Munters soars 18% as data center orders surge 

Investing.com - Munters Group AB (ST:MTRS) shares surged 18.4% on Friday after the climate solutions provider reported robust third-quarter results driven by exceptional growth in its Data Center Technologies (DCT) segment, where order intake skyrocketed 149% organically.

The Swedish company posted net sales of SEK 3,798 million for the quarter, representing a 17% increase YoY and beating analyst estimates by 3%. Adjusted EBITA came in at SEK 511 million, also exceeding consensus by 3%, despite declining 4% from the previous year.

The adjusted EBITA margin contracted to 13.5% from 16.3% in the same quarter last year.

DCT was the standout performer, with order intake surging 141% YoY to SEK 2,164 million, exceeding analyst expectations by 44%. The segment’s sales jumped 54% to SEK 1,556 million with a strong 19.5% margin, though down from 23.3% a year earlier due to tariff headwinds.

"Our strategic focus, operational efficiency, and resilient business model continued to support our ability to deliver — even in times of political and economic uncertainty as well as currency headwinds," said Klas Forsström, President and CEO of Munters.

The company’s FoodTech segment also delivered impressive results, with orders up 97% and sales increasing 103% to SEK 486 million. However, AirTech faced challenges, with sales declining 12% to SEK 1,770 million and its margin dropping to 7.0% from 13.1% a year ago.

In response to AirTech’s difficulties, Munters announced cost-cutting measures expected to generate annual savings of SEK 250-300 million by the end of 2026, including workforce reductions affecting approximately 200 positions globally.

In a separate release, Munters said that it has received a $30 million (approximately 280 million Swedish kronor) order from a leading U.S. commercial battery cell manufacturer.

The company maintained its leverage ratio at 2.8x, while earnings per share decreased to SEK 1.05 from SEK 1.23 in the same period last year.