Munters Group Stock

Good morning, and a warm welcome to today's presentation of our Q2 results 2026. My name is Line Dovarn, and I'm Head of Investor Relations, joined, as always, by our CEO, Klas Forsstrom our CFO,Katharina Fischer. So we will begin with a presentation from Klas and Katharina, and then we will have a Q&A session. So Klas, please go ahead.

Thank you, Line, and once again, good morning, and welcome. [indiscernible] delivered exceptional order intake both in data center technology and AirTech, driven by solid underlying market and strong product offer. All setting up a center technology and AirTech for substantial revenue growth 2027 and beyond. The profitability is as planned, improving in AirTech DCP was impacted by anticipated growing pain as well as currently burdened by component shortages affecting ramp-up speed and efficiency. Very pleasing also to see that the quarter showed strong cash flow and cash conversion. We are creating a sharper, more focused mentors by optimizing our portfolio and positioning FoodTech for the best possible future outside the group.

I'm very convinced that this will create a more focused matters. That without FoodTech is well positioned to deliver annual revenues well above SEK 20 billion over the coming years. So talking about the potential divestment of FoodTech, as I said, the portfolio optimization question. a sharper focus on enters and create a new ownership to accelerate FoodTech. The future mounters will be data center technology and ad tech centric generate focus, flexibility and enable us to allocate towards growing that part of the business.

FoodTech or [ Steria ] set up for a potential divestment, enabling growth, market position and continue to scale. And I have to say this, FoodTech is a fantastic asset. And even if we're early in the process of setting this up, I'm very pleased to see that it is a high interest in the market, talking and understanding what FoodTech and Steria is all about. Looking into the quarter, once again, exceptional demand, external headwinds currently affected profitability. And here, I talk about data center technology. But going back then to order intake, more than 140% organic order intake increase and very pleasing both data center once again showing strong growth, but also Airtech showing a very, very strong underlying growth.

The order backlog improved up to 151%. And the book-to-bill ended up at an impressive 2.3x. The net sales increased organically a little bit more. AirTech increased driven by components and commercials. BCP declined due to the planned ramp-up and also damped by the current supply chain challenges. FoodTech increase both when it comes to software and controllers driven in Americas and EMEA. Margin impacted by external factors, as I said, and I will come back to that later on. DCT declined production is burdened by component shortages and of course, also the ramp-up in the product mix.

FoodTech remain at a healthy level. We continue to invest and very pleasing to see Artic improved. Higher volumes, cost-saving measurements, everything is biting in the way that we anticipated to be. When we talk about the favorable trends, it is really cutting across all the different regions. But to be a little bit more sharp Americas, very strong market, and we have a strong impact EMEA is moving up to a more healthy market position. Very pleasing to see that data center, both the market and we in the market that are showing clear signs of a pickup and order intake.

And APAC, even if it is a smaller part of our order intake, it continues to be healthy. But of course, at a slightly lower margin than the rest of the mix. Coming back then to see intake is generated from Americas and a little bit shy of 20% EMEA and a little bit shy of 10% in APAC. Moving into the different business areas, exceptional demand in ACE, a book-to-bill of 1.7 million Americas, significantly growing, and the exceptional and demand is mainly coming from evaporative ads components but also in many other segments, including some reinstatement of a battery order that have gone in and out. EMEA generating growth. But as I said, a little bit more mix but moving to a healthy level growth supported across the different components and sectors.

This slide you have seen many, many times, and I'm very open come back to and say now battery is icing on the cake. Take a look upon where we are beside the battery. We have established ourselves cutting across many different segments. And I'm very pleased to see that AirTech has been able to reach out to several segments. Worth noting in here, as you can see, the components i.e., the pads are extremely strong in the quarter, and I have on the line. This is not the new normal. This is extraordinary. Even with that said, that we have an underlying strong pad growth across the different sectors. So I don't expect this to be repeated in the coming quarters.

All in all, a very pleasing development. And if we take a little bit closer look into this, then first of all, take a look upon 20% service, 24% components that generates the order intake is service and component. That sets us up for a long-term delivery of components in the coming year 1.5 years. what more to say. I'm super pleased about the good development in profitability driven by, first of all, the savings programs are delivering according to plan. And on top of that, also, we are then moving up more and more when it comes to filling up the factories. I come back to one thing that I believe is super important. We will take this step by step. We are, if I say, some not in a hurry when it comes to spiking up profitability.

And what I mean with that is we will deliver diligence on the savings. And then when we have a couple of more quarters with SEK 2 billion and above in order intake, we will also then -- and at that time, after a couple of quarters with this, I mean, then I expect us to be where we should be, i.e., in the range of 13%, but it will take a couple of more quarters to reach that level. Data center technology. Once again, the continued order intake. For me, it is a clear sign on this is what we present to our customers is very much appreciated, and we see no signs of any slowdown in the demand as such.

Several different types of orders, cutting across all the different product categories. We announced one significant order of SEK 2 billion in the beginning of this quarter. And the order intake continued to increase. And now we are talking about that we are deliveries mainly for '26 and '27, but we are also starting to fill up '28. I'm super confident in the order backlog that we have a book-to-bill of 3.6 million Net sales declined. Part of it is very much as expected, the planned ramp-up of U.S. sellers in the production.

But then we have spiked it up sadly with also some current supply chain constraints that has brought us down a little bit more. I would say that if we would have not have the supply chain constraints, I would have expected us to be about SEK 300 million more in net sales in the quarter. So that is holding us back for sure. And I will come back a little bit more how I look upon the future in this area. The margin declined it changes in the product mix. As we have communicated earlier, it is the planned production ramp up, nothing strange with that. And then we have added on then the supply chain constraints. The tariff headwinds is estimated to be about 3 points higher than the norm. The order backlog then. And of course, this is not all the orders we have. We have added two just to give you a flavor of what we see. It is then the SEK 2 billion that we talked about, but it's also very pleasing to see that we have added an EMEA co-located order of cows and CDs.

And if I take a look upon this, I mean, it is clear, as I said in the beginning, I mean, we are setting up a center technology to deliver an increased and accelerated revenue growth starting in Q3, accelerate in Q4 and then carry us through '27 and '28 in a healthy, strong order backlog. You may have seen this schematic view on how you ramp up new production the curve on the right side.

Let me start with an obvious statement. What do you need to have to generate success when you're building new factories when you're ramping up when you're investing. First, you need to have the factories, facilities in place. Then you need to have the people, bring them in, train them and less them shine. And then on top of that, you need to have materials in the supply chain in a good order. I'm very pleased. We are spot on when it comes to the build for the factories, the training of the people, the hiring of the people. And as you can see, this is quite an accomplishment. We are doubling the production output, we are increasing the floor space of 60%. So this is something that I feel that our people can be extremely proud of. On the other side then, if I simplify, I say, I'm not happy in regards to how we -- where we are when it comes to the material supply. And my unhappiness is, of course, we didn't fully see this coming. And now we have to work ourselves out of this. But the unhappiness is also supported with a very, very strong conviction that we will work to sell to this. And that takes me to the curve.

You start down in the bottom left. We build a factory, increase the production volumes, you start to practice. You put in lean methods, et cetera. And at a certain point, let's call it, a tipping point, the inflection point, when you have practice enough when you have had enough volume in the factories, then you start to move profitability up. My view is that the conical plan should have been a little bit below the inflection point at current. But now we are about 1 quarter behind the plan. But in the coming quarter, we will continue to move up to the inflection point. And then thereafter, we will continue to move up towards the profitability. And you can say what are we doing to mitigate this? We are increasing our stock levels. We are putting in more suppliers. We are sadly then supporting it also with some more production in Europe that is hitting us on the tariffs. But all in all, we are mitigating this in a very good way. And if I take a couple of quarters' outlook. If I take a year outlook, I mean, we are set up for success and a record delivery from those factories.

FoodTech. For me, this is a fantastic asset. And as I said earlier, it is not due to that we don't believe in FoodTech. We believe very much in FoodTech, but we need to focus our efforts on the core FoodTech strong backlog, some delays in projects during the quarter, but still a book-to-bill of 1.1. I'm super comfortable with this. I see that now it is full speed ahead on separation and full speed ahead on delivering orders and NLP and the team, they are super excited to put this in place. Order intake goes both for controllers, but it's also when it comes, there are.

A little bit disappointed in the quarter when it came to the ARR development, but I'm very confident that we will be back on track in the range of 20% to 30% growth in the coming quarter. So for me, FoodTech is set up for success in the future, and it is just to push the accelerator and moving forward here. With that, Katharina, let's dig into the numbers.

Thank you, Klas. Okay. So you have further class talk about the results a little bit. So the Q2 then demonstrated good growth in AirTech and FoodTech net sales. while the data center net sales was lower than due to the production ramp-up and also the supply chain constraints that impacted the throughput in the factory also demonstrated resilient profits. So net income still increased and also some cash flow generation and further improvements in operating working capital, which is now well below our target range. Looking at the margin a little bit.

So we talked about this that we are ramping up. So we are supporting our growth initiatives, of course, and then we have some external factors. If we look at the volume development, it was a mixed picture. AirTech volumes grew, while DCT's volumes decreased and due to -- that the trout was impacted in the factory by the supply chain constraints. We also had profitability negatively impacted by product mix in DCT, which we have talked about many quarters and then also the tariff impact. At the same time, we are continuing to implement price increases across the group. And these will come through, but it will be a gradual benefit to profitability as we have longer lead times in part of the business. On the operational excellence side, here, we then also sell the external supply chain constraints that affected the throughput and also the efficiency, of course, in the factories in the U.S. due to the planned ramp up.

And then we also had the continued underutilization in AirTech weighing on the margin. We remain committed to our strategic initiatives. So we are continuing to invest to scale the business in automation, digitalization and so on and also, of course, expanding the footprint. Positive support from FX cost savings programs that I will come back to. And then if we look at the sequential, how the margin has developed sequentially, it has improved somewhat then driven by increased volumes and cost savings in tech. And then I take you know that we are working on implementing these cost savings programs. They are progressing very well. The 2025 program has been complete and delivered more than the expected savings. Now we are continuing to implement the 2026 initiatives.

And here, we have delivered over SEK 100 million so far, and we expect to deliver this SEK 250 million at the end of the year. And these initiatives, as you know, include investment adjustments, workforce optimization and also increased efficiency. And the whole aim is, of course, to improve. -- tech's profitability, which is happening and then also make sure they are more efficient and have a scalable platform for future growth.

Looking at the cash flow. In the second quarter, we delivered a very robust operating cash flow, and this was primarily driven by customer advances in the CT, but also very disciplined cash management across the group, of course. Investing activities increased. And this is, of course, because we are continuing to invest in our business and also this includes the recent acquisition of [ Optify ] within FoodTech. This was partly offset by a positive proceeds then from the sale of a U.S. production facility in the quarter. And then we paid out the dividend in the quarter, which is part of the financing activities. Year-to-date, same picture, strong cash flow driven by -- we continue to invest, of course, in our business and also strategic investments like buying out the remaining part of the MTEC shares that happened in the first quarter.

