Company Reports

Worley is one of the largest global providers of engineering and professional services to the oil, gas, mining, power, and infrastructure industries, with about 59,000 employees and more than AUD 12 billion in annual revenue. Strong relationships with global resource and petrochemical firms, along with solid levels of long-term recurring work, provide some element of switching cost support, a competitive strength. While the traditional engineering, procurement and construction management space is competitive, we believe few firms have the skills and capacity to take on the work available in many of the key areas in which Worley operates. Most contracts are of a cost-plus nature, so the risk from project delays and cost overruns is minimized. The highly skilled, specialist nature of WorleyParsons' work means it can earn higher margins than traditional engineering and construction firms.

Engineering services company Worley reported a 20% decline in underlying fiscal 2026 NPAT, to AUD 327 million. Middle East disruption, a softer operating environment, and foreign exchange translation weighed. The full-year dividend was steady at AUD 50 cents. Shares dropped more than 10%.

Worley is one of the largest global providers of engineering and professional services to the oil, gas, mining, power, and infrastructure industries, with about 59,000 employees and more than AUD 12 billion in annual revenue. Strong relationships with global resource and petrochemical firms, along with solid levels of long-term recurring work, provide some element of switching cost support, a competitive strength. While the traditional engineering, procurement and construction management space is competitive, we believe few firms have the skills and capacity to take on the work available in many of the key areas in which Worley operates. Most contracts are of a cost-plus nature, so the risk from project delays and cost overruns is minimized. The highly skilled, specialist nature of WorleyParsons' work means it can earn higher margins than traditional engineering and construction firms.

Engineering services company Worley says there have been no Middle East project cancellations to date, but customers are delaying the start and award of new projects. It says the impact extends to Worley's offices outside the Middle East.

Sustainability facilitator Worley reported a 5% decline in first-half fiscal 2026 underlying net profit after tax to AUD 174 million, reflecting a 5% increase in revenue to AUD 6.3 billion but 30-basis-point retreat in underlying EBITDA margin to 6.8%. Interim dividend was steady at AUD 25 cents.

Worley is one of the largest global providers of engineering and professional services to the oil, gas, mining, power, and infrastructure industries, with about 59,000 employees and more than AUD 12 billion in annual revenue. Strong relationships with global resource and petrochemical firms, along with solid levels of long-term recurring work, provide some element of switching cost support, a competitive strength. While the traditional engineering, procurement and construction management space is competitive, we believe few firms have the skills and capacity to take on the work available in many of the key areas in which Worley operates. Most contracts are of a cost-plus nature, so the risk from project delays and cost overruns is minimized. The highly skilled, specialist nature of WorleyParsons' work means it can earn higher margins than traditional engineering and construction firms.

US forces have deposed Venezuelan President Nicolás Maduro, with US President Donald Trump subsequently expressing his desire to increase US private investment in Venezuela's oil infrastructure. Spot oil prices are little changed on the news, but Worley's shares bounced 5%.

Worley is one of the largest global providers of engineering and professional services to the oil, gas, mining, power, and infrastructure industries, with about 59,000 employees and more than AUD 12 billion in annual revenue. Strong relationships with global resource and petrochemical firms, along with solid levels of long-term recurring work, provide some element of switching cost support, a competitive strength. While the traditional engineering, procurement and construction management space is competitive, we believe few firms have the skills and capacity to take on the work available in many of the key areas in which Worley operates. Most contracts are of a cost-plus nature, so the risk from project delays and cost overruns is minimized. The highly skilled, specialist nature of WorleyParsons' work means it can earn higher margins than traditional engineering and construction firms.

Sustainability facilitator Worley reported a 30% rise in fiscal 2025 underlying net profit after tax to AUD 458 million. It reflected a 4% increase in revenue to AUD 12.1 billion and a 130 basis point improvement in EBITA margin to 6.8%. The full-year dividend was steady at AUD 0.50.

Worley is one of the largest global providers of engineering and professional services to the oil, gas, mining, power, and infrastructure industries, with about 59,000 employees and more than AUD 11.0 billion in annual revenue. Strong relationships with global resource and petrochemical firms, along with solid levels of long-term recurring work, provide some element of switching cost support, a competitive strength. While the traditional engineering, procurement and construction management space is competitive, we believe few firms have the skills and capacity to take on the work available in many of the key areas in which Worley operates. Most contracts are of a cost-plus nature, so the risk from project delays and cost overruns is minimized. The highly skilled, specialist nature of WorleyParsons' work means it can earn higher margins than traditional engineering and construction firms.

Sustainability facilitator Worley has retained fiscal 2025 guidance from February 2025 for low-double-digit EBITA growth and an underlying EBITA margin of 8.0%-8.5%. This remains subject to no further deterioration in current market conditions.

