Worley Limited

Aggregated revenue for FY26 was $12 billion, broadly in line with FY25; on a constant-currency basis, revenue was $12.3 billion, up 2.3%. Underlying EBITA was $734 million versus $823 million in FY25; on a constant-currency basis, EBITA was $773 million. EBITA margin on an ex-procurement basis was 9%, and underlying EBITA margin including procurement was 6.3% on a constant-currency basis. Management said the Middle East conflict had a $58 million adverse impact on earnings, and FX translation reduced FY26 EBITA by about $50 million versus outlook expectations. Normalized cash conversion was 93.6%, days sales outstanding improved to 44.3 days, leverage was 1.8x, and total liquidity was $2.1 billion at 30 June 2026. Bookings were $15.5 billion and backlog was $13.8 billion, up 9% year over year, with more than 62% expected to be delivered in the next 12 months. For FY27, Worley expects mid- to high single-digit growth in revenue and underlying EBITA, with EBITA growth more heavily weighted to the second half; revenue phasing is expected to be broadly even.

Chris Ashton said FY26 was a “story of 2 halves,” with strong first-half momentum followed by a tougher second half due mainly to the Middle East conflict and FX. He emphasized that demand fundamentals remain solid, especially in the Americas, and pointed to meaningful traction in the company’s strategy to win more full project delivery work and expand into adjacent growth markets like power and data centers. His tone was confident on the medium term, saying the pipeline and recent contract wins reinforce the FY30 ambition.

Justine Travers focused on the financial impact of disruption, noting the $58 million Middle East earnings hit, $120 million of one-off restructuring costs, and $132 million of savings from the cost program, which exceeded the initial $100 million target. She highlighted strong cash generation, with normalized cash conversion of 93.6%, DSO at 44.3 days, leverage at 1.8x, and liquidity of $2.1 billion, alongside the completion of a $500 million buyback and commencement of a new $300 million buyback program. She also said the company does not currently plan further restructuring in FY27.

Analysts focused on whether FY27 guidance embeds FX headwinds, how much second-half weighting to expect, and what the backlog decline means for revenue growth. Management said guidance is based on forward currency assumptions, but the bigger driver is project timing, with FY27 expected to be more heavily weighted to the second half and backlog not fully capturing recent strategic wins because it is a point-in-time measure. Questions also centered on Middle East exposure and CP2; management said the $58 million FY26 hit was mainly from project deferrals rather than restructuring, and that CP2 is performing well commercially and should contribute meaningfully to FY27 revenue.