Highlights

  • Worley shares fell AUD 0.810, or 6.852%, to AUD 11.010 on volume of 1,440,375 shares on 20 April 2026, after the company disclosed that the adverse impact of the Middle East conflict on FY26 underlying EBITA is estimated to be in the range of AUD 30–40 million.
  • As a result, Worley confirmed it is now unlikely to achieve growth in underlying EBITA in FY26 on a constant currency basis — a departure from the growth expected in the company's previously disclosed FY26 Group outlook.
  • Worley has experienced no project cancellations to date, but project timelines have been delayed, customers are deferring the commencement and award of new projects, and the impact extends to Worley's services provided from offices outside the Middle East.

 

Worley (ASX:WOR) shares fell AUD 0.810, or 6.852%, to AUD 11.010 on 20 April 2026, on volume of 1,440,375 shares — significantly above typical daily turnover. The bid-offer spread at the time of capture was AUD 11.000 to AUD 11.010, reflecting orderly but distinctly negative market conditions. At AUD 5.83 billion in market capitalisation, Worley is a significant mid-to-large cap industrial services company, and a 6.85% decline in a single session is a substantial re-pricing of the earnings outlook. The move comes as a continuation of the company's developing disclosure on Middle East conflict impacts, following an earlier update on 25 March 2026 responding to initial developments in the region.

FY26 EBITA Impact: AUD 30–40 Million

Worley quantified the adverse impact of the Middle East conflict on FY26 underlying EBITA at an estimated AUD 30–40 million. This estimate encompasses delayed project timelines — including for safety reasons and supply chain and transportation challenges — as well as the knock-on effect of customers deferring the commencement and award of new projects. Importantly, the impact extends beyond the Middle East itself, affecting Worley's services provided to Middle East projects from its offices in other regions.

As a result of this estimated impact, Worley confirmed it is now unlikely to achieve growth in underlying EBITA in FY26 on a constant currency basis. This is a material change to the company's previously stated FY26 Group outlook, which had anticipated EBITA growth. Two important qualifications accompany this revision: Worley continues to expect the underlying EBITA margin (excluding procurement) to be within the previously guided range of 9.0–9.5%, and continues to target higher growth in aggregated revenue than FY25. The earnings growth miss is therefore a revenue-mix and timing impact rather than a fundamental margin deterioration.

Operational Update: No Cancellations, But Widespread Delays

Worley's operational update confirmed that there have been no project cancellations to date. The company has been working closely with customers to keep projects progressing, with remote and flexible working arrangements in place and continued delivery through its Global Integrated Delivery centres in India and other offices outside the Middle East.

However, where work for customers has been disrupted — including for safety reasons or due to supply chain and transportation challenges — project timelines have been delayed. Customers are also delaying the commencement and award of new projects. The extended duration of the conflict and continued uncertainty is resulting in further delays to existing Middle East-related projects as well as new project commencement decisions. Worley has also been asked to support customers with restoration of assets and strategic projects linked to the conflict to ensure business continuity.

Medium-Term Growth Opportunities

Despite the near-term FY26 earnings headwind, Worley identified two medium-to-longer term growth opportunities that it anticipates will emerge from the current conflict environment: investment in regional pipeline and export infrastructure, and an increased global focus on national security for alternative sources of energy, chemicals and resources. Worley is in ongoing discussions with customers in the Middle East regarding immediate repair and rebuild efforts, as well as with customers globally on how Worley can support their strategic responses to the impact of the conflict.

The company confirmed it will hold its Investor Day on 14 May 2026, at which management is expected to provide a more detailed outlook update and medium-term guidance context.

Conclusion

Worley's 20 April 2026 update confirmed an estimated AUD 30–40 million reduction in FY26 underlying EBITA from Middle East conflict impacts, making EBITA growth for the year now unlikely on a constant currency basis. Shares fell 6.852% to AUD 11.010 on volume of 1.44 million, with market capitalisation at AUD 5.83 billion. With no project cancellations recorded but widespread delays and a moratorium on new project awards, the magnitude of the disruption is real but, in Worley's assessment, largely timing-related rather than permanent. The FY26 EBITA margin guidance of 9.0–9.5% (excluding procurement) is maintained, and higher aggregated revenue growth than FY25 remains the target.