#Sweden #Kista #Munters Group #FoodTech Equipment #Data Center Technologies

Munters Group AB Sees Solid Growth and Resilient Margins

Munters Group AB, a leader in energy-efficient air treatment and climate solutions, continues to demonstrate its resilience and strategic focus as it reports robust growth figures for the second quarter of 2025. The completion of the divestment of its FoodTech Equipment offering marks a major milestone in the company's transformation toward a sustainable future driven by digital innovations.

Financial Highlights

The report reveals that from April to June 2025, the order intake surged by an impressive 22%. This boost was primarily driven by strong performances in the Data Center Technologies (DCT) and FoodTech sectors, alongside organic growth in AirTech. Meanwhile, net sales experienced an 11% rise, a significant achievement considering the negative impact of currency fluctuations, which reduced sales by 10%.

However, the adjusted EBITA margin saw a modest decline due to reduced volumes in AirTech within the Americas and an unfavorable mix of products and regions. Despite that, the margin contributions from the DCT remained robust. Notably, FoodTech maintained a healthy margin level despite the increased investments aimed at expansion.

The company's operating cash flow was less than last year's figures, as lower operating earnings affected cash flow amid working capital adjustments. Operating working capital to net sales improved to 9.1%, although it remained below the targeted range of 10-13%.

Strategic Focus on Long-Term Growth

CEO Klas Forsström emphasized the continuous positive momentum exhibited by the company. Forsström noted that the order intake increase, with all three of Munters' business sectors contributing positively, is indicative of the strong long-term growth opportunities the company is pursuing. The company's earnings per share before and post-dilution amounted to SEK 0.97, compared to SEK 1.65 from the previous year.

Forsström highlighted that DCT's sustained demand was especially strong in the Americas, where there is a significant interest in their comprehensive cooling solutions. Additionally, the acquisition of Geoclima has strategically positioned chillers as a key product category, contributing to the remarkable order intake.

The FoodTech sector also delivered impressive results, marked by high activity levels and significant market expansion. A noteworthy achievement for the quarter was the receipt of a major order for a software solution from one of the world's leading egg producers, underlining the vigorous interest in Munters' digital offerings. The completed divestment of the Equipment segment is a crucial strategic move focusing on this digital transformation within FoodTech.

Actions in AirTech Sector

In AirTech, the demand remained stable in both the Americas and EMEA regions, while a slight increase was recorded in APAC, allowing for modest organic growth. Although some challenges remain—particularly in the battery sub-segment—order intake remained consistent, revealing the growing diversity within AirTech's product portfolio. The operational margin challenges were attributed to uneven capacity utilization across production sites and heightened competition. However, as the new Amesbury facility becomes fully operational, the company expects improvements in margins throughout the year.

Despite short-term market uncertainties, particularly within the battery segment, Munters maintains a positive long-term vision supported by the global shift towards electrification. The company is taking decisive steps to align its production capacity towards other growing segments to remain agile in the evolving market landscape.

Innovative Financing and Future Outlook

As part of its continued efforts to improve capital efficiency, Munters established a Medium Term Note program during the quarter and successfully launched its inaugural green bonds, attracting considerable interest from institutional investors. The bond proceeds will be allocated towards eligible green investments, aligning financial strategies with sustainability efforts.

As Munters progresses into the latter part of 2025, it enters with solid foundations in DCT and FoodTech, while actively implementing strategies to enhance volumes and margins within AirTech. The company remains committed to monitoring market developments closely and adapting strategies as required to ensure continued growth and long-term value creation for its stakeholders.

In conclusion, the commitment of Munters employees plays a vital role in the company's ability to innovate, adapt, and deliver on its promises during these dynamic times. Klas Forsström extends his sincere appreciation for their dedication.

For further information, stakeholders and interested parties are invited to join the webcast and conference call scheduled for July 18, where details of the report and future strategies will be elaborated.

Conclusion

Munters Group AB's latest report showcases its unwavering focus on growth and innovation, underpinned by a strong commitment to sustainability and digital transformation. As the company navigates through ever-evolving markets, its strategic initiatives lay the groundwork for ongoing success and stakeholder value.