Worley reports $306M full year profit

• Worley reported a statutory net profit after tax of $306 million for FY26, down 35.6% from the prior corresponding period.
• Underlying EBITA dropped 10.8% to $734 million due to conflict in the Middle East and adverse foreign currency translation, while the company declared an unfranked final dividend of 25 cents per share.
• The engineering group expects mid- to high single-digit growth in aggregated revenue and underlying EBITA for FY27, backed by a backlog of $13.8 billion.

Worley (ASX:WOR) reported a 35.6% drop in statutory net profit after tax to $306 million for the full year ended June 30 as regional conflicts weighed on operational growth.

The decline in earnings occurred despite aggregated revenue holding steady at $12.02 billion, while underlying EBITA decreased 10.8% to $734 million.

“While activity levels remained strong in some parts of the business, particularly in the Americas, the Middle East conflict and softer market conditions have affected growth in other regions,” said Worley CEO and Managing Director Chris Ashton.

The company's full-year underlying results excluded $120 million in pre-tax restructuring costs, though management stated its cost-out initiatives reached $132 million to exceed initial targets.

Worley stated that strong demand drivers and a growing project pipeline underpin its forecast of mid- to high single-digit growth in both aggregated revenue and underlying EBITA for FY27.

Following the announcement, the Worley share price was unchanged at $11.10.

To maintain capital management flexibility, the group completed a $500 million on-market share buyback in May and initiated a further $300 million buyback, with $24 million spent by the end of June.

The company's total contracted backlog rose 9% to $13.8 billion as of June 30, driven by $15.5 billion in new bookings achieved throughout the fiscal period.