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Introduction & Market Context
Munters Group AB (STO:MTRS) reported mixed second-quarter 2025 results on July 18, with strong performance in its Data Center Technologies (DCT) and FoodTech segments counterbalancing continued challenges in its AirTech division. The company’s stock has shown resilience, trading at 131.1 SEK as of July 17, up 4.21% and continuing its recovery from a 52-week low of 91.9 SEK.
The quarter highlighted Munters’ strategic diversification across business segments and regions, with the Americas accounting for 59% of group order intake. While the battery sector continues to face headwinds, particularly in the Americas and EMEA regions, the company’s data center business remains robust amid continued global digital infrastructure expansion.
Quarterly Performance Highlights
Munters reported a 22% increase in order intake for Q2 2025, reaching 3,666 MSEK compared to 2,996 MSEK in the previous year. This growth was driven by 12% organic growth and 21% structural growth, partially offset by a 10% negative currency impact. The book-to-bill ratio stood at a healthy 1.02.
Net sales increased by 11% to 3,606 MSEK, up from 3,256 MSEK in Q2 2024, with organic growth of 10% and structural growth of 10%, again partially offset by a 10% negative currency effect.
As shown in the following comprehensive financial summary:
Despite the sales growth, adjusted EBITA margin declined to 13.6% from 18.2% in the previous year, with absolute adjusted EBITA of 491 MSEK compared to 593 MSEK in Q2 2024. This margin compression was primarily driven by challenges in the AirTech segment, which saw its adjusted EBITA margin fall to 7.4% from 17.6% a year earlier.
Regional performance showed significant divergence, with the Americas continuing to drive growth, particularly in the data center segment. The company’s regional breakdown of order intake provides valuable insight into market dynamics:
Detailed Financial Analysis
The AirTech segment faced significant challenges in Q2 2025, with order intake declining to 1,695 MSEK. While the segment saw organic growth in APAC and positive developments in components, particularly evaporative pads for the data center market, it continued to struggle with weakness in the battery sector and unfavorable product and regional mix.
The following chart illustrates AirTech’s performance trends:
In contrast, the Data Center Technologies segment demonstrated strong execution with order intake increasing by 32% to 1,402 MSEK, driven by 14% organic growth and 28% structural growth, partially offset by a 10% negative currency impact. DCT’s adjusted EBITA margin remained robust at 21.0%, only slightly below the 21.9% achieved in Q2 2024.
The following chart highlights DCT’s continued strong performance:
FoodTech achieved record order intake in Q2 2025, with a book-to-bill ratio of 1.45, indicating strong future growth potential. The segment maintained healthy profitability despite investments to accelerate growth.
From a financial health perspective, Munters reported an improved leverage ratio of 2.8x during the quarter, down from 3.1x reported in Q1 2025, aligning with the company’s previous guidance. This improvement reflects the company’s continued focus on cash management and operational efficiency.
Strategic Initiatives
Munters made significant progress on several strategic initiatives during Q2 2025. A major milestone was the inauguration of the new Amesbury site, which represents the company’s largest facility globally with over 40,000 m² of advanced manufacturing space.
The following image showcases this strategic expansion:
In the data center segment, Munters is unlocking regional growth through its chiller offering, particularly through the Geoclima acquisition which is delivering strong contribution to order intake growth. The company plans to begin US chiller production in 2026 in Virginia, further strengthening its position in the Americas market.
The company’s sustainability initiatives are advancing, with the establishment of an MTN-program and Green Bond Framework. Munters is making progress on reducing its carbon footprint across Scope 1, 2, and 3 emissions, while also improving gender equity within the organization.
As shown in the following sustainability metrics:
Another significant development was Munters’ first large-scale order in Direct Air Capture technology, enabling the removal of CO2 directly from ambient air. The project, for a U.S. oil and gas customer, aims to capture 500,000 tons of CO2 annually, equivalent to the emissions of approximately 110,000 petrol-powered vehicles.
Forward-Looking Statements
Looking ahead, Munters is focused on volume and margin-enhancing actions in AirTech to address the current challenges. The company expects the battery market to remain subdued into 2026, though global EV sales are forecasted to grow at a 10-15% CAGR towards 2030.
For the Data Center Technologies segment, Munters has a strong order backlog to be delivered throughout 2025 and 2026, with several major projects in the pipeline. The company’s expansion into chillers positions it well for continued growth in this segment.
In FoodTech, Munters is strengthening its global position in the layer segment through strategic milestones in both controllers and software, including a large-scale order from a major egg producer in China and a SaaS contract with a leading global egg producer.
The company continues to progress toward its financial targets, maintaining a focus on currency-adjusted growth, adjusted EBITA margin improvement, and capital efficiency. Despite the challenges in AirTech, Munters remains positioned for the next phase of sustainable profitable growth, supported by solid execution in DCT and FoodTech.
As shown in the following progression toward financial targets:
While Q2 2025 presented a mixed picture across business segments, Munters’ diversification strategy appears to be paying dividends, allowing the company to navigate sectoral challenges while capitalizing on growth opportunities in data centers and food production technology.
Full presentation:
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