Munters (MTRS) Q1 2025 earnings summary

Executive summary

• Order intake grew 27% year-over-year, led by Data Center Technologies (DCT) and FoodTech, while AirTech declined due to battery market weakness but is expected to improve stepwise.

• Net sales increased 18% year-over-year, driven by robust DCT and FoodTech performance; AirTech saw a decrease.

• Agreement signed to divest FoodTech Equipment offering, expected to close in Q2 2025; all figures refer to continuing operations.

• Integration of recent acquisitions, including full ownership of MTech and Airprotech, is contributing to growth and operational momentum.

• Board proposes a dividend of SEK 1.60 per share (30% of net income), to be paid in two installments.

Financial highlights

• Q1 2025 net sales: SEK 3,714m (+18% year-over-year, +5% organic).

• Adjusted EBITA margin: 13.5% (down from 15.0% year-over-year), close to the 14% target.

• Net income from continuing operations was SEK 198m, down 15% year-over-year.

• Net debt increased to SEK 7,674m, leverage at 3.1x due to lease liabilities and acquisitions; pro forma leverage post-divestment is 2.6x.

• Cash flow from operating activities was SEK 541m, supported by positive working capital development.

Outlook and guidance

• Management expects continued strong momentum in DCT and FoodTech, with margin improvement actions underway in AirTech.

• DCT margins expected to remain in the high teens (18-19%), with some quarterly fluctuations due to product mix.

• AirTech margins to improve gradually, aiming for 13-16% over coming quarters.

• Strong order backlog to be delivered through 2025 and 2026, especially in DCT.

• Leverage expected to decrease as proceeds from divestment are received.