Australia-based engineering services firm Worley has doubled its estimate of the financial impact of the Middle East conflict on its fiscal year 2026 earnings, warning that regional uncertainty continues to stall project execution despite recent diplomatic breakthroughs.

In a statement filed with the Australian Securities Exchange (ASX) on Thursday, the company revised its estimated impact on FY2026 underlying earnings before interest, taxes, and amortisation (EBITA) upward to as much as $60 million. This is a significant increase from the previous guidance of $30 million to $40 million issued in April 2026.

Worley noted that although a memorandum of understanding has been signed and discussions are underway to end the conflict and reopen the Strait of Hormuz, uncertainty continues.

Reiterating its previous April 2026 update, the company said the extended duration and ongoing impact of the Middle East conflict continues to cause disruption to the progress of existing projects.

“While there have been no project cancellations, customers continue to delay the commencement and award of new projects,” the company said in its latest stock exchange statement.

In its April update, the company had said it continues to work closely with customers to maintain project execution through remote and flexible working arrangements where appropriate, while leveraging its global integrated delivery centres in India and offices outside the Middle East.

Worley had added that it is seeking to minimise the impact of project delays caused by safety concerns, supply chain disruptions and transportation challenges.

(Writing by SA Kader; Editing by Anoop Menon)

(anoop.menon@lseg.com)

Subscribe to our Projects' PULSE newsletter that brings you trustworthy news, updates and insights on project activities, developments, and partnerships across sectors in the Middle East and Africa.