Image source: Shutterstock

Highlights

  • In FY24, profit before income tax surged 242.5% YoY to AUD 500 million and basic EPS jumped 724.3% YoY to 57.7 cents.
  • Worley secured 1,048 sustainability-related project wins in Q1FY25
  • The company aims to increase sustainability-related revenue to 75% by FY26.

Worley Limited (ASX:WOR) is a provider of professional services to the energy, chemicals, and resources sectors. Since July 2021, the company has secured nearly AU$7.6 billion in contracts across carbon capture, battery materials and low-carbon hydrogen sectors. Notably, a 99% normalised cash conversion rate has been maintained through disciplined cost management.

In the financial year 2024 (FY24), the company reported total revenue and other income of AUD 11.8 billion, marking a 4.2% YoY increase. Notably, profit before income tax surged by 242.5% YoY to AUD 500 million and basic earnings per share (EPS) soared 724.3% YoY to 57.7 cents.

During the reported period, the company’s underlying NPATA rose by 27% YoY to AUD 416 million, while operating cash flow more than doubled to AUD 682 million, compared to AUD 324 million in FY23.

FY25 Outlook

The company targets low double-digit EBITA growth in FY25 and expects an underlying EBITA margin of 8.0-8.5% (excluding procurement). Growth is expected to accelerate in the second half of FY25. Worley aims to increase its sustainability-related revenue share to 75% by FY26. The company continues to secure work across traditional, transitional, and sustainable sectors

Major Contract Wins and Project Expansions

Worley recently secured an Engineering, Procurement, and Construction (EPC) agreement with ExxonMobil for infrastructure and interconnects at Exxon’s Baytown, Texas, low-carbon hydrogen and ammonia facility. This project is expected to be the largest low-carbon hydrogen production site globally, with the production of up to 28.3 million cubic meters (1 bcf) of low carbon hydrogen daily with 98% CO₂ removal.

Additionally, in Q1 FY25, Worley secured 1,048 sustainability-related project wins, up from 840 in Q4FY24 and 775 in Q1 FY24. Traditional project wins totalled 448. The company observed notable increases in detailed design project awards, signalling a transition from feasibility studies to advanced project phases.

Share performance of WOR

WOR shares closed 1.34% higher at AUD 14.42 per share on 5 February 2025. In the past year, WOR’s share price has dropped by almost 2.30% but has increased by 4.49% in the past month.

52-week high of WOR is AUD 17.55, recorded on 1 March 2024 and 52-week low is AUD 12.88, recorded on 17 December 2024.

Note 1: Past performance is neither an Indicator nor a guarantee of future performance.

Note 2: The reference date for all price data, and currency, is 05 February 2025. The reference data in this report has been partly sourced from EODHD/Others.