Key Highlights

• Worley reported its results for the year to 30 June 2026 on 26 August 2026.

• Aggregated Revenue was $12,023 million, flat on the prior year and up 2.3% in constant currency.

• Underlying EBITA fell to $734 million from $823 million, and the underlying EBITA Margin eased to 6.1% from 6.8%.

• Excluding procurement revenue, which carries little margin, the company put the margin at 9.0%.

What does Worley (ASX:WOR)'s FY26 result say about a Business with large order books but thinner profits? In short, it shows an engineering group whose work is growing in the right places, yet whose Earnings were squeezed by conflict in the Middle East, restructuring and a weaker chemicals market. Management is guiding to a more encouraging FY27, but with more of the improvement pushed into the second half.

The result in context

Worley reported its results for the year to 30 June 2026 on 26 August 2026. Aggregated revenue was $12,023 million, flat on the prior year and up 2.3% in constant currency. Underlying EBITA fell to $734 million from $823 million, and the underlying EBITA margin eased to 6.1% from 6.8%. Excluding procurement revenue, which carries little margin, the company put the margin at 9.0%.

The company attributed $58 million of the EBITA shortfall to the Middle East conflict. Underlying NPATA was $395 million, down 16.8%, while statutory NPATA was lower again at $306 million, down 35.6%, after $120 million of pre-tax transformation and restructuring costs that are excluded from the underlying measure. The release does not state the currency, though as an ASX-listed company reporting in dollars it is presumably Australian.

The distinction matters. Underlying figures show how the operating business performed, but the restructuring bill is a real cash and earnings cost, and investors typically weigh both.

What Worley does and how it earns

Worley provides engineering, procurement and construction management services, along with consulting and advisory work, to customers in energy, chemicals and resources. In FY26, energy made up 53% of revenue and grew 8%. Resources contributed 27%, up 6%, while chemicals, at 20% of revenue, fell 22%.

Geographically, the Americas accounted for 52% of revenue and was the most encouraging-growing region. EMEA contributed 37%, and Asia Pacific revenue declined. The group employs about 40,400 people across 43 countries.

Much of the revenue comes from project work, which makes it sensitive to customers' Capital spending decisions and to how quickly approved projects move into execution. Procurement pass-through revenue lifts the headline figure but dilutes margin, which is why the two margin measures differ so much.

Orders, Backlog and the pipeline

Bookings rose 23% to $15.5 billion, with sole-sourced awards making up 44% of the total. The company notes that the prior-year comparison uses a restated figure, since FY25 bookings were originally reported at $17.1 billion, so the growth rate should be read with care.

Backlog stood at $13.8 billion at 30 June 2026, compared with $12.7 billion a year earlier, and 18% higher excluding currency effects. It was, however, down from $16.7 billion at the half-year stage. The factored sales pipeline grew 24%, with roughly half expected to be awarded within twelve months.

Backlog is not profit, and it is not guaranteed revenue either. It converts to revenue over time, and its margin depends on contract mix and execution.

Cost-out, cash and capital management

Worley said it achieved $132 million of cost savings, ahead of its initial target. Normalised cash conversion was 93.6%, within the company's 85% to 95% target range. Leverage was 1.8 times, and Liquidity was $2.1 billion, including $1.0 billion of committed undrawn facilities.

A final Dividend of 25 cents per share, unfranked, was scheduled for payment on 30 September 2026, with a Record Date of 2 September 2026, which shareholders can confirm in the company's filings. The $500 million buyback that began on 17 March 2025 was completed in May 2026, and a further $300 million programme has started. By 30 June 2026, 2.0 million shares had been bought for $24 million.

The release did not provide net debt, gearing or absolute Operating Cash Flow figures, so those cannot be assessed from it.

Sector conditions and competitive position

Worley competes with global engineering and project services groups in energy and infrastructure. The company has said it will invest $70 million over two years in artificial intelligence and digital capability.

The high share of sole-sourced bookings suggests customers value established relationships, though the company does not claim this protects margins. Conditions vary by region. The Americas were comparatively encouraging, while the Middle East was disrupted by conflict, which delayed some projects. Chemicals Demand remained soft.

Outlook for FY27

Management expects mid to high single-digit growth in both aggregated revenue and underlying EBITA in FY27. Revenue should be broadly even across the two halves, whereas EBITA growth is expected to be weighted more heavily to the second half than in the past, as delayed Middle East projects progress. The guidance is subject to no material deterioration in market conditions. Worley's longer-term ambition is double-digit earnings growth by FY30.

That is guidance, not a result. A second-half skew means investors will have limited evidence at the first-half update, which is typically released in February, and must rely on the pace of project starts.

Upcoming events

Worley's Annual General Meeting is scheduled for 19 November 2026 at 10.00am (AEDT) in Sydney, with a live webcast. Resolutions include the re-election of director Joseph Geagea, the non-binding remuneration report vote, Equity grants to chief executive Robert Ashton, and a special resolution to cancel the special voting share. The board recommends voting in favour of all items.

Risks and uncertainties

The main uncertainty is timing. If Middle East projects stay delayed, the second-half weighting of EBITA growth could prove demanding. Cost savings may also be partly offset by wage Inflation and Investment spending.

Other risks include exposure to oil, gas and chemicals capital spending cycles, fixed-price or reimbursable contract execution, currency movements given the global footprint, and the possibility that backlog converts to revenue more slowly than expected. Lower backlog than at the half-year mark shows that order books can fall as well as rise.

Against this, the larger pipeline, encouraging cash conversion and ongoing buyback give management some flexibility.