Worley FY26 Underlying EBITA Down 10.8% to $734m

Worley (ASX:WOR) reported FY26 statutory net profit after tax, which the release labels NPATA, of $306 million, down 35.6% on the prior corresponding period, and underlying NPATA of $395 million, down 16.8%. Aggregated revenue of $12,023 million was described as stable on the prior year and up 2.3% on a constant currency basis. Underlying EBITA, which the release defines as earnings before interest and tax, fell 10.8% to $734 million from $823 million, which Worley attributed to the ongoing conflict in the Middle East and adverse foreign currency translation; excluding foreign currency translation, underlying EBITA was down 6.1%, and the company said the adverse earnings impact of the Middle East conflict was $58 million. The underlying EBITA margin fell to 6.1% from 6.8%, reflecting a greater proportion of earnings from construction and fabrication and from procurement, with the margin excluding procurement at 9.0%. The underlying result excluded $120 million of pre-tax transformation and business restructuring costs, of which $38 million was incurred in the second half.

Bookings were $15.5 billion, up 23% on FY25, with the release footnoting that the $17.1 billion of bookings reported at the time of announcing the FY25 results reflected bookings to date and therefore included Venture Global's CP2 Phase I, which reached final investment decision in July 2025. Backlog was $13.8 billion at 30 June 2026, up from $12.7 billion a year earlier and 18% higher excluding foreign currency translation, but below the $16.7 billion reported at the half year after some major projects were progressed or completed and the paused ExxonMobil Baytown Blue Hydrogen Project was removed. Cost-out initiatives realised savings of $132 million. Energy contributed 53% of aggregated revenue and increased 8%, resources grew 6% and now represents 27% of aggregated revenue, while chemicals declined 22% and accounts for 20%. The normalised cash conversion ratio was 93.6%, within the FY26 target range of 85 to 95%, and leverage was 1.8 times. The Board determined a final dividend of 25 cents per share, unfranked. A $500 million on-market buy-back that commenced in March 2025 was completed in May 2026 and a further $300 million program had commenced, with 2.0 million shares purchased to 30 June 2026 for a total consideration of $24 million; the release notes a further 0.3 million shares were settled on 1 July 2026 and are not included in the 30 June 2026 results. Chief Executive Officer and Managing Director Chris Ashton said the company expects mid to high single-digit growth in both aggregated revenue and underlying EBITA in FY27, with the EBITA growth more heavily weighted to the second half than historical norms and revenue phasing across the halves broadly even, an outlook the release states remains subject to no material deterioration in current market conditions.