Why is Worley stock tumbling today?

Worley's stock plummeted 10% to A$10.02 on Wednesday following a significant decline in profitability for the fiscal year ending June 2026. The underlying EBITA dropped 10.8% to A$734 million, down from A$823 million in the previous year. This decline was attributed to the ongoing Middle East conflict and currency headwinds, which had a substantial impact on the company's performance.

Despite a broadly flat aggregated revenue of A$12.0 billion, expectations for growth were not met by the market. The main contributors to the decreased profitability were a A$58 million reduction from project deferrals caused by the Middle East conflict and an additional A$50 million loss from foreign exchange translation due to the Australian dollar's strengthening against Worley's key revenue currencies.

In addition to these external challenges, the company incurred A$120 million in transformation and restructuring costs throughout the year, further impacting its earnings. CEO Chris Ashton admitted that while activity in the Americas remained robust, the conflict and subdued regional conditions adversely affected growth in other areas.

However, he projected mid-to-high single-digit increases in both revenue and underlying EBITA for the fiscal year 2027. The stock's decline stands in stark contrast to the broader market trend, with the S&P/ASX 200 up approximately 0.56% to around 9,215 points, making Worley one of the worst performers in the index.