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Worley Limited
(Sydney:WOR)
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Rating:61Neutral
Price Target:
AU$10.50
▼(-5.41% Downside)
Action:Reiterated
Date:08/27/26
The score is driven primarily by moderate financial performance (profitability recovery but weaker 2026 cash flow and balance-sheet cushioning) and weak technical positioning (below major moving averages). These are partially offset by reasonable valuation (mid-teens P/E and ~5% yield) and a cautiously positive earnings-call outlook with FY’27 growth guidance supported by bookings and backlog, albeit with notable macro/project and FX risks.
Positive Factors
Backlog and Pipeline Visibility
Strong bookings, backlog and pipeline provide meaningful revenue visibility and support workforce utilisation over the next several quarters. The high share of backlog deliverable within 12 months also supports management’s FY’27 growth outlook.
Negative Factors
Declining Revenue and Earnings
Recent revenue and earnings declines show that Worley remains sensitive to project timing, execution and end-market conditions. Thin margins and lower 2026 profit reduce the buffer available to absorb cost inflation, delays or weaker project mix.
Read all positive and negative factors
Positive Factors
Negative Factors
Backlog and Pipeline Visibility
Strong bookings, backlog and pipeline provide meaningful revenue visibility and support workforce utilisation over the next several quarters. The high share of backlog deliverable within 12 months also supports management’s FY’27 growth outlook.
Read all positive factors
Worley Limited (WOR) vs. iShares MSCI Australia ETF (EWA)
Market Cap
AU$4.78B
Dividend Yield5.1%
Average Volume (3M)2.20M
Price to Earnings (P/E)20.9
Beta (1Y)0.87
Revenue Growth-4.83%
EPS Growth-39.30%
CountryAU
Employees33,936
SectorEnergy
Sector Strength52
IndustryEngineering & Construction
Share Statistics
EPS (TTM)0.47
Shares Outstanding487,980,070
10 Day Avg. Volume3,503,009
30 Day Avg. Volume2,197,612
Financial Highlights & Ratios
PEG Ratio-0.59
Price to Book (P/B)1.14
Price to Sales (P/S)0.52
P/FCF Ratio16.52
Enterprise Value/Market CapN/A
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
Forecast
1Y Price Target
AU$11.60Price Target Upside4.50% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering7
EPS Forecast (FY)0.88
Revenue Forecast (FY)AU$12.12B
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 makes money by delivering fee-based professional services to clients, with revenue primarily earned under contracts for engineering and design (E), engineering-procurement (EP), and engineering-procurement-construction management and relate...
Worley Limited Earnings Call Summary
Earnings Call Date:Aug 25, 2026
(Q4-2026)
| % Change Since: |
Next Earnings Date:Feb 23, 2027
Earnings Call Sentiment Positive
The call conveyed a cautiously positive tone: management acknowledged a challenging FY '26 driven by the Middle East conflict and FX translation that depressed reported earnings and backlog late in the year, but emphasized strong demand indicators (24% pipeline growth), solid bookings ($15.5bn), robust cash conversion (93.6%), cost savings ($132m), major project wins and a clear FY '27 guidance of mid- to high-single-digit revenue and EBITA growth. Given the weight of operational and financial positives, alongside an explicit plan to restore momentum toward the FY '30 ambition, the overall message was constructive despite near-term headwinds.Positive Updates
Aggregated Revenue and Constant Currency Growth
Reported aggregated revenue of $12.0 billion, broadly flat vs FY '25; on a constant currency basis revenue was $12.3 billion, up 2.3% year-on-year. First-half growth was 5.4%.
Negative Updates
Second-Half Weakness and Missed FY '26 Outlook
FY '26 was described as a 'story of two halves' with resilient H1 results but a more challenging H2; the Middle East conflict and foreign exchange translation prevented meeting FY '26 outlook expectations.
Read all updates
Q4-2026 Updates
Positive
Negative
Aggregated Revenue and Constant Currency Growth
Reported aggregated revenue of $12.0 billion, broadly flat vs FY '25; on a constant currency basis revenue was $12.3 billion, up 2.3% year-on-year. First-half growth was 5.4%.
