Worley (ASX:WOR) revealed that the ongoing conflict in the Middle East is expected to weigh heavily on its financial performance for the 2026 financial year.
The professional services firm, which maintains a substantial presence in the region, announced that while project cancellations have not yet materialised, the prolonged instability is causing pervasive operational delays.
To mitigate local disruptions, Worley has leveraged its global integrated delivery centres in India and other international offices; however, supply chain bottlenecks and transportation challenges continue to hamper project timelines.
The company estimated the adverse impact on its FY26 underlying EBITA to be between $30 million and $40 million.
Worley has revised its group outlook, stating it is now unlikely to achieve growth in underlying EBITA for the period.
The shift marks a notable departure from previous projections, though the firm maintains it will meet its underlying EBITA margin target of 9.0% to 9.5% (excluding procurement).
Beyond the immediate financial drag, the conflict is stalling the commencement and award of new contracts in the region.
Despite these setbacks, Worley has been called upon by clients to assist with the restoration of assets and strategic projects directly linked to the conflict, signalling a pivot towards repair and rebuild efforts.
Management remains cautious, noting that actual outcomes for the year will remain highly sensitive to the duration of the conflict, the stability of global supply chains, and the eventual pace of regional recovery.
At the time of reporting, Worley's share price was $11.32.