Worley Ltd (ASX: WOR) shares are tumbling on Thursday after the engineering services group released a disappointing update.

At the time of writing, the Worley share price is down a sizeable 9.13% to $11.15. By comparison, the S&P/ASX 200 Index (ASX: XJO) is currently down 0.38% to 8,775 points.

That leaves the ASX industrial stock down around 11% over the past month and 15% lower than this time last year.

The latest update clearly hasn’t landed well with investors, with the company pointing to a larger-than-expected hit to FY26 earnings.

Let’s take a closer look at what was announced.

Worley warns on earnings

According to the release, Worley now expects the adverse impact on FY26 underlying EBITA to be up to $60 million.

Back in April, the company thought the impact would be closer to $30 million to $40 million.

Worley said the extended duration and ongoing impact of the Middle East conflict continue to disrupt the progress of existing projects.

No projects have been cancelled, which is at least some good news. But customers are still pushing back the start of new work and delaying project awards.

Worley noted that recent developments in the region have been positive, including talks around ending the conflict and reopening the Strait of Hormuz.

However, the uncertainty around contract timing still appears to be making investors nervous today.

Currency adds another headwind

In addition to the disappointing update, Worley said the stronger Australian dollar in the second half of FY26 is expected to create another headwind.

Management estimates this will have an impact of about $50 million on FY26 reported underlying EBITA.

That adds another challenge at a time when the company is already dealing with project delays in the Middle East.

For context, Worley reported FY25 underlying EBITA of $823 million.

Full-year result now in focus

The next big test will be Worley’s full-year result on 26 August.

Even after today’s fall, Worley still has a market capitalisation of around $5.9 billion.

That’s not a small business, but the latest update has clearly taken the shine off it.

The result should give the market a better look at how much work has simply been pushed back, and whether margins are being squeezed as well.

Investors will also be watching for any signs that customer activity is starting to improve in the affected regions.

Until then, the stock could remain under close watch. I’d be inclined to sit on the sidelines for now.

The post Worley shares crash 9% as Middle East earnings hit gets worse appeared first on The Motley Fool Australia.

More reading

• Worley flags FY26 earnings hit from Middle East delays and currency impact
• Bell Potter names the best ASX 200 shares to buy in June

Motley Fool contributor Aaron Teboneras 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.

In afternoon trade, the S&P/ASX 200 Index (ASX: XJO) is on course to record a decline. At the time of writing, the benchmark index is down 0.35% to 8,776.8 points.

Four ASX shares that are not letting that hold them back are listed below. Here’s why they are rising:

A2 Milk Company Ltd (ASX: A2M)

The A2 Milk share price is up 4% to $7.12. This follows news that the infant formula company is rewarding shareholders with a NZ$300 million special dividend. The company estimates this will equate to 41.36 New Zealand cents per share (33.9 Australian cents per share). Based on its last close price of $6.85, this represented a dividend yield of just under 5%. A2 Milk’s chair, Pip Greenwood, said: “With the necessary China regulatory approvals now in place, the Board is pleased to declare a $300 million special dividend. This reflects our commitment to delivering shareholder returns while maintaining disciplined capital management.”

EchoIQ Ltd (ASX: EIQ)

The EchoIQ share price is up 33% to $1.65. Investors have been bidding the medical technology company’s shares higher after Pro Medicus Ltd (ASX: PME) made an investment. Pro Medicus’ CEO, Dr Sam Hupert, said: “In addition to providing financial backing, we are looking to offer our Visage 7 Cardiology customers the option of Echo IQ’s technology. This is in line with our AI strategy of offering a curated suite of algorithms that will be a mixture of algorithms created by us, those created in conjunction with our clinical partners and 3rd party algorithms such as Echo-IQ.”

