Worley (WOR) H2 2025 earnings summary

Executive summary

• Achieved fourth consecutive year of revenue, earnings, and margin growth, supported by a diversified business model and disciplined execution amid global uncertainty.

• 60% of revenue now comes from sustainability-related work, up from 52% in the prior year, with significant progress on ESG commitments, including a 73% reduction in Scope 1 and 2 emissions since 2020.

• Backlog increased 22% to $16.9 billion, with major project wins in LNG, hydrogen, and lithium, and bookings up 32% to $17.1 billion.

• Over 80% of work is through lower-risk reimbursable contracts, supporting risk-adjusted returns.

• Strong growth in the Americas, EMEA, Latin America, Middle East, and Europe, while APAC saw lower activity due to project completions.

Financial highlights

• Aggregated revenue increased 4% year-over-year to $12,050 million; underlying EBITA up 10% to $823 million.

• Underlying EBITA margin (excluding procurement) improved to 9.2% from 7.9%; underlying NPATA up 14% to $475 million.

• Normalized cash conversion at 94.9%, with cash conversion at 112.5% of underlying EBITDA.

• Final dividend of $0.25 per share declared, unfranked, with payout ratio maintained at 50–70% of underlying NPATA.

• Leverage ratio reduced to 1.4x, net debt at $1,502 million, and total liquidity of $2,402 million.

Outlook and guidance

• FY26 expected to deliver moderate growth, with revenue growth targeted above FY25 and underlying EBITA margin (excluding procurement) guided at 9.0–9.5%.

• Medium-term ambition to reach low double-digit margins, with further headroom for growth beyond 2026.

• Approximately 50% of backlog expected to be delivered in the next 12 months.

• Cash conversion guidance for FY26 set at 85%–95%.

• Procurement revenue expected to see a slight uptick both in absolute and proportional terms.