Highlights

  • Worley reported FY2026 aggregated Revenue of A$12,023 million, broadly unchanged from FY2025, although revenue increased 2.3% in constant currency.
  • Underlying EBITA declined 10.8% to A$734 million, reflecting project disruptions, currency movements and changes in revenue composition.
  • Contract bookings increased 23% to A$15.5 billion, while the year-end Backlog reached A$13.8 billion.
  • Management expects mid-to-high single-digit growth in aggregated revenue and underlying EBITA during FY2027, subject to operating and market conditions.

Worley Limited (ASX:WOR) is an Australian engineering and professional services company providing consulting, engineering, procurement, construction and project management services across energy, chemicals and resources industries. Its operations extend across international markets, supporting customers throughout project development, construction and asset operations. The company's FY2026 financial performance reflected changes in project activity, Middle East disruptions and restructuring expenditure, while increased bookings and a larger sales pipeline formed the basis of its FY2027 growth expectations.

FY2026 Financial Performance Reflects Lower Earnings

Worley reported aggregated revenue of A$12,023 million for the financial year ended 30 June 2026, broadly unchanged from FY2025.

On a constant-currency basis, aggregated revenue increased 2.3%, reflecting differences in project activity and foreign exchange movements.

Underlying EBITA decreased 10.8% to A$734 million from A$823 million in FY2025.

Excluding currency translation effects, the decline was 6.1%.

The underlying EBITA Margin decreased to 6.1% from 6.8%, reflecting a greater proportion of construction, fabrication and procurement revenue.

Excluding procurement, the underlying EBITA margin reached 9.0%.

Underlying net profit after tax before acquired Amortisation (NPATA) declined 16.8% to A$395 million.

Statutory NPATA decreased 35.6% to A$306 million, reflecting additional transformation and restructuring costs.

Middle East Disruptions Affect Project Earnings

Worley reported an approximately A$58 million reduction in FY2026 underlying EBITA associated with the Middle East conflict.

The disruption affected existing projects and delayed the commencement of newly awarded work across the region.

Management indicated that project timing, Supply chain constraints and operational uncertainty influenced regional earnings.

The company also identified indirect supply chain pressures affecting projects in North Africa, including access to materials used in fertiliser production.

These developments affected the timing of engineering and project delivery activities.

Worley expects Middle East work volumes to increase during the second half of FY2027, although the scale and timing remain uncertain.

Energy and Resources Support Revenue Activity

Worley's Energy Business contributed approximately 53% of aggregated revenue during FY2026.

Energy revenue increased 8%, supported by engineering, procurement, fabrication and construction work on major projects.

Integrated gas represented more than half of the Energy segment's revenue.

The Resources business contributed approximately 27% of group aggregated revenue, recording growth of 6%.

Activity included projects involving copper, battery materials, mined fertilisers and iron ore.

In contrast, Chemicals revenue declined 22% and represented approximately 20% of aggregated revenue.

The decline reflected project cancellations in Western Europe and reduced activity across selected chemicals markets.

These differences illustrate the impact of varying customer Investment cycles across Worley's operating sectors.

Regional Performance Reflects Changes in Project Execution

The Americas accounted for approximately 52% of Worley's aggregated revenue during FY2026.

Regional activity increased as major engineering and construction projects progressed, including Venture Global's CP2 development.

Europe, the Middle East and Africa contributed approximately 37% of aggregated revenue.

Performance in this region was affected by Middle East disruptions and the cancellation of selected European projects.

Asia-Pacific revenue declined as existing projects reached completion and new assignments progressed through earlier development stages.

Future regional revenue contributions will depend on customer capital expenditure, contract awards and project implementation schedules.

Contract Bookings and Backlog Increase

Worley recorded A$15.5 billion in contract bookings during FY2026, representing growth of 23% compared with FY2025.

Approximately 44% of bookings were sole-sourced contracts.

The company's order backlog reached A$13.8 billion at 30 June 2026, increasing 9% from A$12.7 billion a year earlier.

Excluding foreign exchange movements, backlog increased approximately 18%.

However, backlog declined from A$16.7 billion at the half-year reporting date.

The reduction reflected project execution and completion, alongside the removal of the paused ExxonMobil Baytown Blue Hydrogen project.

Worley also reported 24% growth in its factored sales pipeline.

Management expects approximately half of the identified pipeline opportunities to reach award decisions within twelve months.

These potential awards remain subject to customer investment decisions, project approvals and commercial negotiations.

Restructuring and Cost Reduction Initiatives

Worley continued implementing organisational restructuring and cost reduction activities during FY2026.

The company recorded A$120 million in pre-tax transformation and restructuring expenses, excluded from underlying EBITA.

The programme included changes to operations in Western Europe following the cancellation of two projects.

Cost reduction initiatives delivered approximately A$132 million in savings during FY2026.

Management indicated that these savings supported operating expenditure management and reinvestment in business capabilities.

Worley also outlined plans to invest approximately A$70 million over two years in artificial intelligence, digital technology and targeted growth capabilities.

The financial contribution from these investments will depend on implementation progress, operating efficiency and customer demand.

Balance Sheet and Shareholder Returns

Worley reported a normalised cash conversion ratio of 93.6% for FY2026, within its target range of 85%–95%.

The company maintained Leverage of approximately 1.8 times.

Available Liquidity reached A$2.1 billion, including A$1.0 billion in committed undrawn facilities.

Worley completed its A$500 million on-market share buyback in May 2026.

A further A$300 million buyback programme commenced, with A$24 million spent acquiring approximately 2.0 million shares by 30 June 2026.

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

The dividend was paid on 30 September 2026.

Capital allocation remains dependent on cash generation, financing requirements and investment priorities.

FY2027 Revenue and Earnings Guidance

Worley expects mid-to-high single-digit growth in aggregated revenue and underlying EBITA during FY2027.

Management anticipates revenue to be distributed broadly evenly between the first and second halves.

However, underlying EBITA growth is expected to be more heavily weighted towards the second half than in previous years.

The outlook assumes increased project activity in the Middle East during H2 FY2027 and continued execution of major contracts in North America.

Management expects the growing project pipeline and restructuring initiatives to contribute to future earnings.

The company also maintains a longer-term ambition of double-digit earnings growth by FY2030.

Guidance remains subject to no material deterioration in market conditions, including foreign exchange movements, project timing and customer investment decisions.

Key Risks and Operational Challenges

Middle East uncertainty: Continued regional disruptions may affect project commencement, execution schedules and operating expenditure.

Project cancellations: Delays or cancellations of engineering and construction contracts could reduce future revenue.

Margin pressures: Changes in contract mix, procurement activity and operating costs may influence profitability.

Currency movements: International operations expose reported Australian-dollar earnings to foreign exchange fluctuations.

Pipeline conversion: Potential projects may not proceed to contract award or construction.

Restructuring execution: Expected efficiency benefits depend on successful implementation of organisational and technology initiatives.