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Worley Limited
(Sydney:WOR)
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Rating:67Neutral
Price Target:
AU$12.00
▲(1.52% Upside)
Action:Reiterated
Date:06/26/26
The score is primarily supported by solid financial quality (strong cash flow, improving margins, and a stable balance sheet) and a positive earnings-call backdrop (surging bookings, resilient backlog, and reaffirmed outlook). These strengths are tempered by weak technical trends (price below key moving averages with soft momentum) and some near-term operating headwinds highlighted on the call (chemicals weakness and elevated restructuring costs).
Positive Factors
Cash generation & conversion
Robust free cash flow growth and a 95.5% cash conversion rate indicate sustainable internal funding for capex, dividends and buybacks, lowering refinancing need. High cash conversion improves financial flexibility to fund multi-year projects and fund transformation investments without stressing the balance sheet.
Negative Factors
Chemicals segment weakness
A 9% decline in chemicals revenue reflects structural regional overcapacity and project cancellations. Prolonged weakness in chemicals demand or slow recovery would permanently reduce a revenue stream, increasing reliance on resources and energy cycles and making overall growth more cyclical and uneven.
Read all positive and negative factors
Positive Factors
Negative Factors
Cash generation & conversion
Robust free cash flow growth and a 95.5% cash conversion rate indicate sustainable internal funding for capex, dividends and buybacks, lowering refinancing need. High cash conversion improves financial flexibility to fund multi-year projects and fund transformation investments without stressing the balance sheet.
Read all positive factors
Worley Limited (WOR) vs. iShares MSCI Australia ETF (EWA)
Market Cap
AU$5.20B
Dividend Yield3.98%
Average Volume (3M)1.75M
Price to Earnings (P/E)16.1
Beta (1Y)0.93
Revenue Growth-1.73%
EPS Growth-8.10%
CountryAU
Employees45,500
SectorEnergy
Sector Strength52
IndustryOil & Gas Equipment & Services
Share Statistics
EPS (TTM)0.66
Shares Outstanding487,980,070
10 Day Avg. Volume2,565,948
30 Day Avg. Volume1,749,485
Financial Highlights & Ratios
PEG Ratio0.46
Price to Book (P/B)1.21
Price to Sales (P/S)0.61
P/FCF Ratio10.36
Enterprise Value/Market CapN/A
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
Forecast
1Y Price Target
AU$12.37Price Target Upside4.68% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering7
EPS Forecast (FY)0.92
Revenue Forecast (FY)AU$12.43B
Worley Limited Business Overview & Revenue Model
Company Description
Worley Limited, established in 2001 and headquartered in North Sydney, Australia, provides a comprehensive suite of professional project and asset lifecycle services to clients worldwide. The company primarily serves the global energy, chemicals, ...
How the Company Makes Money
Worley primarily makes money by selling professional services and project delivery work to clients under contract, earning fees for engineering and design, project management, procurement services, construction management, consulting/advisory, and...
Worley Limited Earnings Call Summary
Earnings Call Date:Feb 26, 2026
(Q2-2026)
| % Change Since: |
Next Earnings Date:Aug 26, 2026
Earnings Call Sentiment Positive
The call presented a broadly positive operational and financial performance: revenue growth, a strong surge in bookings, healthy backlog, exceptional cash conversion, balance sheet strength, major project wins and a clear plan to realize >$100 million of annualized cost savings. Key challenges include a notable chemicals revenue decline, higher-than-expected restructuring costs in H1 (with additional but smaller costs expected in H2), margin headwinds from activity mix and potential FX risk. Management reaffirmed a moderate growth outlook, margin guidance (underlying EBITA margin excluding procurement of 9.0%–9.5%), and emphasized pipeline momentum and disciplined capital allocation, suggesting the positives outweigh the near-term negatives.Positive Updates
Aggregated Revenue Growth
Aggregated revenue was $6.3 billion, up 5.4% versus the prior corresponding period, driven by major projects moving into execution and increased construction, fabrication and procurement activity.
