Worley Ltd (WOR)
Hi Shawn, do you have an updated view on Worley? They seem to have fallen over the past few months but all news seems to have been good. Thoughts?
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Answer
Hi Stewart,
WOR has been a touch frustrating of late having underperformed the market recovery from its panic April sell-off. It is hard to pinpoint exactly why they’ve struggled although we often say “don’t fight the tape”.
- In March they delivered a solid 1H25 result, reconfirmed outlook expectations for FY25 plus its $500mn buyback is scheduled to run between March 2025 and March 2026 – good timing with the April sell-off.
Two things have weighed in WOR over recent months:
- Clients, especially in energy and infrastructure, have delayed or cancelled projects amid geopolitical and cost uncertainties, reducing Worley’s short-term growth visibility.
- A recent tribunal ruling linked Worley to historical corruption in Ecuador – the company has denied wrongdoing, but it reopens past wounds.
We still like WOR here.