Talking about investments then in the quarter, we had 7.2% CapEx as a percent of net sales and a rolling -- so still not as high as prior year at this point during the year. But still, we continue to invest, of course, mainly in our Virginia facility where we are ramping up the production capacities for the Virginia campus, but also some investments for component production within AirTech, of course. And talking about full year outlook for that remains. So we expect it to be at the same level as prior year.

Working capital. We talked about that a little bit before, very, very low, 5.2%, very good execution group. Leverage, slightly up from 3.1% in the first quarter to 3.2%. Now this is mainly driven then by decreased adjusted EBITDA offset partly then by strong cash flow. And while we do not have a fixed leverage target, we do have an ambition, which is 1.5 to 2.5. We are comfortable being above this level since this is due to the acquisitions we made and also the strategic investments in our factories. Looking ahead, we will see leverage gradually improve as we see higher earnings and of course, also a very disciplined continued cash management.

Turning to ESG matters. In the quarter, we report our green financing report. This is a report that dives into how the proceeds from the green moms are allocated and what towards project and what environmental impact those are making. So right now, we have SEK 2 billion in outstanding green bonds across 3 maturities. And we have SEK 1.4 billion allocated right now against climate change mitigation projects. And of course, these projects are extremely important for us because they will then drive environmental benefit. So a few examples then we continue to drive lower emission manufacturing where we use more renewable electricity and positive free heating and that supports growth then while reducing operational emissions.

In our product portfolio, we have AI powered the humidification solutions that optimizes the humidifier operations and remote monitoring improves efficiency and performance. And then we are also advancing digital solutions in FoodTech. And here, we have data-driven feed optimization that improves accuracy through data and predictive analytics, reducing emissions, energy use and cost. And these investments, and then they demonstrate that our green financing framework supports innovations that benefits both our customers but also, of course, our own operations and really reinforcing that sustainability is really a key enabler for profitable growth and long value creation.

So with that, I would like to hand it back to you, Klas.

Thank you very much, Katharina. So let me summarize before we move into Q&A.

We continue to progress towards our financial targets. Currency adjusted growth in the quarter, a little bit shy of the target that we have. On the other side, operating working capital, definitely well below and adjusted EBITDA pretty much as where we expected it at current. And then when it comes to the dividends, we continue step-by-step to improve the dividends moving forward.

The outlook for 2026 is unchanged in some status updates here, AirTech, continued strong growth trends across several segments. As you could see earlier, I mean, we are really ramping up the reach out to different segments. Very pleasing to see the ongoing efficiency program progressing on plan. Data center and technology continue to scale to capture larger share of market growth in a broader portfolio. It is very clear that our broad and highly operating portfolio is generating a lot of positive traction in the market.

Also very pleasing, as I said, to see that we are both the European market as such, and we in Europe are making progress. Ramp are progressing as planned when it comes to what we have in our control, but as I said, we are currently burdened by some external factors. One of those is the supply chain challenges, but that we will gradually work ourselves to FoodTech exploring the divestment to sharpen the strategic focus. It is a very attractive underlying market where we will continue to invest, and we are starting a very good home for FoodTech in the future.

The market outlook flat to positive in AirTech. Positive in data center and continued positive in FoodTech. And the business outlook for the full year, no change. Net sales growth expected to develop positively. The longer the year goes, the more positive it will be. And as I said earlier, we are also now setting ourselves up for a very, very strong 2027.

Adjusted EBITDA margin is expected to improve during H2, driven by order backlog in DCT and continued step-by-step margin improvements in AirTech as such. So with that, welcome, Line. Over to all of you out there for some Q&A.

Great. Thank you very much. So we are ready for questions. [Operator Instructions]. So handing over to the telephone conference.

[Operator Instructions]. The next question comes from Adela Dashian from Jefferies. Please go ahead.

Good morning, Klas [indiscernible] I'm going to start off on the data center segment. I appreciate the commentary here about being roughly 1 quarter behind your planned track. Can we actually talk about what this means you previously guided for a 30% total sales growth in the data center segment for the full year. Does this guidance still hold or do the supply chain disruptions now result in component charges that creates longer delays than the weekly as you've been talking about previously?

But a very obviously clear question. And the answer is no. Or I should say, yes, the guidance on 30% is still valid, and that is what we hold. So it is tilted more towards the end of the year. But if I put it like this, I mean, I used the frame, 30% to 40%, but for sure, 30% that is the guidance.

That's really good to hear. And then a similar question on the level of profitability. You have been talking about an ambition to return to 5 teens, which, I guess, then if you're still delivering 30% to 40% sales growth for the full year, our team should as well be achievable in H2. So I guess my question -- number one, is that true? And then secondly, then what does this mean that you're 1 quarter behind. Do you mean that Q2 is the 1 quarter that you're behind? Or does it mean that Q3 is the 1 quarter?

Also a very good question. And if I use the curve that I showed earlier as a backdrop, I would have expected we at current to be just a little bit below the inflection point where we started to improve profitability. Now we are one quarter behind. So we are not there it will take ourselves a quarter to move up to the point where we will start to see profit improvement or significant characters. So the short answer is -- also when it comes to the profitability improvements due to, I mean, the throughput, et cetera, we are 1 quarter behind, and that means that we sort of will be slower 1 quarter moving forward.

But overall direction is, yes, we will continue to move towards what we have talked about. And then even more so, when I look into next year, when we talk about the deliveries that we're setting ourselves up with.

Should we expect margin expansion in Q3?

Adela, here, we have I don't give that detailed guidance. But what I say that is, I mean, we will gradually move up now in the output, i.e., the revenues, but the real revenue booster will come in due to the 1 quarter today.

The next question comes from Jingyi Zheng from UBS.

or this is Jingyi Zheng [indiscernible], I have two questions on [indiscernible] as well. Firstly, could you appreciate the color on supply chain situation. I wonder if you could share a bit more color on that and specifically, the impact on operations? And how meaningful are the results in production or delivery delays, i.e., are we talking about 1 to 2 weeks chips in delivery or something more substantial? Because I understand your delivery schedule significantly increase in H2 based on the slide of large holders that you shared. So I wanted do you think the supply chain situation could be a bottom-up in fulfillment your delivery obligation from the large orders in H2.

But I appreciate the question. And let me give a little bit of flavor on this. And first of all, what is really good for us, that is our wide product assortment and the wide categories of different customers. So the short answer, we are not expecting any delays in deliveries, but we also see that we need to shift delivery schedules, and that is very much in line with what the customer would see and what they would be able to handle.

And what do I mean with that? And as an example, I mean, predominantly in U.S., we are ramping up the chiller production, but we have also taken substantial orders across we can produce in already existing factories. We have less wallet supply chain challenges. But cross do have a lower profitability. So there by doing those mix changes, we will be able to keep up the out deliveries in revenues, but it could be shifting in type of categories. So that is one way of handling it, thanks to our strong wide portfolio.

The second one, if I share some -- what are the details on the supply chain challenges. First of all, I think when it comes to fans, the full market are seeing some branches on deliveries of fans. Then we have also walls and certain components. For us, then more specifically, it is also due to the fact that we need to set up a bill of material in U.S. And thanks to this crunch in supply that has been delayed. So that is also something that has burdened our profitability that we need to ship continued more components Europe into U.S. So all in all, I look upon this then is this something that I'm happy about? No. Is this something that I'm worried about -- worried about? No. Is this something that will, as I said, delay us about the quarter in the expectations of profitability and ramp-up yes. Am I worried about the overall outlook for the second half year? No. And I'm even more excited about next year than I was in the beginning of this year. We are building up a fantastic strong and healthy backlog in carrying us into next year as well.

Really appreciate the color. That's good to hear. And my second question is on the same topic, but on your mitigation efforts, could you talk about what level of visibility do you have today? And what are the key indicators you're monitoring that underpin your expectation for how the situation will develop over the next few months.

But first of all, I mean, it is clear that [indiscernible] -- and this is very [indiscernible] the future is an expert in data center technologies. I mean he is very much on to this already from day 1, so to speak. But more detail then. I mean we have our very, very strong and well-educated supply chain organization. They are now working with the obvious one, finding new suppliers from different type of vendors when it comes to fans.

It is, of course, also preordering from those suppliers to building up stock. So we have a better stock situation, and that is also one of the reasons Katharina mentioned that we are building some operating working capital then for healthy reasons in data center. And thirdly then, as I said, we are also then working with organizing supply even if it hits us on tariffs, but organizing supplies outside North America. So you can say, we are working with all the different ingredient is in how to mitigate the situation like this.

And if I could choose then what would I like to have? Would I like to have an order book that is not full at all. Or would I like to have an order book that we have to work with. Every day in the week, I would like to have an order book that we would like to work -- we have to work with. That is a much more comfortable situation than not having orders.

Maybe add something on tariffs, which also...

Yes, exactly. So the tariff impact in the quarter was 3%, and that is a result of the continued import of finished goods and on our Italian production. And also, as Klas mentioned, some chiller components or from Europe.

But going forward, this will continue to also have an impact as we move over to we will be moving over to a localized bill material, but this is also affected by the super-chain constraints and thereby will take longer than what we anticipated.

The next question comes from Jakob Marken from SEB.

So if we start -- or we keep it at the DT part. First, do you see any risk that competition takes any of the potential orders that might arise on the market when you have these production issues? Or how do you view that?

We don't see any risk at all when it comes to this. And why am I so confident in this? I mean you are assigned to a project, you deliver accordingly to the schedule you have when we signed ourselves to this, of course, we put in some, call it, bumpers. And as I alluded to earlier, thanks to our strong and wide product assortment, it can also shift different products to different customers.

And at current, we don't see any indications that the customer is worried or annoyed at what -- on any level. We are pretty much on par with what they would have expected, then what we would have expected, that is that we would have been some SEK 300 million more in deliveries already now than compared to what we delivered.

Okay. Perfect. That's good to hear. And then if we move from the GT part and you asked a question on the FoodTech order intake down a bit year-on-year, and margins also weakening, do you see any risk that, that might hamper the potential divestment? And while on that topic, do you have any highlights or something that you want to share with us regarding that regarding the potential investment.

First of all, if I start with, yes, we are a little bit shy on order intake. I look upon this as, call it, we have had some -- sometimes, I mean, you take an order and sometimes you are not taking the order in the quarter. So for me, I look upon this as more temporarily mishappening if I use that expression then. So I'm super confident he and the team, they are super diligent in going for orders I expect us to be not each and every quarter, but get back on the 20% to 30% order growth that we have had in the past.

