Worley (WOR) H2 2024 earnings summary

Executive summary

• Achieved record revenue and earnings in FY24, with aggregated revenue reaching $11,616 million, up 18% year-over-year, and underlying EBITA up 24%, despite macroeconomic headwinds and project delays.

• Sustainability-related work accounted for 52% of revenue, up 46%, and now represents 56% of backlog, with continued progress on ESG commitments.

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

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

• Final dividend declared at 25 cents per share, unfranked, with total FY24 dividend at 50 cents per share.

Financial highlights

• Aggregated revenue reached $11,616 million, up 18% year-over-year on a pro forma basis.

• Underlying EBITA rose 24% to $751 million; underlying NPATA increased 27% to $416 million.

• Statutory NPATA was $367 million, impacted by a one-off $58 million write-off related to historic Ecuador services.

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

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

Outlook and guidance

• FY2025 expected to see moderate growth compared to FY2024, with continued macroeconomic headwinds and customer capital allocation reviews.

• Targeting low double-digit EBITA growth and EBITA margin (excluding procurement) of 8.0–10.5%; H2 FY2025 anticipated to be stronger than H1.

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

• Factored sales pipeline up 12% year-over-year; backlog down 2% due to scope reductions and cancellations.