Vysarn's Water Services Growth Story Gains Real Believers

Strong earnings growth and a string of accretive acquisitions have fund managers taking a once-doubted Pilbara water supply proposal seriously.

31 Aug 2026 · 3 min read

Vysarn has nearly doubled through 2026 as its integrated water services business, leveraged to Western Australia's resource cycle, has kept diversifying through accretive acquisitions and beating its own growth targets, with fund managers increasingly drawn to a bulk water supply proposal in the Pilbara that started out looking like a pipe dream.

A water business genuinely hard to replicate

NorthStar Impact Funds described the water sector as genuinely difficult to execute well, with Vysarn leveraged to the resource cycle but steadily diversifying by acquiring businesses that reduce the company's overall earnings cyclicality, crediting chief executive James Clement as one of the most impressive operators it has come across. In a separate note, NorthStar said management has been actively diversifying revenue toward East Coast advisory and consulting work to reduce reliance on the Pilbara. Blackwattle Investment Partners described Vysarn as providing vertically integrated water services, including hydrogeological drilling, consultancy and wastewater infrastructure, to major resources, infrastructure and utilities clients.

Investors Mutual likes the dewatering business but stays on the fence

Investors Mutual Limited held at hold, acknowledging it is getting a little uncomfortable sitting on the fence, but said it really likes Vysarn's mine dewatering business and finds its asset management strategy genuinely innovative, even while not yet convinced enough to buy.

A Pilbara bulk water proposal turns skeptics into believers

Hayborough Investment Partners rated the stock a buy, arguing that while the core business is probably closer to a hold, the case for buying now rests on Vysarn's proposal to develop, own and operate a bulk water supply asset in the Pilbara.

What started out as a bit of a pipe dream, their proposal to develop, own, and operate a bulk water supply asset in the Pilbara. And I think that I'm starting to become more and more of a believer.

— Hayborough Investment Partners, Article, May 2026

Accretive acquisitions keep extending the growth runway

LSN Capital Partners said Vysarn had recently executed value-accretive acquisitions that strengthen its competitive position and extend its future growth runway. Wilson Asset Management detailed the acquisition of NWG Enterprises, trading as NewGround, for up to 33 million Vysarn shares and $25 million in cash, a business that designs, constructs, installs and maintains industrial-scale irrigation and pumping systems. Merewether Capital said Vysarn has historically acquired well in the diversified water services sector, and the NewGround deal, spanning sectors from council grounds to golf courses, looks like another accretive purchase funded with a mix of cash and equity.

A strong FY26 finish and another accretive deal

Ausbil Investment Management said the stock rose 12.3 percent in July after a strong trading update to end FY26 ahead of target, with pre-tax profit up 39 percent, followed by the accretive acquisition of WellTech, more than 30 percent accretive on its own. Blackwattle Investment Partners confirmed the same 12.3 percent rise, tied to a preliminary FY26 result showing revenue and earnings growth both above 30 percent alongside a solid FY27 outlook.

The company is well positioned to grow across all divisions, with significant value to potentially unlock through the Kariyarra Water Joint Venture.

— Ausbil Investment Management, Monthly Report, July 2026

What fund managers say they are watching next is progress on the Pilbara bulk water supply proposal, integration of the NewGround and WellTech acquisitions, delivery of growth across all of Vysarn's divisions in FY27, and potential value unlock through the Kariyarra Water Joint Venture.