And so if that is the base super excited about, I mean, what the customers are saying about this. Then of course, even if this may sound as a small excuse, of course, PE and the team, they have also now been concentrating on getting the DUCs in a row for a potential divestment. And so especially in the beginning when you announced that, that takes a little bit of the focus away. But now everyone is lined up to both handling the separation and the buildup by that and then also handling, I mean, generating orders, et cetera. And on the process as such, then, I mean, we are early in the process. We will communicate whenever we have something to update, as I said in the beginning, I'm really happy to see that it is not only us that see the great potential in FoodTech.

We have also has a good call some potential interested parties. But I need to underline, we're early in the process, and this we will take step by step.

The next question comes from Anders Roslund from Pareto Securities. Please go ahead.

Yes, good morning. I have two questions and one regarding DCT. I just want to follow up the supply issues in the chiller production. And what you're saying here is that you have to rely on imports from Europe and elsewhere while you're still searching for local suppliers to the shallow production. So my question is simply -- is it the risk that the tariff remains a negative impact until the end of this quarter, maybe also into -- no, sorry, until the end of '26 and also in '27 due to that you are not fully equipped with local suppliers for chiller production. So given that the shale production or the chiller area is the high-margin business, I assume that you may have an impact of tariffs also for the coming year.

Thank you, Anders, for the question. If I move to the second part of the question, when it comes to next year, I'm very confident that we will be able to set up local bill of materials and so on for next year. Then of course, as we said, we are delayed on the bill of materials, et cetera. So yes, it will have an impact during the coming quarters as such. But once again, when we move to next year, at current, I don't see any worries. I mean I talked about we are about a 1 quarter delay here. But I think this is the burden you have sometimes have to have when it comes to setting it up. It's not something that I wished for. I'm not happy about it, but at the same time, I'm very confident that we will be able to handle just in a good way.

Okay. Then I have a question on AirTech. The order intake was very impressive. And looking at the chart, Page 6 here, you mentioned that you had a battery order that was reversed the previous console order was that a major part of the battery order intake? Or was it all the size? And then you mentioned also on the component side that was an extraordinary increase. And in the report, you say about timing here that -- could it be a catch-up for those timing effect? What does it mean? Because it's such a huge part of the total order intake. So those two issues.

If I start to go back to what do we see that we need to have in order to move ourselves towards the right profitability, i.e., 13 and above in AirTech. We need to consistently have an underlying order intake of about SEK 2 billion for several quarters in a row. So from that perspective, Anders, it is very pleasing to see this is the second quarter in a row that we have that. And this quarter, we had substantially higher than that.

If I go back to the other part of the question, start with the component. It is very much pads. It is a surge in due to that, there is an extra spike in the demand due to others being not able to deliver, but we are in this area, very good in delivering. So here, we have received more orders than normally. We are taking market shares, but some of those orders are then not delivered next quarter and the quarter thereafter, they are also scheduled for it to be delivered in 2027.

What is important also to understand that is, with that said, it is still an increase in components both when it comes to pads and when it comes to desiccant wheels. So the underlying is improving, but it's not 1 billion per quarter moving forward. That is not the new normal, but I'm super excited for components as such. This shows our strength in AirTech. And sometimes -- and please understand me right, Anders. Sometimes I'm a little bit bored and only talking about data center technology. Now let's talk about AirTech and all the good progression that is taking -- happening in AirTech. We have two legs to stand on, and that is great to have two legs to stand on.

Yes. And this is the question about the reversal of a consol order in the back.

So the exact amounts, but let's say, if I split it into two parts, a little bit more than half of it comes from a reversal. I mean, that is a comeback in a positive way. And then there are several smaller orders actually predominantly in Asia, if I remember it right then. So it's a mix. It is it is a blend of it. So it is not only the reversal. It is also several smaller orders that is filling it up. I look upon batteries, as icing on the cake. We have not changed our view that we believe it will be 10% to 15%. And if it is above fantastic. But as you can see now, I mean, if I deduct batteries from the last 2 quarters, the last 2 quarters are the strongest quarters in Eric's history when it comes to the other parts of the business.

Great. Thank you, Anders. We can take another color from the conference.

The next question comes from Lacie Midgley from Bloomberg Intelligence.

Klas, Katharina, Line, you've actually kicked off quite a few of mine on VCT, but I guess just 1 more on the margins. So obviously, you mentioned the price increases and to offset the higher material costs with that time in line. Just wondered if you could give some color on what portion of the backlog has already been repriced? How much remains exposed to higher input costs presumably or for future orders are already factoring that in, but some color there on the backlog and how that looks would be helpful.

I can start and then Katharina, please chip in on. But how do we handle orders them. In general, you can say like this. When we take an order, we price it to where we expect the cost to be when the order is to be delivered. And then on top of that, we put up what I call the some safety net. So we price it even higher on that then.

Then I mean, when you have a situation like this when you have very strong quality inflation-driven cost increases. Sometimes you are still then not pricing it high enough. What we do then that is, of course, each and every order we take, we are pricing that exactly where we believe it should be. So for every order we take, we jump up the price as the cost increases. So from that perspective, you can say that the best way to describe it, that is perhaps it is, on average, half a year, call it, delay until we have corrected the pricing with the existing order backlog if I generalize them.

And then, of course, we are doing everything we can to mitigate this by lowering purchasing price and so on and so on. But Katharina I know that you are on to an everyday.

But as I said, on what we're doing to lower purchase price, but also qualifying additional suppliers, of course, to improve pricing as well. And over the group, we have had price increases of 2.8% in the quarter. that's over the group.

We have one more caller?

There are no more questions at this time. So I hand the conference back to the speakers for any closing comments.

Okay. Good. Thank you. We do have a question here on the chart. So -- or two questions. Can you say anything about the timing of the supply chain constraints? When do you expect them to ease?

I think whatever answer you give there is not an accurate enough answer. What I have learned when it comes to this, that is this, you have to work every day with day and night until it's over. The best I can say I feel, as I reiterate here, we are about half 1 quarter behind I'm super confident that when we are signing up new delivery suppliers when we are working with all the different efforts that we will come through.

But if I said -- if I would say 2 months or if I would say, 4 months, I mean it is -- it would not be a correct answer. So from my perspective, we are working diligent with this and then we will handle it in a good way.

Good. Your guidance of 30% growth in DCT for the full year, and you comment on slow acceleration would imply sales of more than SEK 3 billion in the final quarter of the year. Is this feasible from a capacity standpoint?

From a capacity standpoint, we have well capacity installed. We have all people installed, and we are working diligently with having all the supply in line. The plan is to deliver the 30%, and I'm very confident on that. And if that indicates that, yes, we will have a very strong fourth quarter, then we will deliver a very strong fourth quarter.

Great. I think we do have one more color on the line.

The next question comes from Jacob Marken from SEB.

Just one follow-up question from my side. On the tech side, as you mentioned, very good Q1, Q2 here and the cost savings programs that you are running. I mean that's which time or at which volume do you need to take some of that cost back? Or should we view that all of those costs are moved and then you can grow from that base? Or how do you view that?

The idea the firm grip that is AirTech has reset themselves and from that position, they should be able to handle a SEK 2 billion order intake and the deliveries from that without any cost increases. Of course, if AirTech continues to grow, see new opportunities to expand, et cetera, of course, we will start to expand in areas. But the current view is not any cost increases in AirTech, we should still be able to handle that. What do you think?

I fully agree.

And can you also talk about where you believe margins in DCT and AirTech could be in the midterm?

I mean if we talk about the midterm, the targets that we have, that is to reach a 14% over a business cycle. I put it like this. when we have worked ourselves out of the supply chain, when we have set up everything, we are supposed to set up in data center technology. In my view, then we should be in the high teens.

Now the proof is in the [indiscernible]. They need to work with this, they need to drive this for, but et cetera. But I think definitely that is not only our ambition. That is what we are supposed to deliver on. But it would take some time then as I described. When it comes to AirTech I just reiterate what I've said several times. It's two components. One is cost out and there we're delivering. The other one is for several quarters in a row, have an order intake that is SEK 2 billion and above. And when that starts to drop through in the revenue, I mean, then we will be back three, but it will take yet a couple of quarters of order intake before the drop-through will come.

I mean it is one more quarter to go for me, and I just want to say this once again, as I said in the beginning. We have been and we are on a fantastic journey with Munters. The fascinating part that is 7 years ago, we were SEK 6 billion in turnover, SEK 6.5 million. I clearly see even without FoodTech that were in coming years will be SEK 20 billion and above. And why am I so confident in that?

First of all, the very strong order backlog that we are building up and then the capabilities that we are building up. So with that said, I'm not worried about the quarter on and off. I'm 100% focused on where we and month should be 1 or 2 years ahead. super confident about that. The best days for Munters, they are for sure yet to come.

Good final words. Thank you very much for listening in today. Thank you, Klas and Katharina, for presenting.

I would just like to remind you all that we will be hosting a Capital Markets Day here in Stockholm on the 11th of November. It will also be available to join online, if you prefer that. With that, I think we wish you all a very nice summer.

Enjoy the summer. Thank you very much.

Thank you.

Good morning, and welcome to this presentation of Munters Q1 2026 Results. My name is Line Dovarn, and I'm Head of Investor Relations, joined here by CEO, Klas Forsstrom; and CFO, Katharina Fischer. Klas and Katharina will go through the results of Q1, and then we will open up for Q&A. So with that, I will hand over to you, Klas.

Thank you very much, Line. And once again, good morning and very, very much welcome. A solid start to the year. So let me summarize the quarter like this. Good to strong demand across all business areas, a book-to-bill above 1 in all business areas. I feel it has been a well-executed quarter based on our plans, build, scale and accelerate growth step-by-step in Data Center Technology, reset AirTech and start to grow the base business, capture growth and continue to scale in FoodTech. Operational progress in line with the plan. All in all, a solid quarter.

Our outlook remains unchanged. A stronger second half of the year is expected, though as for everyone else, higher geopolitical and supply chain uncertainties are building up. So more in detail then, a well-executed start to the year. If I start with orders, continued strong order growth. Order intake, 49% organically, SEK 32 (sic) [ 32% ]. AirTech, robust demand across all regions despite a larger project cancellation. Data Center Technology, strong demand once again in Americas from both hyperscalers and colocators. And FoodTech, strong demand for controllers and software.

The order backlog increased with 88% currency adjusted, I mean, close to 100%. Mainly Data Center Technologies where orders to be delivered mainly in '26 and '27, a book-to-bill of 1.3. Net sales affected by currency, 12% currency headwind with that then 9% growth. AirTech strong performance in Americas. Data center, building it up, but continued strong delivery based on our execution plan on the order backlog. And FoodTech, driven both by controllers and software in Americas.

