This report is an updated version of the report published on 28 August 2025 at 3:58 PM AEST.

Worley Limited (ASX: WOR)

Worley Limited is an Australia-based solutions provider for a diverse range of end markets in energy, chemicals, and resources. It provides data-driven and technology-driven solutions at every stage of the project lifecycle.

Recommendation Rationale - SELL at AUD 14.540

• Surpassed Resistance: WOR has surpassed the ‘Resistance 1’ level recommended on 9 May 2025. Also, its 14-day RSI is showing a reading of ~72.31, indicating overbought zone; hence, the stock may face some consolidation before scaling further upside.
• APAC Revenue Decline: In FY25, the Asia-Pacific region experienced reduced revenue due to project completions, highlighting a lack of new wins in that region.
• Chemicals Sector Weakness: The chemicals sector continues to face softer market conditions, weighing on overall revenue diversity. With fewer growth drivers in this segment, the company’s reliance on other-performing sectors increases its exposure to cyclical shifts in energy and resources.
• Project Cancellation: The AUD 1.6bn NorthVolt battery materials project was cancelled, reducing backlog growth. This raises questions around project pipeline security and execution risks, especially in the fast-growing but volatile energy transition space.

WOR Daily Chart

WOR Daily Technical Chart; Source: REFINITIV

Valuation Methodology: Price/Earnings (FY Jun'26E) (Illustrative)

WOR is expected to trade at a slight premium to its peers considering group revenue (up 4% YoY) and underlying NPATA (up 14% YoY) growth in FY25, 32% YoY increase in bookings as of 20 June 2025, expectations of moderate growth in FY26, etc. For conducting valuation, the following peers have been considered: Cleanaway Waste Management Ltd (ASX: CWY), Qantas Airways Ltd (ASX: QAN), and Lindsay Australia Ltd (ASX: LAU) and others.

Given its current trading levels, recent rally in the share price, and risks associated, it is prudent to sell the stock at the current levels. Hence, a ‘Sell’ recommendation is given on the stock at the current market price of AUD 14.540, as of 28 August 2025 at 3:56 PM AEST.

Markets are trading in a highly volatile zone currently due to certain macro-economic issues and geopolitical issues prevailing geopolitical tensions. Therefore, it is prudent to follow a cautious approach while investing.

Note 1: Past performance is neither an indicator nor a guarantee of future performance.

Note 2: The reference date for all price data, currency, technical indicators, support, and resistance levels is 28 August 2025. The reference data in this report has been partly sourced from REFINITIV.

Note 3: Investment decisions should be made depending on an individual's appetite for upside potential, risks, holding duration, and any previous holdings. An 'Exit' from the stock can be considered if the Target Price mentioned as per the Valuation and or the technical levels provided has been achieved and is subject to the factors discussed above.

Note 4: Kalkine reports are prepared based on the stock prices captured either from REFINITIV or Trading View. Typically, REFINITIV or Trading View may reflect stock prices with a delay which could be a lag of 25-30 minutes. There can be no assurance that future results or events will be consistent with the information provided in the report. The information is subject to change without any prior notice.

Technical Indicators Defined: -

Support: A level at which the stock prices tend to find support if they are falling, and downtrend may take a pause backed by demand or buying interest.

Resistance: A level at which the stock prices tend to find resistance when they are rising, and uptrend may take a pause due to profit booking or selling interest.

Stop-loss: In general, it is a level to protect further losses in case of any unfavourable movement in the stock prices.