Vysarn Limited

Vysarn Limited is a Perth-headquartered, vertically integrated water services and infrastructure group that has transformed since its 2019 relisting from a single-asset hydrogeological drilling contractor into a multi-disciplinary "end-to-end" water platform spanning advisory (groundwater consulting and water-infrastructure engineering), industrial (dual-rotary water-well drilling, dewatering, test pumping and injection testing), technology (patented managed aquifer recharge systems and modular wastewater treatment plants) and, from September 2026, construction water supply and sewerage bypass via Welltech. Its earnings remain anchored to non-discretionary groundwater management for Tier 1 Pilbara iron ore producers, but acquisitions of CMP (Victoria) and Welltech, plus new offices in NSW, Queensland and New Zealand, are deliberately diversifying it toward utilities, government and urban development. Option value sits in the Kariyarra Water Scheme, a 50/50 Indigenous joint venture seeking a 10 GL/yr groundwater licence to supply Port Hedland. FY2026 delivered record revenue of A$140.1m and NPAT of A$15.1m with a net cash balance sheet.

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Company's own description (latest annual report)

In its FY2025 Annual Report (the latest full annual report; the FY2026 Annual Report is scheduled for 27 Oct 2026), Vysarn describes itself as an integrated, multi-disciplined water solutions provider that turns complex water and environmental challenges into opportunities and assets through expertise in water management, environmental planning and engineering. Its stated vision is to become Australia's leading water infrastructure and services provider. The FY2026 Directors' Report describes the group as an integrated "end-to-end" water solutions provider serving the entire water project lifecycle, and states its principal activities as hydrogeological drilling, test pumping, reinjection water services, water consultancy and wastewater businesses, with the aim of becoming a significant provider of production-critical water services and infrastructure solutions to industry in Australia.

Independent characterisation

Vysarn is best understood as a mid-cap, acquisitive water services roll-up with three distinct economic engines:

1. A capital-intensive contracting engine (Industrial, 53% of FY2026 revenue) — a specialised dual-rotary and dual-tube flooded reverse circulation drilling fleet (12 rigs at FY2025, reshaped in FY2026) that drills production, monitoring and injection bores for mine dewatering in the Pilbara. Demand is driven by iron ore miners needing to lower water tables to access ore below them; the company characterises this as non-discretionary for ongoing production. Pricing is per metre drilled / per hour, with dry-hire and mobilisation revenue.

2. An engineered-product and project engine (Technology, 24%) — Project Engineering (ProEng) designs and fabricates patented MAR injection units and valve technology that reinject surplus mine water into aquifers; Waste Water Services (WWS) designs, builds, rents and operates modular wastewater treatment plants and pump stations for mine camps and regional utilities. Revenue is recognised per unit delivered or percentage-of-completion; there is an emerging rental and Build-Own-Operate-Maintain (BOOM) annuity stream.

3. A capital-light professional services engine (Advisory, 24%) — Pentium Water (hydrogeology, surface water, urban water and mine water consulting in WA) and CMP Consulting Group (one of Australia's largest water-only engineering consultancies, dominant in Victorian water authority work, now expanding into NSW/Sydney Water, WA, QLD and NZ). Revenue is time-and-materials or deliverable-based.

Plus a fourth, pre-revenue asset-ownership option (Asset Management): Vysarn Asset Management (VAM), a 50/50 JV with the Kariyarra Aboriginal Corporation RNTBC to develop, own and toll a bulk groundwater supply in the Pilbara.

From September 2026, Welltech adds a fifth capability — asset-backed construction water supply (storage and pump hire), wastewater/sewerage bypass and network services, and drilling — servicing civil contractors, utilities, government and resources clients (named clients include Melbourne Water, BHP, Rio Tinto, Water Corporation and John Holland).

Revenue model mix (FY2026 Financial Report, Note 4)

Characterisation: approximately 86% of FY2026 revenue was recognised over time (service/project), ~14% at a point in time (goods). Subscription or licensing revenue is nil. Recurring/annuity-style revenue (rental, BOOM, framework panels) is a stated strategic objective but is not separately quantified.

Value chain position and customers

Vysarn positions itself across every stage of the water vertical: investigation and approvals (Pentium Water, CMP), abstraction (Pentium Hydro drilling, Pentium Test Pumping), conveyance and construction water (Welltech), treatment (WWS), reinjection/disposal (ProEng MAR, PTP injection testing) and ownership/supply (VAM). Customer types: Tier 1 iron ore and resources companies (dominant), state water utilities and authorities (Victoria's metropolitan and regional water authorities, Sydney Water, Water Corporation WA), local government, urban land developers, civil contractors and agriculture. End-markets: resources, utilities, government, infrastructure/civil construction, urban development and agriculture.

