Munters (MTRS) Q4 2025 earnings summary

Executive summary

• Achieved record order intake in 2025, up 191% in Q4 and 85% for the year, driven by strong DCT demand, especially in the Americas, with a book-to-bill ratio of 1.6.

• Earnings weakened to a 10% adjusted EBITDA/EBITA margin in Q4 and 12.7% for the year, mainly due to tariffs, dual site costs, and underutilization in AirTech.

• Net sales declined 8% in Q4 but increased 8% for the year, with growth in DCT and FoodTech offsetting AirTech weakness; strong cash flow from operating activities.

• Entering 2026 with a robust order backlog, strong innovation pipeline, and expanded production capacity to support significant growth.

• Board proposes a dividend of 1.6 SEK per share, representing 53% of net income from continuing operations.

Financial highlights

• Q4 net sales: SEK 3,594m; full-year net sales: SEK 14,712m (+8% YoY); Q4 adjusted EBITA: SEK 358m; full-year adjusted EBITA: SEK 1,862m.

• Q4 net income: SEK -8m; full-year net income: SEK 562m; operating working capital/net sales improved to 7.3%.

• Leverage ratio stable at 2.9x; net debt increased to SEK 6,714m.

• CapEx ratio: 7% in Q4, 5.8% for the year; continued investments in digitalization and capacity expansion.

• Book-to-bill ratio: 1.6 for the group; 7.0 for DCT.

Outlook and guidance

• 2026 expected to be a record year for invoicing, with at least 30% higher DCT deliveries and potential for up to 40% increase depending on demand.

• Adjusted EBITDA/EBITA margin expected to improve in H2 2026 as tariff impacts in DCT diminish and AirTech cost savings materialize.

• DCT and FoodTech markets remain strong; AirTech outlook flat to positive, with non-battery segments showing growth.

• FoodTech maintains a positive outlook, with ARR growth expected between 20%-30% annually.

• Capex and tax rate expected to remain stable.