Worley shares tumble on 1H profit drop as restructuring costs surge to $82m
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The news: Worley shares lowered in morning trade after the engineering group reported a 30% drop in first-half statutory profit to $152 million.
The numbers: Shares were down 4.2% to $12.49 at 11am AEDT, taking 12-month losses to 19.2%.
Worley’s underlying earnings bet interest and tax remained steady year on year at $377 million, excluding $82 million in pre-tax costs related to transformation and business restructuring.
The context: Worley CEO Chris Ashton said the $82 million in costs was primarily due to a restructuring of operations in Western Europe, where the group has seen high costs due to local labour protections.
The company expects further costs incurred in the second half of FY26 relating to the same initiatives, but they are anticipated to be lower than in the first-half period.
The restructuring initiatives are expected to result in more than $100 million in annualised cost savings from FY27 onwards.
The source: ASX
