Fund Manager Summary
Worley Ltd (ASX:WOR) has garnered positive traction among fund managers amid a supportive backdrop of increased project backlog and strategic operational improvements, notably enhanced by significant contracts like the CP2 LNG development. Recent commentary indicates confidence in the company's double-digit EPS growth potential and strong cash conversion, bolstered by a solid balance sheet and $500 million share buyback. However, concerns persist about external risks, including global economic volatility and competitive pressures from peers, compounded by market uncertainty around new project spending, particularly in the energy sector. The stock trades at an appealing valuation relative to historical premiums, yet achieves only moderate growth expectations for FY26 due to restructuring efforts. Overall, while opportunities for expansion and margin increase are evident, investors should remain vigilant regarding market dynamics affecting capital allocation.
Source: Trading View
Commentary From The Managers
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Endeavor Asset Management
30 Nov 2025
$13.26
Summary
- Endeavor Asset Management observes a 6.7% decline in Worley Ltd (WOR) share price.
- Despite the price drop, FY guidance has been reiterated.
- There is a noted second half skew in projections.
- Exxon has reportedly paused spending on the Baytown Blue USA hydrogen project.
- This project pause could impact more than $1 billion of WOR's $16.9 billion pipeline.
- Endeavor Asset Management continues to hold its position in Worley due to long-term potential.
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Commentary From The Managers
Endeavor Asset Management
30 Nov 2025
$13.26
Summary
- Endeavor Asset Management observes a 6.7% decline in Worley Ltd (WOR) share price.
- Despite the price drop, FY guidance has been reiterated.
- There is a noted second half skew in projections.
- Exxon has reportedly paused spending on the Baytown Blue USA hydrogen project.
- This project pause could impact more than $1 billion of WOR's $16.9 billion pipeline.
- Endeavor Asset Management continues to hold its position in Worley due to long-term potential.
Pendal Group
24 Nov 2025
$13.23
Summary
- Pendal Group continues to hold an optimistic view on Worley Ltd.
- Worley reiterated FY26 guidance for moderate growth.
- Expectations for higher revenue growth than FY25.
- Underlying EBITA growth anticipated with margins in the 9-9.5% range.
- Returns expected to be 2H-weighted due to one-off costs for capability repositioning.
- Management has indicated plans for restructuring the European chemicals business.
- Despite challenging market conditions, the underlying business is performing stronger than expected.
Endeavor Asset Management
30 Sept 2025
$14.05
Summary
- Endeavor Asset Management notes that shares in Worley (WOR) eased in September, retracing some of the previous gains.
- The fund manager continues to see Worley as a high-quality investment linked to resilient energy and resources activity over the next three to five years.
- Worley benefits from a growing project backlog and visibility from CP2 LNG.
- There is potential for longer-term upside due to the company's expanding renewables capability.
- Endeavor believes the current 15x P/E ratio is unjustified considering the anticipated double-digit EPS growth.
Elston Asset Management
25 Sept 2025
$14.10
Summary
- Worley is viewed as an attractive turnaround candidate due to re-acceleration of revenue growth across various sectors.
- Revenue growth forecast: Energy at ~3–7% CAGR, Chemicals at ~1.4% CAGR, and Resources (energy transition minerals) at ~6% CAGR.
- Margin expansion is underway with EBITA ex-procurement margin improving to 9.2% from 7.9% in the prior year.
- Strong balance sheet with net debt/EBITDA at 1.4x and robust shareholder returns through buybacks and dividends.
- Current stock valuation is trading at 14x NTM P/E, a 30% discount to ASX 200, despite historically trading at a 5% premium.
- Challenges faced: Uncertainty in pipeline growth and energy market volatility impacting investor sentiment.
- Attractive fundamentals emerging: Reduced competition due to distress among global EPC peers.
- Revenue of $12.1b reflects a 4% YoY increase, driven by Energy (+6%) and Resources (+23%).
- EBITA margin guidance remains strong, sustaining 9–9.5%+ through FY26.
- Backlog of $16.9b is up 22% YoY, with ~50% deliverable in the next 12 months.
- Cash conversion rate at 94.9%, exceeding the target range of 85–95%.