The margins impacted by temporary factors, the adjusted EBITA margin, just shy of 11%. Data Center Technology, the tariff headwinds of about 4 percentage points and then also the well-known product transition that is taking place. FoodTech remained robust, impacted by continued investments for growth and AirTech as planned, improved, mainly positive impact on cost savings and then also price increases and the absence of the dual site cost. The EBIT margin 7.6%.

We see favorable trends in several regions and end markets. And if I start with on the regional perspective, 67% of our orders came in from Americas. AirTech, market stabilization, pocket of growth are starting to show. Expanding in data center rapidly continued to lead globally by AI scaled investments and AI-driven demands and FoodTech a positive growth momentum.

Moving to EMEA, 20% of the total. In AirTech, mixed demand environment, defense and utilities are growing. Pricing, to some extent, remains competitive. Data Center Technology compared to last quarter, a slower quarter, not that we were slower, but generally speaking, the market was somewhat slower, but signs of pickup, growth driven by North Europe and to some extent, Middle East. FoodTech then, positive market outlook, driven by efficiency and animal welfare requirements.

And then moving to APAC. And here, we can say that we start to see clear signs of improvements in China to continuous but though high competition, but also Southeast Asia and India are growing as markets. Data Center, a good market outlook. And as you know, here, we have just started to move forward, and I'm positive to our future in this area. And here, we're also investing now in building up capacity in this region, both when it comes to manufacturing and when it comes to sales force.

And finally, FoodTech, growing markets, a mix of mature levels and the business practice. Drilling into AirTech then, robust demand despite an order cancellation of some SEK 280 million. Order intake increased Americas growth in industrial, commercial and components outside batteries. EMEA, flat to growth in some industrial areas, mainly defense and pharma. And APAC, solid growth components, commercial, service and battery segments. You can say very strong in general outside then what we call -- inside what we call the base business. And Clean Technologies, stable demand driven by EMEA and Americas.

Order backlog, a slight increase, book-to-bill about 1. And if I would back in then the order cancellation, a book-to-bill that is about 2 -- 1.2. I think this picture is one of the more important ones when it comes to AirTech. This Battery, the icing on the cake, 10% approximately our total. Take a look on all the other segments. This is for sure now a clear trend that we are continuing to grow the other segments step by step.

I several times said that we need to have a couple of quarters with a SEK 2 billion order intake and above. This then if I back in the order cancellation, it was close to SEK 2.3 billion in order intake. That will give a base on filling up the factories. Batteries, regional differences, delays in some investments, but then also continued push of orders in APAC. The other industrial positive development in most markets, I would say. In technology, continued stable development. The commercial, growth -- good growth driven by supermarket in Americas.

And also important, components, as you can see, is starting now to really advance forward, both when it comes to evaporative pads to data center, but then also to some rotor replacement, predominantly in Asia and service, a stable development. As per plan, we strengthened the margin. We had -- we delivered on the announced cost savings, and Katharina will come back to that. We have no dual site cost. We were increasing the prices. And then, of course, we still battle for this quarter and a few coming quarters with some lower underutilization in the factories and a somewhat unfavorable product mix.

The sales increased organically. Americas were growing. EMEA declined to some extent and APAC declined. So it is Americas that is starting to come back here in a good manner. Data Center Technologies. First of all, demand remains strong. We don't see any, call it, worrying signs on a demand going down, strong markets. Order intake increased substantially. We have a backlog of SEK 15 billion now in data center. The chiller demand is particularly strong, reflecting AI development. And the order, as I said, increased deliveries mainly in this quarter targeted for 2026 and 2027. A book-to-bill impressive, I have to say, once again strong, 1.6.

And perhaps let me also look into a little bit of the customer segments and the solutions. First of all, a good balance in between the hyperscalers and colocators. As you know, it is, in general, always the hyperscalers that are driving the general demand, but some of it we are selling to colocators and some we are selling directly to hyperscalers, but a good balance here. And when it comes to product categories, as you can see, chillers representing then on a rolling 12, 42%. And here, that we gradually will start to pick up the profitability.

And then as you can see, then when it comes to the other categories, also a well-balanced spread. So it indicates that we have a strong portfolio across all the different product categories. Margins, as expected, temporarily impacted coming from 2 main areas. First of all, the tariff headwinds, the 4%. So back that on in, it's 4% more. It is the product transition and it's our strategic growth initiatives. We have been driving price increases, and we are compensating cost increases in components and so on with continuous price increases on each and every project order.

If I take -- lean back a little bit and how do you scale a business, and you have heard me say this several times. If you set up a new product, if you set up a new factory, in the beginning, you have to invest, you have to build and then you start to produce. When you produce there, you have a lower profitability and you don't get out so much. Then the next step that is to increase the output. Still, you are not efficient enough because you have to learn, you have to improve, you have to work with lean principles, et cetera. The more you produce, the better it becomes.

And if I go ahead then, this is what will happen then during this quarter, step-by-step moving up. And in the second half, then we have a production that is up and running that delivers both the volumes and also the efficiency and thereby the profitability, the normal industrial pickup when you put together a new factory. The order backlog continued, as I said, to increase. We have also highlighted here the approximately SEK 2 billion order that we published just a few days ago. And as you can see, that is also then to be delivered during '27 and '28.

I've talked about the things on the right side, but it's proactively securing critical components. I think everyone working in data center and in the electrical area, it is about constantly work with components and securing that. It is for us to scale up staffing and operation in engineering. It is to add when needed, if needed, extended shifts to drive throughput through. And then, as I said, it's about expanding manufacturing and assembly footprint now for us also moving in and investing in Asia. Step by step, that is the mantra.

FoodTech, continued strong demand, well spread across the order backlog also here and the book-to-bill above 1. Software generated growth driven by broiler and layer, controllers, strong growth driven in -- by Americas, so a stable and very pleasing development. A little bit weaker ARR development linked to several things. One that is we are scaling up and we are upgrading our systems. And then also, I mean, very often, it comes in waves. But we should be above 20%, maybe up to 30%. But 15%, I think, it is a good quarter, but not an excellent quarter in ARR growth.

Net sales increased across the line, especially nice to see controller growth in America from broiler and layer segments. The EBITA margin remained robust. We are investing to continue to support growth. We are driving through price increases and initiatives to balance that. And despite Q1 being from a seasonal perspective for controllers, a weaker, we delivered a strong growth also in controllers during the quarter. What I think is important to remind ourselves, we are building a business here that is more or less 100% digital.

We have gone from being non-intelligent equipment to now being very much digital driven. We are building a unique capability, and we are closing into a run rate of SEK 2 billion in a year. A lot of our growth has come from organic growth, well-targeted innovation, well-targeted customer expansion, but it has also come from, I have to say, a proven M&A execution. I'll give you 3 examples here. First of all, AirTech in the clean technologies. What we acquired, the Airprotech towards volatile organic compounds, a very interesting growth area for the future. So that is one of our focuses to continue to grow in clean technology.

Data center to become a full solution provider, expanding our footprint, expanding our offer. And here, Geoclima is a good example. And FoodTech then, the shift towards controllers and intelligent equipment combined with softwares. And as you can see then, structural growth, order intake of what we have acquired generates 13% and net sales, 9% growth. Adjusted EBITA, 8%. But what we have to remind ourselves on, that is we drive commercial synergies, we drive operational efficiencies, technology integration, and we are strengthening the market position.

So this, of course, will improve over the years. The other thing we need to remember that is -- and I take Geoclima as the example here, a business that were about SEK 400-plus million in sales when we acquired them and has now generated order intake of SEK 6 billion. That is not counted into the organic order intake. That is counted into our growth in Americas. So at the end, I think that looking back, Geoclima must be one of the very, very best M&As done at least in Munters' history, I think, across many different industries.

With that, leaving ourselves on a high picture, I hand over to you, Katharina, and take us through the financial highlights.

Okay. Thank you, Klas. As you have heard Klas comment on, in the first quarter, we had all business areas deliver positive organic growth, although the reported net sales was impacted by currency headwinds of 12 -- minus 12%. The margin, the profitability was temporarily impacted, resulting in a lower net income, but cash flow remained stable. And we also significantly improved our operating working capital to net sales ratio to well below our target range then of 10% to 13%.

I will now go into more details then. So as we said, if we look at the margin development in first quarter, the volume had a slightly positive impact then across the business areas. And this was also coupled with positive net price increases, mainly in DCT, so positive to see that. At the same time, we also had some headwinds in terms of tariffs in DCT, the 4 percentage points that Klas also mentioned. And we have also seen a negative product mix in AirTech and DCT.

Operationally, the underutilization then in AirTech weighed on the margin and then also the new factory ramp-up in DCT. We continue to invest in our strategic initiatives where we continue to scale and also advance digitalization and automation to really strengthen our footprint and also support long-term growth. At the same time, we also saw positive support from the cost-saving measures in AirTech, and I will come back to those in just a while.

If we look sequentially on the margin development, we saw an improvement then in Q1 versus Q4, and this was mainly driven by stronger volumes, but also the positive impact from the cost savings measures in AirTech then. So here, you can see the good development in our cost savings program for AirTech. So the 2025 initiated measures has been completed and delivered more than the planned SEK 100 million savings. So this reflects strong execution by the AirTech business area.

Looking into 2026, those initiatives are expected to give us annual net cost savings in the range of SEK 250 million to SEK 300 million with a full effect reached by the end of the year. And so far, we have reached over more than SEK 50 million than in the first quarter. And these initiatives is a combination of different activities. Of course, we have looked at the footprint, and we have also tweaked these investments that we are making, making sure we balance capacity, but also safeguard key competencies.

We are also optimizing the workforce, and we are also working with increased efficiency initiatives then to cost optimize, but also driving lean improvements, and we are also having a more focused approach on the commercial side. So overall, this is a very important program for AirTech to restore their profitability, and it will position them very well for continued efficient and scalable growth in the future.

Looking at cash flow then. In the quarter, we had a stable cash flow from operating activities. The lower operating profit was mitigated by positive changes in operating working capital, and that is mainly due to the advances in DCT then. In the investment activities, we saw an impact from the remaining shares that we bought from MTech. So the 20%, USD 18.5 million. And then CapEx was a bit lower in the first quarter than in the fourth quarter, so remaining at a controlled level. And overall, the total cash flow was minus SEK 133 million.

We remain to have a very disciplined approach to capital allocation where we do prioritize investments in the areas that support long-term growth and value creation. So in the quarter, our level of investments and also on a rolling 12-month basis was 5.5%. So here, we are continuing to invest in all our prioritized areas. And looking ahead, DCT remains a priority area for us. You know that we are scaling and ramping up the production facility in Virginia then to support the demand in the U.S. market. But also, as Klas also mentioned, in Asia Pacific, we will continue to invest to expand our presence there.

