Worley Ltd (WOR.AX): Sell-off looks excessive against strong medium-term fundamentals

Research evidence excerpt

Worley Ltd (WOR.AX): Sell-off looks excessive against strong medium-term fundamentals

Action |

25 Jun 2026 04:42:07 ET │ 14 pages

Worley Ltd (WOR.AX)

Sell-off looks excessive against strong medium-term fundamentals

CITI'S TAKE

WOR shares sold off ~10% on two negative updates. 1. FY26 EBITA now

faces up to a ~A$110m headwind comprising: i) ~A$60m (+$25m

incremental) from Middle East project delays, and ii) ~A$50m from adverse Buy

FX movements. We see these impacts are largely timing-related with no Price (25 Jun 26 16:00) A$11.08

project cancellations (no change to the backlog) and an accounting

adjustment which was higher than some expected due to a growing mix of Target price A$12.50↓

NA project work. 2. The reopened 2015 class action adds uncertainty, but from A$13.60

financial exposure is largely contained via insurance. We see no change to Expected share price return 12.8%the underlying business with backlog intact and structural energy demand

supportive of the medium-term outlook. The recent Saudi Aramco Expected dividend yield 4.5%

framework agreement for NEOM work reinforces this view despite near- Expected total return 17.3%

term delays. Overall, we think the fundamentals remain intact and the sell- Market Cap A$5,429Moff appears to be overdone.

US$3,808M

WOR facing further ME delays & FX headwinds — WOR now expects up to a

~A$110m headwind to FY26 EBITA comprising ~A$60m operational impact from

Middle East project delays and ~A$50m from adverse FX (weak AUD). Importantly,

these impacts are largely timing related rather than structural challenges. There have Price Performance

been no project cancellations with disruption reflecting slower activity, deferred (RIC: WOR.AX, BB: WOR AU)

awards, and reduced utilisation. While this represents a downgrade from prior