- Shareholder returns include 13m shares repurchased under a $500m buyback program.
- Turnaround catalysts include: backlog conversion, margin uplift, and sector tailwinds in LNG and energy transition minerals.
- Signals to monitor: Pipeline momentum, margin sustainability, cash flow stability, and execution of mega-projects.
- Despite current challenges, the combination of backlog visibility, margin expansion, and balance sheet strength positions Worley as a compelling turnaround story.
Perennial Partners
31 Aug 2025
$14.51
Summary
- Perennial Partners took profits and trimmed holdings in Worley during the month.
- Worley experienced a 10.0% rally following its results.
- The results confirmed a strong pipeline of projects in both renewable and traditional energy sectors.
- This pipeline is supportive of margins going forward.
Endeavor Asset Management
31 Aug 2025
$14.51
Summary
- Worley (WOR) remains the preferred exposure for Endeavor Asset Management in the energy services sector within the Balanced Portfolio.
- The stock experienced a 10% increase in August due to a stronger than expected FY25 operating margin result and FY26 outlook.
- WOR's backlog of projects grew 22% year-on-year, supported by the major CP2 LNG project moving into scope.
- This growth provides a higher degree of earnings visibility into FY26.
- WOR is projected to deliver double-digit EPS growth per year for the next 3+ years.
- The company is leveraging its strong cash conversion to reduce leverage and increase buybacks.
Endeavor Asset Management
31 July 2025
$13.35
Summary
- Worley (WOR) is set to release its full-year results in late August.
- The share price has been impacted by oil-price volatility and uncertainty regarding the timing of Venture Global’s US$27 billion CP2 LNG development.
- In July, Venture Global issued a full notice to proceed to Worley on the project’s first phase, easing previous concerns.
- This milestone is expected to materially expand Worley’s backlog.
- Endeavor Asset Management will monitor for signals of process automation and offshoring of selected functions that may enhance operating leverage.
- Worley is currently trading at approximately 10x FY26 EV/EBIT, near multi-year lows.
- With EPS projected to grow around 15% per annum, Endeavor Asset Management continues to hold Worley due to its compelling value.
Yarra Capital Management
30 June 2025
$13.08
Summary
- Worley (WOR, overweight) – Yarra Capital Management notes that the leading professional engineering company has underperformed recently.
- The underperformance is attributed to the announcement of U.S. tariffs, which has raised concerns about a global economic slowdown.
- Despite the recent challenges, Worley has exposure to both traditional and renewable energy project activity.
- Yarra Capital Management believes that Worley is well positioned for medium to long-term growth.
- The company shows strong top-line growth prospects and has significant operating leverage.
- Yarra Capital Management sees upside potential to valuation for Worley moving forward.
Antares Capital
30 June 2025
$13.08
Summary
- Worley (WOR) experienced a decline in share price, correlating with the drop in oil prices.
- Antares Capital recognizes the historical connection between WOR and oil prices.
- Despite the decline, Antares Capital views this as an opportunity to increase their position.
- Recent substantial contract wins and significant US projects position WOR favorably.
- These positive developments are currently overlooked by the market.
Endeavor Asset Management
31 May 2025
$12.90
Summary
- Worley (WOR) wasn't a key contributor to May's performance.
- Investor Day in May highlighted a resilient outlook despite global volatility in the energy and resources sectors.
- Endeavor Asset Management continues to hold due to confidence in management to execute on their $13 billion work backlog.
- Focus on cost control was emphasized during the update.
- Earnings outlook was reconfirmed during the Investor Day.
- The stock increased by ~8% in May.
Yarra Capital Management
30 Apr 2025
$12.44
Summary
- Yarra Capital Management highlights Worley (WOR, overweight) as a leading professional engineering company.
- Recent underperformance attributed to limited company-specific news and U.S. tariffs creating concerns about a global economic slowdown.
- Despite current challenges, Worley is well placed for medium to long-term growth.
- The company has strong top-line growth prospects and operating leverage.
- There is upside potential to valuation for Worley.
Sterling Managed Investments
30 Apr 2025
$12.44
Summary
- Sterling Managed Investments sold their investment in WOR due to increasing evidence of downward pressure in the energy and resources industries.
