Worley offers a beaten-down entry into a global transition engineering leader, with Middle East delays obscuring a record backlog, rising margin quality, and a probability-weighted 5-year value roughly double the current share price.
Overview
Worley Limited is a global industrial engineering and project services provider with a differentiated position in complex energy, chemicals, and resources markets. The company operates across 44 countries and serves IOCs, NOCs, chemical producers, and mining companies through long-standing Master Services Agreements, giving it strong customer stickiness and recurring workflow across global asset fleets. **The core attraction is that Worley has transformed from a riskier EPC exposure into a more capital-light, reimbursable professional services model**, which has driven ex-procurement margins from 6.0% in FY21 to 9.2% in FY25. **At the same time, 60% of revenue is now aligned to sustainability-linked work**, positioning the company as a “pick-and-shovel” provider to decarbonization, critical minerals, and power infrastructure investment.
Near-term sentiment is weak after FY26 guidance was cut for a combined $110 million EBITA headwind from Middle East delays and adverse FX translation, pushing the share price to about $10.99. Yet the long-term setup remains supported by a record $16.7 billion backlog, 48% sole-sourced bookings in H1 FY26, 95.5% normalized cash conversion, and ongoing buybacks. The report’s valuation framework argues the market is discounting a prolonged stagnation scenario despite medium-term drivers that could support double-digit EBITA CAGR through FY30, making the stock appear undervalued relative to a probability-weighted 5-year value of $22.22.