The Long View: Munters

Research evidence excerpt

The Long View: Munters

EUROPE | European Midcaps

Munters EquityJulyResearch20, 2026

ESTIMATE CHANGEBacklog Visibility Trumps Near-Term Execution

Munters delivered another quarter of exceptional DCT demand, but with backlog RATING BUY

conversion rather than order generation now the key constraint. Record orders PRICE SEK181.20^

and a SEK 19.2bn DCT backlog strengthen visibility into 2027-28, while supply- PRICE TARGET | % TO PT SEK235.00 | +30%

chain bottlenecks and a slower Virginia ramp delay the margin recovery. We 52W HIGH-LOW SEK212.40 - SEK109.80

lower 2026E EPS by 6%, but raise 2027E-28E EPS by 2%, respectively, reflecting FLOAT (%) | ADV MM (USD) 99.8% | 8.80

a shift in timing rather than any reduction in earnings power. MARKET CAP SEK33.1B | $3.4B

TICKER MTRS SS

Demand intact; conversion delayed. Munters’ Q2 sharpened the debate around timing rather than ^Prior trading day's closing price unless otherwise noted.

demand. Group order intake reached a record SEK 8.7bn, with DCT orders of SEK 4.9bn and a

3.6x book-to-bill ratio, taking DCT backlog to SEK 19.2bn. Against that, DCT sales declined 11%

y/y to SEK 1.36bn and margins fell to 11.3% as component shortages, tariff headwinds and a FY (Dec) CHANGE TO JEFe JEF vs CONS

slower-than-planned Virginia ramp constrained throughput. Management reiterated its c30% DCT 2026 2027 2026 2027

growth ambition for FY26 and highlighted continued strong customer activity, underscoring that REV +2% +5% +1% +1%

the bottleneck lies in conversion rather than demand generation. EPS -6% +2% -9% -3%

2026 reset: timing shifts, not demand. We lower 2026E EPS by 6%, reflecting a higher tax

2026 (SEK) Q1A Q2A Q3 Q4 FY

rate, prolonged tariff headwinds and a slower DCT margin recovery. Management indicated DCT

EPS 0.84 0.93 1.15 2.47 5.38