Daily Roundup

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Vysarn Moves Forward with Major Welltech Acquisition

Vysarn Limited is making a significant strategic move by acquiring Welltech, a water and sewerage management business, for a total consideration of $60 million. The deal includes $50 million upfront—comprising $37.25 million in cash plus $12.75 million in Vysarn shares—with an additional $10 million deferred over three years based on Welltech hitting agreed EBITDA targets.

To fund the acquisition, Vysarn is raising approximately $65.3 million through a placement of 62.2 million new shares at $1.05 each. The company expects the deal to close in September 2026, subject to standard conditions including regulatory approvals.

The numbers look compelling for Vysarn shareholders. On a pro forma FY26 basis, Welltech is expected to contribute $33.2 million in revenue, $14 million in EBITDA, and $11.8 million in earnings before tax. Most impressively, the acquisition is anticipated to be 37.3% earnings per share accretive, making this a financially attractive move that should broaden Vysarn's client base and strengthen its integrated water business portfolio.

Duratec Lands $70M Contract Haul

Engineering and construction contractor Duratec Limited has secured approximately $70 million in contract awards, signaling strong demand for its specialist capabilities. The wins span energy, marine, and mining sectors, with standout projects including a construction management role at Orica's Hunter Valley Hydrogen Hub—a notable entry into future energy and fuel infrastructure markets.

Other significant awards include the Jet Fuel Expansion Program for Perth Airport, a wharf infrastructure remediation project for Fremantle Ports, and remediation works for Rio Tinto at Gove. These contracts underscore Duratec's expanding reach and positioning in key sectors as demand for its remediation and infrastructure expertise continues to grow.

DroneShield Bags $23.2M in Military Contracts

DroneShield Limited is riding momentum with a $23.2 million contract package from a reseller supplying a European military end-customer. The deal covers vehicle-mountable counter-drone solutions, including hardware, subscriptions, warranties, and services.

The company also unveiled RfAI-3, the third generation of its proprietary RF detection engine, designed to enhance situational awareness in complex threat environments. Looking ahead, DroneShield expects FY2026 revenue between $250 million and $270 million—a 15% to 25% increase over FY2025—with a blended gross margin of around 65%. The growth is being driven by next-generation hardware launches and increasing subscription revenue.

Develop Global Hits Record Quarterly Revenue

Mining and resources company Develop Global delivered a standout quarter with record revenue of A$147 million, nearly doubling from the previous quarter. The Woodlawn copper-zinc mine achieved record production, with copper-equivalent output jumping 47%.

The company also made Final Investment Decisions on two major projects: the Yitirrti copper-silver-zinc project and the Pioneer Dome lithium project, with first sales expected in December. To fund these developments and refinance existing facilities, Develop Global secured a A$570 million debt facility and warrant package with Trafigura. Production at Yitirtti is slated to begin in June 2028, with Pioneer Dome DSO sales commencing sooner.

On the cash front, the company generated a net cash inflow of $30.566 million from operating activities during the quarter, with cash and equivalents totaling $122.57 million at quarter end.

WEB Travel Group Eyes Margin Expansion and Returns Capital

WEB Travel Group Limited is signaling confidence in its financial strength with a $90 million on-market share buy-back, set to commence in August 2026 using existing cash reserves.

The company provided guidance for the six months to September 2026, expecting WebBeds TTV margin to reach circa 6.7%, up from 6.5% in the prior-year period. Revenue is forecast to grow 11-15%, while Group Underlying EBITDA is on track to land between A$80 and A$86 million despite currency headwinds. The improving margins reflect optimization initiatives and AI-led investments, with the company anticipating continued margin expansion ahead.