• Order Intake Growth: 27% growth, with 8% organic.
• Net Sales Growth: 18% growth, with 5% organic.
• Adjusted EBITA Margin: 13.5%, close to the target of 14%.
• Operating Working Capital: 10.2%, within the target range of 10% to 13%.
• Net Debt: Increased due to lease liabilities and acquisition of MTech shares.
• Leverage Ratio: Increased to 3.1, expected to improve in the next quarter.
• Investment in Net Sales: 7.2% of net sales, driven by Amesbury investment.
• Service and Components Share: 22% of net sales, with a rolling 12-month figure of 25%.
• Dividend: 1.6% per share, divided into two payout periods.

• Warning! GuruFocus has detected 2 Warning Sign with STU:1MS.

Release Date: April 29, 2025

For the complete transcript of the earnings call, please refer to the full earnings call transcript.

Positive Points

• Munters Group AB (STU:1MS) reported a strong start to the year with a 27% growth in order intake and an 18% increase in net sales.
• The company maintained healthy profitability levels with an adjusted EBITA margin of 13.5%, close to their target of 14%.
• Data Center Technology (DCT) showed robust volume growth and strong order intake, particularly in the Americas.
• The company has a well-established regional production strategy, with 90% of US sales produced domestically, mitigating tariff impacts.
• Munters Group AB (STU:1MS) is making strategic investments in innovation, particularly in energy-efficient products, which align with their sustainability goals.

Negative Points

• AirTech segment experienced a decline, with lower volumes in the Americas affecting production utilization and profitability.
• The company is facing excess costs due to running two facilities in Amesbury, which is expected to ease by the end of the second quarter.
• There is continued weakness in the battery market, particularly in China, although some positive signals are emerging.
• Net debt increased due to lease liabilities for the new plant in Amesbury and the acquisition of the remaining MTech shares.
• The leverage ratio increased to 3.1, above the company's target range of 2.5 to 1.5, due to strategic investments and acquisitions.

Q & A Highlights

Q: Can you discuss the current demand situation for AirTech outside of the battery market and any impact from geopolitical uncertainties? A: We have seen a pleasing increase in non-battery related order intake over the past few quarters. While decision times are longer in America and Europe, this is not directly related to trade tariffs. Overall, there has been good development in non-battery sectors within AirTech. - Klas Forsstrom, CEO

Q: Could you explain the positive impact on adjusted EBITA from corporate functions this quarter? A: The positive impact was due to a currency revaluation of a non-current software agreement denominated in Euros, which could reverse in future quarters. Additionally, our software implementation driven by corporate functions has led to more costs being invoiced out. - Katharina Fischer, CFO

Q: Regarding AirTech, can you quantify the excess costs related to running double facilities in the US and when will this ease? A: The double costs will start to ease towards the end of the second quarter as the new facility becomes fully operational. We are also driving cost savings initiatives that will help throughout the year. - Klas Forsstrom, CEO and Katharina Fischer, CFO

Q: Can you comment on the data center market, particularly any regional differences between Europe and the US? A: There is a longer compliance process in Europe compared to the US, which is a stronger market. However, we are well-equipped to handle both regions and are also exploring opportunities in Asia, which is growing substantially. - Klas Forsstrom, CEO

Q: What is needed to increase order intake above sales in the data center segment for future growth? A: We are confident in filling up 2026 with orders. Most orders taken at the end of last year and this quarter are for 2026. We aim to continue growing at about 14% for the data center segment. - Klas Forsstrom, CEO

For the complete transcript of the earnings call, please refer to the full earnings call transcript.