Worley Limited

For the half year, aggregated revenue was $6.3 billion, up 5.4% year over year. Underlying EBITA was $377 million, underlying NPATA was $207 million, and statutory NPATA was $152 million, reflecting $82 million of transformation and business restructuring costs. Normalized cash conversion was 95.5%, DSO was 46.2 days, and leverage ended at 1.5x. For FY26, management reconfirmed moderate growth on a constant-currency basis, expects higher aggregated revenue than FY25, growth in underlying EBITA, and an underlying EBITA margin excluding procurement of 9% to 9.5%.

Chris Ashton said the half showed Worley’s ability to grow through a difficult market, pointing to a 63% increase in bookings, major awards in LNG, energy, and resources, and a robust pipeline. He emphasized a strategic shift toward more EPC and EPCM work, higher-value early-stage consulting, and expansion into adjacent markets such as data center infrastructure, power, ports and marine, and industrial water. His tone was confident and forward-looking, saying there are visible signs of growth beyond FY26.

Justine Travers focused on the financial discipline behind the quarter: aggregated revenue of $6.3 billion, underlying EBITA of $377 million, underlying NPATA of $207 million, and normalized cash conversion of 95.5%. She said the business generated strong cash, maintained leverage at 1.5x, and returned capital through an interim dividend of $0.25 per share and a buyback program of up to $500 million, with over 24 million shares bought for $324 million as of December 31, 2025. She also said restructuring costs were higher than expected at $82 million in the half, but the company still targets more than $100 million in annualized savings from FY27 onwards.

Analysts pressed on restructuring, project cancellations, margin mix, Baytown, and growth into new markets. Management said the restructuring was deeper and costlier than initially expected, mainly due to severance in Western Europe, but it was a deliberate move to reset the cost base and shift work to lower-cost delivery centers such as India and Bogota; more costs are expected in H2, but less than H1. On cancellations, management said there was no ongoing trend beyond previously disclosed items, and Baytown Blue remains in backlog because it has been paused, not canceled. They also said customer tone has improved, sole-source work is up to 48%, and early conversations in new adjacencies have been very positive.