Vysarn delivered another year of rapid earnings growth, with revenue rising 31% and net profit after tax climbing 41% to $15.11 million. The bigger test now is whether its $65.3 million capital raise and Welltech acquisition can turn a growing collection of water businesses into a genuinely national platform.
- Revenue increased 31% to $140.06 million
- NPAT rose 41% to $15.11 million
- Industrial and advisory segments drove earnings growth
- Welltech acquisition backed by $65.3 million placement
- Kariyarra Water Scheme targets licence, offtake and funding milestones
Revenue and profit accelerate across the water platform
Vysarn Limited (ASX:VYS) has put another substantial year of growth on the board, reporting operational revenue of $140.06 million for FY2026, up 31.5% from $106.53 million. EBITDA rose 35.6% to $28.91 million, while net profit before tax increased 39.1% to $20.90 million and net profit after tax advanced 41.3% to $15.11 million.
The result confirms the company’s record FY26 earnings were not confined to a single operating niche. Industrial revenue reached $73.90 million and generated $11.51 million of NPBT, while Advisory revenue jumped 65% to $33.02 million and NPBT rose 42.7% to $5.47 million. Technology revenue increased 27.5% to $33.13 million, although its NPBT slipped 5.8% to $6.73 million.
Iron ore contracts remain the earnings engine
Industrial remained Vysarn’s largest and most profitable segment, supported by demand for hydrogeological drilling, test pumping and groundwater management in Western Australia’s iron ore sector. The company said it rebuilt two rigs, acquired two additional dual rotary rigs and secured notice of award for a new five-year contract with a key Tier 1 iron ore customer.
That operating strength sits alongside a deliberate attempt to reduce reliance on Western Australian resources work. CMP Consulting Group expanded its advisory presence into Victoria, New South Wales, Queensland and New Zealand, adding water authority panels and a wider pool of government, infrastructure and urban development opportunities. Vysarn said the national network should also create cross-selling opportunities across wastewater treatment, construction water and sewerage bypass services.
Welltech acquisition moves beyond the reporting period
The most consequential strategic step was taken after 30 June. Vysarn agreed to acquire Welltech, a water and sewerage management business serving civil, utility, government and resources customers, and raised approximately $65.3 million through a fully underwritten placement of about 62.2 million shares at $1.05 each. The proceeds were earmarked for the cash component of the acquisition, transaction costs, the Kariyarra Water Scheme and working capital.
The transaction builds on the company’s Welltech acquisition and placement, which was previously described as potentially earnings accretive on a pro forma basis. Those future benefits are not part of FY2026’s reported numbers. They will instead be tested through integration, delivery of the acquired earnings and the company’s ability to manage a larger workforce, with headcount rising above 400 after Welltech.
Kariyarra scheme reaches a regulatory and commercial crossroads
Vysarn’s joint venture with Kariyarra Aboriginal Corporation progressed the Kariyarra Water Scheme by lodging a hydrogeological assessment supporting an application for a Section 5C groundwater licence of up to 10 gigalitres a year. The venture was also shortlisted for the next stage of Water Corporation’s process to identify a bulk water source for Port Hedland, an advance previously reported in its Port Hedland water proposal.
The scheme remains a development opportunity rather than an operating asset. Vysarn is targeting an undertaking on the licence, a binding offtake agreement or option, and in-principle infrastructure funding by the end of calendar 2026. Environmental, land tenure and other regulatory approvals are still required, while the market sounding produced non-binding expressions of interest rather than contracted demand.
Cash conversion softens and NewGround deal falls away
Operational cash flow declined 13.1% to $14.92 million despite the higher profit. Vysarn attributed the weaker conversion to increased tax instalments, unpaid amounts from Tier 1 debtors that were collected in July, and late-June work-in-progress on major technology projects. Trade receivables rose to $31.68 million from $21.76 million, making cash collection an important part of the next year’s execution story.
The proposed NewGround acquisition was terminated on 14 September after the parties agreed not to extend the completion date. That matters because one section of the Directors’ Report still says the group would likely complete the Welltech and NewGround transactions in the first half of FY2027, an apparent inconsistency with the later termination disclosure. The audited accounts report $12.13 million of cash at 30 June, while the chairman’s and managing director’s reports cite approximately $12.96 million, another figure that warrants clarification.
Bottom Line?
FY2026 shows strong operating momentum, but FY2027 will have to prove that Welltech integration, cash conversion and the Kariyarra approvals can keep pace with Vysarn’s acquisition strategy.
Questions in the middle?
- How quickly will Welltech contribute to reported earnings after completion and integration?
- Will Vysarn secure the Kariyarra Water Scheme licence, a binding offtake arrangement and infrastructure funding by year-end?
- Can stronger receivables collection and project completions restore operational cash conversion while the group expands?