Negative Updates
Transformation and Restructuring Costs
Transformation and business restructuring costs of $82 million were incurred in H1 (predominantly severance and related costs, mainly in Western Europe). Further restructuring costs are expected in H2, though management anticipates they will be lower than H1; program benefits are targeted for FY'27.
Read all updates
Q2-2026 Updates
Positive
Negative
Aggregated Revenue Growth
Aggregated revenue was $6.3 billion, up 5.4% versus the prior corresponding period, driven by major projects moving into execution and increased construction, fabrication and procurement activity.
Read all positive updates
Company Guidance
Management reconfirmed a moderate-growth FY26 outlook (constant currency) with H1 aggregated revenue of $6.3bn (up 5.4% YoY), bookings up 63% to $9.8bn, and backlog resilient at $16.7bn (including $6.3bn added in‑period and >$3.5bn of wins in early CY26); energy revenue rose 8.8%, chemicals fell 9%, and resources grew 12.3% (resources = 29% of the business, integrated gas = 25% of revenue). Underlying EBITA was $377m with underlying NPATA $207m (statutory NPATA $152m after $82m of transformation/restructuring costs); normalized cash conversion 95.5%, leverage 1.5x, DSO 46.2 days. Management is targeting >$100m annualized cost savings from FY27, an underlying EBITA margin (ex‑procurement) of 9–9.5%, an interim dividend of $0.25/share, and continuation of the $500m buyback (>$324m spent on 24m+ shares to 31 Dec 2025); safety TRFR was 0.10.Worley Limited Financial Statement Overview
Summary
Income Statement
65
Positive
Balance Sheet
70
Positive
Cash Flow
75
Positive
| Breakdown | TTM | Jun 2025 | Jun 2024 | Jun 2023 | Jun 2022 | Jun 2021 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 11.13B | 11.22B | 11.79B | 11.32B | 9.70B | 9.51B |
| Gross Profit | 794.00M | 928.00M | 902.00M | 722.00M | 619.00M | 491.00M |
| EBITDA | 859.00M | 1.02B | 886.00M | 517.00M | 620.00M | 507.00M |
| Net Income | 345.00M | 409.00M | 303.00M | 37.00M | 172.00M | 82.00M |
Balance Sheet | ||||||
| Total Assets | 10.85B | 11.02B | 10.46B | 10.52B | 10.40B | 10.15B |
| Cash, Cash Equivalents and Short-Term Investments | 852.00M | 962.00M | 554.00M | 436.00M | 519.00M | 526.00M |
| Total Debt | 2.53B | 2.45B | 2.07B | 2.25B | 2.17B | 2.06B |
| Total Liabilities | 5.51B | 5.34B | 4.97B | 4.92B | 4.71B | 4.57B |
| Stockholders Equity | 5.35B | 5.68B | 5.51B | 5.61B | 5.68B | 5.55B |
Cash Flow | ||||||
| Free Cash Flow | 528.00M | 665.00M | 587.00M | 178.00M | 263.00M | 453.00M |
| Operating Cash Flow | 606.00M | 741.00M | 682.00M | 260.00M | 316.00M | 533.00M |
| Investing Cash Flow | -75.00M | -69.00M | -12.00M | 65.00M | -62.00M | -92.00M |
| Financing Cash Flow | -208.00M | -276.00M | -536.00M | -412.00M | -250.00M | -414.00M |
Worley Limited Technical Analysis
Negative
11.82
Price Trends
12.04
Negative
11.66
Negative
12.40
Negative
Market Momentum
-0.45
Positive
29.45
Positive
39.67
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For AU:WOR, the sentiment is Negative. The current price of 11.82 is above the 20-day moving average (MA) of 11.19, below the 50-day MA of 12.04, and below the 200-day MA of 12.40, indicating a bearish trend. The MACD of -0.45 indicates Positive momentum. The RSI at 29.45 is Positive, neither overbought nor oversold. The STOCH value of 39.67 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for AU:WOR.
