Sydney, June 24, 2026, 09:06 AEST
Worley Limited enters Wednesday’s session with an 81-cent, five-day share-price fall equivalent to about A$397 million on its current share count. That drop comes despite a A$16.9 billion backlog, leaving investors to weigh when booked work will turn into revenue and profit.
The stock closed Tuesday at A$12.10, down 1.63%, while the S&P/ASX 200 lost 0.33% to 8,786.98. Worley’s market value is now about A$5.93 billion. The cash market was in pre-open at the time of publication, with ASX 200 futures up 21 points, or 0.23%.
At Tuesday’s close, the backlog equals 2.85 times Worley’s equity value and about 1.4 times its A$12.05 billion of fiscal 2025 aggregated revenue. These are not standard valuation multiples: backlog is expected revenue from awarded contracts and orders, not profit, and some of it may take years to reach the accounts. Still, the gap suggests the discount is about timing and margins rather than a shortage of work.
In April, Worley estimated that the Middle East conflict would cut fiscal 2026 underlying EBITA by A$30 million to A$40 million and said growth in that measure was unlikely. Underlying EBITA is the company’s measure of earnings before interest, tax and amortisation, adjusted for selected items. Worley kept its target for aggregated revenue growth above the prior year.
The external backdrop shifted again on Tuesday. Brent crude settled 1.1% lower at $77.08 a barrel, near a four-month low, as more vessels passed through the Strait of Hormuz following progress in U.S.-Iran talks. Yet access remains uncertain. “Ship owners and operators will require assurances that the threats posed by mines have been fully eliminated,” PVM Oil Associates analyst Tamas Varga said. Reuters
Worley’s decline was not matched by local engineering peer Monadelphous Group, which gained 1.93% to A$30.12 on Tuesday. One session does not establish a company-specific cause, but the divergence weakens the case that Worley’s fall was simply a broad contractor selloff.
Capital management offers some support. Worley’s new A$300 million buyback could purchase about 24.8 million shares, or 5.1% of those currently issued, if the full amount were spent at A$12.10. The company also said A$95 million of cost-saving measures had been actioned and another A$25 million were under way. “Our clear growth strategy supports our ambition to deliver double digit underlying EBITA growth over the medium-term to FY30,” CEO Chris Ashton said.
But the risks are clear. Worley says the timing of backlog recognition can vary significantly between projects. Its buyback also depends on the share price and market conditions. A further delay in project starts could hold back earnings even while the headline backlog remains large, and the buyback may not provide steady support.