Stated strategy (paraphrased themes from the FY2025 Annual Report, FY2026 Results Commentary and investor presentations)

1. Vision: become Australia's leading water infrastructure and services provider.

2. Vertical integration: methodically build an end-to-end water service capability spanning investigation, abstraction, treatment, reinjection, conveyance and ownership.

3. Diversification: shift from a WA- and resources-centric company to a national, multi-sector group with east coast presence, and defend against concentrated market, sector and service risk.

4. Disciplined M&A: acquire value-accretive, scalable, capital-light businesses at low multiples. Recent multiples paid: WWS 3.27x EV/EBITDA, CMP 4.6x, Welltech 3.6x upfront and 4.3x including deferred consideration.

5. Cross-sell: use CMP's east coast brand and panel access to sell WWS, MAR and Welltech services into municipal and urban markets.

6. Recurring revenue: grow the share of long-term recurring group revenue (rental, BOOM, framework panels, water tolling).

7. Water ownership: own and develop groundwater resources for supply in regional WA (Kariyarra Water Scheme).

8. Capital allocation: strict focus on capital allocation, building scale through diversification and long-term sustainable value.

Strategic initiatives — last 24 months

Sustainability/ESG commitments

No quantified emissions or ESG targets have been publicly disclosed. Stated commitments include an ISO 45001-certified health and safety management system, an ISO 31000-aligned enterprise risk framework, and the Kariyarra partnership as an Indigenous economic participation model.

Cost programmes

None announced. Corporate overheads were held broadly flat (FY2025 corporate cost +3.6%, including A$0.43m one-off acquisition costs).

Management targets and guidance

Industrial segment

Pentium Hydro — hydrogeological drilling and dewatering. Founded by Sheldon Burt and acquired 28 Aug 2019. Pentium Hydro is the group's foundation asset. It drills water-supply, dewatering, monitoring and injection bores, primarily for Tier 1 Pilbara iron ore producers.

• Fleet: 12 drill rigs at FY2025, with a peak of 15 shifts from 11 rigs in 2HFY2025 (FY2025 AR). In FY2026, management withdrew two rigs for full rebuilds to a client's specifications, acquired two additional dual rotary rigs (one deployed late FY2026, the second being transported from an international jurisdiction for deployment in 2HFY2027) and divested the last non-core conventional rig. The fleet is now concentrated in dual rotary and dual-tube flooded reverse drilling techniques, which management describes as its competitive moat.

• Contracting: notice of award of a new five-year contract with a key Tier 1 iron ore client late in FY2026, expected to employ multiple rigs with double-shifting potential. The fleet is now rotated across "some of Australia's leading resource companies", reducing single-client concentration (FY2026 commentary).

• Target customer: Tier 1 iron ore miners (individual names not disclosed by Vysarn).

• Pricing: per metre drilled / hours worked, plus dry hire and mobilisation/demobilisation.

Pentium Test Pumping (PTP) — aquifer testing and injection testing. Acquired in FY2022 (formerly Australian Groundwater Solutions Pty Ltd t/a Yield Test Pumping). PTP provides constant-rate and step-rate pump testing to characterise aquifers, and since FY2024 injection testing using a unit incorporating ProEng technology. A major injection testing program for a new iron ore client drove 2HFY2025 performance (FY2025 AR). Pricing: unit-of-production rates (activity completed or hours worked).

Technology segment

Project Engineering (ProEng) — managed aquifer recharge (MAR) systems. Acquired Sep/Oct 2022 for A$2.6m. ProEng designs, builds and installs MAR systems that inject surplus mine dewatering water back into aquifers.

• Intellectual property: registered and patented MAR equipment and valve technology developed through significant in-house R&D (company statement at acquisition).

• Scale (secondary source citing company website): more than 400 MAR injection units supplied to WA mining; systems capable of injecting up to 180 GL of water a year across clients, handling salinity from fresh to hypersaline and water temperatures from ambient to 65°C.

• Pipeline products: an expanded offering in water abstraction, downhole monitoring and the installation, operation and maintenance of company-provided equipment, with first sales targeted in FY2027 (FY2026 commentary).

