Worley stock closed at A$9.90 after a tough few months, with the share price down over 20% across the last quarter. The market has been focused on near term earnings noise and shrinking margins, yet the latest results highlight a different tension. Net profit margin over the past year is 2.2% compared with 3.6% a year earlier, while analysts still forecast earnings growth of about 17.7% a year.

That mix of margin pressure and higher growth forecasts, together with a P/E below sector averages, is the key issue investors now have to weigh beyond today’s price move.

Love the earnings growth outlook for Worley but concerned about the recent margin squeeze and market volatility? Check out our 10 resilient stocks with low risk scores to see how it compares with stocks that pair steadier risk profiles with solid fundamentals.

FY 2026 Earnings Summary

• Revenue FY 2026 vs. FY 2025 PCP: A$12.0b aggregated revenue vs. approximately A$11.7b PCP constant currency (cc) (about 2.3% growth cc)
• Net Income FY 2026 vs. FY 2025 PCP: A$238.0m trailing 12 month net income from continuing operations vs. A$409.0m PCP (down about 41.8%)
• Basic EPS FY 2026 vs. FY 2025 PCP: A$0.471 trailing 12 month Basic EPS vs. A$0.776 PCP (down about 39.3%)
• Net Profit Margin FY 2026 vs. FY 2025 PCP: 2.2% trailing 12 month net profit margin vs. 3.6% PCP (down 1.4 percentage points)

Prefer clean charts over combing through raw earnings tables and margin figures for Worley? See the full visual breakdown of the company, including how its valuation compares with recent profit trends, in our company report for Worley.

Worley’s Growth Story Meets Mixed Margin Reality

Bulls argue Worley can grow revenue in LNG, power and energy transition work while lifting margins through full project delivery and greater use of Global Integrated Delivery centers and AI. The FY26 numbers partly support that view. Aggregated revenue reached A$12.0b with sector revenue in Energy and Resources both higher, and bookings of A$15.5b plus a 24% larger sales pipeline and A$13.8b backlog indicate that the workload is building in those future facing areas.

The margin side of the story is less clear. Underlying EBITA margin excluding procurement sat around 9%, and including procurement about 6.3% on a constant currency basis. That is supported by A$132m of cost savings and strong 93.6% cash conversion, yet net profit margin slipped to 2.2% from 3.6%. The growth engine appears active, but the promised earnings uplift from the new delivery model is only partially visible so far.

Compare Worley’s strong bookings, growing backlog and higher energy transition workload with what institutional analysts are signaling. Reveal whether the street is leaning into that growth story or fading it with the consensus price target analysis for Worley.

Worley Bears See Margin Risk Playing Out

The bearish view on Worley focuses on fragile margins and the risk that large, complex projects and transformation costs cap earnings progress. The FY26 print gives that view some traction. Aggregated revenue reached A$12.0b yet trailing net profit margin fell from 3.6% to 2.2%. Underlying EBITA margin, at about 9% excluding procurement and 6.3% including procurement, appears solid on the surface but sits alongside a trailing 12-month net income decline from A$409.0m to A$238.0m and Basic EPS falling from A$0.776 to A$0.471.

Bears argue that backlog concentration and operational hiccups will leak into profitability. The A$58m EBITA drag from Middle East disruption and A$120m of transformation costs indicate that execution and restructuring are already having an impact. The A$132m cost savings and strong 93.6% cash conversion are positives, yet on this set of results they have not prevented earnings compression.

After margin compression and project disruption, such as Worley’s A$58m EBITA drag, you may want to review whether this is an isolated setback or a sign of deeper structural pressure. Scan the independent risk analysis for Worley which shows 1 important warning sign

Stay Ahead Of Your Next Move

If Worley’s mix of earnings pressure and growth forecasts has your attention, register for free with Simply Wall St and add it to your Watchlist to track price against fair value and watch for a more attractive entry point. Once you own the stock, use the Portfolio Command Center to cut through market noise and get focused alerts on earnings, margin trends and key announcements. For a broader view of how other investors are thinking about Worley and similar stocks, join the Community and compare perspectives and ideas. This approach can help you spot potential catalysts and risks earlier and stay one step ahead of the market.

Seeking Alternatives Beyond Worley Stock

Fresh ideas can move quickly from quiet to crowded. Spot stocks building breakout momentum or quietly dropping into value territory while it matters and before the crowd piles in. Act now.

• Catch potential income workhorses early by reviewing curated high yield companies in the 6 dividend fortresses before their prices fully reflect those payouts.
• Target resilient operators with solid balance sheets by scanning the hand picked list of solid balance sheet and fundamentals stocks (20 results) that aim to hold up when volatility bites.
• Hunt for future growth stories still under the radar for now through the carefully filtered 10 high quality undiscovered gems that many investors have not yet fully caught.

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.

Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team@simplywallst.com

Disclaimer:This article represents the opinion of the author only. It does not represent the opinion of Webull, nor should it be viewed as an indication that Webull either agrees with or confirms the truthfulness or accuracy of the information. It should not be considered as investment advice from Webull or anyone else, nor should it be used as the basis of any investment decision.