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Revenue Growth: 5.4% increase over the prior corresponding period, totaling $6.3 billion. Bookings Increase: Up 63% compared to the prior period, totaling $9.8 billion. Underlying EBITDA: Steady at $377 million. Underlying Net After Tax (NAA): $207 million. Statutory Net After Tax (NATA): $152 million, reflecting transformation and restructuring costs. Cash Conversion: Normalized cash conversion at 95.5%. Backlog: Resilient at $6.7 billion, with $6.3 billion added through scope increases and project wins. Dividend: Interim dividend of $0.25 per share, unranked. Share Buyback: Over 24 million shares purchased for $324 million. Leverage: 1.5 times, within target range. EBITDA Margin: Expected to be within the range of 9 to 9.5%, excluding procurement. Transformation Costs: $82 million incurred, with more expected in the second half. Energy Revenue Growth: 8.8% increase, driven by major projects in execution phase. Chemicals Revenue Decline: 9% decrease due to project cancellations and lower activity in certain regions. Resources Revenue Growth: 12.3% increase, now representing 29% of the business.

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Release Date: February 25, 2026

For the complete transcript of the earnings call, please refer to the full earnings call transcript.

Positive Points

Worley Ltd (WYGPF) reported a solid revenue growth of 5.4% over the prior corresponding period, demonstrating resilience in challenging market conditions. The company secured significant project wins, including being named as EPCM partner for the Alaska LNG pipeline and technical advisor for the WA Westport program, showcasing its capability to execute major complex projects. Bookings increased by 63% compared to the prior period, totaling $9.8 billion, indicating strong customer confidence and a robust pipeline of opportunities. Worley Ltd (WYGPF) maintained a strong balance sheet with disciplined working capital management, supporting continued investment in growth. The company achieved a total recordable frequency rate of 0.10, reflecting a strong commitment to safety and positive ESG progress, including maintaining leading external ESG ratings.

Negative Points

The company incurred $82 million in transformation and business restructuring costs, impacting statutory net profit after tax. Aggregated revenue from the chemicals market declined by 9% due to project cancellations in Western Europe and lower professional services activity. The restructuring costs were higher than initially anticipated, particularly in Western Europe, due to severance and related costs. There is a potential headwind from foreign exchange rates, which could impact the second half if the Australian dollar remains at current levels. The outlook for the oil market remains softer overall, with activity concentrated in higher margin offshore projects and selected onshore developments.

Story Continues

Q & A Highlights

Q: How is Worley expanding into new markets, and what is its nuclear capability? A: Worley is the engineer of record for 15% of the US's nuclear commercial power generation capacity and is involved in nuclear projects in Egypt and Canada. The company is expanding into new markets through organic growth, strategic partnerships, and M&A, with a focus on power, nuclear, industrial water, and data center infrastructure. Investments will be made to build incremental capabilities as needed. - Robert Ashton, CEO

Q: What are the current customer sentiments across different segments like energy, resources, and chemicals? A: There is a renewed interest and buoyancy in energy and resources, particularly in major project delivery. The chemical sector in Western Europe remains soft due to overcapacity. Overall, customer sentiment has improved compared to last year, with more stability in decision-making. - Robert Ashton, CEO

Q: Can you provide details on the restructuring activities and their impact on costs? A: The restructuring activities were more extensive and costly than initially anticipated, primarily due to severance costs in Western Europe. The focus is on moving to areas of higher demand and scaling Global Integrated Delivery (GID). Restructuring costs will continue in the second half but are expected to be lower. The aim is to reset the cost base by FY26 to position for growth in FY27. - Justine Travers, CFO

Q: Are there any project cancellations or deferrals, particularly in green energy or renewable transition areas? A: There have been no significant trends in project cancellations, except for previously announced ones like the Shell project in Europe. In the US, extreme green projects have slowed, but Europe remains active. Deferrals are at normal levels, and the environment is more stable now. - Robert Ashton, CEO

Q: How are margins performing across different activities, and what is the outlook for EPC and EPCM projects? A: Margins in professional services and construction have slightly dipped, while procurement margins remain steady. The mix of project phases affects margins more than the type of contract. The company maintains a margin outlook of 9 to 9.5% excluding procurement, focusing on cost management and efficiency to sustain margin resilience. - Justine Travers, CFO

For the complete transcript of the earnings call, please refer to the full earnings call transcript.

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