Highlights

  • Worley reported FY26 aggregated Revenue of approximately AUD 12.0 billion, while underlying EBITA was AUD 734 million.
  • The company ended FY26 with AUD 13.8 billion of revenue in Backlog and bookings of approximately AUD 15.5 billion.
  • Cost-out actions delivered AUD 132 million of savings during FY26, helping offset inflationary and operating pressures.
  • Management expects mid-to-high single-digit growth in both aggregated revenue and underlying EBITA during FY27.

Worley Limited (ASX:WOR) is a global engineering and professional-services group operating across energy, chemicals and resources markets. The company works with customers across the full lifecycle of industrial assets, providing consulting, engineering, procurement, construction, operations and decommissioning services.

With more than 40,000 employees across more than 40 countries, Worley has developed a broad international platform that gives it exposure to large-scale capital projects across traditional energy, power, resources, chemicals and sustainability-related infrastructure.

The group’s latest major operating update was its FY26 result released on 26 August 2026. The result reflected contrasting conditions across its end markets, with energy and resources activity supporting growth while chemicals remained softer. At the same time, Middle East disruption and foreign-exchange movements weighed on profitability during the year.

FY26 Performance

Worley reported aggregated revenue of approximately AUD 12.0 billion for FY26, broadly steady compared with the prior year.

Underlying EBITA declined 10.8% to AUD 734 million. The result was affected by approximately AUD 58 million of disruption associated with conflict in the Middle East and around AUD 50 million of adverse foreign-exchange translation impacts.

These headwinds partly obscured progress elsewhere in the business, including stronger project activity in energy and resources and structural cost reductions.

Normalised cash conversion reached 93.6%, placing the result within Worley’s FY26 target range of 85% to 95%.

Leverage stood at 1.8 times at year-end, remaining below the company’s stated ceiling of 2.0 times and supporting continued Investment and Shareholder capital returns.

The Board determined an unfranked final Dividend of 25 cents per share.

Worley also completed the AUD 500 million on-market share buy-back launched in March 2025 and commenced a further AUD 300 million buy-back program during FY26.

Backlog Position

Worley ended June 2026 with revenue in backlog of AUD 13.8 billion.

The backlog was higher than the AUD 12.7 billion recorded a year earlier and increased by approximately 18% when foreign-exchange translation effects were excluded.

However, it declined from AUD 16.7 billion at the half-year point as large projects progressed or completed and the paused ExxonMobil Baytown Blue Hydrogen Project was removed.

Bookings reached approximately AUD 15.5 billion during FY26, providing an important indicator of future project activity.

For an engineering and project-services company, backlog quality matters alongside headline size. Large projects need to be delivered with appropriate commercial terms, manageable risk and disciplined execution.

Worley has been deliberately increasing its focus on larger, more complex projects where it can provide services across a wider portion of the project lifecycle.

This end-to-end delivery approach has the potential to deepen customer relationships and increase revenue per project, but it also places greater emphasis on risk management and project controls.

Sector Exposure

Energy remained Worley’s largest end market during FY26, accounting for approximately 53% of aggregated revenue.

Revenue from the Energy Business increased around 8%, reflecting continued customer investment across conventional and lower-carbon energy infrastructure.

Resources revenue increased approximately 6% and represented 27% of aggregated revenue.

The Resources division benefits from long-term investment requirements across mining, processing and infrastructure as producers seek to maintain existing operations while developing new supply.

Chemicals was the weaker segment, with revenue declining approximately 22% and accounting for about 20% of aggregated revenue.

The variation between end markets highlights the benefit of Worley’s diversified industrial exposure. A slowdown in one customer sector can potentially be offset by activity elsewhere, although major geopolitical events can still affect several regions simultaneously.

Worley also reported that 69% of aggregated revenue during FY26 was sustainability-related, reflecting customer spending on projects connected to energy transition, efficiency and lower-impact infrastructure.

Cost Discipline

Cost management was a significant feature of FY26.

Worley achieved AUD 132 million of savings from cost-out actions undertaken across the business.

The program included repositioning resources toward areas of higher demand, restructuring selected operations and reducing structural overhead.

These initiatives were designed not only to offset Inflation but also to improve the quality and resilience of future earnings.

Management had previously targeted more than AUD 100 million of annualised savings from FY27, and the FY26 result showed that the company had progressed beyond that initial objective.

Cost discipline is particularly important in engineering services because wage inflation and utilisation levels can materially affect margins.

Worley’s challenge is to reduce overhead while preserving the engineering, technical and project-management expertise required to compete for large global projects.

Project Environment

The company continues to operate against a mixed geopolitical backdrop.

During June 2026, Worley reported that Middle East conflict was delaying the progress of some existing projects and postponing the commencement and award of new work.

Importantly, management said there had been no project cancellations at that stage.

The disruption nevertheless affected FY26 underlying EBITA and illustrates one of the risks associated with a globally distributed project portfolio.

At the same time, long-term Demand drivers remain supportive across many of Worley’s markets.

Energy security, electricity infrastructure, Mining investment, industrial decarbonisation and demand for lower-emissions technologies continue to require significant engineering and project-development expenditure.

Worley’s global footprint allows it to reposition engineering resources as demand changes across sectors and geographies.

FY27 Focus

Worley expects mid-to-high single-digit growth in both aggregated revenue and underlying EBITA during FY27, subject to no material deterioration in market conditions.

Revenue is expected to be relatively evenly distributed across the two halves, while EBITA growth is expected to be more heavily weighted toward the second half than in a typical year.

Investors are likely to monitor several areas.

Backlog conversion will be important, particularly whether major project awards progress according to schedule.

Margins will also remain a focus as the company seeks to capture benefits from cost reductions while managing project mix.

Middle East conditions remain another variable, given the disruption experienced during FY26.

Finally, Worley’s capital allocation strategy will remain relevant as the group balances investment, dividends and its additional AUD 300 million share buy-back.

Final Takeaway

Worley’s FY26 result reflected both the opportunity and complexity of operating a global engineering and project-services platform.

Aggregated revenue remained around AUD 12 billion, while underlying EBITA declined to AUD 734 million as Middle East disruption and currency movements weighed on the result.

At the same time, backlog reached AUD 13.8 billion, bookings remained substantial and AUD 132 million of cost savings strengthened the operating base.

For Worley (ASX:WOR), FY27 will centre on converting its backlog into profitable revenue while maintaining execution discipline across large projects.

Energy and resources demand, cost-out benefits, cash conversion and the company’s ability to navigate geopolitical uncertainty will remain central to its industrial growth outlook.