- Despite WOR being a mature and well-managed business, its ability to replenish its order book is constrained.
- The short duration of contracts limits WOR's capacity to secure new projects.
- End customers are prioritizing flexibility in spending decisions, particularly for growth projects.
- Heightened market uncertainty has shifted the risk bias for WOR's order book to the downside.
- Customers are increasingly delaying project spending decisions, impacting WOR's future prospects.
Clime Investment Management
31 Mar 2025
$14.43
Summary
- Clime Investment Management exited their position in WOR due to increasing evidence of downward pressure in the energy and resources industries.
- WOR is considered a mature and well-managed business.
- The company’s ability to replenish its order book, a key driver of value, is constrained.
- This constraint is attributed to the short duration of contracts.
- Customers are prioritizing flexibility in their spending decisions, particularly regarding growth projects.
- Heightened market uncertainty has shifted the risk bias for WOR's order book to the downside.
- There is a trend of customers delaying project spending decisions.
Equity Trustees Asset Management
31 Mar 2025
$14.43
Summary
- Equity Trustees Asset Management initiated a new position in Worley (WOR).
- WOR is a global engineering, advisory and project management services company.
- The company focuses on key sectors including hydrocarbons (upstream & downstream), chemicals, mining, minerals, metals (MMM), and infrastructure.
- Following industry consolidation in the last down-cycle, WOR is believed to be well positioned for an improved outlook in capital project spending.
- WOR's earnings are expected to grow double-digit over the medium-term.
- Equity Trustees Asset Management sees value appeal in the company.
Clime Investment Management
28 Feb 2025
$15.22
Summary
- Clime Investment Management has reduced their position in Worley Ltd (WOR) due to concerns about near-term earnings facing downside risks.
- This decision is influenced by negative developments with WOR’s customers in the fossil fuel and chemical sectors, who are cutting capital expenditure and reducing headcount.
- Upon reviewing WOR’s performance since the acquisition of Jacobs Engineering in 2018, Clime found that its growth has been underwhelming when excluding this acquisition.
- The analysis indicates that the capital and activity directed at decarbonising energy production have not yielded significant growth.
Ten Cap
28 Feb 2025
$15.22
Summary
- Ten Cap added Worley Ltd (WOR) to the portfolio due to increased confidence in its earnings profile
- WOR has multiple self-help opportunities available for growth
- The company benefits from a favourable regulatory environment
- Currently trading at a 15% discount to the ASX 200, compared to its usual 5% premium
- WOR has initiated share buybacks for the first time in its history, indicating a strong capital position
Endeavor Asset Management
28 Feb 2025
$15.22
Summary
- Worley (WOR) delivered a strong first half result, with EBITA margins exceeding consensus expectations and guidance reaffirmed.
- The share price rose 5% over the month.
- A $500 million share buyback was announced, showcasing management’s confidence in future growth.
- Recent meetings with management reinforced optimism about expansion in the Middle East and the United States, where demand for engineering services is strong.
- Competitive dynamics are favorable, with some peers facing financial constraints, allowing WOR to strengthen its backlog and take market share.
- Trading at 14x FY26 P/E, the stock presents meaningful upside potential.
- Offers a 4% fully franked dividend, providing an attractive income stream for investors.
Endeavor Asset Management
30 Nov 2024
$13.76
Summary
- Worley's share price declined in November due to concerns over reduced capital expenditure by major oil and gas clients.
- Despite this, the company’s outlook remains promising.
- Worley is shifting focus toward sustainability and renewable energy projects such as hydrogen, carbon capture, and renewable fuels.
- The company is well positioned for long term growth.
- Endeavor Asset Management continues to hold its investment in Worley, anticipating enhanced future earnings stability.
Yarra Capital Management
31 July 2024
$15.18
Summary
- Yarra Capital Management remains overweight on Worley (WOR), a leading provider of global engineering services.
- Despite a slowdown in industry activity post-COVID, Yarra Capital Management sees favorable long-term opportunities for WOR.
- Growing global energy demand is driving increased need for both traditional oil and gas and sustainability solutions.
- The current slowdown in sustainability project spending is viewed as a short-term challenge, influenced by upcoming global elections in CY24.
