The Worley Ltd (ASX: WOR) share price is in focus after the company flagged a potential hit of up to $60 million to FY26 underlying EBITA from ongoing Middle East conflict disruptions, alongside a $50 million foreign currency translation impact expected in the same period.
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What did Worley report?
- No cancellations of Middle East projects to date, but new project starts and awards continue to be delayed
- FY26 underlying EBITA impact now forecast up to $60 million (previously $30–$40 million)
- Additional $50 million estimated translation impact on FY26 underlying EBITA from stronger Australian dollar
- Update reflects increased uncertainty and extended conflict duration in the region
What else do investors need to know?
The Middle East conflict continues to disrupt the progress of Worley's existing projects across the region, with customer delays on commencing and awarding new projects. While no contracts have been cancelled, ongoing delays are expected to weigh on upcoming financial performance.
Worley also advised that the stronger Australian dollar in the second half of FY26 will reduce the contribution from overseas earnings when translated back into Australian dollars, compounding the previously announced operational impacts. The estimate of foreign currency translation effects remains subject to further exchange rate movements throughout the year.
What's next for Worley?
Looking ahead, Worley continues to monitor the evolving geopolitical situation. While recent diplomatic developments in the Middle East show some promise, the company remains cautious, acknowledging ongoing uncertainty regarding project timing and regional stability. Management is actively supporting customers and staff in affected regions and adapting resource planning and contract strategies to manage risks.
Worley's broader strategy focuses on maintaining operational resilience and leveraging its global footprint through diversified service offerings. The company says it is committed to supporting customers as they navigate current disruptions and transition towards more sustainable solutions in the longer term.
Worley share price snapshot
Over the past 12 months, Worley shares have declined 6%, trailing the S&P/ASX 200 Index (ASX: XJO), which has risen 3% over the same period.
