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1. Company Snapshot

1.a. Company Description

Munters Group AB (publ) provides climate solutions for customers in Sweden and internationally.It offers air intakes/air inlets, combined temperature and humidity control products, dehumidifiers, heat exchangers, mass transfer solutions and equipment, pollution control and VOC abatements, climate and irrigation controllers for agriculture, coolers and humidifiers, fans and light traps, heaters, and mist eliminators.The company also provides installation support, start-up and commissioning, service agreement and maintenance, training, and rental solutions, as well as rotor performance check, reconditioning and repair, spare parts, controls upgrade, rotor replacement, munters rotor energy recovery, and fan motor upgrade services.


It serves agriculture, automotive, battery dry rooms, chemical processing, construction, data centers, defense and aerospace, electronics, food and beverage, general industry/production, greenhouse, healthcare, pharmaceutical, power generation and distribution, recreation and leisure, shipbuilding and marine, steel, temporary structures, and water and wastewater; oil, gas, and petroleum; pulp, paper, and printing; and storage, preservation, and archives industries.Munters Group AB (publ) was founded in 1955 and is headquartered in Kista, Sweden.

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1.b. Last Insights on MTRS

Munters Group AB's recent performance was driven by robust growth in data center and food tech sectors. A record $215 million order from a US hyperscaler for custom Computer Room Air Handlers significantly boosted the company's prospects. Additionally, the company secured orders worth $82 million and $840 million for data center chillers, showcasing its strong momentum in the US market. These developments highlight Munters' role in enabling energy-efficient cooling solutions for the expanding AI-driven data center market.

1.c. Company Highlights

2. Munters' Q4 Results: A Mixed Bag with Growth Potential

Munters reported a decline in net sales, primarily due to lower AirTech sales in EMEA, with a reported 8% decline or flat currency-adjusted. The adjusted EBITA margin weakened to 10%, mainly due to tariffs and underutilization in AirTech. The company's EPS came out at -0.04383, missing estimates at 1.01. Despite the short-term challenges, the company delivered a record order intake, with a 191% increase and 200% organic growth, and a book-to-bill of 1.6.

Publication Date: Feb -04

📋 Highlights
  • Organic Growth & Book-to-Bill:: Achieved 200% organic growth with a 1.6 book-to-bill ratio, driven by strong team performance and 191%-200% organic order intake growth.
  • Adjusted EBITA Margin Decline:: Margin weakened to 10% due to tariffs, underutilization in AirTech, and transition costs, down from 13.5% in Q3.
  • Order Backlog Surge:: 53% increase in order backlog (80% currency-adjusted), reflecting robust demand in Data Center Technology (7% book-to-bill) and FoodTech.
  • Cash Flow & Leverage:: Maintained strong operating cash flow with 7.3% operating working capital efficiency and a stable leverage ratio of 2.9.
  • 2026 Outlook:: Anticipates margin recovery in H2 2026, with 30-40% invoicing growth from Data Center backlog and dual-site cost impacts resolved by Q1 2026.

Operational Highlights

The company's AirTech segment saw a decline in sales, but the order backlog and pipeline are moving up, indicating a potential increase in order intake. The Data Center Technology segment had a strong order intake, with a 7% book-to-bill and significant order intake. The company's innovation pipeline is crucial, with a vitality index of over 50%. As Klas Forsström noted, "We continue to invest in the business to scale and digitalize."

Cash Flow and Working Capital Management

Munters reported strong cash flow from operating activities, offsetting lower operating earnings with positive contributions from operating working capital, driven by advances in Data Center Technology. The company's operating working capital is strong at 7.3%, and its leverage ratio remained stable at 2.9.

Outlook and Valuation

Looking ahead to 2026, Munters expects a record year on invoicing, driven by a 30% to 40% increase in invoicing from its Data Center backlog. The adjusted EBITDA margin is expected to improve in the second half of the year. With a P/E Ratio of 265.91 and an EV/EBITDA of 21.02, the market is pricing in significant growth expectations. Analysts estimate next year's revenue growth at 14.6%, which may justify some of the premium valuation.

Segment Performance

The Data Center segment is expected to drive growth, with a 30-40% increase in invoicing in 2026. The AirTech segment is seeing a stronger market in the non-battery segment, and the company expects to restore its margin by adding volumes and cutting costs.

3. NewsRoom

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Munters Group AB (MMNNF) Q4 2025 Earnings Call Highlights: Record Order Intake and Strategic ...

Jan -29

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Exceptional demand, while earnings weakened: Report by Munters Group AB

Jan -29

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3 European Stocks Estimated To Be Trading Below Intrinsic Value By Up To 47.7%

Jan -20

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Munters wins record orders for data center equipment with a total value of 2.1 BSEK

Dec -31

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Munters wins 840 MSEK data center chiller order

Dec -11

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Munters wins 82 MUSD data center chiller order

Dec -02

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Munters Group (OM:MTRS) Is Up 16.0% After Record $215M US Hyperscaler Order—Has The Bull Case Changed?

