Worley Flags FY26 Earnings Hit from Middle East Conflict
Global engineering firm Worley, based in Australia, has announced that the ongoing conflict in the Middle East is projected to reduce its full-year 2026 (FY26) operating earnings by an estimated A$30 million to A$40 million (approximately $21.5 million-$28.65 million USD). This anticipated impact is attributed to project delays and heightened uncertainty affecting regional business activities.
In a statement to the stock exchange, the company confirmed that no projects have been cancelled to date. However, the prolonged duration of the conflict and persistent uncertainty are causing further delays to existing projects, as well as hindering the commencement and awarding of new projects across the region. The repercussions also extend to services provided to these projects from Worley’s offices outside the Middle East.
Worley noted that clients have requested its support for the restoration of assets and strategic projects linked to the conflict, aiming to maintain business continuity and aid in repair and rebuilding efforts.
Looking at the medium to longer term, Worley identifies several growth opportunities. These include investments in regional pipeline and export infrastructure, and an increased global focus on national security through the development of alternative sources of energy, chemicals, and resources. The Middle East currently accounts for approximately 10 percent of the company’s aggregated revenue, a figure reported in March.
FY26 Outlook Revised
Worley has revised its FY26 outlook, now deeming it unlikely to achieve growth in underlying EBITA (earnings before interest, tax, and amortisation), contrary to its previous guidance. Nevertheless, the company still anticipates its underlying EBITA margin, excluding procurement, to remain within a 9 to 9.5 percent range on a constant currency basis. Worley also maintains its target for higher aggregated revenue compared to FY25.
For FY2025, the company reported aggregated revenue of A$12.05 billion ($8.95 billion USD) and underlying EBITA of A$823 million ($589 million USD).
The company cautioned that actual FY26 outcomes will be contingent on various factors, including the conflict’s duration, potential supply-chain disruptions, contract timing, and the pace of regional recovery.
(1 US dollar = 1.40 Australian dollars)
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