Has Worley Limited Successfully Positioned Itself for Growth Despite Market Challenges?
Source: Kapitales Research
Highlights:
Worley Limited (ASX: WOR) reported a 5.4% increase in aggregated revenue for the first half of FY26, totaling AU$6.31 billion, driven by growth in major projects and procurement activities.
The company also showed a 0.3% increase in underlying EBITA, reaching AU$377 million, and a 5.5% cash conversion ratio improvement.
Despite the challenges in the chemicals sector, Worley continues to benefit from strong demand drivers in energy transition, resources, and chemicals markets, positioning itself for robust long-term growth.
Financial Resilience Amidst Market Volatility
Worley Limited (ASX: WOR) has demonstrated solid financial performance for the first half of FY26, reporting a 5.4% increase in aggregated revenue, rising from AU$5.99 billion in H1 FY25 to AU$6.31 billion. This growth was primarily fueled by strong performance in the energy and resources sectors, particularly through increased construction and procurement activities for major projects.
Underlying EBITA showed modest growth, up 0.3% to AU$377 million, while the underlying EBITA margin (excluding procurement) increased to 8.8% from 8.4% in H1 FY25. However, net profit after tax (NPATA) declined by 4.2% compared to the prior year, reflecting pressures in the chemicals sector and project cancellations in Western Europe.
Strategic Focus on Cost Efficiency and Margin Improvement
Worley’s strategic cost-out program, which targets annualized savings of AU$100 million from FY27 onwards, continues to take shape. The company has proactively repositioned its operations, particularly in Europe, to improve efficiency and reduce costs. With a focus on higher-growth regions and expanding its Global Integrated Delivery (GID) model, Worley is set to scale its operations while enhancing margin quality.
The restructuring process also includes a push towards automation and digitalization, with initiatives aimed at embedding AI across the business to improve productivity and execution outcomes. These initiatives are anticipated to enhance the stability of earnings and contribute to sustained margin growth in the long run.
Strong Demand Drivers and Future Outlook
Worley’s capacity to adjust to shifting market conditions continues to be one of its core strengths. Despite the softness in the chemicals sector and some project cancellations, demand in energy transition and resources sectors continues to drive growth. The company’s large, diversified global energy market exposure, especially in areas like LNG, power, and low-carbon fuels, positions it well to benefit from long-term macro trends.
The strong backlog of AU$16.7 billion provides visibility into FY26 and FY27 revenue, with over 50% of this work expected to be delivered in the next 12 months. As Worley continues to scale its delivery model and capture new growth opportunities, particularly in complex critical infrastructure markets, it anticipates a solid year of performance with expected revenue growth and EBITA expansion in FY26.
Outlook and Strategic Expansion
Looking forward, Worley is well-positioned for moderate growth in FY26, with expectations for increased revenue and an underlying EBITA margin range of 9.0 – 9.5%. The company's disciplined capital management, combined with strong earnings momentum in high-growth markets like energy transition and resources, underpins its future outlook.
As the company continues its strategic transformation, expansion into high-growth adjacencies, such as data center infrastructure and low-carbon hydrogen, will further support its long-term growth trajectory and ability to meet the rising demand for sustainable solutions.
Disclaimer for Kapitales Research
The materials provided by Kapitales Research, including articles, news, data, reports, opinions, images, charts, and videos ("Content"), are intended for personal, non-commercial use only. The primary goal of this Content is to educate and inform readers. This Content is not meant to offer financial advice, nor does it include any recommendation or opinion that should be relied upon for making financial decisions. Certain Content on this platform may be sponsored or unsponsored, but it does not serve as a solicitation or endorsement to buy, sell, or hold any securities, nor does it encourage any specific investment activities. Kapitales Research is not authorized to provide investment advice, and we strongly advise users to seek guidance from a qualified financial professional, such as a financial advisor or stockbroker, before making any investment choices. Kapitales Research disclaims all liability for any direct, indirect, incidental, or consequential damages arising from the use of the Content, which is provided without any warranties. The opinions expressed by contributors or guests are their own and do not necessarily reflect the views of Kapitales Research. Media such as images or music used on this platform are either owned by Kapitales Research, sourced through paid subscriptions, or believed to be in the public domain. We have made reasonable efforts to credit sources where appropriate. Kapitales Research does not claim ownership of any third-party media unless explicitly stated otherwise.
Customer Notice:
Nextgen Global Services Pty Ltd trading as Kapitales Research (ABN 89 652 632 561) is a Corporate Authorised Representative (CAR No. 1293674) of Enva Australia Pty Ltd (AFSL 424494). The information contained in this website is general information only. Any advice is general advice only. No consideration has been given or will be given to the individual investment objectives, financial situation or needs of any particular person. The decision to invest or trade and the method selected is a personal decision and involves an inherent level of risk, and you must undertake your own investigations and obtain your own advice regarding the suitability of this product for your circumstances. Please be aware that all trading activity is subject to both profit & loss and may not be suitable for you. The past performance of this product is not and should not be taken as an indication of future performance.
