Highlights

  • Worley (ASX:WOR) reported FY26 Earnings pressure, with Underlying Profit affected by Middle East disruption and foreign exchange impacts.
  • Aggregated Revenue remained broadly stable at $12.0 billion, while Backlog increased to $13.8 billion.
  • The company maintained Shareholder returns through dividends and ongoing Capital management initiatives.
  • Management expects mid-to-high single-digit revenue and underlying EBITA growth during FY27.

Worley (ASX:WOR) is positioning for a recovery phase after a challenging FY26, with earnings impacted by geopolitical disruption and currency movements while forward project activity continued improving.

At the time of writing on 27 August 2026, Worley shares were trading at AUD 10.20, up 3.03% on the day. The movement followed the company’s FY26 result, with investors assessing the balance between weaker reported earnings and improving future work opportunities.

The global engineering and project services provider remains focused on strengthening its project pipeline, improving operational performance and supporting growth across energy, resources and infrastructure markets.

FY26 Performance

Worley reported a decline in FY26 earnings, with statutory net profit after tax and Amortisation (NPATA) falling 35.6% to $306 million.

Underlying NPATA declined 16.8% to $395 million, while underlying EBITA decreased 10.8% to $734 million.

The result reflected several external challenges, including project disruption in the Middle East and foreign exchange impacts affecting reported earnings.

Aggregated revenue remained broadly stable at $12.0 billion, compared with the previous year.

On a constant currency basis, revenue increased 2.3% to $12.3 billion, indicating that currency movements were a significant contributor to the reported weakness.

Despite lower earnings, Worley maintained underlying EBITA margins at 9.0%, remaining within its targeted range.

Operational Challenges

Worley identified two major factors affecting FY26 performance.

Project disruption across the Middle East impacted delivery schedules and reduced earnings contribution, with the company estimating approximately $58 million of impact from regional instability.

Foreign exchange movements also affected reported results, reducing earnings compared with previous expectations.

These challenges affected profitability despite continued Demand across several end markets.

The company’s ability to manage project execution, regional exposure and currency impacts remains important as it moves into FY27.

Backlog Growth

A key positive from FY26 was continued growth in Worley’s forward workload.

Reported backlog increased 9% to $13.8 billion, with stronger growth on a constant currency basis.

The company also reported growth in its factored sales pipeline, supported by opportunities across energy transition, power infrastructure, low-carbon fuels and data-centre related projects.

Worley believes these markets provide Long-term Growth opportunities as global Investment continues across energy security, infrastructure development and decarbonisation initiatives.

However, converting backlog into revenue will depend on project timing, execution and market conditions.

Energy Transition Strategy

Worley continues expanding its exposure to future-focused infrastructure markets while maintaining a diversified portfolio.

The company is involved across traditional energy, chemicals, power and emerging low-carbon industries.

Energy transition remains a key strategic theme, with demand increasing for engineering services related to renewable energy, low-carbon fuels and supporting infrastructure.

The company is also benefiting from growth opportunities in areas such as power networks and data-centre infrastructure.

This diversified approach aims to balance near-term earnings stability with longer-term growth opportunities.

Capital Management

Despite lower earnings, Worley continued returning capital to shareholders.

The company declared an unfranked final Dividend of 25 cents per share.

Worley also continued its capital management program, having completed a $500 million buyback and commencing a further $300 million buyback initiative.

Strong cash conversion remained a support factor, with normalised cash conversion reaching 93.6%, within the company’s target range.

Maintaining disciplined capital allocation while investing in growth opportunities remains a key priority.

FY27 Outlook

Worley expects FY27 to deliver mid-to-high single-digit growth in both aggregated revenue and underlying EBITA.

Management expects EBITA margins to remain relatively stable.

The company expects growth to be weighted towards the second half of FY27, supported by project ramp-ups and improving market conditions.

The outlook depends on several factors, including recovery across affected regions, project execution and continued demand across infrastructure markets.

Key Focus Areas

Investors will continue monitoring whether FY26 represents the low point in the current earnings cycle.

The conversion of backlog growth into revenue and earnings will be an important measure of progress.

The pace of energy transition project activity, data-centre infrastructure demand and power investment will also remain key areas of focus.

Foreign exchange movements, geopolitical conditions and project timing will continue influencing short-term performance.

Risks

Worley remains exposed to geopolitical developments, particularly in regions where major projects are underway.

Currency movements can affect reported earnings due to the company’s global operations.

Project delays, cost pressures and execution challenges may impact profitability.

The company’s growth outlook also depends on successful conversion of pipeline opportunities into completed projects.

Changes in energy policy, Commodity conditions and infrastructure investment trends may influence future demand.

Future Outlook

Worley enters FY27 with a larger backlog, improving pipeline visibility and continued exposure to long-term infrastructure opportunities.

While FY26 earnings were affected by external disruptions, the company maintained operational resilience through stable margins and strong cash conversion.

The next phase of performance will depend on whether backlog growth translates into stronger earnings and whether expected second-half momentum materialises.

With demand across energy, infrastructure and transition-related markets continuing to develop, Worley’s ability to execute projects efficiently will remain central to its recovery outlook.