Worley is one of the largest global providers of engineering and professional services to the oil, gas, mining, power, and infrastructure industries, with about 59,000 employees and more than AUD 11.0 billion in annual revenue. Strong relationships with global resource and petrochemical firms, along with solid levels of long-term recurring work, provide some element of switching cost support, a competitive strength. While the traditional engineering, procurement and construction management space is competitive, we believe few firms have the skills and capacity to take on the work available in many of the key areas in which Worley operates. Most contracts are of a cost-plus nature, so the risk from project delays and cost overruns is minimized. The highly skilled, specialist nature of WorleyParsons' work means it can earn higher margins than traditional engineering and construction firms.

Sustainability facilitator Worley reported underlying first-half 2025 earnings before interest, tax and amortization of acquired intangibles up by 9% to AUD 376 million and underlying net profit after tax up 18% to AUD 183 million.

Worley is one of the largest global providers of engineering and professional services to the oil, gas, mining, power, and infrastructure industries, with about 59,000 employees and more than AUD 11.0 billion in annual revenue. Strong relationships with global resource and petrochemical firms, along with solid levels of long-term recurring work, provide some element of switching cost support, a competitive strength. While the traditional engineering, procurement and construction management space is competitive, we believe few firms have the skills and capacity to take on the work available in many of the key areas in which Worley operates. Most contracts are of a cost-plus nature, so the risk from project delays and cost overruns is minimized. The highly skilled, specialist nature of WorleyParsons' work means it can earn higher margins than traditional engineering and construction firms.

Worley is one of the largest global providers of engineering and professional services to the oil, gas, mining, power, and infrastructure industries, with about 59,000 employees and more than AUD 11.0 billion in annual revenue. Strong relationships with global resource and petrochemical firms, along with solid levels of long-term recurring work, provide some element of switching cost support, a competitive strength. While the traditional engineering, procurement and construction management space is competitive, we believe few firms have the skills and capacity to take on the work available in many of the key areas in which Worley operates. Most contracts are of a cost-plus nature, so the risk from project delays and cost overruns is minimized. The highly skilled, specialist nature of WorleyParsons' work means it can earn higher margins than traditional engineering and construction firms.

For no-moat sustainability facilitator Worley, we project 8.4% five-year EBITDA compound annual growth rate to an unchanged AUD 1.3 billion by fiscal 2029 versus fiscal 2024’s AUD 852 million. This assumes EBITDA margin expansion to 9.0% midcycle versus fiscal 2024’s 7.3% and a five-year historical average near 7.0%.

No-moat Worley reported a robust 25% increase in underlying fiscal 2024 net profit after tax to AUD 352 million, albeit around 8% below our expectations. Lower-than-anticipated sales revenue from chemicals largely accounts for our profit overcall. We read no long-term implications from one year, and our midcycle estimates are largely unchanged. The underlying EBITDA margin improved to 7.3% from 6.6%, also slightly below our 7.8% expectations. The increased margin resulted from the deliberate strategy focusing on higher-value solutions.

Worley is one of the largest global providers of engineering and professional services to the oil, gas, mining, power, and infrastructure industries, with about 59,000 employees and more than AUD 11.0 billion in annual revenue. Strong relationships with global resource and petrochemical firms, along with solid levels of long-term recurring work, provide some element of switching cost support, a competitive strength. While the traditional engineering, procurement and construction management space is competitive, we believe few firms have the skills and capacity to take on the work available in many of the key areas in which Worley operates. Most contracts are of a cost-plus nature, so the risk from project delays and cost overruns is minimized. The highly skilled, specialist nature of WorleyParsons' work means it can earn higher margins than traditional engineering and construction firms.

The time value of money sees our fair value estimate for no-moat Worley rise to AUD 13.50 per share from AUD 13.25. At about AUD 14.70 the sustainability facilitator’s shares are slightly overvalued. Despite our bullish outlook, we think the multiple being paid by the market is a touch too high.

Worley is one of the largest global providers of engineering and professional services to the oil, gas, mining, power, and infrastructure industries, with about 59,000 employees and more than AUD 11.0 billion in annual revenue. Strong relationships with global resource and petrochemical firms, along with solid levels of long-term recurring work, provide some element of switching cost support, a competitive strength. While the traditional engineering, procurement and construction management space is competitive, we believe few firms have the skills and capacity to take on the work available in many of the key areas in which Worley operates. Most contracts are of a cost-plus nature, so the risk from project delays and cost overruns is minimized. The highly skilled, specialist nature of WorleyParsons' work means it can earn higher margins than traditional engineering and construction firms.