• Worley FY26 earnings: profit down, pipeline up

    Young worried man looking at phone.

    The Worley Ltd (ASX: WOR) share price is in focus today after the engineering services company reported a statutory NPATA of $306 million for FY26, with aggregated revenue largely unchanged at $12.0 billion.

    What did Worley report?

    • Aggregated revenue of $12,023 million, stable on the prior corresponding period
    • Underlying EBITA fell 10.8% to $734 million
    • Underlying NPATA down 16.8% to $395 million; statutory NPATA down 35.6% to $306 million
    • Final unfranked dividend of 25 cents per share declared
    • $500 million share buyback completed; additional $24 million spent on new buyback
    • Bookings rose 23% to $15.5 billion; backlog increased 9% to $13.8 billion

    What else do investors need to know?

    Worley’s FY26 underlying earnings were impacted by ongoing conflict in the Middle East and foreign currency movements, as well as $120 million in transformation and restructuring costs. Revenue growth remained strongest in the Americas, while challenges in Europe and the Middle East held back some regions.

    The group continues to deliver cost savings, achieving $132 million in cost-out initiatives, which surpassed their target. Strong project wins were recorded across energy, resources, and key growth areas such as energy transition materials. Sole-sourced wins made up 44% of bookings, reflecting customer confidence in Worley’s capabilities.

    What did Worley management say?

    Commenting on the results, Worley’s CEO, Chris Ashton, said:

    While activity levels remained strong in some parts of the business, particularly in the Americas; the Middle East conflict, and softer market conditions have affected growth in other regions. Notwithstanding this, solid demand drivers in the markets where we operate, together with our growing pipeline, strong customer relationships and disciplined focus on delivery, continue to underpin growth and we expect mid to high single-digit growth in both aggregated revenue and underlying EBITA in FY27.

    What’s next for Worley?

    Looking ahead, Worley is optimistic about continuing growth, with management guiding for mid to high single-digit increases in both aggregated revenue and underlying EBITA in FY27. The company expects stronger activity in the second half, especially as delayed Middle East projects progress.

    Worley is focused on expanding project delivery capability, investing in AI and digital platforms, and targeting high-growth sectors including integrated gas and energy transition materials. Strategic partnerships and further investment are planned to build scale in markets such as power, data centres and critical infrastructure.

    Worley share price snapshot

    The Worley share price has underperformed the S&P/ASX 200 index (ASX: XJO) over the past 12 months with a decline of around 12%.

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    Motley Fool contributor James Mickleboro has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips. This article was prepared with the assistance of Large Language Model (LLM) tools for the initial summary of the company announcement. Any content assisted by AI is subject to our robust human-in-the-loop quality control framework, involving thorough review, substantial editing, and fact-checking by our experienced writers and editors holding appropriate credentials. The Motley Fool Australia stands behind the work of our editorial team and takes ultimate responsibility for the content published by The Motley Fool Australia.

  • DroneShield share price in focus as record revenue meets interim loss

    Two work colleagues looking at a laptop and discussing something.

    The DroneShield Ltd (ASX: DRO) share price is in focus after the company posted record interim revenue of $125.8 million, up 74% on the prior corresponding period, though it reported a statutory after-tax loss of $32.2 million.

    What did DroneShield report?

    • Revenue jumped 74% to $125.8 million (1H 2025: $72.3 million).
    • Recurring revenue increased 229% to $11.5 million (1H 2025: $3.5 million).
    • Statutory net loss after tax of $32.2 million, versus a $2.1 million profit a year earlier.
    • Underlying EBITDA loss of $12.4 million (1H 2025: $8.0 million profit).
    • Net tangible assets per share: $0.28 (31 December 2025: $0.33).
    • No interim dividend declared.

    What else do investors need to know?

    The interim period saw DroneShield expand both its product range and geographic footprint, with over half of its revenue coming from Europe and the UK. The company completed its new Sydney production facility and launched European operations, underpinning its growth strategy.

    Higher operating costs followed increased staff numbers and strategic investments in software and next-generation hardware, contributing to the reported loss. Cash and term deposits at 30 June stood at $180 million, while inventory was built up to support upcoming product launches.

    Significant governance changes occurred during the half-year, including a new CEO, Angus Bean, after Oleg Vornik’s departure, and the appointment of Hamish McLennan as Chairman.

    What’s next for DroneShield?

    Looking ahead, DroneShield is preparing to launch new AI-enabled hardware and software solutions, aiming to grow its subscription and recurring revenue streams. The company is focused on production scale-up, ongoing research and development, and capitalising on increased demand for counter-drone solutions globally.

