Worley H1 FY26 slides: revenue rises 5.4% as restructuring weighs

Worley Ltd (ASX:WOR) presented its half-year fiscal 2026 results on February 26, revealing a 5.4% year-over-year revenue increase to $6.3 billion, though the engineering services provider's stock declined 7.67% as investors digested $82 million in restructuring costs that weighed on statutory earnings during the company's significant transformation period. The underlying EBITA remained essentially flat at $377 million, rising just 0.3% despite the revenue increase, while the underlying EBITA margin excluding procurement improved to 8.8% from 8.4%, suggesting better quality earnings from core professional services. Statutory net profit after tax and amortization fell 29.6% to $152 million, heavily impacted by the one-time transformation charges, though the company maintained its commitment to shareholders with an interim dividend of 25 cents per share and a $158 million share buyback program. Worley's diversified business model produced divergent results across its three core sectors, with the energy segment emerging as the strongest performer, revenue climbing 8.8% to $3.18 billion driven by major integrated gas and oil projects. The resources segment also delivered robust growth, up 12.3% to $1.80 billion, supported by strong demand for copper, battery materials, and fertilizer projects. However, the chemicals segment faced significant headwinds, with revenue declining 9.0% to $1.33 billion due to regional imbalances, capacity shifts, and global overcapacity in petrochemicals. A standout highlight was the dramatic 63% increase in bookings to $9.8 billion, with sole-sourced wins rising to 48% of total bookings, reflecting growing customer confidence and competitive positioning. Central to Worley's H1 FY26 story is an ambitious transformation program designed to enhance long-term competitiveness and margin profile, with the company targeting over $100 million in annualized savings through multiple initiatives including removing organizational complexity, improving efficiency, and embedding artificial intelligence into workflows. The company outlined an ambitious strategic framework built on three pillars: strengthen, expand, and innovate, positioning for what management calls 'Ambition 2.0'—a next phase of growth extending beyond traditional markets. Approximately 69% of revenue is now sustainability-related, positioning Worley favorably for energy transition and decarbonization trends. Despite near-term margin pressure, Worley reaffirmed its full-year FY26 guidance, expecting higher aggregated revenue growth than FY25 and an underlying EBITA margin within a range of 9.0% to 9.5% on a constant currency basis.