WOR +10.27%: Good 1H25 result from Worley today with the key being an expansion in margins and a significant $US500m on market share buy-back.
Aggregate revenue of $6.0bn, up 6.8% y/y and 1% ahead of consensus
- EBITA margins of 8.4%, a solid beat vs 7.8% expectations
- Underlying profit of $216 million, was up +15% y/y and 3% ahead of consensus
- Interim dividend per share $0.25 flat on the year.
WOR reconfirmed outlook expectations for FY25, targeting low double-digit EBITA growth with EBITA margin (excluding the impact of procurement) to be within a range of 8.0-8.5%. The US$500m on market buy back shows they see their own shares as the best place to invest excess capital and will be very supportive of the stock. The buy-back will commence in March.
A good underlying result, a supportive buy back, and the stocks recent underperformance should be rectified.
MM remains long & bullish WOR
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