Worley Earnings: Ongoing Improvement, but Headwinds Temper Near-Term Expectations

No-moat Worley reported a robust 25% increase in underlying fiscal 2024 net profit after tax to AUD 352 million, albeit around 8% below our expectations. Lower-than-anticipated sales revenue from chemicals largely accounts for our profit overcall. We read no long-term implications from one year, and our midcycle estimates are largely unchanged. The underlying EBITDA margin improved to 7.3% from 6.6%, also slightly below our 7.8% expectations. The increased margin resulted from the deliberate strategy focusing on higher-value solutions.