Worley Limited’s full-year results for the year ended 30 June 2026 reveal a material deterioration in profitability, with basic earnings per share declining 39 per cent to 47.1 cents and EBITA margins contracting sharply to 5.1 per cent from 6.8 per cent. The statutory profit after income tax fell $209 million, representing a significant step down from the prior year and signaling meaningful headwinds for the engineering and construction services provider.
The underlying result, which excludes transformation and business restructuring costs, tells a similar story of margin pressure. Aggregated revenue remained broadly flat at $12,023 million compared to $12,050 million, yet underlying EBITA margins compressed 290 basis points to 6.1 per cent. Basic underlying earnings per share declined 13 cents to 78.2 cents, indicating that the earnings weakness is not solely attributable to one-off restructuring charges but reflects genuine operational challenges. Operating cash flow fell $340 million year on year, adding to concerns about cash generation during a period of shrinking profitability.
The margin compression across both statutory and underlying metrics suggests Worley is facing structural challenges in its operating model. The company’s disclosure regarding procurement revenue at margin provides some insight, with the underlying EBITA margin excluding this revenue item moving to 6.8 per cent from 9.2 per cent. This indicates that even adjusting for procurement activity, the core operations are under pressure. Revenue of $10,714 million in statutory terms and $12,023 million on an aggregated basis represents only modest movements year on year, so the earnings decline is driven primarily by margin deterioration rather than revenue collapse.
The transformation and business restructuring activities represent a significant charge against statutory results, with these costs and associated tax impacts excluded from the underlying figures. While this exclusion is helpful for understanding ongoing operational performance, the quantum of restructuring costs and the magnitude of margin contraction in underlying results suggest Worley is grappling with deeper operational or market-driven pressures that go beyond temporary restructuring impacts. The company may be experiencing competitive pricing pressure, labor cost inflation, or unfavorable project mix that is weighing on returns.
For investors, the combination of flat revenue, declining margins, falling earnings per share, and reduced cash flow generation raises questions about the company’s earnings trajectory and return on capital. The restructuring efforts and transformation activities underway appear aimed at restoring profitability, but investors will need to monitor whether these initiatives can reverse the operating margin decline in coming periods. Watch for updates on cost reduction programs, project pipeline quality, and any commentary on pricing dynamics in the engineering and construction services market. This announcement is price sensitive and has been flagged as material by the ASX.
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About Worley Limited (ASX: WOR)
Worley Limited is an engineering and professional services company that provides consulting and project delivery expertise to the energy, chemicals, and resources sectors. The company offers services including engineering, procurement, construction, asset performance management, and digital solutions. Worley operates globally across the Americas, Europe, the Middle East, Africa, Australia, Asia Pacific, and China, with headquarters in Sydney, Australia.
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