policies, but the specific targets and eligible technologies vary wildly, creating a patchwork of legal demand.

This fragmentation is an opportunity, but it requires constant legal and regulatory monitoring to bid effectively. For instance, the company's recent focus on the ERCOT market in Texas, where they secured an EPC contract for an approximately 1,350 MW combined-cycle power plant, aligns with that state's high energy demand, even though Texas's original RPS goal of 10,000 MW for 2025 was met a decade ago. The real driver is the Clean Energy Standard (CES) trend, which often includes gas with carbon capture, a technology Argan, Inc. is now incorporating.

The following table shows the varying 2025 targets in states where the company or its peers operate:

Argan, Inc. (AGX) - PESTLE Analysis: Environmental factors

Here's the quick math: Argan, Inc.'s consolidated project backlog was approximately $2 billion as of July 31, 2025. If AGX converts just 15% of this into revenue in the second half of fiscal year 2026, that's $300 million in sales. But if inflation eats 5% more than budgeted on those fixed-price engineering, procurement, and construction (EPC) contracts, you're looking at a $15 million hit to gross profit. Finance: draft a 13-week cash view focusing on labor cost variance by Friday.

Increasing state and federal mandates for renewable energy capacity and grid modernization.

The push for renewable energy and a more resilient grid is a major tailwind for Argan, but the federal policy landscape is defintely mixed. Federal initiatives like the Inflation Reduction Act (IRA) and the Infrastructure Investment and Jobs Act (IIJA) provide unprecedented support, yet political shifts have led to reports of delays and the cancellation of up to $7 billion in solar-related funding. This means the real momentum is now at the state level.

In Q2 2025 alone, 48 states took actions related to grid modernization. These actions directly translate to new projects for Argan's Power Industry Services segment. For instance, Texas now leads the nation in wind generation capacity with over 40 gigawatts installed as of 2025, framing renewables as an energy independence issue, not just a climate one. This is a clear opportunity for the company to secure new balance-of-plant contracts.

The focus is also heavily on grid flexibility and storage, which directly supports the company's natural gas and renewable project mix (approximately 61% natural gas and 29% renewables as of July 31, 2025).

• Virginia mandated a 450 MW virtual power plant pilot.
• States took 77 actions on energy storage deployment in Q2 2025.
• 37 actions focused on utility business model reforms.

Stricter emissions standards for new and existing power generation facilities.

The regulatory environment for emissions is undergoing a significant, near-term shift that actually favors Argan's current project mix. Instead of facing stricter standards, the US Environmental Protection Agency (EPA) proposed in June 2025 to repeal the more stringent greenhouse gas (GHG) emissions standards for power plants, including the 2015 and 2024 rules. This proposal also seeks to repeal 2024 updates to the Mercury and Air Toxics Standards (MATS).

The EPA estimates this deregulation could save the power sector approximately $19 billion over 20 years. This rollback reduces the immediate compliance cost and regulatory risk for new and existing fossil fuel-fired power projects, which make up the majority of Argan's current backlog. While long-term climate pressure remains, the near-term federal policy signal is one of regulatory easing for the thermal power sector.

The following table summarizes the key regulatory changes proposed in June 2025, which directly impact Argan's Power Industry Services segment:

Focus on climate resilience in infrastructure design, including flood and extreme weather protection.

Climate change is driving a new standard for infrastructure construction, which creates a specialized, high-margin opportunity for Argan. With extreme weather events increasing, at least 25 states introduced legislation in 2025 to improve climate adaptation efforts, specifically targeting wildfire, heat, and flood preparedness. This focus is critical, as flood-prone areas in the U.S. are expected to grow by nearly half in the next century.

For Argan's construction and industrial services, this means a shift toward materials and designs that can withstand higher stress. Industry guidelines are already adapting; the Insurance Institute for Business & Home Safety (IBHS) has strengthened its FORTIFIED guidelines for resilient construction. This necessitates changes in construction practices:

• Stricter roof construction guidelines to withstand high winds and hail.
• Tighter nailing patterns for roof decks to survive high winds.
• Focus on water management and flood protection, especially for critical infrastructure like power plants.

This trend positions Argan to bid on complex, resilient infrastructure projects where engineering quality, not just cost, is the primary factor.

Pressure to manage and report on Scope 3 emissions in the supply chain.

While Argan's direct emissions (Scope 1 and 2) are manageable, the regulatory and investor pressure on indirect value chain emissions (Scope 3) is intensifying. For the construction industry, Scope 3 is the hidden giant, accounting for emissions from materials production, transportation, and the supply chain. Scope 3 emissions typically represent 70% to 95% of a company's total carbon footprint.

This pressure is driven by mandates like the Science Based Targets initiative (SBTi), which requires companies to include Scope 3 in their reduction targets if those emissions exceed 40% of their total footprint. In October 2025, a coalition of energy, finance, and logistics firms launched the Carbon Measures Coalition, signaling a shift toward more granular, ledger-based carbon accounting to address these supply chain emissions. This means Argan will face increasing demands from its utility and industrial clients for precise, auditable data on the embodied carbon in the steel, concrete, and equipment used in their projects. Managing supplier data will become a critical, non-negotiable part of the bidding process.