3 reasons to buy this $7 billion ASX 200 stock today

A leading expert forecasts more share price gains ahead for this $7 billion ASX 200 dividend stock.

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S&P/ASX 200 Index (ASX: XJO) stock Worley Ltd (ASX: WOR) closed on Wednesday trading for $14.27 a share. That gives the company a market cap of $7.36 billion.

Having hit some headwinds in April, shares in the engineering and professional services company are down 2.13% since this time last year. Though that doesn't include the 50 cents a share in unfranked dividends Worley paid out over this time.

At yesterday's closing price, Worley trades on an unfranked dividend yield of 3.5%.

And the ASX 200 stock has been on the rebound trail since plumbing to one-year closing lows of $11.42 a share on 9 April, with shares now up 25% from those lows.

Looking ahead, Fairmont Equities' Michael Gable forecasts more share price gains from here (courtesy of The Bull).

Here's why.

Should you buy the resurgent ASX 200 stock today?

"Worley is a provider of global engineering, advisory and project management services to the oil, gas, mining, power and infrastructure sectors," Gable noted.

Citing the first reason the ASX 200 stock is a buy, he pointed to the company's strong FY 2025 results.

"Statutory net profit after tax of $475 million in full year 2025 was up 29% on the prior corresponding period. Aggregated revenue of $12.05 billion was up 4%," he said.

As for the second reason, Worley is guiding further growth in FY 2026.

"The company is targeting higher growth in revenue and underlying earnings before interest and tax in fiscal year 2026," Gable said.

And the third reason you may want to add Worley to your investment portfolio today is the stock's share price resilience after trading ex-dividend.

"After trading ex-dividend on September 2, the share price managed to find further buying support, which is a bullish sign the stock price should move higher from here," Gable concluded.

What is Worley forecasting for FY 2026?

Worley reported its FY 2025 results on 28 August.

Among the potential tailwinds for the ASX 200 stock in the year ahead is the ongoing on-market share buyback of up to $500 million worth of shares. The buyback program kicked off on 17 March, with $168 million worth of shares having been repurchased as at 28 August.

Worley said it will continue to progress the buyback program on an accelerated basis up to that $500 million.

Looking to FY 2026, Worley CEO Chris Ashton said:

For the current financial year, we are targeting higher growth in revenue than FY25, growth in underlying EBITA [earnings before interest tax and amortisation] and expect the underlying EBITA margin, excluding procurement, to be within a range of 9.0 to 9.5%.

Motley Fool contributor Bernd Struben has no position in any of the stocks mentioned. The Motley Fool Australia's parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

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