Strong order intake and top line growth

January-March 2025:

Agreement signed to divest the FoodTech Equipment offering for MEUR 97.5, closing expected in second quarter 2025. The comments and figures in this report refer to continuing operations unless otherwise stated. For more information see pages 16-17.

• Order intake increased +27% (+8% organic) with strong growth in DCT (Data Center Technologies) and FoodTech offset by a decline in AirTech.
• Net sales grew +18% (+5% organic), driven by robust growth in DCT and FoodTech, while AirTech declined.
• The adjusted EBITA margin declined, primarily due to lower volumes in AirTech in Americas and temporary dual-site costs. This was partly offset by a strong margin contribution from DCT.
• Cash flow from operating activities remained stable, supported by positive development of working capital. OWC/net sales improved to 10.2%, within our target range of 13-10%. 
• Leverage increased to 3.1x, mainly due to increased lease liabilities and acquisition of the remaining shares in MTech Systems. Adjusted for the proceeds from the divestment of the Equipment offering, expected to be received in the second quarter this year, leverage was 2.6x.
• Earnings per share, before and after dilution, was SEK 1.05 (1.22) in the first quarter.
• The Board of Directors proposes a dividend of SEK 1.60 (1.30) per share to be paid in two equal installments. This represents 30 (30) per cent of the net income for 2024.

Events after the close of the period

• Climate targets validated by the Science Based Targets initiative (SBTi).

CEO comments

Strong performance in a volatile environment
The year has started off with good overall performance in order intake, net sales and profitability, supported by solid execution across our business. This was largely driven by continued robust net sales and earnings development in our two business areas DCT and FoodTech. As expected, order intake declined in business area AirTech where we initiated measures last year to improve margins. We remain positive about the long-term structural trends driving growth for Munters, such as increased data traffic, the electrification of society, and the global need for more sustainable food production. We are closely monitoring the increasingly uncertain macro environment and global discussions around trade tariffs. Our conclusion about trade tariffs is that our well-established strategy of regional production can provide us with competitive advantages and resilience.

DCT and FoodTech – two robust pillars
DCT recorded one of its highest-ever first-quarter order intake, driven by small and mid-sized orders. The pipeline remains healthy, supported by steady demand across a broad range of customer segments in the data center market. The strong performance in DCT is driven by our broad and competitive product portfolio which enables us to meet a wide range of customer needs.

Within FoodTech, we announced the sale of the Equipment business during the quarter, which is expected to close in the second quarter. The divestment marks a strategic shift in our focus towards a digital offering centered around software and control systems. In line with our strategic focus, we also announced the acquisition of the remaining shares in MTech Systems, following the completion of the previously communicated transaction with minority shareholders. The continuing business in FoodTech experienced high demand and several new customer agreements were signed, further strengthening our market position.

AirTech progressing in line with expectations
As anticipated, AirTech had a softer start to the year, due to continued weakness in the battery market weighing on utilization and profitability. Margin improvement remains a priority, and our actions taken in late 2024 are expected to support a gradual improvement during the year. Short-term, profitability is also negatively impacted by the temporary situation with dual site operations in Amesbury in the US. We expect this situation to ease as the transition to our new, more efficient facility progresses in the second quarter. We expect the battery market to remain weak throughout 2025, although we see increased activity in some areas. Over the long term, we remain confident in the potential of this segment and we are now better positioned to scale efficiently as the market recovers.

We are intensifying efforts within AirTech to grow our services and component business. We are also strengthening our focus on key customer segments such as the food industry. We continue to invest selectively, including the recently announced expansion and optimization of our Tobo factory in Sweden. This includes regionalizing the production of the humidification medium GLASdek, a component previously only manufactured in Mexico.

Regional production – a continued strategic advantage
Today, with extensive global discussions about trade tariffs, regional production is becoming increasingly important. At Munters, this has long been a strategic cornerstone. Approximately 90 percent of sales in our largest regions are produced within the same region, thereby supporting customer proximity, reduced lead times and greater resilience.

We continue to focus on execution and operational efficiency across the Group while closely monitoring the development of the global business environment. With the strong momentum in DCT and FoodTech, along with margin enhancing actions underway in AirTech, we are well positioned for the year ahead.

I would like to thank all Munters employees for their continued commitment and contribution. Together, we are well prepared to capture future opportunities and deliver on our targets.

Klas Forsström, President & CEO

Information about the webcast and telephone conference

Welcome to join a webcast or telephone conference today, April 29, at 9:00 CEST, when CEO Klas Forsström together with CFO, Katharina Fischer, will present the report.

Webcast: https://munters.events.inderes.com/q1-report-2025

Telephone conference: If you wish to participate via teleconference please register on the link below. After registration you will be provided phone numbers and a conference ID to access the conference. You can ask questions verbally via the teleconference. https://conference.inderes.com/teleconference/?id=50052346

This interim report, presentation material and a link to the webcast will be available on https://www.munters.com/en-se/investors/

For more information:

Investors and analysts
Line Dovärn, Head of Investor Relations
E-mail: line.dovarn@munters.com, Phone: +46 (0)730 488 444

Media
Daniel Frykholm, VP External Relations & Internal Communications
E-mail: daniel.frykholm@munters.com, Phone: +46 (0)702 067 786

This information is information that Munters Group AB is obliged to make public pursuant to the EU Market Abuse Regulation. The information was submitted for publication, through the agency of the contact persons set out above, at 07.30 AM CEST on April 29, 2025.

About Munters Group
Munters is a global leader in energy-efficient air treatment and climate solutions. Using innovative technologies, Munters creates the perfect climate for customers in a wide range of industries. Munters has been defining the future of air treatment since 1955. Today, around 5,400 employees carry out manufacturing and sales in more than 30 countries. Munters Group AB reported annual net sales of more than SEK 15 billion in 2024 and is listed on Nasdaq Stockholm. For more information, please visit www.munters.com.