Worley (ASX:WOR) Launches A$300M Buyback as Bruce Power Nuclear Win Confirms AI Data Centre Pivot

Worley (ASX:WOR) Launches A$300M Buyback on Nuclear Win

Worley (ASX:WOR) climbed 2.34% to A$12.25 on Thursday after the engineering services giant used its 2026 Investor Day to unveil a fresh A$300 million buyback, A$70 million in planned AI and digital investment, and a refreshed strategy through FY30. The announcement comes just one day after the company was selected by Bruce Power to support technical requirements for the Bruce C nuclear project in Ontario, a potential 4,800 megawatt build that could become one of the world’s largest nuclear sites. With the backlog now sitting at A$16.9 billion as of March 2026, we believe the market is only just beginning to price in Worley’s pivot from a traditional oil and gas contractor into a key enabler of nuclear-powered AI infrastructure.

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Worley’s Bet on Nuclear-Powered AI Data Centres Could Be Its Biggest Growth Driver Yet

The Bruce C win is small in dollar terms, but the strategic signal is large. Worley will help shape which reactor technology gets chosen for the project. That is the kind of early-stage involvement that often leads to much bigger engineering, procurement, and construction work later on, especially since the Bruce C build could add up to 4,800 megawatts of new nuclear capacity.

The timing also matters. Big technology companies, including Microsoft, Meta, Google, and Amazon, have all signed nuclear-related power deals over the past 18 months, as AI data centres push electricity demand to levels that renewables alone cannot reliably meet. Worley brings more than 60 years of nuclear experience and two decades on the ground in Canada, giving it credibility most rivals cannot match. For investors, this positions Worley as one of the few global engineering firms that can plausibly link two of the biggest spending themes of the decade: nuclear new build and AI infrastructure.

A$300M Buyback Plus A$70M AI Investment: What Management Is Really Saying

The new A$300 million buyback follows a completed A$500 million program, making this the second round in the current cycle. We see this as a clear vote of confidence in the company’s own valuation, especially with the stock still down around 8% over the past year while the broader market is up. Management would not commit to a fresh buyback if they believed near-term industry headwinds were going to derail earnings.

The A$70 million AI and digital investment, planned over the next two years, tells investors the other side of the story. Worley is not just returning cash; it is also building tools that should lift project margins over time. Combined with A$95 million in annualised cost savings already actioned, the company is guiding to an FY26 EBITA margin (excluding procurement) of 9.0% to 9.5% and targeting double-digit EBITA growth through FY30. That is a more ambitious profile than current pricing suggests.

The Investor’s Takeaway for Worley

At around A$12.25, Worley trades on a trailing P/E close to 12x with a dividend yield near 4.5%. That looks reasonable for a global engineering business with a A$16.9 billion backlog, improving margins, and an aggregated revenue growth rate of 15% CAGR from FY22 to FY25. In our view, this valuation does not yet reflect the upside from nuclear and AI infrastructure work.

The risks are real, though. Management itself flagged near-term headwinds, particularly project delays in the Middle East. Hydrocarbons still make up more than half of revenue, so a sharp drop in oil and gas spending would hurt earnings before the energy transition pipeline takes over. Execution on the A$16.9 billion backlog is the other watch point, given the restructuring costs the company absorbed in the first half.

For patient investors, we believe the risk-reward looks favourable at current levels. The buyback offers price support, the FY30 strategy is credible, and the Bruce Power deal gives Worley a nuclear and AI story it has not had for years.