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    Is Worley (ASX:WOR) Below Fair Value As Earnings And Dividend Land?

    Simply Wall St·08/28/2026 06:18:02
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    What Worley’s latest earnings and dividend announcement mean for investors

    Worley (ASX:WOR) recently combined its full year 2026 earnings release with confirmation of a final dividend, giving investors fresh information on both profitability and cash returns.

    The company reported revenue of A$10,714 million for the year to 30 June 2026, with net income of A$238 million. Management also highlighted 2.3% constant currency revenue growth and progress on cost savings targets.

    At the same time, the board declared an ordinary unfranked final dividend of A$0.25 per share for the half year. The ex dividend date is 1 September 2026, with a record date of 2 September and payment scheduled for 30 September.

    These announcements came against a challenging backdrop that included a soft chemicals market and project delays linked to conflict in the Middle East. Worley cited an adverse earnings impact of A$58 million related to these disruptions.

    Management pointed to strong bookings, an expanding sales pipeline and recent contract wins as key supports for its stated outlook for growth in the 2027 financial year and beyond. Investors now have a clearer picture of how current trading conditions and future work visibility intersect with the stock’s recent share price performance.

    Worley’s latest earnings and dividend news landed after a weak share price stretch, with the stock at A$10.12 following a 90 day share price return that declined 21.79% and a 1 year total shareholder return that declined 28.07%. However, the 5 year total shareholder return remains positive at 13.18%, indicating that recent momentum has faded even as longer term holders are still ahead overall.

    Compare Worley’s recent move with a curated set of infrastructure focused peers by scanning the 38 power grid technology and infrastructure stocks that are exposed to large scale energy and grid projects.

    After that sharp share price slide, the question now is whether Worley’s current valuation still compensates you for the earnings hit and project risks. The next step is to line up the price against the fundamentals.

    Most Popular Narrative: 18.6% Undervalued

    The most followed narrative currently sets Worley’s fair value at A$12.44, compared with the last close at A$10.12. That gap rests heavily on how investors see the company’s energy transition work playing out over time, using a 9.71% discount rate to bring those assumptions back to today’s terms.

    The accelerating global push for decarbonisation and energy transition is expanding Worley's addressable market, as evidenced by 60% of FY25 revenue coming from sustainability-related work (up from 52% in FY24); further investment and government policies towards net zero are likely to boost revenue streams, especially in renewables, hydrogen, and carbon capture.

    Read the complete narrative.

    Want to see what sits behind that A$12.44 figure and the implied 18.6% discount? The narrative leans on sustained revenue growth, firmer margins, and a future earnings multiple that needs to line up with those projections. The details show how analysts connect Worley’s earnings path and project pipeline to that fair value. The numbers are all laid out if you want to test the assumptions against your own view.

    Result: Fair Value of A$12.44 (UNDERVALUED)

    Have a read of the narrative in full and understand what's behind the forecasts.

    However, this Worley narrative could be knocked off course if higher margin professional services stay weak, or if subdued chemicals and European markets drag on revenue and backlog.

    Find out about the key risks to this Worley narrative.

    Next Steps

    With both risks and rewards now on the table for Worley, this is a good moment to move quickly and test the numbers yourself using the 3 key rewards and 2 important warning signs.

    Looking for more investment ideas beyond Worley?

    If Worley has your attention, do not stop there. Use the Simply Wall Street Screener to quickly spot other opportunities that match your style and risk comfort.

    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.