Munters Group AB

Strong demand & record backlog (good): Q3 delivered exceptional commercial momentum across Munters. Order intake +70%, book-to-bill 1.6, and backlog +178% to ~SEK 28bn. This demand converted into group net sales +18% YoY, with growth notably in AirTech (especially APAC & Americas) and DCT (despite constraints). Management sees continued positive order trends and is not changing full-year outlook.

AirTech profitability improved sharply (good, with a technical tailwind): AirTech order intake and backlog increased across regions; operations supported by cost savings and volumes. AirTech profit more than doubled to 12.9% margin. Management noted about +6 percentage points impact partly from an order cancellation fee tailwind (so underlying comparability is lower), but also emphasized ongoing cost savings and improving sequential performance.

DCT is the main drag—ramping up slower than planned but progress is visible (bad + challenge): DCT saw ~30% sequential net sales growth and the highest DCT net sales ever, but profit declined due to component shortages, ramp-up inefficiencies, and a new factory start-up in Virginia. Management reiterated the ramp delay is still about ~1 quarter. Cash flow impact: operating cash flow was negative largely from DCT inventory build (partly offset by customer advances).