Kapitales Research, Level 13, Suite 1A, 465 Victoria Ave, Chatswood, NSW 2067, Australia | 1800 005 780 | info@kapitales.com.au
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Has Worley Limited Successfully Positioned Itself for Growth Despite Market Challenges?
Highlights:
Financial Resilience Amidst Market Volatility
Worley Limited (ASX: WOR) has demonstrated solid financial performance for the first half of FY26, reporting a 5.4% increase in aggregated revenue, rising from AU$5.99 billion in H1 FY25 to AU$6.31 billion. This growth was primarily fueled by strong performance in the energy and resources sectors, particularly through increased construction and procurement activities for major projects.
Underlying EBITA showed modest growth, up 0.3% to AU$377 million, while the underlying EBITA margin (excluding procurement) increased to 8.8% from 8.4% in H1 FY25. However, net profit after tax (NPATA) declined by 4.2% compared to the prior year, reflecting pressures in the chemicals sector and project cancellations in Western Europe.
Strategic Focus on Cost Efficiency and Margin Improvement
Worley’s strategic cost-out program, which targets annualized savings of AU$100 million from FY27 onwards, continues to take shape. The company has proactively repositioned its operations, particularly in Europe, to improve efficiency and reduce costs. With a focus on higher-growth regions and expanding its Global Integrated Delivery (GID) model, Worley is set to scale its operations while enhancing margin quality.
The restructuring process also includes a push towards automation and digitalization, with initiatives aimed at embedding AI across the business to improve productivity and execution outcomes. These initiatives are anticipated to enhance the stability of earnings and contribute to sustained margin growth in the long run.
Strong Demand Drivers and Future Outlook
Worley’s capacity to adjust to shifting market conditions continues to be one of its core strengths. Despite the softness in the chemicals sector and some project cancellations, demand in energy transition and resources sectors continues to drive growth. The company’s large, diversified global energy market exposure, especially in areas like LNG, power, and low-carbon fuels, positions it well to benefit from long-term macro trends.
The strong backlog of AU$16.7 billion provides visibility into FY26 and FY27 revenue, with over 50% of this work expected to be delivered in the next 12 months. As Worley continues to scale its delivery model and capture new growth opportunities, particularly in complex critical infrastructure markets, it anticipates a solid year of performance with expected revenue growth and EBITA expansion in FY26.
Outlook and Strategic Expansion
Looking forward, Worley is well-positioned for moderate growth in FY26, with expectations for increased revenue and an underlying EBITA margin range of 9.0 – 9.5%. The company's disciplined capital management, combined with strong earnings momentum in high-growth markets like energy transition and resources, underpins its future outlook.
As the company continues its strategic transformation, expansion into high-growth adjacencies, such as data center infrastructure and low-carbon hydrogen, will further support its long-term growth trajectory and ability to meet the rising demand for sustainable solutions.
Disclaimer for Kapitales Research
The materials provided by Kapitales Research, including articles, news, data, reports, opinions, images, charts, and videos ("Content"), are intended for personal, non-commercial use only. The primary goal of this Content is to educate and inform readers. This Content is not meant to offer financial advice, nor does it include any recommendation or opinion that should be relied upon for making financial decisions. Certain Content on this platform may be sponsored or unsponsored, but it does not serve as a solicitation or endorsement to buy, sell, or hold any securities, nor does it encourage any specific investment activities. Kapitales Research is not authorized to provide investment advice, and we strongly advise users to seek guidance from a qualified financial professional, such as a financial advisor or stockbroker, before making any investment choices. Kapitales Research disclaims all liability for any direct, indirect, incidental, or consequential damages arising from the use of the Content, which is provided without any warranties. The opinions expressed by contributors or guests are their own and do not necessarily reflect the views of Kapitales Research. Media such as images or music used on this platform are either owned by Kapitales Research, sourced through paid subscriptions, or believed to be in the public domain. We have made reasonable efforts to credit sources where appropriate. Kapitales Research does not claim ownership of any third-party media unless explicitly stated otherwise.
Customer Notice:
Nextgen Global Services Pty Ltd trading as Kapitales Research (ABN 89 652 632 561) is a Corporate Authorised Representative (CAR No. 1293674) of Enva Australia Pty Ltd (AFSL 424494). The information contained in this website is general information only. Any advice is general advice only. No consideration has been given or will be given to the individual investment objectives, financial situation or needs of any particular person. The decision to invest or trade and the method selected is a personal decision and involves an inherent level of risk, and you must undertake your own investigations and obtain your own advice regarding the suitability of this product for your circumstances. Please be aware that all trading activity is subject to both profit & loss and may not be suitable for you. The past performance of this product is not and should not be taken as an indication of future performance.
Kapitales Research, Level 13, Suite 1A, 465 Victoria Ave, Chatswood, NSW 2067, Australia | 1800 005 780 | info@kapitales.com.au