Munters Group AB (publ)

Q2 net sales increased 6% organically. Order intake increased more than 140% organically, backlog improved to 151%, and book-to-bill was 2.3x overall; AirTech book-to-bill was 1.7x and DCT book-to-bill was 3.6x. Management said DCT net sales were held back by the planned U.S. chiller ramp-up and supply-chain constraints, and Klas estimated supply-chain issues reduced quarterly DCT sales by about SEK 300 million. Katharina said operating cash flow was very robust, operating working capital was 5.2%, leverage rose from 3.1x to 3.2x, and 2026 CapEx is expected to stay at the same level as the prior year. Guidance was unchanged: DCT full-year sales growth guidance remains 30%, revenue growth should improve as the year progresses, and adjusted EBITA margin is expected to improve during H2, with DCT revenue acceleration into Q4.

Klas Forsström’s tone was confident and strategic, centered on portfolio simplification, stronger focus on DCT and AirTech, and a potential FoodTech divestment to create a “sharper” Munters. He repeatedly emphasized that demand is strong, the company is building a healthy backlog, and 2027 and beyond should benefit from current investments. On DCT, he was frustrated with supply-chain bottlenecks but said the factories, people, and capacity buildout are on plan and that the company is about one quarter behind on profitability, not off track.

Katharina Fischer focused on the financial bridge: stronger AirTech and FoodTech sales, lower DCT throughput due to the ramp-up and supply-chain constraints, and resilient profits with net income still increasing. She highlighted robust operating cash flow driven mainly by customer advances in DCT, disciplined cash management, and operating working capital now at 5.2%, well below the target range. On capital allocation, she noted the recent Optifarm acquisition in FoodTech, proceeds from the sale of a U.S. production facility, dividend payments, and CapEx of 7.2% of net sales in the quarter and 5.9% rolling, with full-year CapEx expected to match prior year. She also said AirTech’s 2026 cost-saving initiatives have delivered over SEK 100 million so far and are expected to reach at least SEK 250 million by year-end.

Analysts pressed hard on DCT: whether supply-chain issues could delay deliveries or jeopardize the 30% full-year sales growth target, and whether margins could expand in Q3. Management said the 30% DCT growth guide still stands, but revenue is tilted toward the end of the year and Q4 will be the real step-up; they said the company is roughly one quarter behind on profitability and expect the main revenue boost in Q4. On supply chain, Klas said the company is not expecting delivery delays, but is managing fan and valve shortages, localized bill-of-material challenges, and some tariff pressure by adding suppliers, increasing stock, and shifting some production. Questions on FoodTech focused on weaker order intake and divestment risk; Klas said the quarter’s softness was temporary, order growth should return to 20%-30%, and divestment discussions are early but attracting interest. AirTech questions centered on the exceptional component surge and batteries; management said the pad/component spike is extraordinary, not the new normal, and batteries remain “icing on the cake.”