Munters Group AB (MTRS) AI Stock Analysis

• Market Cap: kr33.15B
• Dividend Yield: 0.93%
• Average Volume (3M): 482.02K
• Price to Earnings (P/E): 326.3
• Beta (1Y): 1.41
• Revenue Growth: 4.97%
• EPS Growth: -65.71%
• Country: SE
• Employees: 4,999
• Sector: Industrials
• Sector Strength: 72
• Industry: Industrial - Pollution & Treatment Controls
• EPS (TTM): -0.06
• Shares Outstanding: 184,457,810
• 10 Day Avg. Volume: 374,483
• 30 Day Avg. Volume: 482,025
• PEG Ratio: -3.33
• Price to Book (P/B): 6.47
• Price to Sales (P/S): 2.14
• P/FCF Ratio: 31.80
• Enterprise Value/Market Cap: N/A
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: N/A
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: kr203.33
• Price Target Upside: 11.97% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 3
• EPS Forecast (FY): 6.64
• Revenue Forecast (FY): kr16.83B

• Rating: 55 Neutral
• Price Target: kr202.00 ▲(11.23% Upside)
• Action: Reiterated Date: 01/31/26
• Date: Action: Reiterated 01/31/26

The score is held back primarily by 2025 financial deterioration (margin and net income compression) alongside rising leverage, which increases risk if profitability does not rebound. Technicals are moderately positive with the price above key moving averages, while valuation is a major negative due to an extremely high P/E and low yield. The latest earnings call adds support via strong backlog/order visibility and guidance for improved 2026 margins, but near-term execution and tariff/transition headwinds remain.

Positive Factors

Record order intake and expanded backlog

A materially larger backlog and record order intake provide durable revenue visibility and smooth future invoicing, reducing near-term demand risk. Backlog growth supports multi-quarter revenue conversion and underpins management's guidance for sharply higher 2026 invoicing, especially for Data Center demand.

Production capacity expansion (U.S. localization)

Localizing production and adding a test lab strengthens supply-chain resilience and reduces tariff exposure long-term. Built capacity for ~50% growth materially increases scalable throughput, enabling faster conversion of backlog into revenue and improving gross-margin capture as fixed costs leverage up.

FoodTech recurring revenue and ARR growth

A SaaS-like FoodTech revenue stream with low churn and high ARR growth adds stable, high‑visibility recurring revenue and margin resilience. Over time, subscription and software-led sales reduce cyclicality, improve lifetime value, and provide predictable cash flows to support investment and deleveraging.

Negative Factors

Rising leverage and weakened balance sheet

Higher debt-to-equity reduces financial flexibility and raises refinancing and covenant risk if margins don't rebound. With leverage approaching ~2.9x on an enterprise basis and above stated ambition, any sustained profit weakness would constrain capex, acquisitions, or dividend policy over multiple quarters.

2025 revenue decline and margin compression

Material margin and net income compression erodes earnings power and cash conversion, making deleveraging and reinvestment harder. If structural cost pressures or mix shifts persist, restoring prior margin profiles will require sustained operational gains and higher-volume recovery across segments.

Tariffs, AirTech underutilization and transition costs

Tariff exposure and underused AirTech capacity create recurring margin vulnerability until U.S. production and efficiency programs fully offset impacts. Transition-related one-offs and product-mix shifts can persist across quarters, delaying margin recovery and pressuring cash generation needed to pay down elevated debt.

Munters Group AB Business Overview & Revenue Model

Company Description

Munters Group AB (publ) provides climate solutions for customers in Sweden and internationally. It offers air intakes/air inlets, combined temperature and humidity control products, dehumidifiers, heat exchangers, mass transfer solutions and equipment, pollution control and VOC abatements, climate and irrigation controllers for agriculture, coolers and humidifiers, fans and light traps, heaters, and mist eliminators. The company also provides installation support, start-up and commissioning, service agreement and maintenance, training, and rental solutions, as well as rotor performance check, reconditioning and repair, spare parts, controls upgrade, rotor replacement, munters rotor energy recovery, and fan motor upgrade services. It serves agriculture, automotive, battery dry rooms, chemical processing, construction, data centers, defense and aerospace, electronics, food and beverage, general industry/production, greenhouse, healthcare, pharmaceutical, power generation and distribution, recreation and leisure, shipbuilding and marine, steel, temporary structures, and water and wastewater; oil, gas, and petroleum; pulp, paper, and printing; and storage, preservation, and archives industries. Munters Group AB (publ) was founded in 1955 and is headquartered in Kista, Sweden.