Read all positive updates
Company Guidance
Management guided FY'27 to mid‑ to high single‑digit growth in both aggregated revenue and underlying EBITA (EBITA growth weighted to H2, revenue phasing broadly even), supported by a $13.8bn backlog (≈$15.0bn on a constant‑currency basis) with ~62% deliverable in the next 12 months, $15.5bn of bookings, a pipeline up 24% and 44% of wins sole‑sourced. They said this momentum — plus major programs like Venture Global CP2, cost initiatives (FY'26 one‑off restructuring costs $120m, cost‑out savings $132m, and ~$70m targeted investment over two years), strong cash metrics (normalized cash conversion 93.6%, DSO 44.3 days), balance‑sheet strength (leverage 1.8x, total liquidity $2.1bn, WACD 4.4%) — underpins the FY'30 ambition of a medium‑term double‑digit underlying EBITA CAGR. For context the FY'26 base was aggregated revenue $12.0bn ($12.3bn constant currency), underlying EBITA $734m ($773m cc), ex‑procurement EBITA margin 9% (overall underlying EBITA margin 6.3% cc), a $58m Middle East earnings drag and FX translation headwinds (~$39m vs FY'25 rates, ~ $50m vs outlook); capital returns include a $0.25 final dividend, $359m returned and a new $300m buyback, while safety and ESG metrics cited were TRFR 0.07, serious case frequency 0.006 and emissions down 76% vs 2020.Worley Limited Financial Statement Overview
Summary
Income Statement
62
Positive
Balance Sheet
68
Positive
Cash Flow
58
Neutral
| Breakdown | Jun 2026 | Jun 2025 | Jun 2024 | Jun 2023 | Jun 2022 |
|---|---|---|---|---|---|
Income Statement | |||||
| Total Revenue | 10.68B | 11.22B | 11.79B | 11.32B | 9.70B |
| Gross Profit | 593.00M | 928.00M | 902.00M | 722.00M | 619.00M |
| EBITDA | 715.00M | 1.02B | 886.00M | 517.00M | 620.00M |
| Net Income | 238.00M | 409.00M | 303.00M | 37.00M | 172.00M |
Balance Sheet | |||||
| Total Assets | 10.68B | 11.02B | 10.46B | 10.52B | 10.40B |
| Cash, Cash Equivalents and Short-Term Investments | 1.11B | 962.00M | 554.00M | 436.00M | 519.00M |
| Total Debt | 2.85B | 2.45B | 2.07B | 2.25B | 2.17B |
| Total Liabilities | 5.81B | 5.34B | 4.97B | 4.92B | 4.71B |
| Stockholders Equity | 4.88B | 5.68B | 5.51B | 5.61B | 5.68B |
Cash Flow | |||||
| Free Cash Flow | 338.00M | 665.00M | 587.00M | 178.00M | 263.00M |
| Operating Cash Flow | 401.00M | 741.00M | 682.00M | 260.00M | 316.00M |
| Investing Cash Flow | -6.00M | -69.00M | -12.00M | 65.00M | -62.00M |
| Financing Cash Flow | -208.00M | -276.00M | -536.00M | -412.00M | -250.00M |
Worley Limited Peers Comparison
UnderperformOutperform
Sector (65)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
74 Outperform | AU$60.45B | 14.16 | 8.55% | 5.12% | -9.52% | -0.68% | |
68 Neutral | AU$8.09B | 27.50 | 3.26% | 3.13% | -1.15% | -69.35% | |
65 Neutral | $15.17B | 7.61 | 4.09% | 5.20% | 3.87% | -62.32% | |
64 Neutral | AU$26.60B | 25.72 | 4.69% | 3.75% | -8.49% | -31.47% | |
62 Neutral | AU$9.69B | 6.57 | 40.64% | 6.03% | 14.94% | ― | |
61 Neutral | AU$4.78B | 20.85 | 4.65% | 5.10% | -4.83% | -39.30% | |
52 Neutral | AU$4.75B | 20.71 | 13.81% | 4.02% | -2.13% | ― |
* Energy Sector Average
AU:WOR
Worley Limited
9.80
-3.97
-28.86%
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Worley Limited Corporate Events
Worley wins U.S. energy center contracts for expanding data centers
Aug 26, 2026
Worley has secured three engineering services contracts from Burr Computer Environments, Inc. to support energy center projects for U.S. data center campus developments. The mandates cover engineering, detailed design and procurement for behind-th...
