Worley (ASX: WOR) – Full Year 2026 Results Announced

Worley Limited reported full year statutory NPAT of $306 million for FY26, representing a 35.6% decline from the prior year, though this figure was heavily impacted by $120 million in transformation and restructuring costs. On an underlying basis, EBITA reached $734 million, down 10.8%, revealing a business navigating significant operational headwinds while simultaneously pursuing a strategic overhaul.

The headline earnings decline masks a more nuanced picture. Revenue remained essentially flat at $12.023 billion on a reported basis but grew 2.3% on a constant currency basis, indicating that foreign exchange translation worked against reported results. More significantly, the Middle East conflict directly cost Worley approximately $58 million in underlying earnings, with disruption extending beyond active projects to delay the commencement of new awards. This geopolitical headwind represents a material but temporary earnings challenge rather than a structural decline.

Against this backdrop, several metrics suggest underlying business momentum remains intact. Bookings surged 23% to $15.5 billion, while the backlog expanded 9% to $13.8 billion. These order metrics indicate strong customer demand and provide a revenue pipeline extending into future years. The company also exceeded its cost-reduction targets, delivering $132 million in cost-out initiatives, which should provide earnings support as the business restabilizes and normalizes its geographical mix.

The underlying EBITA margin compressed to 6.1% from 6.8%, partly reflecting the revenue shift toward construction, fabrication and procurement services, which typically carry lower margins than pure-play engineering work. Management noted that excluding foreign currency translation, the EBITA decline would have been 6.1% rather than 10.8%, emphasizing that currency headwinds rather than operational deterioration explain a meaningful portion of the earnings miss.

Capital management remained disciplined despite earnings pressure. Worley completed a $500 million share buyback program and commenced a further $300 million buyback, returning capital to shareholders while signaling management confidence. The company declared a final dividend of 25 cents per share, unfranked, maintaining income streams to investors.

Management guided to mid to high single-digit growth in both aggregated revenue and underlying EBITA for FY27, suggesting a recovery trajectory from disruption. Commentary highlighted continued customer investment in energy security, affordability and critical infrastructure, supporting the company’s longer-term ambition of double-digit earnings growth by FY30. Investors should watch closely for evidence that Middle East disruption has reached its nadir and that new project awards in the region resume as planned. Execution risk remains material given the complexity of the project portfolio. This announcement is price sensitive material, as flagged by the ASX.

View the full ASX announcement (PDF)

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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