Key Highlights

  • Worley reported FY26 aggregated Revenue of AUD 12.02 billion, broadly unchanged YoY, while underlying EBITA declined 10.8% to AUD 734 million.
  • Underlying net profit after tax and Amortisation decreased 16.8% to AUD 395 million, reflecting project delays, foreign-exchange movements and operating challenges.
  • Annual bookings increased 23% to AUD 15.5 billion, while the project Backlog reached AUD 13.8 billion, providing visibility over future engineering activity.
  • Management expects mid-to-high single-digit growth in both aggregated revenue and underlying EBITA in FY27, with improvement anticipated primarily during H2 FY27.

Worley Limited (ASX:WOR) is an Australian-headquartered engineering and professional services company providing consulting, engineering, procurement, construction management and project delivery services across the energy, chemicals and resources industries. Its operations span international markets, supporting energy infrastructure, Mining developments, chemical processing facilities and industrial projects. During FY26, delayed project activity in the Middle East, weaker chemicals Demand and foreign-exchange movements affected profitability. However, increased contract bookings, cost reductions and an expanding project pipeline provide opportunities for a return to Earnings growth during FY27.

FY26 Financial Performance and Margin Pressure

For the financial year ended 30 June 2026, Worley reported aggregated revenue of AUD 12.02 billion, broadly unchanged compared with FY25.

On a constant-currency basis, aggregated revenue increased 2.3%, reflecting growth across selected energy and resources projects.

Underlying earnings before interest, tax and amortisation (EBITA) declined 10.8% to AUD 734 million from AUD 823 million in FY25.

The underlying EBITA margin decreased to 6.1% from 6.8%, reflecting changes in project mix and operating costs.

Underlying net profit after tax and amortisation (NPATA) decreased 16.8% to AUD 395 million.

Statutory net profit attributable to shareholders fell 42% to AUD 238 million, affected by lower operating earnings and restructuring expenditure.

The company's statutory NPATA reached AUD 306 million, compared with AUD 475 million in FY25.

The result included AUD 120 million in transformation and restructuring costs, which were excluded from underlying earnings.

Despite lower profitability, Worley maintained its annual Dividend at 50 Australian cents per share, comprising two unfranked payments of 25 cents.

Engineering Activity Across Energy, Chemicals and Resources

Worley's FY26 operating performance varied across its principal markets.

Energy remained the largest Business segment, generating aggregated revenue of AUD 6.37 billion, increasing 8.1% YoY.

Resources revenue increased 5.8% to AUD 3.28 billion, supported by mining, minerals processing and related infrastructure activities.

However, Chemicals revenue declined 22.4% to AUD 2.37 billion, reflecting reduced client expenditure and project timing changes.

The Americas contributed approximately 52% of group revenue, benefiting from ongoing energy infrastructure projects.

European and Middle Eastern operations experienced softer conditions, including delays to project awards and disruptions associated with regional geopolitical developments.

The Middle East disruption reduced FY26 underlying EBITA by approximately AUD 58 million.

These developments highlighted the importance of regional Diversification and project execution as Worley manages changing customer Investment cycles.

Record Bookings and Engineering Contract Pipeline

Worley reported annual contract bookings of AUD 15.5 billion during FY26, representing growth of approximately 23%.

The company's project backlog increased 9% to AUD 13.8 billion from AUD 12.7 billion at 30 June 2025.

Approximately 44% of bookings came from sole-sourced contracts, reflecting continued demand for Worley's engineering and project delivery capabilities.

The factored sales pipeline also expanded 24%, supported by opportunities across energy infrastructure, resources and industrial developments.

In September 2026, Worley secured contracts to provide engineering, procurement and construction management services for proposed copper expansion projects in South Australia.

The scope includes work associated with Olympic Dam and Carrapateena, covering underground mining, processing and infrastructure development.

These projects remain subject to customer investment decisions, although early engineering and project planning activities have commenced.

The growing backlog provides visibility over potential future revenue, but the timing of earnings recognition remains dependent on contract execution and project progress.

Cost Reductions and FY27 Earnings Guidance

Worley continued implementing cost reduction and organisational restructuring measures during FY26.

The company delivered AUD 132 million in cost savings, exceeding its initial programme target.

These initiatives included workforce restructuring, operating process improvements and changes to regional business operations.

For FY27, management expects mid-to-high single-digit growth in aggregated revenue and underlying EBITA.

The earnings improvement is expected to be weighted towards H2 FY27 as delayed Middle Eastern projects progress and restructuring benefits become more evident.

Worley is also developing AI-enabled project delivery capabilities to improve engineering productivity and support project execution.

Longer-term priorities include expanding activities across integrated gas, copper and other energy transition materials, power infrastructure and data centres.

The company maintains an ambition to achieve double-digit earnings growth by FY30, although this remains dependent on project opportunities and market conditions.

Balance Sheet and Business Risks

At 30 June 2026, Worley reported net Debt of approximately AUD 1.75 billion and gearing of 26.4%, compared with 20.9% in FY25.

Leverage stood at approximately 1.8 times, reflecting higher borrowings and Capital management activities.

The company completed an AUD 500 million on-market share buyback during FY26 and commenced a further AUD 300 million programme.

Although these initiatives returned capital to shareholders, higher gearing increases sensitivity to financing conditions.

Operational risks include Middle East project delays, weaker chemicals demand, foreign-exchange movements and changes in customer capital expenditure.

Large engineering contracts also introduce execution risks associated with scheduling, resource allocation and project delivery costs.

Worley's FY27 performance will depend on converting its backlog into revenue while maintaining operating margins and disciplined expenditure.

Key Insights

Worley Limited (ASX:WOR) experienced lower profitability in FY26 despite broadly stable aggregated revenue, reflecting regional disruptions, weaker chemicals activity and restructuring costs. However, increased bookings, an expanding engineering backlog and AUD 132 million in cost savings provide support for management's anticipated FY27 recovery. The company expects earnings improvement to be concentrated in H2 FY27. Converting project opportunities into profitable revenue while managing geopolitical, operational and financing risks will remain central to its growth objectives.