How the Company Makes Money

Munters Group AB generates revenue through the sale of its products and services within its two main sectors: AirTech and FoodTech. The company makes money by offering a range of climate control solutions that cater to specific industry needs, which include high-margin equipment sales and service contracts for maintenance and support. Key revenue streams include direct sales of climate control systems, installation services, and ongoing customer support and maintenance contracts. Additionally, Munters benefits from strategic partnerships with manufacturers and distributors in various sectors, enhancing its market reach and enabling access to new customer bases. The company's commitment to innovation and sustainability also positions it favorably in the growing market for energy-efficient solutions, further contributing to its earnings.

Munters Group AB Financial Statement Overview

Summary

Income statement weakness in 2025 is a key drag (revenue -5% and sharp margin compression with net margin ~0.7% vs ~6.3% in 2024). Balance sheet risk increased as leverage rose (debt-to-equity ~1.93 vs ~1.29), reducing flexibility. Cash flow is comparatively supportive with improved free cash flow (+6.8%) and solid operating cash flow, but debt coverage remains limited, making a profit rebound important.

Income Statement

Revenue scaled up materially from 2020–2024, but 2025 revenue contracted (-5.0%) and profitability weakened sharply. EBIT and EBITDA margins stepped down in 2025 versus 2024 (EBIT margin ~8.4% vs ~12.0%; EBITDA margin ~13.5% vs ~16.2%), and net margin fell to ~0.7% (from ~6.3%), signaling either one-off charges and/or meaningful cost pressure. Positives include historically solid gross margins (~31–34%) and strong profit levels through 2024, but the 2025 earnings drop is a clear near-term red flag.

Balance Sheet

Leverage increased materially: debt-to-equity rose to ~1.93 in 2025 from ~1.29 in 2024 (and <1.0 in 2022), reducing financial flexibility. Equity also declined in 2025 while total debt rose, which is directionally unfavorable. While the company has maintained meaningful equity and asset scale, the trend is toward higher balance-sheet risk, especially paired with the 2025 profit compression.

Cash Flow

Cash generation remains a relative strength: free cash flow improved in 2025 (+6.8%) and stays solid in absolute terms (988M) with operating cash flow of 1.58B. However, cash conversion looks weaker versus the past—free cash flow is ~62.5% of net income in 2025 (down from ~77.8% in 2020), and operating cash flow covers only ~0.24x of total debt, implying debt paydown capacity is limited without sustained cash flow strength. Overall, cash flow quality is decent, but leverage makes consistency more important.

Breakdown	Dec 2025	Dec 2024	Dec 2023	Dec 2022	Dec 2021
Income Statement
Total Revenue	14.71B	15.45B	13.93B	10.39B	7.35B
Gross Profit	4.62B	5.32B	4.42B	3.02B	2.35B
EBITDA	1.98B	2.50B	2.08B	1.24B	1.03B
Net Income	106.00M	973.00M	784.00M	577.00M	513.00M
Balance Sheet
Total Assets	19.73B	21.98B	16.73B	15.42B	10.74B
Cash, Cash Equivalents and Short-Term Investments	1.49B	1.53B	1.53B	914.00M	674.00M
Total Debt	9.38B	7.60B	5.85B	4.50B	2.75B
Total Liabilities	14.86B	16.07B	11.47B	10.11B	6.38B
Stockholders Equity	4.86B	5.89B	5.26B	5.30B	4.36B
Cash Flow
Free Cash Flow	988.00M	1.31B	396.00M	233.00M	177.00M
Operating Cash Flow	1.58B	2.37B	1.07B	772.00M	519.00M
Investing Cash Flow	-1.01B	-2.87B	-1.42B	-1.33B	-341.00M
Financing Cash Flow	-471.00M	467.00M	1.01B	743.00M	-503.00M

Munters Group AB Technical Analysis

• Technical Analysis Sentiment: Neutral
• Last Price: 181.60
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Positive
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For SE:MTRS, the sentiment is Neutral. The current price of 181.6 is below the 20-day moving average (MA) of 188.21, above the 50-day MA of 179.26, and above the 200-day MA of 147.56, indicating a neutral trend. The MACD of 1.88 indicates Positive momentum. The RSI at 47.90 is Neutral, neither overbought nor oversold. The STOCH value of 37.26 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for SE:MTRS.

