WOR +2.77%: FY24 results today were a mixed bag, with topline revenue a slight miss, though underlying profit was a beat, guidance was solid, and the stock had been weak leading into the announcement.
- Revenue up 18% to $11.6bn was ~2% below consensus.
- Underlying EBITDA $751m was ~1% below consensus.
- Underlying NPAT of $416m was ahead of $394m expected.
- Final dividend of 25cps unfranked
They guided to low double digit EBITA growth for FY25 and expect margins to continue to improve, landing in the 8-8.5% range (market was at 8.1%). All up, Better than feared, with ongoing growth in FY25 driven by a higher proportion of sustainability related work which is higher margin relative to traditional maintenance contracts.
Chief Executive Chris Ashton also made comments around the broader backdrop of how companies are approaching the path towards net zero, saying ‘there’s no backing away from their commitment to net zero; it’s just a question of being very pragmatic on how they are going to get there’, implying FY25 demand has softened relative to FY24, which has impacted WOR’s pipeline of work, and speaks to the path towards net zero taking longer than many expect.
MM remains long & bullish WOR
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