Worley Files Updated Corporate Governance Statement and Appendix 4G With ASX
Aug 25, 2026
Worley Limited has confirmed that its corporate governance statement for the financial year ended 30 June 2026 is available on its website and current as of 26 August 2026. The statement has been approved by the board, reinforcing the company̵...
Worley’s 2026 Annual Report Highlights ESG-Focused Strategy and Evolving Disclosure
Aug 25, 2026
Worley has released its Annual Report for the year ended 30 June 2026, outlining strategy, risk management, corporate governance and both financial and non-financial performance. The report is positioned as a key value-creation document for invest...
Worley cushions profit hit from Middle East turmoil with rising backlog and cost cuts
Aug 25, 2026
Worley reported full-year 2026 statutory NPATA of $306 million, with aggregated revenue of $12.0 billion broadly flat on the prior year but earnings hit by Middle East conflict and adverse currency moves. Underlying EBITA fell 10.8% to $734 millio...
Worley Declares AUD 0.25 Half-Year Dividend on ASX-Listed Shares
Aug 25, 2026
Worley Limited has declared a dividend on its ordinary fully paid shares, reflecting its ongoing commitment to shareholder returns within the engineering and professional services sector for energy, chemicals and resources clients. The distributio...
Worley’s 2026 Earnings Slide as Margins and Cash Flow Weaken
Aug 25, 2026
Worley Limited reported weaker statutory financial results for the year ended 30 June 2026, with revenue and other income slipping 5 per cent to $10.7 billion and EBITA down 25 per cent to $614 million. Profit after tax attributable to shareholder...
Worley Wins Major INPEX Framework Deal to Bolster Australian Energy Work
Aug 3, 2026
Worley has secured an engineering services framework agreement with INPEX Operations Australia to support projects in Australia, delivered primarily through its Perth office and backed by its Global Integrated Delivery team. The deal marks Worley&...
Worley Wins U.S. Cobalt Refinery Engineering Contract
Aug 3, 2026
Worley has secured an engineering services contract from United States Strategic Metals to support the development of a multi-metallic processing hub in Missouri, including a new cobalt refinery and a black mass recycling process line. Worley will...
Worley Wins EPC Contract for Pembina’s Heartland Extraction Plant in Alberta
Jul 30, 2026
Worley has secured an engineering, procurement, fabrication and construction contract from Pembina Infrastructure and Logistics LP for the Heartland Extraction Plant in Strathcona County, Alberta. The plant is designed to process up to 21.2 millio...
Worley schedules webcast for FY26 full‑year results
Jul 30, 2026
Worley Limited has announced that it will publish its full‑year results for the twelve months to 30 June 2026 on Wednesday, 26 August 2026. The ASX‑listed engineering and consulting firm, which focuses on the energy, chemicals and reso...
Worley Wins Long-Term Aramco Project Management Deal in Saudi Arabia
Jul 5, 2026
Worley has secured a place among 11 contractors in a long-term project management consultancy agreement with Aramco, supporting one of the world’s largest capital programs across energy, chemicals and resources in Saudi Arabia and global mar...
Worley cancels 77,152 performance rights after conditions lapse
Jul 5, 2026
Worley Limited has notified the market of the cessation of 77,152 performance rights, listed under ASX code WORAI, following the lapse of conditional rights that could not be satisfied by 30 June 2026. The change slightly reduces the company’...
Worley Cancels Over 2 Million Shares Following On-Market Buy-Back
Jul 1, 2026
Worley Limited has announced the cessation of 2,042,548 ordinary fully paid shares from its issued capital. The shares were cancelled following an on-market buy-back completed on June 30, 2026, as disclosed in an Appendix 3H filing to the ASX.The ...
Worley Updates ASX on Progress of On-Market Share Buy-Back
Jun 29, 2026
Worley Limited has issued an updated notification to the ASX regarding its ongoing on-market share buy-back program for ordinary fully paid shares. The latest daily disclosure, dated June 30, 2026, confirms that the company repurchased 319,882 sha...
Worley Updates ASX on Progress of On‑Market Share Buy‑Back
Jun 28, 2026
Worley Limited has provided an updated notification to the ASX on the progress of its on-market share buy-back program involving its ordinary fully paid shares. The company disclosed that a total of 1,015,648 shares had been repurchased before the...
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...
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.