Worley Limited

Worley reported aggregated revenue of $6.3 billion for the half, up 5.4% year over year. Underlying EBITA was $377 million, underlying NPATA was $207 million, and statutory NPATA was $152 million; normalized cash conversion was 95.5% and leverage ended at 1.5x. Bookings were $9.8 billion, up 63%, and backlog was $16.7 billion, with $6.3 billion added during the period and more than $3.5 billion of project wins already in early calendar 2026 expected to add to backlog. For FY26, management reiterated moderate growth on a constant-currency basis, targeting higher aggregated revenue growth than FY25 and underlying EBITA growth, with underlying EBITA margin excluding procurement of 9% to 9.5%.

Chris Ashton said the half showed Worley’s ability to grow revenue and earnings despite a difficult market, and he emphasized that the company’s diversified portfolio and disciplined execution are supporting resilience. He highlighted renewed momentum in calendar 2026, citing wins such as Alaska LNG, Westport, CP2 LNG, ConocoPhillips Scandinavia, Oman decarbonization work, and ExxonMobil’s Baytown project. His tone was confident and forward-looking, focusing on larger addressable markets, more EPC/EPCM work, and growth beyond FY26.

Justine Travers focused on the quality of earnings, cash generation, and capital discipline. She said revenue was $6.3 billion, underlying EBITA was $377 million, underlying NPATA was $207 million, and normalized cash conversion was 95.5%, while leverage stayed at 1.5x. She also said $82 million of restructuring costs were incurred in the half, more costs are expected in H2 but lower than H1, and the cost-out program targets over $100 million of annualized savings from FY27 onward; she added that the company will continue its buyback program and pay an interim dividend of $0.25 per share.

Analysts pressed management on new-market investment needs, nuclear capability, customer tone after tariffs, restructuring costs, project cancellations, margin dynamics, Baytown’s backlog treatment, and rising sole-sourcing. Management said Worley has a long nuclear track record, including being engineer of record for 15% of U.S. nuclear commercial power generation capacity, and sees opportunities in power, industrial water, and data centers with only targeted investment needed where capability must be expanded. On restructuring, management said the cost and scope were higher than initially expected, mainly due to severance in Western Europe and a deeper strategic reset toward lower-cost delivery centers, while confirming Baytown is paused, not canceled, and that sole-source work has risen to 48% as customer confidence improves.