Worley (ASX:WOR) Just Gave The Market Something To Think About
Worley (ASX:WOR) has drawn fresh attention after highlighting its expanding role in nuclear power projects and disclosing a 24% year-on-year increase in its sales pipeline, with over A$10b in recent contract wins.
Recent trading reflects that tension between Worley’s upbeat project news and a tougher year for holders. The stock’s 7 day share price return of 4.7% hints at short term momentum, yet the 1 year total shareholder return is still down 30.5% and the 3 year total shareholder return is down 33.4%, even though the 5 year total shareholder return remains positive at 7.1%.
Scan beyond Worley and see how other engineered energy plays are setting up for the next leg of the transition with our curated 16 nuclear energy infrastructure stocks.
After a sharp bounce on upbeat project news, but with a share price still well below recent years’ levels, has Worley’s value case mostly played out already, or is the real upside still in front of the stock?
Most Popular Narrative: 17% Undervalued
At A$9.64, Worley is trading below the A$11.67 fair value implied by the most widely followed thesis, which leans heavily on its growing transition-focused backlog and planned cost savings converting into sturdier earnings.
The accelerating global push for decarbonisation and energy transition is expanding Worley’s addressable market. The current factored sales pipeline of future work is 24% higher year-on-year, with more than $10b of recent wins in areas such as LNG, power and energy transition materials. These factors can support future revenue and backlog growth. Persistent high levels of infrastructure investment from both public and private sectors seeking greater resilience and sustainability are reflected in Worley’s FY26 bookings of $15.5b and new awards across gas infrastructure, pumped storage, nuclear and low carbon power. These can underpin future topline growth and earnings stability.
See why 34 investors see Worley as 17% undervalued.
Result: Fair Value of A$11.67 (UNDERVALUED)
Still, the Worley story depends on delayed project awards easing, and on weakness in the chemicals sector not dragging backlog and earnings expectations off course for long.
Find out about the key risks to this Worley narrative.
Next Steps
Mixed signals on Worley so far, with both risks and potential rewards on the table, mean you should move quickly and weigh the trade offs yourself, starting with the 3 key rewards and 2 important warning signs.
Looking for more Worley sized investment ideas?
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