The global engineering, advisory & project management services company held its annual investor day yesterday and articulated its growth strategy which they believe will drive double-digit sustainable earnings growth over the medium term – something that has eluded them in the past. An expected four-fold increase in global energy investment and decarbonisation projects provides a great backdrop to generate revenue, however, it will be their ability to expand the currently thin margins that will provide the real kicker to profits.
Yesterday they confirmed a double-digit medium-term earnings growth target, supported by market growth, increasing market share, and margin expansion, which is exactly what we were looking to hear. Trust has also been a missing ingredient, with the market having been disappointed in the past as targets have fallen by the wayside. Yesterday was a step in the right direction for this cyclical business that is highly leveraged to global energy investment over the next few decades.
- Worley is ramping up its capabilities towards battery metals, carbon capture, utilisation & storage & low carbon hydrogen.
MM is long & bullish WOR
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