Worley Limited (WF9) AI Stock Analysis

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Worley Limited

(Frankfurt:WF9)

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Positive Factors

Backlog and Pipeline VisibilityStrong 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 EarningsRecent 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.

Worley Limited (WF9) vs. iShares MSCI Germany ETF (EWG)

Market Cap: EUR 3.32B
Dividend Yield: 4.49%
Average Volume (3M): 4,853
Price to Earnings (P/E): 21.8
Beta (1Y): 0.46
Revenue Growth: -7.11%
EPS Growth: -40.49%
Country: Germany
Employees: 33,936
Sector: Energy
Sector Strength: 65
Industry: Engineering & Construction

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, and...

Worley Limited Earnings Call Summary

Earnings Call Date:Aug 25, 2026(Q4-2026)|% Change Since:-5.18%|Next Earnings Date:Feb 23, 2027

Earnings Call SentimentPositive

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.

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 Peers Comparison

Overall Rating

UnderperformOutperform

Sector (65)

Financial Indicators

DE:WF9 against its peers
Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
AU:YAL	74Outperform	AUD 7.47B	25.82	3.26%	3.37%	-1.15%	-69.35%
AU:WDS	70Outperform	AUD 58.38B	13.05	8.55%	5.28%	-9.52%	-0.68%
AU:STO	67Neutral	AUD 27.87B	26.06	4.69%	3.54%	-8.49%	-31.47%
Sector *	65Neutral	$15.17B	7.61	4.09%	5.20%	3.87%	-62.32%
AU:ALD	64Neutral	AUD 8.76B	5.98	40.64%	6.55%	14.94%	―
AU:VEA	45Neutral	AUD 4.47B	19.39	13.81%	4.24%	-2.13%	―

* Energy Sector Average

Performance Comparison

DE:WF9 and its peers over the selected period
Ticker	Company Name	Price	Change	% Change
DE:WF9	Worley Limited	6.10	-1.28	-17.37%
AU:ALD	Ampol Limited	37.40	8.34	28.69%
AU:STO	Santos Limited	8.70	2.42	38.56%
AU:YAL	Yancoal Australia Ltd.	5.70	0.16	2.81%
AU:VEA	Viva Energy Group Ltd.	2.75	0.96	53.20%
AU:WDS	Woodside Energy Group Ltd	30.90	6.30	25.60%

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.

Worley Limited AI Stock Analysis