Investors hit the sell button after Worley flagged that the Middle East war is slowing operations and contract awards, directly pressuring its FY26 earnings targets. By mid-afternoon the engineering group’s shares were down 6.18% at $11.09, reflecting concern about the conflict’s drag on near term performance.
Market reaction centres on the company’s warning that key projects in the region are taking longer to progress.
Worley now expects its FY26 underlying earnings before interest, tax and amortisation to land between $30 million and $40 million, according to an update lodged with the ASX. That range means the company does not anticipate growth in underlying EBITA for FY26 compared with prior expectations.
Management still forecasts an EBITA margin of 9 to 9.5%, but emphasises that outcomes depend heavily on how long the conflict continues and how supply chains recover. The company will outline more detail at an investor day scheduled for 14 May.
Worley reports that none of its projects have been cancelled so far, even as timelines stretch out. The business is focusing on supporting customers with asset restoration and strategic work tied to the conflict, which helps maintain continuity and positions it for eventual rebuild activity.
Operational delays and slower awards in the Middle East are the main earnings headwind, but existing relationships and ongoing support work provide some offset.
