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

Worley Limited reported FY2026 revenue of $12,023 million, flat year-on-year on a reported basis but up 2.3 percent in constant currency, with underlying EBITA declining to $734 million from $823 million in the prior year. The reported decline masked a more resilient operational backdrop. Foreign exchange translation cost the group approximately $39 million of EBITA, while disruption in the Middle East and a softer chemicals market accounted for another $58 million of earnings impact. Adjusting for these headwinds, underlying earnings deterioration was modest, and the company’s underlying EBITA margin of 9.0 percent excluding procurement remained within its 9.0 to 9.5 percent target range.

The operational business showed genuine resilience. Bookings reached $17.1 billion, up from $13.8 billion in the prior corresponding period, while the backlog expanded to $15.0 billion on a constant currency basis. The company’s factored sales pipeline grew 24 percent year-on-year, with sole-sourced opportunities comprising 44 percent of wins, reflecting the strength of Worley’s customer relationships and its positioning across energy security, electrification, and energy transition materials. The major projects and programs business proved particularly robust, with 20 customers selecting Worley for such work in FY2026 and EPC/EPCM opportunities up 30 percent in the pipeline.

Management implemented a cost reduction program that delivered $132 million in annualized savings, exceeding its initial $100 million target. This was offset by $120 million in one-off restructuring costs, predominantly in Western Europe where labor protections increased exit expenses. The company’s cash conversion ratio remained strong at 93.6 percent, within its target range of 85 to 95 percent, and the company returned $359 million to shareholders through on-market buybacks.

For FY2027, management guided to mid to high single-digit growth in both aggregated revenue and underlying EBITA. The company cautioned that Middle East disruption is expected to persist through the first half of FY2027, with work volumes anticipated to lift in the second half as customers engage Worley on damage assessment and reconstruction planning. The company also flagged that the Australian dollar’s strength remains a translation headwind, though the business is exploring a shift to US dollar reporting to reduce this volatility. Worley’s medium-term ambition remains a double-digit underlying EBITA compound annual growth rate by FY2030, underpinned by structural demand for energy security, electrification infrastructure, and critical materials.

Investors should monitor the trajectory of Middle East recovery and the pace at which the major projects currently in Worley’s pipeline progress into the execution phase. Currency movements will continue to distort reported comparisons, particularly given that approximately 93 percent of revenue derives from offshore operations. The company’s ability to convert its elevated backlog and growing pipeline into earnings growth while maintaining margin discipline will be key to delivering on its medium-term growth targets.

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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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