Shares of Munters Group jumped as much as 7.4% on Friday morning after the Swedish climate-solutions company posted a third quarter that demolished expectations on demand — yet left a nagging question about whether its factory floors can keep pace with its sales team.
Orders Crushed Forecasts by a Staggering Margin
Order intake hit SEK 7.1 billion, up 70% year over year.
That figure exceeded analyst expectations by 42%, driven primarily by the data-center cooling segment.
Data-center orders alone more than doubled and came in roughly twice what analysts had penciled in. For shareholders, the message is simple: hyperscaler and colocation customers building AI infrastructure are signing multi-billion-kronor cooling contracts at an accelerating clip, and Munters is winning its share. The company's data-center backlog already stood at SEK 15 billion after Q1 , and the Q3 haul extends revenue visibility well into 2028.
Sales and Earnings Beat, but Margins Tell a Messier Story
Net sales reached SEK 4.5 billion, up 18% and 5% above consensus.
Adjusted EBITA — operating profit before one-off items — totaled SEK 546 million, beating expectations by 10%, though the margin slipped to 12.2% from 13.5% a year ago. The top-line strength came largely from AirTech, where sales rose 24% and adjusted EBITA more than doubled — though a one-time order-cancellation fee added roughly 2.5 percentage points to that segment's margin. Strip that out, and the organic improvement is more modest.
Data-Center Profitability Is the Weak Spot Investors Should Watch
The data-center segment posted a 9.7% margin, missing expectations by 150 basis points (1.5 percentage points).
That compares to 19.5% in the same quarter last year — a halving that management attributes to component shortages and the cost of ramping new U.S. production capacity. Investors are effectively being told: the orders are flowing in faster than the factories can efficiently fill them. UBS expects group-wide adjusted EBITA margins to climb toward 17% by 2028 , but that thesis rests on Munters resolving supply-chain bottlenecks without sacrificing pricing power.
The Stock Is Still Far Below Where Analysts Think It Should Be At SEK 135.75, the average 12-month analyst target sits at roughly SEK 212.50 — implying about 57% upside.
Seven of eight covering analysts rate the stock a "Buy."
The shares trade at about 47.7× trailing earnings , a premium valuation that demands proof margins can recover as the backlog converts. A Capital Markets Day on November 11 could provide that clarity — or expose the gap between booked demand and deliverable profit.