Highlights

• Worley booked $15.5 billion of work in FY26, up 23%, with sole-sourced awards making up 44% of bookings.

• Underlying EBITA fell 10.8% to $734 million as Middle East disruption cost about $58 million of earnings.

• Cost-out actions delivered $132 million of savings, ahead of the initial target, while leverage ended the year at 1.8 times.

• Management guides to mid to high single-digit growth in FY27 aggregated revenue and underlying EBITA.

Worley Limited (ASX:WOR) finished FY26 with weaker earnings and a stronger order book, a pairing that frames its pitch for the year ahead. The engineering services provider reported underlying EBITA of $734 million for the twelve months to 30 June 2026, down 10.8%, while bookings rose 23% to $15.5 billion. Shares were trading at A$9.50 on 23 October 2026, up 0.32%.

Earnings Absorb a Middle East Hit

Aggregated revenue was $12,023 million, flat on the prior year and up 2.3% in constant currency. Underlying EBITA margin slipped to 6.1% from 6.8%. Underlying NPATA fell 16.8% to $395 million.

Statutory results were weaker. NPATA dropped 35.6% to $306 million after $120 million of pre-tax transformation and restructuring costs, mainly in Western Europe, which the company excluded from underlying figures. Worley said the Middle East conflict reduced earnings by about $58 million.

Cost-out work provided some offset, delivering $132 million of savings against an initial target of $100 million. About $70 million is planned for reinvestment over two years in AI, digital capability and growth markets.

Backlog Shifts Toward Gas, Power and Data Centres

Backlog stood at $13.8 billion, up 9% on the prior year, or up 18% excluding currency effects. It fell from $16.7 billion at the half year as major projects advanced or finished and the paused ExxonMobil Baytown Blue Hydrogen project was removed. More than 62% of backlog is expected to be delivered within twelve months.

Energy revenue rose 8% to $6,373 million and Resources revenue rose 6% to $3,282 million. Chemicals revenue fell 22% to $2,368 million, reflecting project cancellations in Western Europe. By region, Americas revenue rose 17% to $6,228 million, while EMEA fell 11% and Asia Pacific fell 22%.

Notable wins included the Venture Global CP2 LNG project, American Electric Power's Northeastern units 5 and 6 project, and Chevron's Aphrodite front-end engineering and procurement work. The factored sales pipeline grew 24%, and about 50% of opportunities are expected to be awarded within twelve months.

Capital Returns and Balance Sheet

Normalised cash conversion was 93.6%, within the 85 to 95% target range. Statutory net debt was $1,746 million, leverage was 1.8 times, and total liquidity was $2.1 billion.

The final dividend is 25 cents per share, unfranked, matching the prior year and bringing the full-year dividend to 50 cents. The record date was 2 September 2026, with payment scheduled for 30 September 2026. A $500 million on-market buyback finished in May 2026, and a further $300 million program has begun.

FY27 Guidance and the Longer Ambition

Worley expects mid to high single-digit growth in both aggregated revenue and underlying EBITA in FY27, with EBITA weighted more heavily to the second half than usual and revenue broadly even across the two halves. The company assumes Middle East disruption persists and expects work volumes there to rise in the second half. Guidance is subject to no material deterioration in market conditions, including currency effects and project timing.

Beyond FY27, Worley targets double-digit underlying EBITA growth by FY30, built on AI-enabled project delivery and growth in gas, energy transition materials, power and data centres. Expected first gas at Venture Global CP2 falls in the second half of calendar 2027, and the Connah's Quay power station in the United Kingdom, where Worley is preferred contractor, remains subject to regulatory approvals and a final investment decision.