Exceptional demand, while earnings weakened: Report by Munters Group AB

Core Insights - The company has completed the divestment of its FoodTech Equipment offering, marking a strategic shift towards enhancing its digital focus and recurring revenues [1][12] - The fourth quarter saw an exceptional order intake growth of 191%, particularly in Data Center Technologies (DCT), which experienced a 416% increase in order intake [4][6] - Despite strong demand, profitability was impacted by temporary factors such as lower volumes and tariffs, leading to a decline in the adjusted EBITA margin [5][6] Financial Performance - For the full year 2025, order intake increased by 85%, reaching a record level, with a significant backlog growth of 53% driven by DCT and FoodTech [8] - Net sales for the fourth quarter declined by 8%, influenced by currency effects and a decrease in AirTech, while FoodTech showed growth [6][8] - Earnings per share for the fourth quarter amounted to SEK -0.06, compared to SEK 0.85 in the previous year, indicating a decline in profitability [6] Operational Highlights - The company maintained a strong cash flow from operating activities, largely due to advances from customers in DCT [6][8] - In AirTech, order intake remained stable, but profitability was affected by underutilization and lower volumes due to a weaker battery market [6][7] - The company has implemented cost reduction measures, achieving over MSEK 100 in savings in 2025, with additional savings expected by the end of 2026 [10] Strategic Outlook - The company anticipates historically high turnover for the full year 2026, with stronger contributions expected in the second half driven by increased shipments and improved execution [4][15] - In DCT, customer demand is expected to remain strong, with improvements in margins anticipated as tariff effects ease [14][15] - The company aims to focus on continued growth in DCT, scaling FoodTech's digital platform, and improving margins in AirTech through operational measures [16]