Vysarn's water services roll-up doubles as its Pilbara asset play nears reality

From mine dewatering to a proposed bulk water supply asset in the Pilbara, Vysarn has built a fund manager following around CEO James Clement's acquisitive strategy, even as some remain on the fence over valuation after the stock's rapid rise.

30 Jun 2026 · 5 min read

Vysarn Ltd (ASX: VYS) has built its fund manager following on a straightforward premise: water is becoming a structurally scarcer input for mining, infrastructure and data centres, and Vysarn has assembled a vertically integrated set of businesses to service that demand. Acorn Capital laid out the components in July 2025, describing an advisory arm through Pentium Water and CMP Consulting, engineering capability via Project Eng and Waste Water Services, and industrial solutions through Pentium Test Pumping and Pentium Hydro, alongside upside optionality from the nascent Vysarn Asset Management (VAM) business targeting control of water supply in the Pilbara.

Dewatering demand drives the core numbers

The operational engine behind the thesis has been mine dewatering. Merewether Capital reported in February 2026 that Vysarn's revenue rose 63% to $66.8 million and net profit rose 103% to $7.3 million, driven by the company's core Industrial segment providing dewatering services for tier-one iron ore miners, as demand remains high with more mining occurring below the water table in the Pilbara. The fund flagged a slight negative in the Advisory segment, where the CMP Consulting acquisition fell short of its earn-out targets, though it noted this partly reflected investment in new offices across Brisbane, Perth and New Zealand.

Vysarn is one of the largest positions in the fund and we view the company as 'Australia's water stewards.' Water is a key investment theme for the coming decade, especially given the rising demand from data centres.

NorthStar Impact Funds, Monthly Report, August 2025

The Pilbara asset management optionality gains credibility

The more speculative part of the bull case, a proposal to own and control bulk water supply infrastructure in the Pilbara, has moved from a distant possibility toward something several managers now treat as increasingly likely. Hayborough Investment Partners said in May 2026 that what started out as "a bit of a pipe dream" has become something it is "starting to become more and more of a believer" will happen, framing it as the clearest reason to buy the stock even on a pullback. Oracle Advisory Group struck a similar note in March 2026, seeing potential upside in the emerging asset management business and expecting licensing approvals in the near term.

On the pullback, you can buy it here. Where you can make a case for buying the stock at the moment is the proposal to develop, own, and operate a bulk water supply asset in the Pilbara... I think that they will have success with it. So, buy Vysarn.

Hayborough Investment Partners, Article, May 2026

Not everyone is convinced on valuation

That optimism is not universal. Investors Mutual Limited said in May 2026 it remained on a hold, acknowledging it likes the core mine dewatering business and finds the asset management play "super interesting and truly innovative," but flagged valuation as its only real hesitation after the stock had already doubled. Blackwattle Investment Partners, tracking the stock's volatility, noted a 24.1% fall in March 2026 partly retraced an "inexplicable" spike seen at the end of February, even as it maintained the underlying business model of recurring, contracted water-management revenue remained intact.

Acquisitions keep expanding the addressable market

Vysarn has continued to fund its growth through bolt-on M&A. Wilson Asset Management reported in June 2026 that the company acquired NWG Enterprises, trading as NewGround, for up to 33 million Vysarn shares and $25 million in cash, adding a new irrigation and facilities management division serving local government, urban development and sporting precincts. The fund said it believes Vysarn is well positioned to continue generating double-digit earnings growth as mines in Western Australia become deeper and water management requirements grow more complex, with scope for further acquisitions given the strength of its balance sheet.

What managers are watching next

With NorthStar Impact Funds framing the investment case around a 40% EPS growth outlook and CEO James Clement's execution record, the next milestones fund managers are tracking are progress on licensing approvals for the Pilbara bulk water asset, integration of the NewGround acquisition, and whether the CMP Consulting advisory business can close the gap on its earn-out targets.