And looking ahead in terms of CapEx outlook, that remains to be broadly in line with the level that we had in 2025. Also want to mention our strong progress in the working capital area, where we have now reduced that further to 6.5% of net sales, so well below our target range. Looking at leverage, then leverage increased to 3.1 from 2.9 at the end of the fourth quarter. This was the result of lower operating earnings. That was partly offset by a strong cash flow generation, but also a result of the contingent consideration then paid for MTech, the USD 18.5 million.

We remain a very diversified funding base. That is a top priority for us, of course. And while we do not have a fixed leverage target, our ambition is to be in the range of 1.5 to 2.5x over time. And temporary deviations above that is not a concern to us since they are due to strategic investment in growth areas that are then strengthening our competitive position. Looking ahead, we see that leverage will gradually improve as we go into the second half where we have stronger volume and margin to support deleveraging.

Turning then to sustainability. Here, we are continuing to strengthen transparency and execution. And I'm very pleased that we, in the first quarter this year then published our first annual and sustainability report under CSRD, where we have raised the level of transparency and data quality and governance across the whole organization. And we are making really good progress across our key sustainability indicators. In 2025, then the renewable electricity increased to 90% -- 91% across our own production sites. And also the renewable energy increased to 49%, which then lowers our exposure to oil and gas price volatility, but also, of course, lower our operational emissions. We have also improved the resource efficiencies with more waste reused or recycled, and that has then led to reduced landfill volumes, which is now 28%.

Our safety performance continues to be strong, as indicated by the workplace accidents rate that is low at 0.8. And then we see service and components continue to grow. In the quarter, it amounted to 26% of total net sales, leading then to improved resilience and long-term growth and value creation. Our ambition for the group is to be above 1/3 of net sales. Sustainability is at core of our strategy. Of course, it helps us strengthen operations, also manage risk and deliver long-term results.

So with that, I'd like to thank you and turn it back to you, Klas.

Thank you very much, Katharina. So let me start to summarize it before we move into Q&A then. I'm very pleased to see that we are continuing to progress towards our financial targets. If I start with the top performer of the quarter, the 6.5% operating working capital per net sales, well ahead of the target. The EBITA margin in what we predicted it should be around just shy of 11%, indicating that the second half of the year will be an improvement. And then currency adjusted growth of 9% in the quarter.

Also here, we're very confident that the year then will drive us up to be ahead of our targets. And if I summarize that, what we see for 2026, no change in the outlook. The status in AirTech, improved order intake across several segments, one of the strongest quarters when it comes to base business in Munters history, a positive book-to-bill and ongoing efficiency programs. In Data Center, showing clear evidence that the wide product portfolio supports continued growth. The order backlog is now up to SEK 15 billion, and the U.S. chiller ramp-up is progressing as per plan.

FoodTech, now a fully digital offering, new regions being brought in, and we continue to invest for future growth. So summarizing status, bang on the plan. The market outlook remains flat to positive for AirTech. And I can say we saw clear evidence that, that is the case in the quarter. Data center positive. I would say I'm even more positive in the market for data center moving forward. And FoodTech, I mean, here, it's us basically driving it a positive market, a good interest on what we offer. And many customers are saying, we are bringing something into the marketplace that is unique.

It is -- it connects intelligent equipment with capabilities to draw conclusions through software and AI. And the business outlook, to summarize it, net sales growth expected to develop positively, supported by the strong backlog. It will be, with high probability, the best year ever in Munters' history. Adjusted EBITA margin expected to improve H2, driven by the order backlog and DCT margins and improvements in AirTech also when it comes to margins. So all in all, we look forward to an excited second half of this year.

With that, it's over to all of you, and welcome back, Line.

Thank you. Thank you, Klas and Katharina, for presenting. And we are ready for questions. So we will hand over to the telephone conference and start there.

[Operator Instructions] The next question comes from Adela Dashian from Jefferies.

Let me start on the one on DCT margins and expectations for Q2. Can we just confirm that you will no longer import the finished goods from Europe by the end of Q2? And also maybe in terms of timing, is there any way you could be a bit more specific on when the localized production has actually started to ramp up? Like has it already been from the first of Q2? Or like timing-wise, when should we start to expect to see chiller production in the U.S.?

Thank you for the questions. And you're correct, the plan is that by end of Q2, the remainder of the imported chiller produced in Italy should be gone. it could be, I mean, 1 or 2, I mean, if I put it like that. But the plan is by end of Q2, it should not be any importing from Europe. And in the same way then, we are now scaling up production. So beginning of Q3, if the word is full production ahead but -- we have then all the capabilities to produce chillers in U.S. at the speed in order to deliver on the backlog that we have brought into the U.S. order stock, so to speak. So gradually improving during the quarter and reaching full speed ahead then beginning Q3.

Great. If we then think about the 4 percentage point tariff headwind, it was the same now in Q1, as it was in Q4. I mean, would it be fair to assume that a total mitigation of that effect is not going to happen in '26? Like I would assume that you are still to some extent, dependent on potentially component suppliers from Europe and so on? Or have you already been able to create those sort of relationships with the localized suppliers in the U.S.?

Adela, you are well read on. And what I mean with that, that is everyone that produces anything based on metals and components that is not manufactured in U.S., and that is quite a lot of that will, of course, have a certain effect of tariffs then always. That is for us, that is for our competitors. So when it comes to the direct finished goods on chillers, I mean, as we talked about, that will be gone then by this quarter. But when it comes to the rest, of course, that will be there.

We are gradually improving. That is also why we talk more and more of vertical integration. We have a strong base. But even our sub-suppliers in U.S., of course, they are also importing certain components. So it is the reality for everyone working in U.S. that they will have a, call it, direct or nondirect tariff hit then in their production. But when it comes to the products produced in Europe and imported to U.S., that will then vanish away. Anything to add on that...

Would you start to feel more comfortable raising the prices of chillers once you have the localized production setup? Because obviously, you haven't been doing that given the European setup.

But -- and it's good that you bring this up as well. I mean, we are constantly raising our prices. We have been raising prices in U.S. in many different areas. Each and every project order is then a new price point being given based upon cost and based upon estimations moving forward. When I started to talk about, I mean, what is the market price, when we enter the U.S., I mean, then we priced it at the level of price performance in the market at that place. And then the tariffs came and that was a negative impact. So I'm not correcting myself, but perhaps I'm clarifying myself. We are constantly working with pricing, but we need to price it in the context of the U.S. market. I hope that clarified.

Definitely. If I can just squeeze one last in before getting back into the queue. I mean you've been guiding for DCT order intake of roughly SEK 1.5 billion, SEK 2 billion per quarter from here on. I mean, how should we think about this now with you already announcing that you have a SEK 2 billion order in the second quarter? Is this just an incremental on top of this, I guess, small- to medium-sized order intake? Or yes, like how should we -- I guess, just if you could give a clarification on the guidance.

But, it's also a fair question. And please understand me right, whatever answer I give now will sort of bite me in the tail, so to speak. Yes, we maintain, if we call it then, the normal order flow that should be in the range of SEK 1.5 billion to SEK 2 billion. And then on top of that, on and off, we will have larger orders like this. So of course, it is clear that in this quarter, it will definitely be ahead of SEK 2 billion then.

I cannot say another number, but I can say like this, I'm confident in what we see in the market. We are continuously winning with our broader portfolio. So if we are able to win smaller large orders to substantial large order as the last one, I mean, then we will be a high probability about SEK 2 billion per quarter, but we maintain this SEK 1.5 billion to SEK 2 billion, call it. And now the forbidden word comes as a base business. There is no base business, but you know what I mean.

Other business.

We can take another caller from the telephone conference.

The next question comes from Carl Deijenberg from DNB Carnegie.

So could I ask firstly on a little bit of phasing or maybe taking a step back. I mean, in conjunction with Q4, I believe you were guiding for at least 30% organic sales growth for DCT for the full year. And I guess first question, given the comments around the phasing here and the ramp-up and so forth, do you still expect that full year assumption to hold?

Yes, in between 30% to 40%. And then it can shift in between quarters, but that ramp-up that I expect, yes. And with the clear, it is the second half you will see the big inflow.

Yes, yes, yes. Because that was on to my second question. I just wanted to ask a little bit if you could talk about the phasing here going into Q2 on the invoicing. Would it be possible to say anything? Now you're at 1.4, and I believe you were at 1.35 on the net sales in Q4 in DCT. And with the comments around the ramp-up and so forth, do you expect a similar invoicing pattern for Q2 as well and then a ramp-up from Q3 and onwards? Or would it be possible to say anything on that?

The simple answer is that we will stepwise ramp it up then. And in earlier calls, I used the description then saying what will happen then when you are building up capacity, when you're building up a new product production in a -- first, you start with a smaller volume and then you at a lower efficiency and lower profitability. Then you push the volumes upwards, you're still not efficient. So I mean the margin on each and every product will not be as good. And then you push up your efficiency, et cetera.

So simple terms then, we will increase volume during the coming quarter, but we will not have the effect of the profitability drop-through. And then in Q3 and Q4, we will have, if I use the expression, full effect of the volume drop-through and the efficiency and the profitability. It follows pretty much the pattern that we had in earlier ramp-ups, et cetera. So a gradual ramp-up on output and a gradual uplift on margins then. But in the beginning, not the margins that we would have when we have full speed ahead.

Okay. Very well. Then I just also wanted to ask on AirTech on the order cancellation. I appreciate the comments you gave there that they seem to be fairly customer-specific. But could you say anything more what is behind this? Is this a full cancellation of the project? Or has anything changed in the overall market that's been triggering this?

First of all, no, nothing has changed in the market. This is a specific project and a specific customer. And the way we look upon it, it has been communicated as a delay in the buildup. But our interpretation is that, that delay is going to be for such a long period that -- so that we treat it as a cancellation. And then we work with the involved parties, I call it, how we should sort that out.

But in reality, it has nothing to do with our activities. It has nothing to do, generally speaking, with the market. It is one customer that has substantially delayed its build-out of a certain project, and we treat it as a cancellation. And I would like to add on that then, if -- and that we deduct on order intake in this quarter, if I bring it back, I mean, the underlying order intake in this quarter is SEK 280 million more than what you see on the real numbers, so to speak. So this is one of our strongest order intake quarters in AirTech for several years.

Okay. Great. Yes, that also explains my second question then. So I think -- yes, that was everything from me for now.

The next question comes from Anders Roslund from Pareto Securities.

I just have a couple of questions here. Your DCT expectations of 30% to 40% sales growth for this year, has the first quarter and what you know so far of the second quarter, are you closer to 30% or closer to 40%, any changes in this?

No, no changes. As you know, now into the details. First of all, I mean, the monetary value you saw was affected by, if I remember it right, 12%, 13% currency, the invoicing. On order intake, it was up to 17%. So substantial, call it, then currency effect. With that said, my expectations on the year remains 30% to 40%. So -- and then you can say how much I would like to go out on, what I call the, plank. I mean, if I go out and it's closer to 40%, if I'm a little bit more, let's just to pick it then, let's say the average, 35%. That is not a prediction, Anders, but in between 30% to 40%.