Worley Limited Peers Comparison
UnderperformOutperform
Sector (65)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
72 Outperform | AU$57.35B | 14.42 | 7.67% | 7.16% | -5.14% | -22.20% | |
67 Neutral | AU$5.20B | 16.09 | 6.25% | 3.98% | -1.73% | -8.10% | |
65 Neutral | $15.17B | 7.61 | 4.09% | 5.20% | 3.87% | -62.32% | |
65 Neutral | AU$24.95B | 20.68 | 5.26% | 6.00% | -5.72% | -31.55% | |
63 Neutral | AU$7.34B | 16.79 | 4.93% | 11.73% | -13.48% | -63.82% | |
56 Neutral | AU$8.95B | 108.71 | 2.68% | 1.40% | -10.26% | -32.72% | |
47 Neutral | AU$3.90B | -8.87 | -27.20% | 3.21% | -5.35% | -449.16% |
* Energy Sector Average
AU:WOR
Worley Limited
10.66
-2.15
-16.79%
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-8.38%
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32.88%
Worley Limited Corporate Events
Worley escalates class action battle with High Court appeal
Jun 25, 2026
Worley Limited has moved to challenge an adverse class action ruling by lodging an application with the High Court of Australia for special leave to appeal a recent Full Federal Court judgment. The step escalates a long-running shareholder class a...
Worley flags larger FY26 profit hit from Middle East conflict and currency headwinds
Jun 24, 2026
Worley has warned that the protracted Middle East conflict continues to disrupt the progress of existing projects in the region and delay the award of new work, although no contracts have been cancelled to date. As a result, the group has increase...
Worley Continues On-Market Share Buy-Back with Daily Repurchases
Jun 4, 2026
Worley Limited has reported an update to its on-market share buy-back program, confirming that a total of 246,558 ordinary fully paid shares had been repurchased prior to the most recent trading day. The company disclosed that it bought back a fur...
Worley provides daily update on ongoing on-market share buy-back
Jun 3, 2026
Worley Limited has provided an updated notification to the ASX on its ongoing on-market share buy-back of ordinary fully paid shares under code WOR. The latest daily report states that a total of 128,125 shares had been repurchased before the prev...
Worley reports daily progress on on-market share buy-back
Jun 1, 2026
Worley Limited has issued an updated notification to the ASX confirming activity under its on-market share buy-back program for its ordinary fully paid shares. The company reported that no shares had been bought back before the prior day, while 12...
Worley weighs appeal after losing shareholder class action appeal in Federal Court
May 29, 2026
The Full Court of the Federal Court of Australia has upheld an appeal by the lead applicant in a shareholder class action against Worley Limited, which relates to events dating back to 2013, and has ordered the company to pay the applicant’s...
Worley wins AEP engineering contract for 450MW Oklahoma gas plant
May 26, 2026
Worley has secured an engineering services contract from American Electric Power to support Stages 3 and 4 of the Northeastern U5/6 Simple Cycle Gas Turbine project in Oklahoma. The mandate covers engineering, detailed design and procurement suppo...
Worley Issues New Unquoted Performance Rights Under Employee Incentive Scheme
May 22, 2026
Worley Limited has notified the market of the issue of 106,630 unquoted performance rights under its employee incentive scheme. The new securities, which are not intended to be quoted on the ASX, were issued on 12 May 2026 and reflect ongoing use ...
Worley Wins Key U.S. Battery Materials Contract from Orbia
May 13, 2026
Worley has secured an engineering and design services contract from Orbia Fluor Energy Materials for a new lithium hexafluorophosphate production facility in St. Gabriel, Louisiana, Orbia’s first large-scale LiPF₆ plant in the United ...
Allan Gray exits substantial holder position in Worley Limited
May 6, 2026
Allan Gray Australia Pty Ltd and its related entities have notified Worley Limited that they have ceased to be a substantial shareholder in the company as of 4 May 2026. The change reflects adjustments in Allan Gray’s relevant interests and ...
