Worley Ltd Lifts Middle East Conflict EBITA Hit to $60M With $50M FX Impact
Worley lifts estimated Middle East conflict hit to FY26 earnings to up to $60 million
In its 25 June 2026 ASX update, Worley Limited (ASX: WOR) revised upward its estimate of the adverse impact on FY26 underlying EBITA from the Middle East conflict. The global engineering services firm now estimates the impact at up to $60 million, an increase from the previous $30 to $40 million estimate disclosed in its 20 April 2026 update.
The latest disclosure follows earlier updates dated 20 April 2026 and 25 March 2026. Alongside the conflict-related revision, Worley flagged a separate $50 million foreign currency translation impact on FY26 reported underlying EBITA.
The April 2026 guidance downgrade established the initial $30-40 million adverse EBITA estimate, with management at that point maintaining its margin guidance range of 9.0-9.5% and framing the disruption as a timing delay rather than a permanent loss to the order book.
These are two distinct headwinds now affecting FY26. The first is operational, stemming from the conflict. The second relates to currency movements. Both warrant separate consideration.
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What’s driving the revised guidance
According to the announcement, the extended duration and ongoing impact of the Middle East conflict continues to disrupt the progress of existing projects. Worley stated clearly that there have been no project cancellations. Instead, customers continue to delay the commencement and award of new projects.
Worley acknowledged the recent signing of a memorandum of understanding and ongoing talks to end the conflict and open up the Strait of Hormuz. Despite these developments, the company noted that uncertainty continues.
The two separate FY26 headwinds are:
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Middle East conflict impact: up to $60 million on FY26 underlying EBITA, revised from the prior $30 to $40 million estimate.
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Foreign currency translation impact: $50 million on FY26 reported underlying EBITA, reflecting the strengthening of the Australian dollar in the second half of FY26 on the conversion of foreign currency earnings.
These two figures have different causes. The $50 million FX figure is a translation effect on reported results, not an operational loss.
Understanding underlying EBITA and currency translation effects
A foreign currency translation effect arises because Worley operates and earns in multiple currencies. When the Australian dollar strengthens, overseas earnings convert into fewer Australian dollars, affecting reported results even where the underlying operations themselves are unchanged.
Worley noted it has previously disclosed its exposure to foreign currency translation effects in its periodic financial reports. This is not a new or one-off risk.
| Item | Cause | Previous Estimate | Revised/Current Estimate | Nature of Impact |
|---|---|---|---|---|
| Middle East conflict | Project delays & delayed new awards | $30–$40m | Up to $60m | Operational (underlying EBITA) |
| FX translation | Stronger AUD in H2 FY26 | Not previously quantified in this release | $50m | Reported underlying EBITA (translation) |
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What it means for investors and Worley’s positioning
While near-term FY26 guidance is affected, the announcement emphasised that there have been no cancellations. On this basis, the affected project pipeline is delayed rather than lost.
Worley’s H1 FY26 bookings surge to $9.8 billion, reported in February 2026, had established a $16.7 billion backlog with more than 53% deliverable within 12 months, providing the revenue visibility backdrop against which the current conflict-related delays must be measured.
Per its “About Worley” section, the company describes itself as a global company of energy, chemicals and resources experts. It specialises in consulting, engineering, procurement and construction across the project lifecycle, leveraging AI-enabled delivery.
Worley acknowledged the recent signing of a memorandum of understanding and ongoing talks to end the conflict and open up the Strait of Hormuz. Worley’s own caveat, however, is that uncertainty continues despite these developments.
Statement from Worley’s ASX release
“While there have been no project cancellations, customers continue to delay the commencement and award of new projects.”
The release was authorised by Nuala O’Leary, Group Company Secretary.
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