Key Highlights

  • Aggregated Revenue was $12,023 million, stable on the prior year, while Underlying EBITA fell 10.8% to $734 million, impacted by the Middle East conflict and adverse foreign currency translation.
  • Statutory NPATA was $306 million, down 35.6% on the prior year, reflecting $120 million of pre-tax transformation and Business restructuring costs excluded from the underlying result.
  • Bookings rose 23% to $15.5 billion and Backlog increased 9% to $13.8 billion from $12.7 billion as at 30 June 2025, with cost-out initiatives of $132 million exceeding the company's initial target.
  • Worley completed a $500 million on-market share buyback in May 2026 and commenced a further $300 million buyback, with $24 million spent to 30 June 2026.

Worley Limited (ASX:WOR) reported its full year results for the twelve months ended 30 June 2026. Aggregated revenue was $12,023 million, broadly flat on the prior corresponding period, though up 2.3% on a constant currency basis. Underlying EBITA was $734 million, compared with $823 million in the prior year, down 10.8%. The company said the adverse impact of the Middle East conflict on Earnings was $58 million, as previously communicated in June, and that excluding the impact of foreign currency translation, underlying EBITA was down 6.1% on the prior financial year.

The underlying EBITA Margin fell to 6.1% from 6.8% in the prior year, reflecting a greater proportion of earnings from construction, fabrication and procurement activity. Underlying EBITA margin excluding procurement was 9.0%. Underlying NPATA was $395 million, down 16.8% on the prior year. Statutory NPATA was $306 million, down 35.6%, impacted by transformation and business restructuring costs excluded from the underlying result.

The underlying result excluded $120 million of pre-tax costs associated with transformation and business restructuring, comprising $38 million of restructuring costs in the second half, with the restructuring activities predominantly occurring in Western Europe following two project cancellations.

Bookings and Backlog

Worley recorded bookings of $15.5 billion over the year, up 23% on FY25, with wins across the energy and resources sectors. Sole-sourced wins remained a large proportion of the total at 44%. Bookings included Venture Global's CP2 project, a major LNG export Facility in Louisiana, United States, which achieved Final Investment Decision for Phase 1 in July 2025 and Phase 2 in March 2026.

Major project wins were reported across all regions, including an appointment by American Electric Power to deliver engineering services for the Northeastern U5/6 Simple Cycle Gas Turbine project, a contract from Chevron to provide Front End Engineering Design and procurement services for the Aphrodite Gas Field Development Project offshore Cyprus, and an engineering and design services contract with Orbia Fluor & Energy Materials for a lithium hexafluorophosphate production facility in Louisiana.

Backlog stood at $13.8 billion, up from $12.7 billion as at 30 June 2025, an increase of 18% excluding the impact of foreign currency translation. The backlog was lower than the $16.7 billion reported at the half year, as some major projects progressed or completed, and the ExxonMobil Baytown Blue Hydrogen Project, which remains on pause, was removed from the backlog.

Segment and Regional Performance

Energy contributed 53% of aggregated revenue and increased 8% on the prior year, supported by higher construction, fabrication and procurement activity on major projects, with integrated gas representing more than half of energy revenue. Chemicals project cancellations in Western Europe contributed to a 22% decline in aggregated revenue for that sector, which now accounts for 20% of Worley's aggregated revenue. Resources revenue grew 6%, now representing 27% of aggregated revenue, driven by increased activity in mined fertilisers, copper and battery materials.

The Americas delivered revenue growth and contributed 52% of total aggregated revenue, with growth primarily driven by increased construction, fabrication and procurement activity as major projects moved into execution. Europe, Middle East and Africa contributed 37% of total aggregated revenue, with growth impacted by the Middle East conflict and project cancellations in Europe. Revenue in Asia Pacific declined as projects completed and new projects began ramping up.

Capital Management and Dividend

The Worley Board declared a final Dividend of 25 cents per share, unfranked, payable on 30 September 2026, with a Record Date of 2 September 2026. The normalised cash conversion ratio was 93.6%, within the FY26 target range of 85% to 95%, with Balance Sheet Leverage at 1.8x.

The $500 million on-market share buyback, which commenced on 17 March 2025, was completed in May 2026, and a further $300 million buyback program commenced, with 2.0 million shares purchased for a total consideration of $24 million to 30 June 2026. The company reported $2.1 billion of liquidity, including $1.0 billion of committed undrawn facilities.

FY27 Outlook

Worley expects mid to high single digit growth in both underlying EBITA and aggregated revenue in FY27, with earnings growth more heavily weighted to the second half than historical norms. CEO Mr Ashton said disruption and uncertainty in the Middle East persist, with significant second-order Supply chain impacts, particularly relating to the supply of sulphur for fertiliser projects within North Africa, though the company's outlook anticipates work volumes in the Middle East to lift in the second half of FY27.

The company said activity across the broader business continues to benefit from Demand in key markets, with tailwinds in North America, its largest market, and that a growing portfolio of major projects within the pipeline supports its growth outlook. Worley's factored sales pipeline showed growth of 24%, buoyed by growth in opportunities in the United States and EMEA, with approximately 50% of pipeline opportunities expected to be awarded in the next twelve months.

Conclusion

Worley's FY26 result shows a decline in underlying earnings against the prior year, driven principally by the impact of the Middle East conflict and adverse currency translation, alongside transformation and restructuring costs associated with reshaping the business, predominantly in Western Europe. Against this, bookings and backlog both grew during the year, supported by major project wins across the energy and resources sectors, and the company continued its Capital management program through completion of a $500 million share buyback and commencement of a further $300 million program.