Vysarn Posts Record FY26 Earnings and Secures EPS-Accretive NewGround Acquisition

Record FY26 Earnings Amid Market Challenges

Vysarn Limited (ASX:VYS) delivered a standout FY26 performance, reporting net profit before tax (NPBT) of $20.9 million, a 39% increase on FY25 and surpassing company guidance despite a challenging market environment. Operational revenue surged 32% to $140.1 million, while EBITDA climbed 35% to $28.9 million. The company invested heavily in expanding its fleet, management, and systems, positioning itself for what it anticipates will be a significant step change in scale and earnings growth in coming periods.

NewGround Acquisition Boosts Earnings and Diversifies Revenue

In a strategic move, Vysarn completed the acquisition of NewGround, a Western Australia-based integrated irrigation and infrastructure services provider, for up to $50 million. The deal, comprising $30 million upfront and $20 million deferred over three years contingent on EBIT hurdles, is immediately earnings accretive, adding $52.6 million in revenue and $7.0 million EBIT on a pro forma FY26 basis. This lifts Vysarn’s pro forma FY26 revenue to $192.7 million and pro forma earnings before tax (EBT) to $27.9 million, with EPS accretion calculated at 26.7% excluding synergies or transaction costs.

Segment Growth Reflects Broad Market Demand

All four of Vysarn’s business segments, Industrial, Advisory, Technology, and Asset Management, posted solid growth in FY26. The Industrial segment, underpinning critical groundwater management and dewatering services for Tier-1 iron ore clients in the Pilbara, recorded revenue of $73.9 million, up 22%, and NPBT of $11.5 million, up 47%. This segment benefited from tight supply-demand dynamics and fleet expansion, including a $6.2 million investment in dual rotary rigs to support a new five-year contract with a major client.

The Advisory segment grew revenue 65% to $33.0 million, expanding its national footprint beyond Victoria into Western Australia, Queensland, New South Wales, and New Zealand. This geographical diversification mitigates concentration risk and broadens the client base across government, infrastructure, and resource sectors. Meanwhile, the Technology segment maintained resilient earnings of $6.7 million NPBT despite inflationary pressures on petroleum-based components, with strong second-half project execution and growing cross-sell opportunities.

Kariyarra Water Scheme Advances Toward Regulatory Milestones

Vysarn’s flagship Kariyarra Water Scheme (KWS) project progressed methodically through FY26, with submission of the H3 hydrogeological report supporting the critical Section 5C groundwater abstraction licence application. The company expressed confidence in receiving the licence in the first half of FY27, a key regulatory milestone enabling commercialisation. Concurrently, off-take negotiations with Water Corporation for bulk water supply to Port Hedland are advancing, alongside infrastructure funding discussions. These developments position KWS for a potential seminal year in FY27.

Outlook Underpinned by Organic Growth and Strategic Initiatives

Looking ahead, Vysarn is focused on leveraging its established earnings base, national platform, and balance sheet capacity to drive further organic growth and selective acquisitions. The company anticipates converting its national advisory platform and NewGround acquisition into scalable earnings engines, with NewGround’s $7.5 million Year 1 earnout target providing a solid base. Investment in fleet, particularly within the Industrial segment, and expansion into wastewater treatment and managed aquifer recharge (MAR) services, underpin growth expectations.

Vysarn also plans to capitalise on cross-sell opportunities across its integrated water services platform, while cautiously utilising available debt facilities to fund non-dilutive growth initiatives. The company’s diversified exposure to Tier-1 miners, water authorities, urban developers, and local governments offers a resilient revenue profile amid ongoing infrastructure demand across Australia and New Zealand.