Worley (WOR) H1 2025 earnings summary

Executive summary

• Delivered strong half-year results for FY2025, with significant earnings and margin growth despite a challenging environment, and reaffirmed confidence in long-term growth prospects.

• Statutory net profit after tax rose 73% year-over-year to $183 million, with underlying NPATA at $216 million.

• Business model diversification across geographies and sectors, with 58% of revenue from sustainability-related work and 42% from traditional markets.

• Announced an interim dividend of 25 cents per share (unfranked) and a share buyback of up to $500 million, reflecting confidence in financial position and growth outlook.

• Continued progress on ESG commitments, including emissions reductions and leading sustainability ratings.

Financial highlights

• Aggregated revenue for the half-year reached $5,989 million, up 6.8% year-over-year, driven by Americas and EMEA regions and energy/resources sectors.

• Underlying EBITDA/EBITA grew 9% to $376 million; underlying NPATA increased 14.9% to $216 million.

• EBITA margin (excluding procurement) improved to 8.4% from 7.5% year-over-year; including procurement, margin increased to 6.3% from 6.1%.

• Cash conversion ratio normalized at 116.2% of underlying EBITDA; operating cash flow was $287 million.

• Basic EPS rose 73% to 34.7 cents; diluted EPS up 72% to 34.4 cents.

Outlook and guidance

• Reconfirmed FY2025 outlook, targeting low double-digit EBITDA/EBITA growth and underlying margin (excluding procurement) of 8%-8.5%.

• Announced an on-market share buy-back of up to $500 million commencing March 2025.

• Expect continued headwinds from higher cost of capital and policy/economic factors but remain confident in delivering guidance.

• Majority of backlog and pipeline expected to convert within 12 months, supporting near-term revenue.

• Focus remains on disciplined bidding, cost management, and winning work in growth markets.