Munters Group in the Pivotal Point Check: Innovative air Conditioning Solutions are Booming - Strong Trends Such as Digitization and Electrification are Boosting the Stock!

Munters is a leading global provider of energy-efficient air treatment and climate control solutions. With innovative technologies, the company creates the perfect climate for customers from a wide range of industries. Munters has been defining the future of air treatment since 1955. Today, around 5,000 employees in more than 30 countries produce and sell the products. Munters is active in the business areas AirTech (room climate control systems for business-critical processes) and FoodTech (optimizing the entire value chain in food production).

High demand ensures continued strong momentum in all business areas. Order intake rose by 32% in Q1, as the company announced on April 23, 2024. AirTech recorded good demand, particularly in the battery sub-segment in Europe, the Middle East and Africa (EMEA). Data Center Technologies (DCT) delivered a solid order intake in North America. FoodTech recorded positive development, particularly in the Americas and EMEA. Net sales increased by 11%, which is primarily attributable to major orders in the DCT area.

Demand for innovative climate control solutions remains high, driven by strong trends such as digitalization and electrification. This dynamic led to another quarter in which Munters achieved significant growth in order intake. In the Data Center Technologies segment, demand for energy-efficient cooling solutions is very strong. Demand for digital solutions at FoodTech led to a 68% increase in Software-as-a-Service revenue in the First quarter.

To meet the strong growth in Data Center Technologies, Munters is expanding its production capacity for European customers. A new factory is being built in Cork, Ireland, to meet the growing demand for innovative and sustainable cooling solutions for data centers. First, the company launched AirC Connect, AirTech's new digital platform for remote air conditioning with features such as real-time monitoring for desktop and mobile devices.

The Munters Group has a market capitalization of SEK 34.69 billion (€2.99 billion). Revenue is expected to reach SEK 16.10 billion in 2024. In 2026, analysts expect sales of SEK 18.25 billion. Earnings per share are expected to reach SEK 7.41 in the 2024 financial year. An increase to SEK 8.90 per share is expected by 2026. The forward P/E 2026 ratio is 21.9. Munters has a strong market position, which justifies the higher valuation. The company is benefiting from global megatrends such as digitalization, urbanization and climate change.

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