Munters (MTRS) Q2 2025 earnings summary

Executive summary

• Order intake grew 22% year-over-year, led by strong Data Center Technologies (DCT) and FoodTech performance, with AirTech showing organic growth outside battery but facing margin pressure.

• Net sales increased 11% year-over-year, driven by DCT and FoodTech, while AirTech declined; currency effects negatively impacted sales by 10%.

• Adjusted EBITA margin declined to 13.6% from 18.2% year-over-year, mainly due to lower AirTech volumes and unfavorable mix, partially offset by strong DCT margins.

• Strategic acquisitions and divestment of FoodTech Equipment supported growth and a shift to digital solutions.

• Inaugurated a new state-of-the-art, green flagship factory in Amesbury, supporting future growth and sustainability.

Financial highlights

• Net sales: SEK 3,606m in Q2 2025, up 11% year-over-year (organic +10%, structural +10%, currency -10%).

• Adjusted EBITA: SEK 491m (Q2 2024: SEK 593m), margin 13.6% (18.2%).

• Net income: SEK 178m (Q2 2024: SEK 313m); EPS SEK 0.97 (1.65).

• Operating working capital/net sales improved to 9.1%, below the target range of 10–13%.

• Cash flow from operating activities decreased to SEK 190m (Q2 2024: SEK 601m), mainly due to lower earnings and working capital changes.

Outlook and guidance

• Expect continued margin improvements, especially in AirTech as new factory operations ramp up.

• Data Center Technologies has a strong backlog, with significant orders booked for 2026, supporting future growth.

• FoodTech targets long-term CAGR of 20–40% in ARR, driven by digital solutions and global SaaS contracts.

• Battery market demand remains subdued into 2026, but long-term electrification trend and market outlook are positive.

• Strategic focus remains on prioritized growth areas, regional manufacturing, and innovation investments.