Worley (ASX:WOR): 2024 and 2025 were years of investor indifference, but 2026 could be a breakout year

Worley (ASX:WOR) is a company that will finish the year slightly down from what it began the year at. It was only an 8% decline and better than last year where shares fell ~20% across CY24. Then again, it is the 2nd straight year shares fell. In 2025, shares actually weren’t that volatile, except on two days: Liberation Day and Reporting Day.

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Overview of Worley (ASX:WOR)

Worley traces its origins back to the early 1970s in Australia. It began as a small engineering consultancy and over decades expanded its footprint across energy, chemicals and resources sectors around the world. The firm’s growth was driven by strategic acquisitions and geographic expansion: in 1987 it acquired the Australian interests of an American engineering firm and adopted the Worley name, and in the following decades broadened from hydrocarbons into power, infrastructure, minerals and metals, as well as advisory services.

A transformational moment came in the late 2010s with the acquisition of Jacobs Engineering Group’s Energy, Chemicals and Resources business, significantly boosting its capability and global scale. Overall, this deal paid off as company became much larger and more diversified across sectors that are less cyclical than standalone upstream work. Moreover, Jacobs delivered financial benefits in terms of increased revenue, expanded backlog and early synergies that exceeded initial targets ($130-175m per annum).

In April 2019 the company formally simplified its branding to Worley (From WorleyParsons), and in subsequent years repositioned its portfolio under a unified Worley identity to better reflect its integrated services across consulting, engineering, delivery and sustainability-oriented work. Historically rooted in traditional energy and resources engineering, the company has increasingly pivoted toward the energy transition, sustainability, and digital delivery tools as long-term demand drivers.

2022 and 2023 were good years

In 2022 and 2023, Worley’s results and industry positioning delivered positive signals that resonated with investors. The company grew aggregated revenue and its profit notably in FY23 — up about 21 % and 27% respectively — reflecting stronger demand across energy, chemicals and resources services, supported by cost discipline and project execution improvements.

This growth helped build investor confidence in the company’s ability to capture larger and more complex work. Worley was actively executing large sustainability-linked and energy transition projects, including front-end engineering design for carbon-capture work at QatarEnergy LNG’s Ras Laffan site and hydrogen projects that pointed to future opportunities in low-carbon infrastructure.

2024 and 2025, not so much

In 2024, fortunes changed for Worley. It wasn’t necessarily a case of halting growth or a sudden change in direction. As the company delivered these positive fundamentals into FY24 and then FY25, a few factors cushioned the impact on the share price relative to that earlier momentum. Broad market volatility, macroeconomic headwinds, geopolitical uncertainty, and industry cyclicality meant that strong earnings didn’t always translate into strong share price gains.

Additionally, in 2024 and 2025 investor focus shifted more to profitability paths, timing of project revenues, and rate of growth amid rising expectations for energy transition investment.

Liberation Day was not liberating for Worley investors

We noted in the title that there were two particular days in 2025 when shares were volatile and Liberation Day was one of them. Virtually no stocks escaped a share price impact that day.

It is important to note that Worley itself doesn’t generate most of its earnings from exporting Australian goods into the U.S., and engineering services firms are less directly tied to tariff costs on manufactured goods than, say, commodity exporters or heavy manufacturers. Most of Worley’s revenue is from long‑term services and projects around energy, chemicals and resources — and more than 90 % of that is earned outside Australia.

That said, tariffs can affect the broader macroeconomic backdrop that drives capital spending decisions by Worley’s clients. If tariffs and trade tensions slow global growth or make companies more cautious about investing in large infrastructure projects, that can indirectly slow demand for engineering, procurement and construction management (EPCM) services.

Will tariffs hit?

Thus far, there hasn’t been a financial impact evident – at least not yet. Revenue was $12.1bn, up 4%, EBITDA was $823m, up 10% and its underlying profit was $475m. It paid a dividend of 25c per share. Investors welcomed these results.

Management flagged moderate growth for FY26 as the macro‑economic and geopolitical environment remains dynamic, with earnings expected to be weighted more strongly into the later part of the financial year.

Analysts covering the company are more confident, with a mean 12-month share price target of $16.64 – over 20% higher. For FY26, consensus estimates call for $12.7bn revenue, $1.05bn EBITDA and $0.90 EPS, up from $0.77 the year before. For FY27, $13.9bn revenue, $1.17bn EBITDA and $1.05 EPS. These estimates derive 7.5x EV/EBITDA, 13.9x P/E and 1.5x PEG.

Opportunities and risks

We think Worley could be the most under-rated decarbonisation play given its footprint in this field is expanding. About 60 % of its FY25 revenue came from sustainability-related projects, and further policy support for decarbonisation could boost demand for these higher‑growth segments.

Moreover, the company’s significant backlog and bookings growth, including large LNG projects like Venture Global’s CP2 facility, provide visibility for future revenue and earnings – ditto its contracts in critical minerals mining.

At the same time, there are risks – the reality is that Worley remains exposed to oil, gas, and mining sector cycles. Volatility in commodity prices and capital spending can lead to project delays or cancellations, reducing revenue streams.

Large EPCM contracts inherently carry cost overrun, delay, and execution risks, affecting margins even when structured as cost‑plus contracts. Intense competition in engineering and construction services can squeeze margins and pricing power, especially against global and regional players. And of course, geopolitical and macroeconomic factors can play a part too.

Conclusion

All things considered, there’s a lot going for Worley in 2026 and now might be the time to get consider getting in.