Worley Ltd (ASX: WOR) shares are climbing on Thursday after the engineering services group announced a fresh capital management update.
At the time of writing, the Worley share price is up 2.09% to $12.22.
That gives shareholders some relief after a soft run in recent times. Worley shares are still down around 3% in 2026 and 8% over the past year.
Let's take a closer look at what was announced.
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Worley returns more cash
According to the release, Worley announced a new on-market share buyback of up to $300 million.
The company said this follows the successful completion of an earlier $500 million buyback program in April.
The new buyback could cover about 5.1% of shares on issue, depending on market conditions and the share price.
Worley said the decision reflects the board's confidence in the company's financial position and growth outlook.
It also adds to the company's recent capital returns, with Worley continuing to pay dividends alongside the buyback.
The stock currently pays a dividend yield of 4.09% to shareholders.
Growth targets remain in focus
Worley used its Investor Day presentation to outline its medium-term growth outlook. The company is targeting double-digit underlying EBITA growth through to FY30.
Management said the business is being supported by major investment trends across energy, chemicals, resources, and critical infrastructure.
That includes areas such as LNG, energy transition materials, power, data centres, nuclear, industrial water, and ports.
Worley also said it is investing $70 million over the next two years in digital and AI capabilities.
The aim is to lift productivity and help the company deliver larger, more complex customer projects across the asset lifecycle.
Cost savings are also ahead of plan. Worley said $95 million of initiatives have already been actioned, with another $25 million underway.
That takes the savings program above its initial $100 million target.
Guidance pressure has not gone away
Worley has not had an easy year.
The company said its expected conflict-related tension in the Middle East had delayed project timelines and hurt revenue and new work.
In April, Worley said it still expected FY26 underlying EBITA to be within its previous guidance range of $800 million to $850 million.
But it now expects to finish at the lower end of that range.
Worley's backlog was $16.9 billion at the end of March, up 2% from December.
Foolish Takeaway
The $300 million buyback gives investors something immediate to focus on after a weak year for the share price.
But Worley still needs to prove it can turn its pipeline and cost savings into stronger earnings.
Investors will get a clearer view when the company reports its full-year results on 26 August.