Lendlease Group (ASX: LLC)

The Lendlease share price is up 5% to $3.06. This has been driven by the announcement of a major divestment. Lendlease will divest its remaining 25.1% interest in the Keyton Retirement Living Trust to existing co-investor, Aware Super, for a consideration of $525 million. It advised that net proceeds will be used to reduce group debt. Management notes that this transaction brings the total of announced and completed capital recycling initiatives from the Capital Release Unit (CRU) to $3.4 billion.

Qantas Airways Ltd (ASX: QAN)

The Qantas Airways share price is up 4% to $10.73. This may have been driven by a pullback in oil prices overnight. As fuel is the airline operator’s largest cost, any reduction in oil prices is good news for margins. Qantas shares are now up almost 20% over the past two weeks.

The post Why A2 Milk, EchoIQ, Lendlease, and Qantas shares are racing higher today appeared first on The Motley Fool Australia.

More reading

• Why is everyone talking about Mineral Resources, A2 Milk and Pro Medicus shares on Thursday?
• A deal with Pro Medicus has turned this ASX biotech into a 10-bagger, up more than 30% today
• Lendlease offloads Keyton stake in $525m deal
• A2 Milk shares jump amid $300 million special dividend
• Pro Medicus shares jump again as AI deal adds fuel to 40% rally

Motley Fool contributor James Mickleboro has positions in Pro Medicus. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has recommended Pro Medicus. The Motley Fool Australia has recommended Pro Medicus. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

DroneShield Ltd (ASX: DRO) shares are falling again in Thursday’s trade. 

At the time of writing, the counter-drone technology company’s shares are down around 1% and trading at $2.52 each.

Today’s decrease is just one of many in a long line of consecutive share price falls. 

DroneShield shares are down 24% year to date and 62% from an all-time high recorded in October last year.

What has happened to the share price?

There has been a significant shift in sentiment around DroneShield shares recently.

After a strong start to the year, when governments around the world hiked their defence budgets, and geopolitical volatility worsened, investors seem to have turned their backs on the stock.

There is now some concern that the company’s future growth may not be large enough to justify its share price. 

Even a flurry of contract wins hasn’t been enough to convince investors. 

At the same time, a combination of recent governance and regulatory issues and the cooling of conflict in the Middle East has dragged DroneShield’s shares down further.

The stock climbed higher during the first week of May, but then turned again after the company announced that the Australian Securities and Investments Commission (ASIC) had requested DroneShield to provide reasonable assistance in connection with an investigation under the Corporations Act. The investigation relates to market announcements and share trading in November 2025. 

All this has happened amid a background of signs of easing conflict in the Middle East. While heightened conflict can increase interest in defence technology, particularly counter-drone systems, signs of easing will do the opposite.

So, is it time to buy in the dip or has the market now lost interest in DroneShield shares? 

Here’s what the experts think.

Is it time to invest in DroneShield shares? Or should I look elsewhere?

If analyst forecasts are anything to go by, I wouldn’t jump at buying $5,000 of DroneShield shares just yet.

TradingView data shows that analysts are sharply divided in their outlook for the counter-drone technology stock over the next 12 months, though they mostly agree there will be some upside ahead.

Out of four analysts, two have a strong buy rating, and two have a sell or strong sell rating.

The average $3.41 target price still implies a potential 35% upside at the time of writing. The maximum $4.80 target price implies that DroneShield shares could jump another 91%, while some are even more bearish, tipping the shares to fall around 9% to $2.28.

Canaccord Genuity is one analyst with a more bullish view on the shares. It renewed its buy rating on Droneshield shares earlier this month, with a 12-month price target of $3.75.

The post Should I invest $5,000 in DroneShield shares before the end of June? appeared first on The Motley Fool Australia.

More reading

• Own DroneShield shares? Here’s some news you might have missed
• DroneShield shares lifting off on Monday amid big leadership news
• Here are the 10 most shorted ASX shares
• 8 ASX shares with 30% to 220% upside ahead: Experts
• Own DroneShield shares? Here’s some big news

Motley Fool contributor Samantha Menzies 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.