Water Supply Crunch in Pilbara: Can Vysarn’s Kariyarra Scheme Deliver?

Record Financial Performance and Growth Ambitions

Vysarn Limited (ASX – VYS) has delivered a standout FY25 financial performance, posting a record net profit before tax (NPBT) of $15.0 million, marking a 36% increase over the previous year. This momentum is set to continue into FY26, with management targeting a further 33% rise in NPBT to $20.0 million. The company’s growth is underpinned by strong organic earnings across its four operating segments – Industrial, Technology, Advisory, and Asset Management.

Key to this growth trajectory has been Vysarn’s strategic acquisitions of CMP Consulting Group and Waste Water Services, which have expanded its national footprint and diversified its service capabilities. These acquisitions contributed significantly to FY25 earnings and are expected to drive further gains in FY26, particularly with CMP’s east coast expansion and Waste Water Services’ integration exceeding initial targets.

Expanding National Reach and Sector Diversification

Vysarn has successfully established offices across Western Australia, Victoria, Queensland, and New Zealand, positioning itself to capitalize on a $38 billion infrastructure boom on Australia’s east coast. The Advisory segment, bolstered by CMP Consulting, is building a robust project pipeline with new regional leadership appointments in Queensland and New South Wales, including a Brisbane office launch planned for the second half of FY26.

The Industrial segment continues to benefit from strong demand in the Pilbara mining region, with tier-1 clients driving sustained rig utilisation and incremental rate improvements. Vysarn is expanding its fleet and targeting double-shift operations to meet growing water extraction and management needs, critical for accessing ore deposits below the water table.

Kariyarra Water Scheme – A Strategic Asset for Pilbara Water Supply

One of Vysarn’s flagship projects, the Kariyarra Water Scheme (KWS), is progressing steadily with the completion of phase 1 drilling and testing, revealing promising geology and high-quality water resources. The company plans to lodge a comprehensive hydrogeological assessment with the Department of Water and Environmental Regulation by late 2025, a key step toward securing a 5C groundwater licence for up to 10 gigalitres per year.

Vysarn’s partnership with the Kariyarra Aboriginal Corporation is a landmark 50/50 joint venture, aiming to deliver socially and economically beneficial water infrastructure for the Port Hedland region. With existing water supplies at capacity and government infrastructure expansions delayed until the 2030s, the KWS is positioned as a near-term solution to meet escalating industrial and municipal water demand in the Pilbara.

Technology Segment and Market Outlook

The Technology segment anticipates a material earnings skew toward the second half of FY26, driven by major projects in managed aquifer recharge and wastewater treatment. Vysarn is targeting recurring revenue streams through wastewater plant rentals and build-own-operate-maintain (BOOM) contracts, leveraging its R&D-developed water abstraction units. The company’s dominant position in aquifer storage and recovery technologies aligns with increasing environmental regulations and industry demand for sustainable water management solutions.

Overall, Vysarn’s FY26 outlook is positive, with strong earnings momentum sustained across segments, an expanding national footprint, and strategic initiatives that align with critical water infrastructure needs in resource-rich regions. The company’s focus on innovation, sustainability, and partnerships positions it well to navigate regulatory complexities and capitalize on market opportunities.