- Margins are expected to improve in the coming years due to a more consolidated industry structure and operational efficiencies.
- Yarra Capital Management highlights WOR's shift towards higher margin sustainability work as a key factor.
Yarra Capital Management
30 June 2024
$14.88
Summary
- Yarra Capital Management remains overweight in Worley Ltd (WOR) as a leading provider of global engineering services.
- Despite a slowdown in industry activity post-COVID, Yarra Capital Management still sees potential in the longer-term opportunities for the company.
- Global energy demand is expected to increase, driving demand for Traditional O&G, with Carbon Capture Utilization and Storage (CCUS) as a notable solution.
- The current slowdown in spending on sustainable projects is viewed as a short-term issue due to upcoming global elections in CY24.
- Worley is anticipated to benefit from rising margins due to a more consolidated industry structure.
- Operational efficiency and a strategic focus on higher-margin sustainability work are expected to enhance Worley’s performance over the coming years.
Clime Investment Management
30 Apr 2024
$15.09
Summary
- WOR share price decreased due to Sidara selling its 19% interest at a discount.
- Clime Investment Management participated in the block trade, seeing it as a chance to enhance their position.
- Clime views this as an opportunity in a high conviction company at an attractive valuation.
- Clime maintains confidence in WOR's potential for margin expansion and contract growth.
- WOR holds a market-leading position in the sustainability engineering space.
Cooper Investors
31 Mar 2024
$16.78
Summary
- Cooper Investors increased their Worley (WOR) holding during the quarter.
- This decision capitalized on share price weakness due to specific events.
- A significant issue was a commercial arbitration tribunal finding against Worley regarding claims for payment from Ecuador.
- The tribunal ruled that money sought was not payable due to corruption associated with contract awards.
- While the tribunal did not accuse Worley of corruption, it noted wilful blindness to a subcontractor's corruption.
- Worley maintains there is no evidence of their corruption and is considering an appeal.
- Ecuador is pursuing repayment of US$370mn from Worley via the courts.
- Concerns exist regarding risks from these claims, especially on Worley’s ability to win future work.
- Cooper Investors is confident this won't impact future work, citing numerous new awards after the news.
- The allegations pertain to work executed from 2011-2017, with no direct evidence of Worley’s corruption.
- Cooper Investors is attracted to Worley’s exposure to a potential supercycle in engineering and construction driven by the energy transition.
- Worley is positioned to benefit from material investments needed to meet global emission-reduction targets.
Endeavor Asset Management
31 Jan 2024
$14.82
Summary
- Global energy transition experts have identified Worley (WOR) as a key player.
- Worley experienced a decline in share price in January due to allegations of corruption related to historical contracts.
- The Company denied allegations and corrected false media statements through an ASX release.
- Negative sentiment remained despite the Company's efforts, compounded by a US government announcement pausing LNG project approvals.
- Despite short-term challenges, the energy transition cycle continues to show strength.
- Worley is considered well-positioned to benefit from a significant work pipeline.
- Endeavor Asset Management took profits in December at ~$17/share, amounting to a 14% gain over January's closing price.
- Currently, WOR trades at a relatively low valuation, with a 5-year average P/E of 17x.
- The industry has seen a growing pipeline of new work related to energy transition over the past five years.
- This trend continues to strengthen Worley's earnings growth outlook.
Clime Investment Management
31 Jan 2024
$14.82
Summary
- Clime Investment Management notes recent weakness in the WOR share price.
- Decline attributed to short-term concerns regarding a pause in a large US gas contract.
- Broader sales pipeline also contributing to share price pressures.
- Share price has fallen more than the relative earnings impact of potential contract delays.
- This decline presents an opportunity to add to the WOR position.
- WOR is viewed as a high-quality company with long-term growth potential.
L1 Capital
30 Sept 2023
$17.50
Summary
- Worley shares rallied (+10%) after strong FY23 results.
- Positive qualitative outlook for FY24.
- Multi-year revenue growth driven by recovery in conventional energy capex.
- Increased spending in energy transition projects.
- Execution of major project wins over the last 12 months.
- Pivotal shift towards green energy opportunities.