    Management expects that strategic partnerships and regional expansion, particularly in high-demand regions like Europe and the US, will continue to play a pivotal role in future growth.

    DroneShield share price snapshot

    The DroneShield share price has been sold off over the past 12 months and is down 45% over the past 12 months. This compares to a modest gain by the S&P/ASX 200 index (ASX: XJO).

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    Motley Fool investing expert Scott Phillips just revealed what he believes are the 5 best stocks for investors to buy right now… and DroneShield wasn’t one of them.

    The online investing service he’s run for over a decade, Motley Fool Share Advisor, has provided thousands of paying members with stock picks that have doubled, tripled or even more.*

    And right now, Scott thinks there are 5 stocks that may be better buys…

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    Motley Fool contributor James Mickleboro has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has positions in and has recommended DroneShield. The Motley Fool Australia has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips. This article was prepared with the assistance of Large Language Model (LLM) tools for the initial summary of the company announcement. Any content assisted by AI is subject to our robust human-in-the-loop quality control framework, involving thorough review, substantial editing, and fact-checking by our experienced writers and editors holding appropriate credentials. The Motley Fool Australia stands behind the work of our editorial team and takes ultimate responsibility for the content published by The Motley Fool Australia.

  • The Koala Company jumps to profit in FY26: Earnings highlight strong growth

    two people hold a sheet above their head while making a bed in a room featuring homewares.

    The Koala Company Ltd (ASX: KOA) share price will be in focus after the company delivered a $24.6 million net profit for FY26, swinging strongly back to profitability, on revenue up 20.1% to $332.3 million.

    What did The Koala Company report?

    • Revenue rose 20.1% to $332.3 million (up 24.4% in constant currency)
    • Net profit after tax (NPAT) improved from a $4.6 million loss to $24.6 million profit
    • Pro forma EBITDA rose 139% to $27.9 million at an 8.4% margin, beating IPO Prospectus targets
    • Group ended the year debt-free, holding $71.2 million in net cash
    • Gross margin expanded to a record 65.3% (+2.9 percentage points over FY25)
    • No dividends declared for FY26

    What else do investors need to know?

    FY26 was Koala’s first reporting period as an ASX-listed company following its March 2026 debut. The business delivered results ahead of Prospectus forecasts, driven by double-digit growth across all core geographies—Australia, Japan, and the US. Koala also entered the UK, marking its fourth market, using its capital-light global expansion model.

    During the year, the company deepened its focus on product innovation, highlighted by launches such as the Torquay and Tamarama modular sofas, and upgraded best-sellers like the Koala Sofa Bed. Strong gross and contribution margin growth reflected disciplined cost control and stable marketing ratios. Koala also accelerated its supplier diversification program to strengthen supply chain resilience.

    What did The Koala Company management say?

    Co-Founder and CEO Dany Milham said:

    We have built a repeatable model that enables us to create category-winning products, strengthen our brand equity, scale efficiently across global markets and generate the cash required to fund future growth. To our shareholders, thank you for backing us. To our customers, thank you for choosing Koala. And to our people, suppliers and partners, thank you for continuing to build alongside us.

    What’s next for The Koala Company?

    Koala expects to deliver further growth in sales and profits over the coming years by expanding ranges, driving innovation, and growing in both existing and new markets. Immediate priorities include strengthening its core product lineup, launching new bedroom and sitting furniture, entering Canada and priority European markets, and boosting brand equity. The company also plans to expand its physical retail footprint and deliver its first stand-alone sustainability report in FY27 in line with new climate reporting standards.

    Koala remains focused on scaling its direct-to-consumer and product innovation model, aiming to further expand market share outside Australia.

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    The post The Koala Company jumps to profit in FY26: Earnings highlight strong growth appeared first on The Motley Fool Australia.

    Should you invest $1,000 in Koala right now?

    Before you buy Koala shares, consider this:

    Motley Fool investing expert Scott Phillips just revealed what he believes are the 5 best stocks for investors to buy right now… and Koala wasn’t one of them.

    The online investing service he’s run for over a decade, Motley Fool Share Advisor, has provided thousands of paying members with stock picks that have doubled, tripled or even more.*

    And right now, Scott thinks there are 5 stocks that may be better buys…

    * Returns as of 1 August 2026

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    Motley Fool contributor Laura Stewart has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips. This article was prepared with the assistance of Large Language Model (LLM) tools for the initial summary of the company announcement. Any content assisted by AI is subject to our robust human-in-the-loop quality control framework, involving thorough review, substantial editing, and fact-checking by our experienced writers and editors holding appropriate credentials. The Motley Fool Australia stands behind the work of our editorial team and takes ultimate responsibility for the content published by The Motley Fool Australia.