Nov -13

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Munters wins record orders with a total value of 215 MUSD for data center equipment

Nov -12

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4. Business Breakdown

4.a. Revenues by Country

4.b. Revenues by Segment

5. Expected revenues mid-term growth (8.32%)

6. Segments

AirTech

Expected Growth: 8%

AirTech's 8% growth is driven by increasing demand for energy-efficient climate control solutions, expansion in data center and pharmaceutical industries, and growing adoption of air-side and water-side economizers. Additionally, Munters' strategic acquisitions and investments in R&D have enhanced AirTech's product offerings, further fueling growth.

Data Center Technologies

Expected Growth: 10%

Munters Group AB's Data Center Technologies segment growth is driven by increasing demand for cloud computing, big data, and IoT, leading to higher server density and heat load requirements. The company's energy-efficient cooling solutions and airside economization products are well-positioned to capitalize on this trend, resulting in 10% growth.

FoodTech

Expected Growth: 7%

Munters Group AB's FoodTech segment growth of 7% is driven by increasing demand for sustainable and efficient food production, rising adoption of precision agriculture, and growing need for climate control solutions in livestock farming. Additionally, the segment benefits from the company's strong R&D investments, strategic acquisitions, and expanding presence in emerging markets.

7. Detailed Products

Air Treatment

Munters' air treatment products are designed to control humidity, temperature, and air quality in various industries such as agriculture, pharmaceuticals, and food processing.

Cooling Systems

Munters' cooling systems provide efficient and sustainable cooling solutions for industries such as data centers, telecommunications, and industrial processes.

Dehumidification Systems

Munters' dehumidification systems are designed to control humidity and moisture in various industries such as agriculture, pharmaceuticals, and food processing.

Evaporative Cooling Systems

Munters' evaporative cooling systems provide energy-efficient cooling solutions for industries such as agriculture, industrial processes, and commercial buildings.

Heat Recovery Systems

Munters' heat recovery systems are designed to recover and reuse heat energy in various industries such as agriculture, pharmaceuticals, and food processing.

Humidity Control Systems

Munters' humidity control systems are designed to control humidity and moisture in various industries such as agriculture, pharmaceuticals, and food processing.

8. Munters Group AB (publ)'s Porter Forces

Forces Ranking

Threat Of Substitutes

Munters Group AB (publ) operates in a niche market with limited substitutes, but there are some alternatives available, which reduces the threat of substitutes.

Bargaining Power Of Customers

Munters Group AB (publ) has a diverse customer base, which reduces the bargaining power of individual customers. Additionally, the company's products are often customized, making it difficult for customers to switch suppliers.

Bargaining Power Of Suppliers

Munters Group AB (publ) has a moderate level of dependence on its suppliers, but it has implemented strategies to mitigate this risk, such as diversifying its supplier base and developing long-term relationships with key suppliers.

Threat Of New Entrants

The market in which Munters Group AB (publ) operates has high barriers to entry, including significant capital requirements and the need for specialized expertise, which reduces the threat of new entrants.

Intensity Of Rivalry

The market in which Munters Group AB (publ) operates is highly competitive, with several established players competing for market share. This intense rivalry puts pressure on the company to maintain its market position.

9. SWOT Analysis

Strength

Weaknesses

Opportunities

Threats

10. Capital Structure

10.a. Balance Sheet

10.b. Weighted Average Cost of capital

Value
Debt Weight 50.19%
Debt Cost 9.62%
Equity Weight 49.81%
Equity Cost 9.62%
WACC 9.62%
Leverage 100.78%

11. Quality Control: Munters Group AB (publ) passed 4 out of 9 key points

12.a Historical Valuation

12.b Price/Earnings Ratio

12.c Margin Valuation

12.d Peers Valuation

Peers Group Analysis

Stock-Card
Balfour Beatty

A-Score: 6.3/10

Value: 5.2

Growth: 6.1

Quality: 4.8

Yield: 3.8

Momentum: 9.0

Volatility: 9.0

1-Year Total Return ->

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Stock-Card
SKF

A-Score: 5.7/10

Value: 4.3

Growth: 4.6

Quality: 5.2

Yield: 6.9

Momentum: 6.0

Volatility: 7.3

1-Year Total Return ->

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Stock-Card
Randstad

A-Score: 4.8/10

Value: 5.4

Growth: 2.0

Quality: 3.1

Yield: 10.0

Momentum: 2.0

Volatility: 6.3

1-Year Total Return ->

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Stock-Card
Arcadis

A-Score: 4.3/10

Value: 5.4

Growth: 6.3

Quality: 5.9

Yield: 3.8

Momentum: 0.0

Volatility: 4.3

1-Year Total Return ->

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Stock-Card
Umicore

A-Score: 4.1/10

Value: 4.1

Growth: 2.1

Quality: 1.6

Yield: 5.0

Momentum: 9.0

Volatility: 2.7

1-Year Total Return ->

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Stock-Card
Munters

A-Score: 3.1/10

Value: 1.7

Growth: 9.0

Quality: 3.0

Yield: 1.2

Momentum: 2.5

Volatility: 1.0

1-Year Total Return ->

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Peers Metrics

12.e Scoring Insights

12.f DCF BETA

Parameters

Short Term Growth

Short term Time

Long-Term Growth

WACC

Target Price

181.6$

Current Price

181.6$

Potential

-0.00%

Expected Cash-Flows