Worley (ASX:WOR) Valuation Revisited Following Upbeat 2026 Earnings Growth Guidance

Worley (ASX:WOR) has caught investor attention after issuing new earnings guidance for the 2026 financial year, projecting higher revenue growth compared to its performance in FY2025. This update could reshape market expectations moving forward.

See our latest analysis for Worley.

The updated 2026 guidance follows a choppy year for Worley’s share price. The price has shifted lower in recent months but showed some resilience after the new outlook was announced. While the 1-year total shareholder return is down just 0.5%, long-term holders have enjoyed a 27% total return over five years, which may suggest the company’s ability to rebound when momentum builds.

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With analysts’ price targets sitting well above current levels and the company trading at a discount to its intrinsic value, investors have to ask: Is Worley undervalued today, or is the market already pricing in the growth story?

Most Popular Narrative: 21.6% Undervalued

Compared to Worley's last close price of A$13.34, the most popular narrative suggests a significantly higher fair value. This indicates the market may be missing upside potential, setting the backdrop for a valuation case built on growth in sustainability and project pipeline strength.

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 know why analysts think Worley’s value could surge? The narrative hints at outsized revenue growth, margin expansion, and long-term earnings upgrades. Curious which specific financial leaps analysts are forecasting? Unlock the full story for further details—these projections could shift your outlook on Worley’s true worth.

Result: Fair Value of $17.01 (UNDERVALUED)

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

However, subdued performance in chemicals and European markets, along with possible margin pressures, could challenge Worley's path to sustained earnings growth.

Find out about the key risks to this Worley narrative.

Build Your Own Worley Narrative

If you see things differently or want to dig into the latest data yourself, building your own perspective is quick and easy. Do it your way.

A great starting point for your Worley research is our analysis highlighting 4 key rewards and 1 important warning sign that could impact your investment decision.

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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.

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