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Worley’s latest analyst updates show a steady modelled fair value at A$14.52 alongside some lower price targets at A$13 and A$12.37. Those cuts are closely tied to concerns about higher restructure costs, questions around the quality of underlying earnings, and a more cautious stance on execution risk, even as some metrics surprised on the upside. Read on to see how to interpret these mixed signals and keep track of how the Worley story evolves from here.

Analyst Price Targets don't always capture the full story. Head over to our Company Report to find new ways to value Worley.

What Wall Street Has Been Saying

🐂 Bullish Takeaways

RBC Capital highlighted that first half aggregated revenue, underlying earnings and the underlying EBITA margin were all above its estimates, which supports the case that Worley can still deliver on key financial metrics even while working through changes. Management commentary described as "typically upbeat around the outlook" by Jefferies signals that leadership continues to see opportunities in Worley’s project pipeline, which some investors may view as a supportive backdrop for longer term growth prospects.

🐻 Bearish Takeaways

RBC Capital downgraded Worley to Sector Perform from Outperform and cut its price target to A$13 from A$18, pointing to relatively high below the line restructure costs and the expectation of more to come, which feeds into concerns about execution risk and earnings quality. Jefferies moved to Hold from Buy with a A$12.37 price target, citing difficulty reconciling upbeat management commentary with what it viewed as a weaker underlying result, and that disconnect is an important flag for readers weighing valuation against the strength of the core business.

Do your thoughts align with the Bull or Bear Analysts? Perhaps you think there's more to the story. Head to the Simply Wall St Community to discover more perspectives!ASX:WOR 1-Year Stock Price Chart

We've flagged 1 risk for Worley. See which could impact your investment.

What's in the News

Worley has issued earnings guidance for fiscal 2026, targeting moderate growth in aggregated revenue compared with FY25. This provides a clearer reference point for how management is framing the next year. The company has extended its existing share buyback plan, with the program now set to run until March 12, 2027. This clarifies expectations for the timing of capital returns. Bloomfire has partnered with Worley Consulting to integrate Bloomfire’s Enterprise Intelligence platform into Worley Consulting’s digital offerings, aimed at supporting knowledge management and AI supported decision making for asset intensive industries. Worley is hosting an Analyst/Investor Day, giving the market a direct update from management on operations, outlook, and capital allocation priorities.

Story Continues

How This Changes the Fair Value For Worley

Fair value is held at A$14.52, with no change from the prior modelled estimate. Revenue growth assumption is effectively unchanged at about 8.07%. Net profit margin assumption remains essentially unchanged at about 3.94%. Future P/E multiple is adjusted slightly from 16.33x to 16.31x. Discount rate eases from 9.22% to 9.18%, marginally raising the present value of modelled cash flows.

Never Miss an Update: Follow The Narrative

Narratives link a company’s real world story to a financial forecast and fair value, so you can see how business drivers connect to the numbers. They refresh as new data, guidance, and analyst views come through, helping you keep the bigger picture in view.

Head over to the Simply Wall St Community and follow the Narrative on Worley to stay up to date on:

How growth in sustainability and energy transition work, including 60% of FY25 revenue coming from sustainability related projects, shapes Worley’s long term pipeline. What a shift toward higher margin advisory, digital and AI supported services and global delivery centers could mean for operating efficiency and earnings mix. Key risks around dependence on traditional oil, gas and LNG projects, pressure on higher margin professional services revenue, and increasing competition in renewables and digitalisation.

This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.

Companies discussed in this article include WOR.AX.

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