Okay. And also on the margin development, you indicated here that the margin will still be impacted by the ramp-up of production, but could it be even lower than the outcome in the first quarter? Or should we expect about the same level?

You know what I will answer on that. I mean we don't give detailed questions on each and every quarter. What I'm super confident about that is the second half of the year will deliver results that both myself and Stefan will be very pleased about in Data Center. During the first half of the year, we will have weaker margins then. Some of the tariff effects will ease off during the second quarter. We will not have full impact on the volumes and the efficiencies in the quarter, but a normal ramp-up procedure. That is the best advice I can give, Anders.

Yes. Why I'm asking this is technically, you could start to -- in an investment phase, you don't put on depreciations and et cetera. So could it be that you get sort of lower margins due to the ramp-up here of production that it will be slightly positive...

In simple terms, the ramp-up will drive lower margins than when we have, call it, more stable production. So yes, if -- so that's the case, yes.

Yes. And then my last question about AirTech. Adding back the canceled order means that you had an extremely strong. Could you just elaborate where we have seen this strong growth?

It is, first of all, fairly good across all regions, generally speaking, stronger in Americas, that was very pleasing, but also strong in Asia, China. It is -- about 9% (sic) [ 90% ] of the orders are outside the batteries. So coming back to the icing on the cake, that is battery. So about 90% of our order intake is outside that, a substantial improvement in components, driven primarily by the wet pads, i.e., also data center in this case, one of our strongest component quarters in quite a long time. Good development in service.

And then in the particular segments, you can say like defense, even if it's small numbers, I mean, a couple of percent, but defense is moving upwards. Pharma and food processing is also -- so a wide spread of stable to stronger markets then. Anything on top of that, Katharina, that you see on different segments then?

No, some increased rotor sales in Asia as well.

And that is...

That's -- I mean, to sum up here in AirTech, that means that you should start the year with a significantly better underlying order intake and providing that you are...

That is correct.

That means also that your sales development should relatively quickly reflect it. I mean there shouldn't be orders for 1 or 2 years ahead.

No, no. If I analyze it, as you know, I mean, when it comes to AirTech, it is half a year to 9 months generally. Some of the components are actually -- I mean, you get it in one quarter and you deliver it in another quarter. I have to give one tweak on that. And when it comes to the strong demand in wet pads, I mean, that is data center that is driving that. And to some extent, they are ordering ahead because, I mean, we are one of the few providers of large capacity then in wet pads in North America, and that is appreciated. So there, it could take a little bit longer.

The next question comes from Gustav Berneblad from Nordea.

It's Gustav here. I thought maybe just to build on what you just said here about the wet pads. Is it possible to quantify how much of the order intake in AirTech is related to data center today? And also, if you can give a bit more color of the 6% organic growth that we see in orders here in the quarter despite the $28 million here cancellation, how much of the growth is driven by data center?

That I don't have on top. I take a look here and try to calculate it faster. But you can say that about 60%, and please correct me, 60% of the component sales -- maybe a little bit more than 60% of the component sales is driven by data center today.

By pads.

By pads. And then it's a split then, but it's more in data center than, call it, in other. So maybe then ballpark it is out to 50% data center growth.

Of components.

Of components.

That's very clear. Perfect. And then just sort of just on the ramp-up here in data center or the new production line of chillers. Just I guess you will start off with -- and correct me if I'm wrong, the chiller order of SEK 775 million here. Is it possible to just give some ballpark figures of how much this will be divided between Q2 and Q3?

Not in detail. If I once again take a look here, you can see when we have expected it to deliver, it starts in Q3, and then it's well, call it, evenly spread during the coming quarter. So don't take this as an exact instrument, but 1/3 per quarter, that would be a good average.

Perfect. Perfect. And then just on the CapEx here, you comment a bit on the data center in APAC. How should we think about the CapEx level going forward? Will it be just smaller adjustments where you utilize current facilities? Or are you exploring or thinking about greenfield?

No, the CapEx level is projected then to remain broadly at the same level as 2025. So we will expand from the existing base that we have in Thailand.

So the step, as Katharina said, we will expand the Thailand operation, the one that we acquired through Geoclima, and that is the base built up. If we need to do more, I mean, we will pursue either utilizing AirTech facilities or expand even more. We have learned the lesson that is you take it gradually per market and then you expand. But we will -- I know Katharina will keep a close eye on me and Stefan then when it comes to manage capital here. So we will spend it wisely where growth is generated.

The next question comes from Lacie Midgley from Bloomberg Intelligence.

Just 2 for me. And you look at the working capital, I mean, I think we've touched on the DCT margin growth and congratulations on the orders there. But just thinking about that working capital. So should we think of the Q1 inventory build as mainly supporting that local DCT capacity expansion? Or is it a bit broader than that? And then I guess, secondly, related to that, I think you talked a lot in the release about the customer advances in DCT. How sustainable is the elevated level there? Is that now kind of a normal feature of the DCT business model? Or is it more large project specific? Just a little bit more color there would be really helpful.

And please bear with me if I didn't pick up, it was a little bit of a broken line here. But if we talk about the order pattern, I think that was the first one. I mean, in an AirTech context, pretty much all orders within DCT would be viewed as a large order, i.e. we talk about [indiscernible] below a value of SEK 100 million, and then it moves itself up to sometimes about SEK 2 billion then. Very often, the SEK 2 billion larger orders, they are either then orders that will go into, call it, larger sites or multiple sites, but it's one customer orders it.

And then it will have a prolonged delivery time, and we indicate all the larger orders in our report and in our presentation material when we start to deliver it and when it comes. It is very seldom, I would say, hardly unknown that a provider can accept an order and deliver it faster than, let's say, 9 months, so from order to first delivery 9 months. Sometimes it could be -- if it is the same customer, it could be a shift in between projects, et cetera.

So in a nutshell, all orders that we take from now on, they are to be delivered '27 and '28 as the SEK 2 billion we recently released that is to be delivered mainly '27 and to some extent, '28. I think that covered the first question, if I interpret right. But please add on if...

About customer advances as well...

Yes. Customer advances. Yes. And in this case, normally, I've said several times that we receive in between 10% up to 30% in customer advances from customers. That continues to be in that range. So we have worked out a model that we are more or less balancing the cash flow in a project that we get advanced payments, when the order is placed, not from all customers, but from the majority of customer that is in the range of 10% to 30%. And normally, we receive that, let's say, within 60 to 90 days. And then per delivery, it is then spread out over the project.

The next question comes from Mats Liss from Kepler.

Just to get a feel about the order momentum here. I mean, could you say something about the development during the first quarter there, if January maybe started out somewhat slower and then you gain momentum towards the end of it? And maybe also if you could say something there about, well, the clients being more cautious now and maybe try to secure order -- well, deliveries due to the political risks, et cetera.

If I start with data center, here, we have not seen any change in order patterns. I mean the normal, I mean, a couple of medium-sized smaller orders and then on and off then larger orders. And one example is the one that we recently then announced here. So there, no change. And please interpret me right when I say this, I think it is a strong to even stronger demand market there.

But with that said, it is also an industry that is under quite substantial pressures. It is pressure from some of the customers, their build rate. I mean, the end user, it is component supply, et cetera, et cetera, when it comes to CPUs and stuff like that. So it is a constant positive battle in the marketplace in order to gain orders on those you trust and then to deliver to the customers then. So no change, but a tougher market situation, if I put it like that in data center.

On AirTech, we remain with our view, flat to positive. If I'm optimistic, I would say that there are positive signs emerging in Asia, and there are early positive signs in U.S. emerging. And then I refer mostly to data center and the wet pads that has increases to strong, but has a stronger momentum in deliveries at the end of the quarter then.

And in FoodTech, it is we that are driving the market. And normally, the first quarter is a weaker quarter. So I was very pleased about the controller order intake, positive and the controller installation, but a strong market. Anything that you pick up, Katharina, from our reviews?

No, I think you covered it very well. Yes.

Great. And just -- if you could just say something there about data center and I guess, Americas is the large order -- well demand and Europe, could you say something about the opportunities there?

Yes. The main driver is U.S. and that is good for us. We have a high reputation. We are building up capacity. I'm super excited that we are getting repeat orders of several products from existing customers, but we are also expanding the customer base. So I mean, strong market as such then. The normal, call it, bottlenecks in U.S., I mean, it is power grid, it is building rates, et cetera, et cetera, but a strong underlying market.

In Europe, last quarter, as you remember, we had a good progression. I rate as we had a good progression in a market that has started to ease up and in this quarter, I mean, we didn't -- in our customer base and what we see in the customer activities, it was not much to pick up, so to speak. So Europe is gradually improving, but it's far, far away from U.S. build rates then. I'm positive when it comes to Europe moving forward. I mean, more and more, call it, legislation, more and more governments, et cetera, understand that this is a security issue basically.

You need to own your own data centers basically within your borders. And when it comes to Asia, positive underlying market. And here, it is each and every order we take in Asia, just to underline. That is 100% market share. So if we grow -- if we have 5% or 1%, both are 100% market share in Asia. So I'm very positive when it comes to Asia, but it is a buildup phase there.

Okay. And just finally, I mean, energy prices are booming now, hopefully, not too long. But I mean, your core is somewhat to offer energy-efficient solutions. Do you see that customers are sort of starting to appreciate that more? Or is it sort of...

I can comment a little bit on what we see by customers. And then maybe, Katharina, you can add a few comments on, I mean, what about our energy cost increases and how is that. But you're absolutely right, Mats. Even if we, generally speaking, are not liking energy price increases, I mean, that drives the need for energy efficiency. Honestly, we don't see that, that has an instant impact, but everyone is more and more concerned how could we drive efficiency and especially energy efficiency.

So in the long run -- even if I hate energy price increases, in the long run, it talks to our value proposition, if that is the customer base. But we don't see any new orders coming through due to this then. But if we move over to our situation.

No, what we can say is that our regional strategy in the region -- for the region then where we produce in the region, that provides some resilience, of course. But in some pockets, we do have, of course, more longer-term freight and so on. So there, we could see a limited impact. In terms of energy prices, some of our energy prices are also fixed for a period of time. And then as I talked about earlier, we are then focusing more on renewables. So we are less exposed also to some of the price volatility.

And just even if this is not a blockbuster, but I think it is an important indication. As an example, in Brazil, in some of our facilities there, we are 100% self-providing when it comes to energy.

Thank you. And I think we have to cut it there. I think we've taken all callers on the telephone conference, and we have a few questions here that we will get back to you on. And thank you very much, Klas and Katharina.

Thank you. Thank you very much.

Thank you.

