Munters (MTRS) Q3 2025 earnings summary

Executive summary

• Achieved strong order intake and net sales growth, led by Data Center Technologies (DCT) and FoodTech, while AirTech/AdTech faced challenges from a weak battery market and lower volumes.

• Profitability remained solid, though adjusted EBITA margin declined to 13.5% from 16.3% due to AirTech/AdTech performance, product mix, and currency headwinds.

• Strategic investments, cost-saving, and restructuring measures are underway to enhance resilience and support long-term growth.

• Divestment of FoodTech Equipment completed, focusing the business on digital and service-driven segments.

Financial highlights

• Order intake increased by 57% year-over-year (70% in comparable currency), with net sales up 17% to SEK 3,798m.

• Adjusted EBITA margin at 13.5%, down from 16.3% year-over-year, mainly due to AirTech/AdTech performance and currency effects.

• Net income was SEK 194m, down from SEK 238m; EPS SEK 1.05 (1.23).

• Operating working capital reduced to 8.3% of net sales, well below the target range.

• Net debt increased to SEK 6,736m, with leverage at 2.8x, driven by acquisitions, green bond issuance, and lease liabilities.

Outlook and guidance

• DCT and FoodTech expected to maintain strong growth, supported by digitalization, regulatory drivers, and data center demand.

• AirTech/AdTech market, especially battery, anticipated to remain subdued through most of 2026, with order intake in the 10%-20% range.

• Cost-saving and restructuring measures in AirTech/AdTech to yield SEK 250–300 million in annual savings by end of 2026, with a SEK 150 million restructuring charge.

• CapEx expected to remain above historical levels in the near term due to ongoing investments in capacity and innovation.