Highlights

  • Worley updated the expected FY26 impact of the Middle East conflict on its business.
  • The company now estimates up to AUD 60 million adverse impact on FY26 underlying EBITA, compared with its earlier estimate of AUD 30 million to AUD 40 million.
  • A stronger Australian dollar is expected to reduce reported FY26 underlying EBITA by around AUD 50 million through foreign currency translation.
  • Existing projects continue to progress despite operational disruption, while customers have delayed the commencement and award of new projects.
  • Worley said there have been no project cancellations despite ongoing regional uncertainty.

Worley Limited (ASX: WOR) has provided investors with a further update on how the continuing conflict in the Middle East is affecting its FY26 financial outlook. While the company acknowledged recent diplomatic developments, including the signing of a memorandum of understanding and ongoing discussions aimed at ending the conflict and reopening the Strait of Hormuz, it said uncertainty remains and continues to influence project activity across the region.

Worley shares were trading at AUD 11.19 during the afternoon session on 25 June 2026, down 8.80% for the day. Over the past twelve months, the stock has declined 14.51%, with investors assessing the company's revised earnings outlook alongside the broader operating environment.

About Worley

Worley is an Australian-headquartered engineering and professional services company listed on the Australian Securities Exchange. The company provides consulting, engineering, procurement and construction services across the energy, chemicals and resources sectors. Its operations extend across the full asset lifecycle, from project planning and development through to operations and eventual decommissioning. Worley also supports customers pursuing energy transition initiatives by combining engineering expertise with digital and AI-enabled delivery capabilities across its global business.

Company Revises Estimated FY26 Earnings Impact

The key development in Worley's latest announcement was an increase in the estimated impact that the Middle East conflict is expected to have on FY26 underlying Earnings Before Interest, Tax and Amortisation (EBITA).

Earlier this year, the company estimated that regional disruptions would reduce FY26 underlying EBITA by between AUD 30 million and AUD 40 million. Following continued operational challenges, Worley has now revised that estimate, indicating the adverse impact could reach up to AUD 60 million for FY26.

The updated estimate reflects the longer-than-anticipated duration of the disruption affecting project execution across the region.

Existing Projects Continue but New Work Faces Delays

Although the operating environment remains challenging, Worley confirmed that none of its existing projects have been cancelled.

Instead, the company said the ongoing conflict has continued to disrupt the progress of projects currently underway. At the same time, customers have postponed decisions relating to the commencement of new work and the award of additional projects.

These delays, rather than project cancellations, have contributed to the revised earnings outlook for FY26.

According to the company, the continued uncertainty surrounding the regional situation has made it difficult for customers to progress investment decisions at the pace previously anticipated.

Diplomatic Developments Yet to Remove Uncertainty

Worley acknowledged that recent announcements regarding efforts to resolve the conflict represent an encouraging development.

The company referred to the signing of a memorandum of understanding together with ongoing negotiations aimed at ending the conflict and reopening the Strait of Hormuz.

However, management noted that these developments have not yet removed uncertainty from the region, with operational disruption continuing to affect project delivery and customer decision-making.

As a result, Worley believes the broader business environment remains sufficiently uncertain to warrant the revised FY26 earnings estimate.

Foreign Currency Expected to Affect Reported Results

In addition to operational challenges, Worley highlighted another factor expected to influence its FY26 reported financial performance.

The company said the strengthening of the Australian dollar during the second half of FY26 is expected to reduce the value of foreign currency earnings when translated into Australian dollars.

Based on current exchange rate movements, Worley estimates this translation effect will reduce reported FY26 underlying EBITA by approximately AUD 50 million.

The company noted that, as a global business generating earnings across multiple currencies, reported financial results are naturally exposed to movements in foreign exchange rates. It also pointed out that this exposure has been discussed previously in its periodic financial reporting.

Importantly, the foreign currency translation impact relates to the reporting value of overseas earnings rather than changes to underlying operational performance.

Regional Challenges Continue to Influence Outlook

The latest announcement follows previous updates released by the company during March and April 2026 addressing the effect of developments in the Middle East on its operations.

Since those earlier updates, the conflict has continued for longer than originally anticipated, prompting Worley to reassess the likely financial impact on the current financial year.

While customers continue progressing existing work, the slower timing of new project awards has influenced the company's updated expectations for FY26.

The revised outlook reflects management's current assessment of the business environment based on conditions known at the time of the announcement.

Global Business Remains Exposed to International Markets

As an engineering and professional services provider operating across numerous international markets, Worley's financial performance can be influenced by both project activity and macroeconomic conditions affecting customer investment decisions.

Its global footprint also means that exchange rate movements play a role in determining reported Australian dollar earnings, particularly when a significant proportion of revenue and profit is generated outside Australia.

The company continues to provide consulting, engineering, procurement and construction services to customers across energy, chemicals and resources markets while supporting projects throughout their operational lifecycle.

What Investors May Watch Next

Following the revised FY26 outlook, investors are likely to monitor developments affecting project activity across the Middle East, particularly the timing of new contract awards and customer investment decisions.

Market participants may also watch for further updates regarding regional conditions, the progress of diplomatic negotiations and any changes to foreign exchange movements that could influence reported financial results during the remainder of FY26.

For now, the company has reiterated that while projects continue to experience disruption and new work has been delayed, there have been no project cancellations.