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Worley Reports 55% Increase in First-Half Net Profit, Announces $500 Million Buyback
Sydney, Feb. 21, 2025 – Engineering and consulting firm Worley Limited (ASX: WOR) reported a 55.4% increase in first-half net profit to A$216 million, largely attributed to a prior-year write-down. However, the company’s work backlog contracted due to project cancellations amid a challenging operating environment.
Worley also announced plans to undertake an on-market share buyback of up to A$500 million in March, signaling confidence in its financial position and long-term strategy.
Financial Performance and Outlook
- Interim dividend: 25 cents per share, unchanged from the prior year.
- Bookings: Increased to A$6.6 billion, up from A$6.2 billion year-on-year, but softened sequentially.
- Project backlog: Declined to A$12.7 billion, down from A$13.8 billion six months prior.
Last November, CEO Chris Ashton reaffirmed Worley’s target for double-digit earnings growth in FY25, with an EBITDA margin forecasted between 8% and 8.5%. However, he acknowledged that economic and policy headwinds, rising capital costs, and global uncertainty have moderated growth expectations.
Industry Challenges and Market Conditions
Ashton highlighted that geopolitical tensions, inflationary pressures, and supply chain disruptions are affecting Worley’s key markets. Additionally, the pace of the energy transition has slowed due to economic constraints and policy shifts, contributing to the cancellation of several large projects.
Despite these challenges, Worley remains committed to its long-term strategy, leveraging its diversified portfolio and global expertise to navigate market volatility.
