Fuelled by growth – Why Worley is gaining momentum
Worley Limited (ASX: WOR) has spent much of the past decade trying to redefine itself. Once known primarily as a traditional engineering contractor tied to cyclical project work, the company expanded aggressively into energy services through the acquisition of Jacobs’ ECR division in 2019, just before the world turned against fossil fuels. What followed was a difficult period marked by integration challenges, weak energy markets and a sharp de-rating as investors questioned both the strategy and the sustainability of earnings. Today, that same business is being viewed through a very different lens as the importance of energy and infrastructure are being highlighted by headlines and capital allocation.
Backlog growth remains one of the most important metrics for Worley and momentum in contract wins has been strong, with twelve separate awards and appointments in the March 2026 quarter alone contributing to improving visibility over future earnings. The approval of Venture Global’s CP 2 project Phase 2 is particularly significant, reinforcing confidence in the durability of the pipeline and anchoring a meaningful portion of future workload.
At the same time, Worley is improving the quality of its earnings and reducing operational complexity as organic growth and disciplined cost control drive stronger margins and cash conversion. The business is fundamentally in solid shape, with consistent free cash flow generation supporting shareholder returns, including an almost complete $500 million on-market share buyback. This combination of operational momentum and financial discipline is indicative of a business that is not only growing but doing so with improving efficiency and capital management .
Looking ahead, Worley is a global company but retains a strong presence in both the U.S. and Middle East and positions the company well to benefit from both ongoing energy investment and the rebuilding of critical infrastructure following recent military strikes. While publicly listed international peers have already benefited from this increased focus and industry tailwinds, the market is underappreciating the durability of this demand and Worley’s strategic positioning within it, creating an attractive opportunity to gain exposure to a structurally improving earnings profile at a valuation that is considered to be at a significant discount to local and international peers.
The combination of improving earnings quality and growth, priced at a single -digit multiple, presents an asymmetric risk-reward opportunity that aligns with our focus on identifying underappreciated change in earnings quality and growth.
Disclaimer:
The Montgomery Fund, The Montgomery [Private] Fund, Australian Eagle Trust and the Australian Eagle Equities Fund own shares in Worley. This article was prepared 30 April 2026 with the information we have today, and our view may change. It does not constitute formal advice or professional investment advice. If you wish to trade Worley, you should seek financial advice.
Sean Sequeira jointly established Australian Eagle Asset Management in 2004. Sean was appointed Australian Eagle’s Chief Investment Officer in 2016. In addition to stock selection and analysis, Sean is responsible for all aspects of the investment process. Sean is head of Australian Eagle’s portfolio risk committee and process integrity committee. He is also one of the three investment team members that make up the portfolio construction committee.
This post was contributed by a representative of Montgomery Investment Management Pty Limited (AFSL No. 354564). The principal purpose of this post is to provide factual information and not provide financial product advice. Additionally, the information provided is not intended to provide any recommendation or opinion about any financial product. Any commentary and statements of opinion however may contain general advice only that is prepared without taking into account your personal objectives, financial circumstances or needs. Because of this, before acting on any of the information provided, you should always consider its appropriateness in light of your personal objectives, financial circumstances and needs and should consider seeking independent advice from a financial advisor if necessary before making any decisions. This post specifically excludes personal advice.
