Munters (MTRS) Q1 2025 earnings summary

Executive summary

• Order intake grew 27% year-over-year, led by Data Center Technologies (DCT) and FoodTech, while AirTech declined due to battery market weakness; net sales increased 18% year-over-year.

• Adjusted EBITA margin fell to 13.5% from 15.0%, mainly due to lower AirTech volumes and temporary dual-site costs, partially offset by strong DCT margins.

• Net income from continuing operations was SEK 198m, down 15% year-over-year; EPS was SEK 1.05 (1.22).

• Agreement signed to divest FoodTech Equipment offering, expected to close in Q2 2025; all figures refer to continued operations.

• Robust performance in a volatile environment, with regional production strategies mitigating tariff and trade war risks.

Financial highlights

• Q1 2025 net sales: SEK 3,714m (+18% year-over-year, +5% organic).

• Adjusted EBITA: SEK 502m (margin 13.5%, down from 15.0% in Q1 2024).

• Operating working capital at 10.2%, reflecting strong management and within target range.

• Net debt increased to SEK 7,674m, leverage ratio at 3.1x due to lease liabilities and MTech acquisition; pro forma leverage post-divestment is 2.6x.

• Dividend of SEK 1.60 per share (30% of net income), to be paid in two installments.

Outlook and guidance

• Management expects continued strong momentum in DCT and FoodTech, with margin improvement actions underway in AirTech.

• Battery market weakness in AirTech is expected to persist through 2025, but long-term growth potential remains.

• DCT margins expected to remain in the high teens (18–19%), with some quarterly fluctuations due to product mix.

• Leverage expected to decrease as divestment proceeds are received.

• Midterm targets: annual currency-adjusted net sales growth above 14%, adjusted EBITA margin above 14%, and OWC/net sales in the 10–13% range.