Munters Group AB Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
BUFAB	68 Neutral	kr21.46B	35.44	15.33%	1.03%	-1.37%	14.78%
SYSR	66 Neutral	kr17.08B	25.41	11.96%	1.55%	2.11%	13.90%
Sector *	63 Neutral	$10.79B	15.43	7.44%	2.01%	2.89%	-14.66%
ALIG	61 Neutral	kr13.35B	22.15	9.59%	2.09%	-1.74%	26.36%
LIAB	57 Neutral	kr12.90B	17.54	7.36%	2.61%	-1.96%	-19.69%
MTRS	55 Neutral	kr33.15B	326.33	13.34%	0.93%	4.97%	-65.71%
NMAN	54 Neutral	kr5.17B	19.00	―	2.41%	2.05%	-11.66%

Munters Group AB Corporate Events

Munters Books Record Orders on Surging Data Center Demand but Margins Come Under Pressure

Munters reported a year of record order intake in 2025, driven primarily by explosive growth in its Data Center Technologies division and supported by solid demand in FoodTech, while AirTech saw weaker volumes amid a softer battery market and cautious U.S. investment sentiment. Despite an 85% jump in full-year orders and a 53% increase in order backlog, net sales grew a more modest 8% and profitability deteriorated, with adjusted EBITA margin falling to 12.7% as temporary tariffs in DCT, underutilized factories, dual-site costs and currency headwinds weighed on earnings; net income declined 41% and leverage ticked up to 2.9x. Management highlighted strong operating cash flow, improved working capital efficiency, and ongoing cost-saving programs in AirTech expected to deliver up to MSEK 250–300 in additional savings by end-2026, positioning the group for historically high turnover in 2026, particularly in the second half. The board has proposed maintaining a dividend of SEK 1.60 per share, equivalent to 53% of net income from continuing operations, underscoring confidence in Munters’ financial position despite near-term margin pressure and the operational transition in its fast-growing data center segment.

The most recent analyst rating on (SE:MTRS) stock is a Buy with a SEK200.00 price target. To see the full list of analyst forecasts on Munters Group AB stock, see the SE:MTRS Stock Forecast page.

Munters Secures Record SEK 2.1 Billion US Data Center Cooling Orders

Munters’ Data Center Technologies business has secured record orders worth approximately SEK 2.1 billion from a US colocation data center customer for chilled water computer room air handlers, coolant distribution units and Geoclima Circlemiser chillers, with production in its US facilities and deliveries scheduled across multiple data centers between late 2026 and early 2028. The deal underscores Munters’ strengthening position in the fast-growing data center cooling market, validates its strategy to offer complete chilled water systems following the Geoclima acquisition, and highlights customer confidence in the company’s ability to scale and manage complex, large‑scale projects, reinforcing its shift from niche excellence toward broader technology leadership in thermal management.

The most recent analyst rating on (SE:MTRS) stock is a Buy with a SEK200.00 price target. To see the full list of analyst forecasts on Munters Group AB stock, see the SE:MTRS Stock Forecast page.

Munters Secures Major Chiller Order for US Data Center

Munters Group AB’s Data Center Technologies division has secured a significant order worth approximately 840 MSEK for Geoclima Circlemiser chillers from a new colocation data center customer in the US. This order, set for delivery between Q4 2026 and Q1 2027, highlights the growing demand for efficient cooling systems in AI data centers and positions Munters to capitalize on this trend with its expanded production capacity in Virginia, US.

The most recent analyst rating on (SE:MTRS) stock is a Buy with a SEK189.00 price target. To see the full list of analyst forecasts on Munters Group AB stock, see the SE:MTRS Stock Forecast page.