Worley Wins Key FEED Role on Dow’s Net-Zero Path2Zero Cogen Project in Canada
Apr 29, 2026
Worley has been selected by Dow to provide front end engineering design under a new EPCM services contract for the cogeneration component of Dow’s Fort Saskatchewan Path2Zero project in Alberta, Canada. The work, involving a brownfield cogen...
Worley Cancels 3.2 Million Shares After On‑Market Buy‑Back
Apr 28, 2026
Worley Limited has cancelled 3,217,767 ordinary fully paid shares following completion of an on‑market share buy‑back that took effect on 24 April 2026. The reduction in issued capital is part of the company’s capital management ...
Worley Completes A$500m On-Market Share Buy-Back
Apr 22, 2026
Worley Limited has completed an on-market share buy-back of its ordinary fully paid shares, repurchasing a total of 40,682,818 securities for an aggregate consideration of about A$500 million. The finalisation of this buy-back program reflects the...
Worley Issues Daily Update on Ongoing On-Market Share Buy-Back
Apr 22, 2026
Worley Limited has provided an updated notification to the ASX regarding its ongoing on-market share buy-back of ordinary fully paid shares under code WOR. The company confirmed this latest update is a daily buy-back notice, continuing the program...
Worley Continues Large-Scale On-Market Share Buy-Back
Apr 21, 2026
Worley Limited has issued an updated notification to the ASX confirming ongoing purchases of its ordinary fully paid shares under an on‑market buy‑back program first announced in February 2025. The latest daily notification, dated 22 A...
Worley warns Middle East conflict to hit FY26 earnings but flags longer-term growth opportunities
Apr 19, 2026
Worley says its Middle East operations remain active despite the ongoing regional conflict, with no project cancellations so far and work progressing through remote and flexible arrangements and global delivery centres. However, some projects have...
Worley Continues On-Market Share Buy-Back With Daily Update
Apr 12, 2026
Worley Limited has provided an update on its ongoing on-market share buy-back program for its ordinary fully paid shares traded under the ASX code WOR. The latest notification records that a cumulative 39,634,244 shares had been repurchased prior ...
Worley Continues On-Market Buy-Back With Latest Daily Update
Apr 9, 2026
Worley Limited has issued an updated notification regarding its on-market share buy-back program for its ordinary fully paid shares traded under the ASX code WOR. The update, dated 10 April 2026, reports that a total of 39,623,585 shares had been ...
Worley Continues On-Market Buy-Back With Daily Share Repurchases
Apr 8, 2026
Worley Limited has reported an update to its on-market share buy-back program, confirming that a total of 39,231,738 ordinary fully paid shares had been repurchased prior to the most recent trading day. The company disclosed that a further 391,847...
Worley Reports Lapse of 199,194 Performance Rights in Capital Update
Apr 8, 2026
Worley Limited has notified the market of changes to its issued capital following the lapse of certain equity-based instruments. The company reported that 199,194 performance rights, trading under the ASX code WORAI, have ceased as of March 31, 20...
Worley Issues Daily Update on Ongoing On‑Market Share Buy‑Back
Apr 7, 2026
Worley Limited has provided an updated notification of its ongoing on‑market share buy‑back program for its ordinary fully paid shares. The latest daily update, dated 8 April 2026, reports that the company has repurchased a cumulative ...
Worley updates market on progress of on‑market share buy‑back
Apr 1, 2026
Worley Limited has issued an updated notification on its on‑market share buy‑back program for its ordinary fully paid shares. The company reported that, as of the latest daily update dated 1 April 2026, it has repurchased a cumulative ...
Worley Updates Market on Progress of Ongoing On‑Market Share Buy‑Back
Mar 26, 2026
Worley Limited has continued its on-market share buy-back program for its ordinary fully paid shares, disclosing that a total of 37,432,133 shares had been repurchased before the previous trading day. The company reported that it bought back a fur...
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.