Worley's record backlog of A$16.9 billion and recent contract wins in low-carbon hydrogen, carbon capture, and battery materials are driving near-term share price gains. The stock is up 23.48% over 90 days, though the three-year return is negative. Management targets an underlying EBITA margin of 9% to 9.5% for FY 2026, with a medium-term ambition for low double-digit margins. The key question is whether the market has already priced in future growth. A widely followed narrative suggests a fair value of A$13.80, implying modest undervaluation at the current A$12.99 price. However, delivery risk remains: Worley must execute efficiently on its backlog and hit margin targets to justify the valuation. The company's asset-light model and legacy oil and gas work continue to support cash generation as it shifts toward energy transition projects.