- Market perception evolving from a legacy oil and gas contractor to a diversified engineering company.
- Critical role in enabling the energy transition.
L1 Capital
31 July 2023
$17.36
Summary
- Worley shares have rallied over the quarter by +10% due to positive sentiment towards energy capital expenditure.
- Major project wins have contributed to the overall positive outlook.
- L1 Capital continues to hold its position in Worley, recognizing it as one of the few global engineering consultancy firms well-positioned for the energy transition.
- Worley is poised to benefit from significant investments in hydrogen, carbon capture, and renewable energy.
- The firm is viewed as being in the early innings of the pivot towards green energy opportunities.
- Despite its critical role in enabling the energy transition, the market still sees Worley as a legacy oil and gas engineering contractor.
Cooper Investors
30 June 2023
$15.79
Summary
- Cooper Investors established a position in Worley (WOR) during the quarter.
- Investment trends in engineering and construction are expected to benefit from the shift to clean energy.
- The energy transition has gained momentum, influenced by net zero targets from governments and companies.
- Russia’s invasion of Ukraine has heightened the focus on energy security through decarbonisation.
- Returns in the sector are anticipated to improve over the next decade due to structural tailwinds.
- Worley pivoted early towards the energy transition, positioning itself favorably for clean energy investments.
- Global energy investment is projected to grow from US$2.4tn to US$5.1tn per annum by 2030.
- Policy settings, like the US Inflation Reduction Act, are enhancing investment in clean energy.
- This suggests energy investments may decouple from oil price fluctuations.
- Growth in the sector is increasingly structural compared to its historical cyclicality.
- Industry dynamics are improving with increased pricing power and higher margins from sustainability-related work.
- Worley is expected to benefit from operating leverage and has already reduced costs significantly since COVID.
- Guidance indicates FY24 EBITA margins of approximately 7.5%, with potential for double-digit margins.
The completeness, accuracy or current status of the investments referenced are not guaranteed.
Frequently Asked Questions
Who is investing in Worley Ltd (ASX:WOR)?
Fund managers including Cooper Investors, L1 Capital, Endeavor Asset Management, Ten Cap, Equity Trustees Asset Management, Yarra Capital Management, Antares Capital, Clime Investment Management, Sterling Managed Investments, Elston Asset Management, Pendal Group and Perennial Partners have invested in Worley Ltd (ASX:WOR).
Why do fund managers invest in Worley Ltd?
Fund managers invest in Worley Ltd due to its strong earnings profile and growth potential in engineering services across sectors like energy and resources. The company's recent performance exceeded expectations, and management's confidence is evident in a significant share buyback program. Worley is trading at a discount to the ASX 200, providing potential value for investors. Additionally, its robust backlog of projects and established market position allow for optimistic medium-term growth projections, making it an appealing investment choice.
What happened to Worley Ltd (ASX:WOR)?
Fund managers are investing in Worley Ltd due to its strong turnaround potential, driven by re-acceleration in revenue growth across key sectors: energy (3-7% CAGR), chemicals (1.4% CAGR), and energy transition minerals (6% CAGR). The company's margin expansion, with EBITA margins improving from 7.9% to 9.2%, coupled with a solid balance sheet (net debt/EBITDA at 1.4x), enhances its attractiveness. Despite facing challenges like declining pipeline growth and energy market volatility, Worley's substantial project backlog of $16.9 billion, with 50% deliverable in the next 12 months, provides significant revenue visibility. Shareholder returns through buybacks and dividends further support investment appeal, making Worley a compelling opportunity in a recovering market.
What is the short interest in Worley Ltd (ASX:WOR)?
The short interest in Worley Ltd (ASX:WOR) is 1.04% which makes it the 205th most shorted stock on the ASX. Of the 509.4M shares that Worley Ltd has on issue, 5.3M have been sold short.
What does Worley Ltd (ASX:WOR) do?
Worley Ltd is a company that provides services to the resources, energy, and industrial sectors. It offers engineering, procurement, project management, and consulting services through segments such as Energy and Chemical Services, Mining, and Major Projects. The company is involved in delivering integrated solutions and managing complex projects, focusing on improving efficiency and meeting client objectives. Worley is headquartered in Sydney, Australia.