Australian engineering leader Worley Limited has warned that escalating disruption from the conflict in the Middle East is weighing on its earnings outlook, even as it continues to keep projects running and support customers across the region.
The engineering and professional services company said it is actively monitoring developments and prioritising staff safety while maintaining operations through contingency measures and global delivery networks.
Worley said: “The safety and wellbeing of our people remain our highest priority. Worley continues to implement established security, risk management and business continuity protocols to support our people and our customers in the region.”
Despite the turbulence, the company confirmed that: “There have been no project cancellations to date. Worley has been working closely with our customers to ensure that projects continue to progress, with remote and flexible working arrangements in place where appropriate, and continued services provided by Worley’s Global Integrated Delivery centers in India and other Worley offices outside the Middle East.”
However, the conflict is increasingly disrupting execution on the ground. Worley said delays are emerging where operations have been affected by safety concerns and strained logistics.
“Where work for our customers has been disrupted, including for safety reasons or supply chain and transportation challenges, project timelines have been delayed, and we continue to minimize the impact of such delays where we can. Customers are delaying commencement and award of new projects.”
At the same time, the company is also being pulled into recovery efforts across the region.
“Worley has been asked to support customers with restoration of assets and strategic projects linked to the conflict, to ensure business continuity and support repair and rebuild efforts.”
The company cautioned that the longer the conflict continues, the more pressure it will place on project timing and new awards, both in the Middle East and across supporting global delivery hubs.
Financially, Worley estimates the conflict will reduce FY26 underlying EBITA by between $30 million and $40 million.
It also delivered a sharper warning on its broader earnings trajectory, stating: “it is now unlikely Worley will achieve growth in underlying EBITA in FY26.”
Even so, the company maintained its margin guidance and revenue growth expectations, saying:
“However, we continue to expect the underlying EBITA margin (excluding procurement) to be within a range of 9.0-9.5% and we continue to target higher growth in aggregated revenue than FY25.”
Worley added that final outcomes remain uncertain, depending on how the conflict evolves, including supply chain stability, contract timing, and recovery speed.