Thank you, everyone, for listening in, and please reach out to us at Investor Relations if you have any further questions or would like to meet up with us during the quarter. And we will see you back on the 17th of July when we present our Q2 results. Thank you.

Good morning, and welcome to today's presentation of Munters Q4 and 2025 Full Year Results. My name is Line Dovarn, and I'm Head of Investor Relations, joined by our CEO, Klas Forsstrom; and our CFO, Katharina Fischer. So Klas and Katharina will begin with presenting the results, and then we will have a Q&A session after that. Please go ahead.

Thank you, Line, and good morning, everyone. Let me start with a few sentences to summarize the quarter and the year and then dig into the details then. The year 2025 ended up with a quarter showing the strength of our leading offer across our prioritized end markets. All in all, then resulting in more than 3x organic growth, I mean, over 200%, a book-to-bill of 1.6, I have to say, an exceptional achievement by our teams.

Earnings weakened to 10%, primarily driven by dual site costs and underutilization in AirTech, as well as temporary tariffs and transition cost when it comes to moving different products in and out of the DCT system. I'm not pleased with the result, but very confident that most of this will diminish after quarter 1.

All in all, 2025 was a year to be proud of, delivering record order intake, solid profit and strong cash flow. It was also a year building industry-leading capabilities to produce, to show stellar innovation and offer buildup paired with improved efficiencies. All this while balancing in a fast-changing world of trade conflicts and wars.

I enter 2026 with a positive view on our end markets, strong or slightly improving market demands across our segments. Even better is the momentum across Munters. Innovation is the core of a company, an innovation drive that is reaching a vitality index of more than 50%. Production capacity built for current and future growth, we are able to handle 50% more growth, a modern and forward-leaning digital FoodTech, operational improvements in AirTech and accelerating this into 2026 and an order backlog that sets us up for a record 2026 and beyond. After Q1, when short-term holdbacks will diminish, we are set to deliver a 2026 with historically high turnover and strong margins in H2. In a nutshell, 2026, a year to look forward to.

So let's dig in a little bit into the details then. And as I said, exceptional demand while earnings weakened. Order intake, plus 191%, organically 200%. Very pleasing, AirTech also delivered growth with a book-to-bill over 1. Data Center Technology, significant increase. Of the orders received, about SEK 5.7 billion was announced in orders before the quarter report.

FoodTech organically declined, some lower software orders, partly offset by controllers, but we also met a very, very strong quarter here. Order backlog all in all, increased with 53%, currency adjusted with 80%. It's mainly DCT and orders to be delivered in 2026 and 2027. And as I said, a book-to-bill of 1.6.

Net sales declined. AirTech declined, lower sales in EMEA. As you know, EMEA had a few working days less, but it was a weaker backlog that we had to eat from. DCT increased successful execution on order backlog, but also here in DCT, I mean, we closed for a couple of days, as always, during Christmas. FoodTech increased driven by strong growth in controllers, and that was partly offset by lower software. All in all, for the full year, net sales increased with 8% organically above that.

Adjusted EBITA margin, 10% in the quarter. It's the tariffs that represents about 4% in DCT. When it comes to AirTech, lower volumes and underutilization due to weaker battery market that accounts for about 2% units and an adjusted EBITA margin in the year of close to 13%, 12.7%.

When it comes to regions, significant variations in between the regions. Americas stands for 86% of our orders in the quarter. EMEA, about 11%; and APAC, 4%. Of course, it is DCT that stands out with 95% orders in Americas. But also very good to see 5% of the total orders in the quarter came in Europe. So we start to see a European data center market that is starting to grow, and we are taking our share in that.

And then when it comes to FoodTech, a more, call it, normal balanced quarter. All in all, we look upon the quarter, AirTech, soft with pockets of growth pretty much in all the different regions, but clear signs of especially the base business, 95% of our business starting to show some growth moving forward. Data Center continue to rapidly expand in Americas. It is a smaller market in Europe, but we start to win here in a good way. And then when it comes to APAC, a good market outlook, especially in Southeast Asia and the Oceanic region. And FoodTech, very much a continued positive market as such.

Moving into AirTech, a book-to-bill of 1.1. Order backlog stable. Pleasing to see that the order backlog did increase. And as you can see now, when it comes to the orders, about 90% of the -- in the year is outside battery. So it is a sign that we now are moving into capturing orders in a stronger market that is outside of battery. And here, I think it's very clear. This quarter is order intake-wise, one of the best, I would say, the best quarter in the last 8 quarters with one exception. And if I take a look upon outside battery, it's for sure, the best quarter in the last couple of years. Also important to see here, as you can see, there is an up picking trend the last couple of quarters. And so that is the reason why we are saying it is a market that seems to become stronger and stronger.

When it came to net sales, a lower outcome due to -- and that resulted in a lower profitability. All in all then, something that was very good to see that is the share of service, 23%. And when it comes to components, 19%. Here, we have a shift in components then. So we have more evaporative pads than what we have then desiccant wheels.

When I look upon our innovation pipeline, and you have heard me say that we have a vitality index of more than 50% now. I think this is an important slide to talk about. When it comes to AirTech, AirTech is exposed to many different end user segments. You drive energy efficiency and customer value to primarily 2 different components here. It is material science and technology leadership when it comes to the media. And then it is how you use and how you control your equipment. And if I take a look upon this, I mean, what I see that is the material science and the new media gives opportunities for customers to increase -- improve their energy efficiency in between 10% to 20% compared to old versions. And if we take the connectivity and using artificial intelligence and better controlling the setup, it is a similar value, 10% to 20% more improvements. And if you combine this, I mean, then you can have up to 40% energy efficiency.

What is also clear that is that in some of the underlying segments there as pharma, defense, and service, I mean, we see a continued upgrade and higher demand coming forward. Also important to see that is when it comes to what we call clean technology, air quality and pollution control, we also see a strong underlying market as such.

Moving over to Data Center, an exceptional order intake in the quarter. Demands across both colocators, hyperscalers, very much driven by artificial intelligence-related investments, but really across the full type of board. We announced orders of SEK 5.7 billion, and we reached SEK 9.2 billion in total orders. The order backlog increased. And here, we talk about deliveries into 2026 and then carry into 2027.

The book-to-bill in the quarter was impressive of 7%. Also, what I think is important if you take a look upon the circles there, I think that exemplify the product transition that is taking place. The 38% where we have the split system that is represented in the past, very much by cycle in the future, very much of split system based on, as an example, on chillers. Now we are building up chiller capability. And when chiller capability are then increasing that we can produce it more in an industrial way, the chiller profitability will increase in the same way as we showed with cycle.

The main effect of the margins in this quarter came from tariffs. And here, we deliberately decided that it's better to take market share, establish ourselves in U.S. even before we have full-fledged production of chillers in U.S. If I would bring that back, I mean, we would be in a range of around 18%. And if I then add also the changes in the product mix, et cetera, I mean, we would be in the 19% range. But all in all, I mean, I'm very confident moving forward that we will continue over a period, over a year to be in the high teens range. But this and also next quarter will be affected by tariffs.

We are filling up the order backlog, and we are building up capacity. And capacity you build up by building factories, driving efficiencies, driving the way you produce, but also how you interact with the customer, how you preplan, how you actively secure critical components and so on. And if I take all that then on the right side here on the slide, that we have now capacity to be able to take 50% more orders moving forward, and that gives me very good confidence. Of course, it varies in between the different factories. In some factories, we have not much more to gain. In other factories, substantially more to gain. This is also why I say that with this backlog, I mean, I'm extremely confident that we will have a strong invoicing year in Data Center. And what type of products are we then bringing in?

I think the best way to describe it, that is across the board. Some cases, it is more dedicated CRAHs, custom-designed CRAHs that have high efficiency. In other cases, it is chillers, and yet other examples, it is more what I would call it hybrids where you combine chillers, custom-designed CDUs and CRAHs. And for me, that is the strong point of Munters today. We can cater all different type of product demands and all different types of cooling demands there is in the market. Also very pleasing that we took a sizable order in EMEA that includes Geoclima chillers and CRAHs. And this puts us in a very good position also for a strong fill rate in our EMEA factories.

On and off, I and we get questions about, I mean, what is driving then the success in Data Center and how -- what about the market. You've heard me talk very much about, I mean, we have evolved from being a niche specialist to now having a comprehensive, very wide cooling portfolio that can expand into many different type of data centers. That has been driven by the innovation engine, innovation through own innovation and combining with acquisitions that we then have brought into the system. We accelerated the time to market for next-generation cooling systems. And I think that we have at current and a world-leading time to market when it comes to new systems.

We have also in parallel, strengthened the service setup. I mean, with own personnel, but also contractors and partners. So gradually, we are expanding the service coverage also. Capacity. We have built up capacity, and we never take and accept orders that we cannot deliver on promise. We have been building capacity ahead of the plan, i.e., that generates some cost in the beginning, but we have also proven that when we have a scalable footprint, we can also generate the bottom line.

And then the discussion about what type of cooling solutions are there and what is then affected cooling. I think you have to come from 2 perspectives. First, you have to have very dedicated type of data center cooling setups, but then you also have hybrid readiness. In the very best liquid cooling data center, there is still need for in between 20% to 25% air cooling. So you need to have the [ width ] on this. So all in all, I think we have an extremely strong platform for continued growth and profitable growth moving forward.

If I go back to FoodTech, the first thing I think is important to recognize here that is we have completely shifted what FoodTech is now compared to a year ago. Now it is 100% digital and software-driven. There is when we have increased the number of controllers or the sales of controllers still a seasonal effect that the controllers are sitting in the farms, et cetera, et cetera. So in quarter 4 and quarter 1, there is a weaker controller demand. But all in all, it is a more stable business area compared to the past, a strong market outlook moving forward.

Margin remains strong. What affected margins was our continued investments to support growth, a shift in products that we have more controllers this quarter than we had software. And then on the positive side, price increases and efficiency initiatives. But all in all, a strong underlying margin. I predict that we will continue to grow over years in between 20% to 30% when it comes to the ARR this quarter, slightly lower, but that is very much due to the comparables of last year.

For me, this is one of the most important pictures of the future in FoodTech. It is about the full value chain, a data-driven connected supply chain. Our products and solutions are very much focused on the growth segment, where chickens, the swines, the animals, the plants are growing. But it is also handling data and help the customer manage the full value chain. And this is something that is extremely sought after. Of course, it takes some time. If you start in the middle, you have a unique offer there, combining controllers with software, it takes some time to sort of expand out in the full value chain. But what I see that is that our customers are very attracted to this.

And if we talk about the software side, churn, low churn is important, and we have a very low churn, about 2% and below. And then, as I said, the ARR then expected to be in between 20% to 30% year-by-year. This quarter, a little bit lower due to very strong comparables last year.

With that then, I leave it over to Katharina.