• Target customer: Tier 1 Pilbara iron ore producers, which management says increasingly position MAR as the preferred long-term method of disposing of surplus groundwater; alternative domestic and international markets are being pursued.

• Pricing: per MAR unit delivered or hours worked.

Waste Water Services (WWS) — wastewater treatment. Acquired effective 1 Sep 2024 for A$7.5m cash; WWS generated A$12.1m revenue and A$1.7m NPAT in FY2024 (Euroz Hartleys note via MT Newswires). WWS designs, constructs and operates custom modular wastewater treatment plants, with a treatment solution refined over about twenty years.

• Products and services (company acquisition materials as summarised by secondary sources): industrial waste systems; sewage treatment plants; potable water systems; industrial and agricultural dosing systems; temporary sewage and potable water plants for short- and long-term hire; supply of water and sewage treatment chemicals; pumping stations.

• Commercial models: turnkey plant sale; rental plants; BOOM (Build-Own-Operate-Maintain) with recurring revenue. Management explicitly balances higher-margin outright sales against capital-intensive but recurring rental/BOOM (FY2025 AR).

• Target customers: Tier 1 mining camps (capital replacement cycle, new mine commissioning), regional utilities, and — targeted — east coast councils, developers and water authorities lacking upfront funding.

Advisory segment

Pentium Water — water and environmental consultancy. Organically established in FY2022. Services span groundwater, surface water, environmental planning and management, water resource engineering, urban water, mine water management, mine closure and environmental monitoring. Pentium Water prepared the Kariyarra H3 hydrogeological report. FY2025: mining demand paused in 1H then returned in 2H; urban advisory demand in WA exceeded capacity (FY2025 AR).

CMP Consulting Group — water-infrastructure engineering consultancy. Acquired effective 1 Dec 2024. Based in Melbourne. CMP provides engineering across the project cycle: investigation, design, construction supervision and contract management for water-related infrastructure.

• Market position: services the majority of Victoria's metropolitan and regional water authorities (FY2025 AR); described by Vysarn as one of Australia's largest water-only engineering consulting practices.

• Panels and contracts: Sydney Water shared purchasing professional services MSA (to 30 Jun 2027); water authority panel entries in Victoria, NSW and WA (FY2026 commentary).

• Geographic expansion: offices in VIC, WA, QLD, NSW and NZ by FY2026.

• International collaboration: Heads of Agreement with Hazen and Sawyer D.P.C. (Jul 2025).

• Pricing: hourly rates or deliverable-based.

Asset Management

Vysarn Asset Management (VAM) — Kariyarra Water Scheme (KWS). 50/50 JV with Kariyarra Aboriginal Corporation RNTBC to investigate, assess, manage, own, extract and sell sustainable water volumes from Kariyarra country in the Pilbara.

• Resource: phase 1 drilling indicated average salinity of 600–800 ppm, considered suitable for direct industrial supply and likely for potable supply after minor treatment (FY2025 AR).

• Licensing: Section 5C groundwater licence application (Application 059882) under the Rights in Water and Irrigation Act 1914 (WA) for up to 10 GL/yr over 30 years; H3 report lodged with DWER 13 Feb 2026.

• Offtake: shortlisted to Water Corporation's RFP for a new bulk water source for the Port Hedland Water Supply Scheme; parallel market sounding produced non-binding expressions of interest indicating demand exceeding the 10 GL applied for (FY2026 commentary).

• Targets: DWER undertaking for licence issue, binding offtake or option agreement, and in-principle infrastructure funding by end of CY2026.

• Revenue model (intended): water ownership and tolling, plus infrastructure (transmission). No revenue yet.

Welltech (acquired 3 Sep 2026)

Technologies International Group Pty Ltd (trading as Welltech), Canning Vale, WA, operating since 1995.

• Construction water supply: water storage and pump facilities for civil and resources projects.

• Wastewater/sewerage bypass and network management: pipeline construction, maintenance and rehabilitation.

• Drilling: complete water-supply drilling from statutory requirements through to commissioned, ready-to-use supply.

• Financials (unaudited FY2026 management accounts, normalised for A$1m of additional group overhead): revenue A$33.2m, EBITDA A$14.0m (42% margin), EBIT A$11.8m (36% margin).

• Model: high-margin rental of long-life assets.

• Named clients: Melbourne Water, BHP, Rio Tinto, Water Corporation, John Holland.

Product/service register summary