Munters Group AB Experiences High Demand Amid Declining Earnings Performance

In the latest report issued on January 29, 2026, Munters Group AB has highlighted a significant surge in order intake, particularly in its Data Center Technologies (DCT) division. The company reported a remarkable 191% increase in order intake for the fourth quarter, indicating strong market demand despite a decline in net earnings. This article delves deeper into the company's performance indicators and strategic direction for the upcoming year.

Strong Order Intake, Weak Earnings

In the fourth quarter of 2025, Munters saw order intake skyrocket due to robust demands in DCT, which alone recorded a staggering 416% increase. This surge was supported by continued growth in its AirTech and FoodTech sectors. However, the net sales reflected a different scenario, declining by 8%. This drop was primarily influenced by adverse currency effects and a downturn in the AirTech division, which countered the growth observed in FoodTech.

The company’s adjusted EBITA margin also took a hit, primarily due to temporary tariffs affecting DCT as well as underutilization in the AirTech segment. Despite these challenges, Munters reported strong cash flow from operations, largely attributed to customer advances in DCT, suggesting a healthy liquidity position.

Fiscal Year Insights

For the entire fiscal year, Munters recorded an 85% increase in order intake, reaching a record-high value. This impressive growth was significantly influenced by the increasing demand in DCT and FoodTech, despite AirTech facing stagnation. The increase in net sales by 8% was a positive indication of the company's strong performance in the face of external challenges, such as currency fluctuations impacting sales negatively by 7%.

The adjusted EBITA margin declined due to various factors, including lower sales volumes and dual-site operational costs, particularly in AirTech. Cash flow from operations reduced, driven by decreased operating earnings and working capital, emphasizing the need for improved financial tracking and management strategies.

Strategic Initiatives and Future Outlook

As outlined by CEO Klas Forsström, Munters is navigating through a phase of transitional challenges while retaining operational efficiency. The company is taking clear steps to enhance profitability, focusing on improving operational mechanisms and processing capabilities. The production capacity for chillers in the U.S. is touted to improve, aligning with demand projections for 2026. The manufacturing adjustments aim to address the challenges posed by tariffs and shifting product mixes.

In AirTech, the company is working diligently to tackle the effects of lower production volumes caused by a decrease in activity levels within the battery market. The expected recovery in this sector aligns with global electrification trends presenting potential future growth opportunities. Meanwhile, in FoodTech, the divestment of the Equipment offering illustrates a strategic pivot towards digital solutions, enhancing the company’s market position and sustainability efforts.

Conclusion

Munters Group AB is poised for a challenging yet promising 2026 ahead. With its substantial order backlog, which extends well into the coming years, the firm anticipates delivering historical high turnover driven by enhanced operational execution and improved profitability metrics across the board. The focus remains on retaining a strategic mindset to withstand market fluctuations while capitalizing on growth opportunities in key sectors, especially DCT and FoodTech.

Investors and analysts are invited to join a webcast discussing the report, offering further insight into the company's strategies and anticipated growth trajectories. With a clear roadmap and strategic initiatives underway, Munters is well-positioned to recover and thrive in the forthcoming fiscal cycles, showcasing resilience amidst evolving market dynamics.