Solid growth and robust margin

Divestment of the FoodTech Equipment offering has been completed. The comments and figures in this report refer to continuing operations unless otherwise stated. For more information see pages 16-17.

April-June 2025:

• Order intake increased +22%, with strong growth in Data Center Technologies (DCT) and FoodTech, as well as organic growth in AirTech.
• Net sales grew +11%, driven by solid growth in DCT and FoodTech, while AirTech declined. Currency effects impacted sales by -10%.
• The adjusted EBITA margin declined, primarily due to lower volumes in AirTech in Americas as well as unfavorable product and regional mix. This was partly offset by a strong margin contribution from DCT. FoodTech remained at a healthy level, although declined due to increased expansion investments.
• Cash flow from operating activities was lower compared to last year, primarily due to lower operating earnings and negative cash flow from changes in working capital. 
• OWC/net sales improved to 9.1%, below the target range of 13–10%.
• Leverage declined to 2.8x compared to 3.1x in the first quarter, driven by the divestment of the FoodTech Equipment business.
• Earnings per share, before and after dilution, amounted to SEK 0.97 (1.65).
• The AGM in May resolved to pay a total dividend of 1.60 SEK (1.30), a total of MSEK 292 (237) to be paid in two equal instalments. This represented 30% (30) of net income in 2024. The first instalment of the dividend was paid out in May.

CEO comments

We saw overall continued good momentum in the quarter, supported by our clear strategic focus on strong long-term growth opportunities. Order intake increased 22%, with all three business areas contributing organically. Net sales grew steadily with 11%, excluding currency effects the increase was 21%. The EBITA margin remained robust at 13.6% - a solid achievement considering currency headwinds and the tough comparison against last year’s all-time high level.

Solid execution from DCT and FoodTech
Demand  in DCT continues to be driven primarily by Americas, where interest in our broad portfolio of cooling solutions is high. We continue to have a firm belief in the market’s long-term growth potential. As expected, following our acquisition of Geoclima, chillers have become a strategically important product category which contributed significantly to the good order intake in the quarter. DCT continued to deliver strong margins, supported by solid execution and high factory utilization.

FoodTech also delivered a strong quarter, with high activity supported by continued market expansion. Notably, an order for our software solution was received from one of the world’s largest egg producers, reflecting strong interest in our digital offering. The divestment of the Equipment offering, completed during the quarter, marked an important strategic step toward our focus on digital solutions in FoodTech. Profitability remained at a healthy level despite increased expansion investments.

Volume- and margin-enhancing actions underway in AirTech
In AirTech overall demand remained unchanged in Americas and EMEA, while activity increased in APAC, contributing to slight organic growth. Despite lingering headwinds in the battery sub-segment, order intake remained at a stable level, reflecting Airtech’s increasingly diversified portfolio. As expected, AirTech’s margin was impacted by uneven capacity utilization and an increasingly competitive environment. In addition, the margin is still affected by the temporary dual-site operations in the US. The new facility in Amesbury was inaugurated in late May and the transition to the site is progressing as planned. The new site will house production for AirTech’s full offering, including service and component operations and the old facility is scheduled to fully close during the second half of the year. AirTech’s margin is expected to gradually improve during the year, supported by the earlier communicated margin enhancing actions and a more balanced production footprint.

While short-term demand in the battery sub-segment is expected to remain subdued into 2026 with regional differences, we are actively working to shift capacity toward other segments and maintain flexibility. However, our long-term view of the battery market remains positive, supported by the global trend toward electrification.

Positioned for the next phase of sustainable and profitable growth
Operating working capital in relation to net sales amounted to 9.1%, below our target range of 13–10%, supported by continued structured work to improve capital efficiency. During the quarter, we broadened our financial platform through the establishment of a Medium Term Note program. As part of this, we issued our inaugural green bonds of SEK 1 billion, which were met with strong interest from institutional investors. The bond issuance enhances our financial flexibility and is aligned with our sustainability ambitions. Proceeds will be used to finance or refinance eligible green investments. This move is one of several initiatives to diversify our funding mix and enable continued investment in strategic priorities.

We enter the remainder of 2025 with solid momentum in DCT and FoodTech, and with volume- and margin-enhancing actions underway in AirTech. Our strategic direction remains firm – with a clear focus on our prioritized growth areas, supported by regional manufacturing and targeted investments in innovation. In today’s environment, we are obviously monitoring market developments closely and will take further actions if needed. We remain confident in our ability to deliver long-term value for customers and stakeholders.

Finally, I want to extend my thanks to all Munters employees for your continued commitment. Your efforts remain key to our ability to adapt, deliver and create value.

Klas Forsström, President & CEO

Information about the webcast and telephone conference
Welcome to join a webcast or telephone conference on July 18, at 9:00 CEST, when President and CEO, Klas Forsström together with the Group Vice President and CFO, Katharina Fischer, will present the report.

Webcast: https://munters.events.inderes.com/q2-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=50052347

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 and the Securities Markets Act. The information was submitted for publication, through the agency of the contact persons set out above, at 07.30 AM CEST on July 18, 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 5,000 employees carry out manufacturing and sales in more than 25 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.