S&P/ASX 200 Index (ASX: XJO) stock Worley Ltd (ASX: WOR) is charging higher today.
Shares in the global professional services company of energy, chemicals and resources experts closed yesterday trading for $14.09. In afternoon trade on Tuesday, shares are changing hands for $14.59 apiece, up 3.6%.
For some context, the ASX 200 is down 0.1% at this same time.
This outperformance comes following the release of Worley's full-year 2024 financial results (FY 2024).
Here are the highlights.
ASX 200 stock leaps on earnings and profit boost
- Aggregated revenue of $11.62 billion, up 18% from FY 2023
- Underlying earnings before interest, taxes, depreciation and amortisation (EBITDA) of $751 million, up 24% year on year
- Underlying net profit after tax and amortisation (NPATA) of $416 million, up 27% from FY 2023
- Final unfranked dividend of 25 cents per share, in line with the prior final dividend
What else happened with Worley in FY 2024?
The Worley share price is marching higher amid a range of strong metrics reported for FY 2024.
The company attributed its 24% earnings boost to an increase in the quality of earnings from greater professional services revenue, an improved mix of projects and rate improvements.
Other core results included a 0.4% year on year improvement in the ASX 200 stock's underlying EBITA margin, which came out at 6.5%. This was achieved despite a negative impact from an increase in lower margin procurement revenue over the 12 months.
Procurement revenue at margin was reported at $2.17 billion, up 40.4% from last year.
Worley said its underlying EBITA margin excluding procurement was 7.9%, compared to 7.3% in FY 2023, due to project mix and rate improvements.
Statutory NPATA of $367 million was impacted by the one-off write-off of $58 million relating to historic services provided in Ecuador and the associated tax impact. Still, stator NPATA was up from $104 million in FY 2023.
Underlying operating cash flow also increased strongly to $682 million, compared to $324 million last year.
And sustainability-related work represented $6.0 billion, or 52%, of aggregated revenue for the ASX 200 stock, up 46% from last year.
What did management say?
Commenting on the results helping boost the ASX 200 stock today, Worley CEO Chris Ashton said:
Our aggregated revenue represents the highest in Worley's history, with increases across all regions and each of the three segments of energy, chemicals and resources contributing to this result.
We've delivered EBITA margin excluding procurement at the top end of our forecast range for FY 2024…
We've delivered three years of consistent growth and the deliberate actions we've taken have laid a solid foundation that underpins our trajectory towards long-term growth. The importance of our diversified business and agility in supporting customers from across our global business was once again evidenced in these results.
What's next for the ASX 200 stock?
Looking at what could impact the ASX 200 stock in the year ahead, Worley expects FY 2025 will see "moderate growth" amid ongoing macroeconomic headwinds that include inflation and geopolitical tensions.
The company is targeting low double-digit EBITA growth. Management forecasts an FY 2025 underlying EBITA margin (excluding the impact of procurement) in the range of 8.0% to 8.5%.
Worley expects the second half of FY2025 to be stronger than the first half as the rebalancing process proceeds during this year.
Worley share price snapshot
With today's boost to the Worley share price factored in, the ASX 200 stock remains down 15% over 12 months.
