Worley Limited’s half-year results to December 2025 reveal a modest decline in statutory profit and revenue, offset by steady underlying earnings and a consistent interim dividend. The company’s ongoing transformation and legal contingencies add layers of complexity to its outlook.
- Statutory revenue down 1% to $5.527 billion
- Statutory profit after tax falls 35% to $119 million
- Underlying profit after tax slightly decreases to $174 million
- Aggregated revenue rises 5% to $6.312 billion
- Interim dividend maintained at 25 cents per share, unfranked
Half-Year Financial Overview
Worley Limited has reported its interim financial results for the six months ending 31 December 2025, marking a period of mixed performance amid ongoing strategic shifts. Statutory revenue edged down by 1% to $5.527 billion, while statutory profit after tax experienced a sharper decline of 35%, settling at $119 million. This contrasts with a more resilient underlying profit after tax of $174 million, which only dipped 5% compared to the prior corresponding period.
The company’s aggregated revenue, a broader measure that includes share of associates’ revenue and excludes certain procurement revenues, increased by 5% to $6.312 billion. This divergence between statutory and aggregated figures highlights the nuanced financial landscape Worley is navigating, particularly in relation to procurement activities and restructuring costs.
Strategic Restructuring and Operational Highlights
During the half, Worley undertook an internal organisational restructure designed to better align its operations with strategic priorities, particularly its sustainability pathways focused on decarbonisation, resource stewardship, asset sustainability, and environmental and societal impact. While this restructure did not alter the fundamental nature of its business segments, it reflects the company’s commitment to evolving its service offerings in energy, chemicals, and resources sectors.
Transformation and business restructuring costs were excluded from the underlying results, underscoring management’s view that these are one-off expenses not indicative of ongoing operational performance. The company also recognised a modest gain of $3 million from the sale of a subsidiary, signaling active portfolio management.
Segment and Regional Performance
Segment analysis reveals varied margins across regions and sectors. The Energy sector remains the largest contributor to aggregated revenue, with a segment EBITA margin of 7.8%. Regional margins ranged from 6.5% in the Americas to 8.9% in APAC, reflecting differing market dynamics and project mixes. Procurement revenue at margin, a key value-added service, contributed significantly to overall revenue but is excluded from certain margin calculations to provide clearer insight into core operational profitability.
Balance Sheet and Capital Management
Worley maintains a robust balance sheet with net assets of $5.351 billion and cash and cash equivalents of $835 million. The company continued its on-market share buyback program, repurchasing and cancelling 11.5 million shares at a cost of $158 million during the period. This capital management initiative, alongside the declaration of an interim unfranked dividend of 25 cents per share, unchanged from the prior period, signals confidence in the company’s financial position despite profit pressures.
Legal and Regulatory Considerations
Worley disclosed ongoing legal claims in Ecuador related to legacy contracts, with a total exposure of $195 million still outstanding. Management assesses the probability of cash outflow as remote but continues to actively defend these claims. Additionally, the company faces various contingent liabilities typical of its industry, including environmental and commercial disputes, which are being managed with legal counsel. These factors add an element of uncertainty to the company’s risk profile.
Looking Ahead
While Worley’s half-year results reflect some headwinds, particularly in statutory profit, the underlying earnings stability, strategic realignment, and disciplined capital management provide a foundation for navigating the evolving energy and resources landscape. Investors will be watching closely how the company balances growth opportunities with ongoing legal and restructuring challenges.
Bottom Line?
Worley’s interim results underscore a company in transition, steady beneath the surface but facing legal and restructuring headwinds that will shape its next chapter.
Questions in the middle?
- How will Worley’s organisational restructure impact future profitability and operational efficiency?
- What is the potential financial impact if the legal claims in Ecuador escalate beyond current expectations?
- Will the company maintain its current dividend policy amid profit pressures and ongoing share buybacks?