Worley (WOR) H2 2024 earnings summary

Executive summary

• Achieved record revenue and earnings in FY 2024, with underlying EBITA up 24% and revenue up 18% year-over-year, despite macroeconomic headwinds and project delays.

• Delivered on strategic commitments for three consecutive years, focusing on higher-value, sustainability-related work and disciplined execution.

• Maintained a resilient business model, effectively managing project delays and cancellations while supporting long-term growth.

• Sustainability-related revenue rose to 52% of total, reaching $6.0b, with continued progress on ESG commitments, including improved gender diversity and Scope 3 emissions disclosure.

• Final dividend of AUD 0.25 per share declared, with total FY24 dividend unchanged at AUD 0.50 per share.

Financial highlights

• Aggregated revenue reached AUD 11.6 billion, up 18% year-over-year on a pro forma basis; underlying EBITA rose 24% to AUD 751 million.

• Underlying NPATA increased 27% to AUD 416 million; statutory NPATA was AUD 367 million, impacted by a one-off write-off related to historic services in Ecuador.

• Underlying EBITDA margin (excluding procurement) was 7.9%, at the top end of the forecast range.

• Professional services revenue grew 16% year-over-year, now over 80% of EBITDA.

• Normalized cash conversion ratio at 99%, above the 85%-95% target range, and DSO improved to 59.3 days.

Outlook and guidance

• FY 2025 expected to see moderate growth compared to FY 2024, with continued macroeconomic headwinds and project deferrals.

• Targeting low double-digit EBITA growth and EBITA margin (excluding procurement) of 8%-10.5% (guidance midpoint 8.0–8.5%).

• Second half of FY 2025 anticipated to be stronger than the first half.

• Continued focus on digital and AI investments, with AUD 30 million allocated for strategic growth areas.

• Emphasis on high-quality, higher-margin work and strategic investment in growth areas.