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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

Breaking News: Munters Group AB has received an order worth 82 million USD for chillers from a US data center colocation provider. The order is for high-performance computing chillers used in AI applications. This significant deal highlights the company's strong momentum in the US market following its acquisition of Geoclima in 2024. The order value is approximately 775 MSEK. No recent earnings release was found. Analysts at Carnegie upgraded their recommendation to buy with a target price.

1.c. Company Highlights

2. Munters' Q3 2025 Earnings: Strong Growth and Strategic Initiatives

Munters reported a robust Q3 2025, with net sales growing 17% and order intake surging 57%. The company's EBITDA margin stood at 13.5%, driven by the Data Center Technologies (DCT) segment's volume growth and production efficiency. Earnings per share (EPS) came in at $1.05, below estimates of $1.57. The company's book-to-bill ratio was 1.1, indicating a healthy demand outlook. Operating working capital improved to 8.3% of net sales, reflecting the company's focus on efficient capital management.

Publication Date: Oct -26

📋 Highlights
  • Order Intake & Net Sales Growth:: 57% increase in order intake and 17% growth in net sales, driven by organic (56% order intake, 15% net sales) and non-organic contributions.
  • DCT Segment Performance:: Strong demand in Americas and Asia, with a book-to-bill ratio above 1 and SEK 6.6 billion backlog, including liquid cooling solutions.
  • AirTech Restructuring:: SEK 250-300 million net cost savings by 2026 through cost-cutting and efficiency, offset by a SEK 150 million restructuring charge.
  • FoodTech Digital Shift:: Annual Recurring Revenue (ARR) grew 20-40% quarter-over-quarter, supported by software innovations and acquisitions.
  • EBITDA Margin & Strategic Investments:: 13.5% EBITDA margin from DCT volume growth and production efficiency, alongside minority investments in ZutaCore, AgriWebb, and Capsol.

Segment Performance

The DCT segment was a key growth driver, with strong demand in the Americas and Asia. The segment's backlog reached SEK 6.6 billion, with a notable increase in liquid cooling solutions. FoodTech also showed growth, with order intake increasing and software sales driving Annual Recurring Revenue (ARR) growth of 20-40% quarter-over-quarter. AirTech, however, faced challenges, particularly in the battery segment, prompting the company to reset the business with cost-cutting measures and investments optimization.

Strategic Initiatives and Investments

Munters continues to invest in strategic initiatives, such as digital capabilities and system support. The company has made minority investments in several companies, including ZutaCore, AgriWebb, and Capsol, to fuel innovation. The acquisition of Geoclima has contributed significantly to chiller sales, expanding Munters' offerings in the data center market. CEO Klas Forsström highlighted the company's focus on innovation, customer proximity, and decentralized setup to drive growth, citing a "vitality index" of 40% for products less than 5 years old.

Valuation and Outlook

With a P/E Ratio of 79.37 and EV/EBITDA of 15.3, the market appears to have priced in significant growth expectations. Analysts estimate next year's revenue growth at 6.0%. While Munters faces challenges, particularly in AirTech, the company's strategic initiatives and investments position it for long-term growth. The company's sustainability initiatives, including circularity programs and reducing Scope 3 emissions, are also expected to drive value creation. As Forsström noted, the company is optimistic about its growth prospects, driven by its strong market position, product offer, and team.

Financial Position

Munters' leverage ratio stood at 2.8, and the company issued its second green bond to diversify funding. Service and components now account for 24% of group net sales, indicating a shift towards a more recurring revenue model. The company's ROIC stood at 7.45%, and ROE at 6.77%, reflecting a solid return on capital employed.

3. NewsRoom

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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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United States Carpet Forecast Report 2025: A $32.97 Billion Market by 2033, Driven by Residential Renovations, Commercial Infrastructure Development, and Demand for Eco, Stain-Resistant Materials

Oct -28

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Munters Group AB (STU:1MS) Q3 2025 Earnings Call Highlights: Strong Order Intake and Strategic ...

Oct -24

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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: 6.5/10

Value: 5.8

Growth: 6.1

Quality: 4.5

Yield: 4.4

Momentum: 9.0

Volatility: 9.3

1-Year Total Return ->

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Stock-Card
SKF

A-Score: 5.8/10

Value: 4.4

Growth: 4.6

Quality: 5.0

Yield: 6.2

Momentum: 7.0

Volatility: 7.7

1-Year Total Return ->

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Stock-Card
Randstad

A-Score: 4.7/10

Value: 5.4

Growth: 2.0

Quality: 3.1

Yield: 10.0

Momentum: 2.0

Volatility: 6.0

1-Year Total Return ->

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Stock-Card
Arcadis

A-Score: 4.3/10

Value: 4.7

Growth: 6.3

Quality: 5.8

Yield: 3.1

Momentum: 1.0

Volatility: 4.7

1-Year Total Return ->

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Stock-Card
Umicore

A-Score: 4.0/10

Value: 4.2

Growth: 2.1

Quality: 1.6

Yield: 5.0

Momentum: 8.5

Volatility: 2.3

1-Year Total Return ->

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Stock-Card
Munters

A-Score: 2.7/10

Value: 1.4

Growth: 9.1

Quality: 3.2

Yield: 1.2

Momentum: 0.0

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

178.9$

Current Price

178.9$

Potential

-0.00%

Expected Cash-Flows