Assessing Worley (ASX:WOR) Valuation After Backlog Growth And Energy Transition Contract Wins

Conference spotlight and recent business context Worley (ASX:WOR) is set to present at ASX CEO Connect on 2 June 2026, where Managing Director and CEO Chris Ashton is expected to outline how the company’s record backlog and contract wins relate to its energy transition focus. Recent company updates have highlighted large sustainability linked projects in areas such as low carbon hydrogen, carbon capture, and battery materials, as well as legacy oil and gas work that continues to support cash generation and Worley’s asset light model. See our latest analysis for Worley. At a share price of A$12.99, Worley has seen a 90 day share price return of 23.48%, while the 1 year total shareholder return of 3.34% sits against a weaker 3 year total shareholder return that declined 11.68%. This suggests that near term momentum has picked up after a softer multi year experience. If Worley’s energy transition focus has your attention, it can be useful to scan for other infrastructure themed ideas through our AI infrastructure stock screener, starting with 48 AI infrastructure stocks. With Worley’s recent share price gains, ongoing energy transition projects, and an intrinsic value estimate that is below the current A$12.99 share price, the key question is whether there is still value on the table or if the market is already pricing in future growth. Most Popular Narrative: 5.9% Undervalued Against Worley’s last close of A$12.99, the most widely followed narrative points to a fair value of A$13.80, framing the stock as modestly undervalued and heavily tied to its project backlog and margin targets. Management is targeting underlying EBITA margin excluding procurement of 9% to 9.5% for FY 2026 and talks about a medium term ambition to reach low double digit margins. If achieved or exceeded, this would imply stronger earnings growth than a flat share price assumption suggests, given current underlying EBITA of A$823m and NPATA of A$475m. Read the complete narrative. Curious what sits behind that margin ambition and fair value gap? The narrative leans on specific revenue growth, earnings expansion, and a future earnings multiple that could reshape how you view A$13.80. Result: Fair Value of A$13.80 (UNDERVALUED) Have a read of the narrative in full and understand what's behind the forecasts. However, there are still a few swing factors, including how efficiently Worley delivers its A$16.9b backlog and whether margin targets near 9% to 9.5% are met. Find out about the key risks to this Worley narrative. Next Steps With both risks and rewards in focus, do you feel the balance of sentiment matches your own view, or is the market missing something? Take a closer look at the details and weigh the trade offs for yourself by reviewing the 2 key rewards and 1 important warning sign. Looking for more investment ideas? If Worley has sharpened your thinking, do not stop here. Broaden your watchlist with stocks that match different goals so you do not miss the next opportunity. Chase potential mispricing by scanning a focused set of companies that screen as quality yet out of favour through the 6 high quality undervalued stocks. Strengthen your income stream by zeroing in on companies that offer reliable payouts with the 7 dividend fortresses. Reduce portfolio stress by concentrating on companies that carry lower risk scores using the 7 resilient stocks with low risk scores. 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.Valuation is complex, but we're here to simplify it.Discover if Worley might be undervalued or overvalued with our detailed analysis, featuring fair value estimates, potential risks, dividends, insider trades, and its financial condition.Access Free Analysis