Australia-based global engineering firm Worley said the ongoing Middle East conflict is expected to cut full year 2026 (FY 2026) operating earnings by between 30 million and 40 million Australian dollars ($21.5 million-$28.65 million approx.), as project delays and uncertainty weigh on regional activity.

The company said in a stock exchange statement that there have been no project cancellations to date, but the extended duration of the conflict and continued uncertainty are causing further delays to existing projects, and in the commencement and award of new projects in the region.

The impact also extends to services delivered to these projects from Worley offices outside the Middle East.

The company said it has been asked by customers to support restoration of assets and strategic projects linked to the conflict to help maintain business continuity, and support repair and rebuild efforts.

Over the medium to longer term, Worley said it sees growth opportunities from:

  • Investment in regional pipeline and export infrastructure
  • Increased global focus on national security through alternative sources of energy, chemicals and resources

The Middle East represents approximately 10 percent of the company’s aggregated revenue, the company had stated in March.

FY26 outlook revised

Worley said it is now unlikely to achieve growth in underlying EBITA (earnings before interest, tax and amortisation) during FY26, contrary to previous guidance. However, it still expects underlying EBITA margin, excluding procurement, to remain within a range of 9 to 9.5 percent on constant currency basis. The company also said it continues to target higher aggregated revenue than FY25.

For FY2025, Worley reported aggregated revenue of A$12.05 billion ($8.95 billion) and underlying EBITA of A$823 million ($589 million)

The company said actual FY26 outcomes will depend on factors including the duration of the conflict, supply-chain disruption, contract timing and pace of regional recovery.

(1 US dollar = 1.40 Australian dollars)

(Editing by Anoop Menon) (anoop.menon@lseg.com)

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