Worley shares tumble after second profit warning in two months
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More news: Shares in Worley tumbled in morning trade after the engineering company flagged its second full-year earnings downgrade in two months.
Shares fell 8.2% to $11.26 at 10:54am AEST.
The earnings downgrade was driven by geopolitical tension in the Middle East that significantly weighed on project commencements, alongside a stronger Australian dollar impacting foreign currency conversions.
Worley flags $60m hit to FY26 earnings on prolonged Middle East conflict
The news: Worley has flagged an adverse impact of up to $60 million to its FY26 underlying EBITDA, representing a significant increase from the $30 million to $40 million hit estimated just two months ago.
The context: The steeper downgrade is primarily driven by the extended duration and ongoing impact of the Middle East conflict, which continues to disrupt its regional projects.
While there have been no project cancellations, the company said customers continue to delay project commencements.
Worley also highlighted that the strengthening of the Australian dollar against foreign currencies in the second half will have an estimated $50 million impact on its full-year underlying EBITDA.
The source: ASX