Thank you, Klas. So starting with the fourth quarter, net sales declined 8% or remained flat currency adjusted, primarily reflecting the lower volumes in AirTech. The adjusted EBITA margin declined, and this was mainly due to the temporary tariff effect in Data Center and the lower volumes and underutilization in AirTech.

Net income declined, and this was due to the lower operating earnings, but also due to the increased items affecting comparability in the fourth quarter. They amounted to SEK 174 million. The driver of this was a contingent consideration of SEK 98 million due to recent acquisitions. So this was mainly related to the 20% holdback of the transaction price for the acquisition of the remaining shares in the MTech Systems, and that was closed in March. 2025. And this amount then has been paid in full now in January this year and was fully accrued at year-end then.

Looking at cash flow was very strong. I will come back to that later on. Sorry, I should also say on the items affecting comparability, we also have restructuring charges of SEK 77 million. They related to AirTech. And here, we are progressing according to plan on the cost measure activities that we announced in Q3. If you recall, we announced then that we will take a charge of SEK 150 million in total over Q4 and Q1. We also had a very strong operating working capital to net sales ratio in the quarter. It improved further. So that reflects our strong discipline in this area.

Looking at the full year, net sales increased 8% or 15% currency adjusted. And this was then driven by the continued strong growth in Data Center and FoodTech and partly offset by a weaker development in AirTech. And the adjusted EBITA margin declined due to lower volumes and the continued dual site cost and underutilization in AirTech as well as the tariffs then in Data Center. And also for the full year, the net income declined then for the full year due to the lower operating earnings and the increased items affecting comparability. And this continued considerations effect was then almost SEK 200 million for the year then. And also, as I said, very strong operating working capital.

Then looking at the margin, the margin declined in the quarter. While this was below our ambitions then, it was due to temporary effects such as the tariff impacts and the lower volumes and utilization in AirTech. The volume then had a negative impact, but mainly due to AirTech in EMEA, partly offset then by DCT and FoodTech. I'm very glad to see that we continue to have a positive net price impact, both in DCT and FoodTech. However, the margin was negatively impacted then by the temporary tariff headwinds in DCT and also a negative product mix across all business areas and also an adverse regional mix in AirTech.

From the operational excellence perspective, the under-absorption in AirTech weighed on the margin and also the transition to new products in Data Center had a negative effect on the margin. We continue to invest in our business, of course, to scale the business and also to digitalize further and automate and also do more investments in the footprint.

If we compare to the Q3 margin of 13.5%, the margin then declined, and this was the -- primarily drivers for that was the increased tariff headwinds, but also lower volumes and changes in the product mix. In addition to this, we also had currency headwinds, which impacted the quarterly results then negatively.

Looking at the cash flow. We had a strong cash flow from operating activities in the quarter. So even though the operating earnings were lower, we were able to offset this with positive contributions in -- from operating working capital, and this was mainly driven by advances in DCT.

In the investment activities, we had an impact from business acquisitions. So these were then retention payments or holdbacks related to acquisitions of Geoclima and AEI, which were closed during 2024. So there were some remaining payments for those 2. And then we have also bought the remaining shares, 40% in the Brazilian company, InoBram.

Looking at year-to-date, we have a stable cash flow from operating activities, a little bit lower, but due to the operating earnings and also a less favorable development in working capital for the full year. Looking at cash flow from investing activities, it was impacted by lower CapEx and also lower cash flow from the business acquisitions during the full year.

Looking at investments then, our capital allocation principles remain disciplined and selective. So we continue to focus our investments where they create sustainable growth and also create long-term value creation. And in the quarter, the ratio was 7%. So this reflects a higher level of activity then where we continue to invest in competencies, upgrading operations, doing more digitalization and optimization in our business. For the full year, this number was 5.8%.

Looking into 2026, we continue to invest in DCT footprint and the Virginia production facility, including the test lab will be up and running in the second quarter of this year. And efficiency improvements and volume ramp-up will take place gradually, of course, and with the main improvements to be seen in the second half of the year. Looking at CapEx for the full year, we expect it to be -- remain broadly in line with the full year number for 2025. Operating working capital, then as I mentioned before, very strong number if you look at the chart there, so at 7.3%, right now.

If we look at leverage, the leverage ratio remained stable at 2.9 compared to Q3, slightly up, reflecting lower operating earnings. However, we had this very strong cash flow, which then enabled us to manage this acquisition-related payments during the quarter. And if you compare to the leverage at the end of Q4 last year, the increase is driven by increased lease liabilities. While we do not have a fixed leverage target, we do have an ambition to be within 1.5 and 2.5 over time. And we are not worried by temporary deviations above this level as they are then related to strategic investments that support our future growth and also increase our competitive position.

Diversification of financing and strengthening our funding base is, of course, also important. During the quarter, we have issued a bond of SEK 400 million, and we have also increased our outstanding commercial papers. Also want to highlight then that during the first quarter now this year, we have then paid the remaining -- the holdback 20% for MTech, USD 18.5 million. So that payment was done in January this year.

Turning to sustainability then. We continue to have a very focused agenda that we execute diligently on, that spans across climate, social aspects and responsible business practices. And if we start with climate, we -- during 2025 inaugurated our new flagship factory then in Amesbury in the U.S. And if we look at our ambitions for 2030, our Scope 1 and 2 for the year increased 3%. And if we look at Scope 3 emission intensity, it increased with 19%. And this increase in Scope 3 was related then to higher activity in regions where the emission intensity is higher and also a different product mix. But of course, this highlights that we, as many others, need to continue to focus on delivering on our decarbonization road map. And in parallel, we also continue to develop products that are more energy-efficient products and services, and we also work with our customers to find renewable energy solutions.

Looking at gender equity, here, our ambition is very clear. We want to achieve the 30% of women leaders and women in workforce, and we drive many different initiatives linked to this, where we have and support inclusive employee networks. We also drive initiatives to promote interest in technology-related fields and so on. And we also aim to broaden the talent base through very focused training programs and defined goals.

On the responsible business side, we are aligning with the CSRD, and we are, of course, also preparing for the upcoming CSDDD. This is then underpinned by us continuously upscaling our workforce, where we have many different trainings in human rights, anticorruption and related topics. And of course, this is very important with this training programs because we really want to make sure that we have consistent standards in our day-to-day decision-making across operations and our supply chain. And then finally, you know that we have the service and components ambition to be above 1/3 of net sales. And during the full year, this net sales grew organically, and we achieved a percentage of 25%.

And with that, I would like to thank you and hand it back to you, Klas.

Thank you, Katharina. Here and also take a look into the future before we open up for Q&As. The year, we ended up on a growth of 15% on an EBITA margin of 12.7%, on an operating working capital through net sales of 7.3%. In the quarter then, not much growth adjusted currency and an EBITA margin of 10%. And of course, it is the same number when it comes to operating working capital. The Board is proposing a dividend of SEK 1.6 per share moving into the general meeting then.

From this quarter, we have started to give outlooks. If we start then with a status, where are we in the different business areas. First of all, I mean, the efficiency programs that has started and are driven in AirTech delivers plus SEK 100 million in this year. The second program that we announced mid this year is aimed to delivering between SEK 250 million to SEK 300 million run rate by end of this year, and both programs are operated according to the plans. We have also improved the capacity utilization step-by-step by reallocating our sales force to what I prefer to call the base business, i.e., all the business that is less project-driven, less battery driven. And here, you can see that we are gradually then increasing that type of business.

When it comes to DCT then, you have heard me talk about our success in broadening our portfolio by own developed and acquired type of portfolio components. We have invested and increased our global footprint, both when it comes to production capacity, but also when it comes to sales capacity. And we have then delivered a record order intake that takes us for sure through 2026, well into 2025 and actually also are touching already now 2028.

When it comes to FoodTech, we have completely transformed this. It's now a fully digital offer. It is an offer that no one else in the market has, and it generates a lot of attractions from customers. We have entered new regions, and we have been growing the share of recurring revenue step by step.

If I then move to the market then, and this is how we look upon the market for the full year 2026. In AirTech, with all the different segments, it is flat to a positive market. And the positive sign that is, of course, in everything outside battery. And today, everything outside battery represents pretty much close to 90% of what we sell. So flat to positive.

In Data Center Technology, we predict a continued positive market demand for the year. But of course, and I highlight this, it is extremely difficult to predict how much order intake will come quarter-by-quarter, but we see still a very, very strong underlying market. No changes there. And when it comes to FoodTech, continued a positive market outlook.

Business then outlook for the year. First of all, it is clear that our net sales growth is expected to develop positively. And I said, I expect it to be a record year on invoicing. And how to substantiate that? If we take the backlog in Data Center, at least 30% more invoicing will come. With the right customer demand, it could be as high as 40% increase in invoicing. And then a slightly increase also moving into AirTech supported by a better order intake.

When it comes to adjusted EBITDA margin, after Q1, we expect that it will diminish the tariff impact in Data Center and the margin improvements in AirTech will start to pay off. So you can look upon this year, a little bit reverse to last year, i.e., a substantially better H2 than H1 when it comes to adjusted EBITDA margin. All in all, I mean, this sets us up for a very, very exciting 2026.

With that, Line, I hand it over to you and everyone on the call for Q&As.

Thank you, Klas and Katharina, for presenting. [Operator Instructions] So we'll begin with a caller from the telephone conference.

[Operator Instructions] The next question comes from Adela Dashian from Jefferies.

Two questions from me then. The first one, obviously, you had very, very strong order intake in the DCT segment, and it would be great to try to understand whether or not this is timing-related lumpiness or if you expect this to be a sustainably higher run rate given all the AI deployment. We'll start there.

Thank you, Adela, for the question. I think it's fair to say, as I said many times, I mean, by nature, Data Center order intake is lumpy. This quarter, I think everyone understands that this was an extraordinary quarter. With that said, what we have done over the last couple of years, that is we have expanded our product portfolio, and we have expanded our capabilities to sell in many different regions. So from that perspective, we have more opportunities to gain customers, to gain attractiveness. But I think you should look upon this as an extraordinary quarter. Don't expect this to be the new baseline, so to speak. But with that said, I see, we see a strong underlying market in data center.

That's really helpful. And then if I stay on the DCT track, but move to margins, you're outlining here a path to get back to mid-teen DCT margins as the tariff headwinds ease and also volumes ramp up from the second half and onwards. But does that margin trajectory fully reflect the incremental investments that you might need given the elevated backlog?

Yes, it does. I can very confidently say that we -- when it comes to production capacity, we have constantly been investing ahead of the curve, so to speak. And this we have done also this year. And we could have taken a decision not to take orders and sell and deliver, call it, chillers in North America and thereby avoided the tariff hit. We deliberately decided that it's so important that customers are exposed to our fantastic chillers and thereby then securing the orders that will be delivered after we have the production setup here.

So if I take a look upon, I mean, the, call it, the margin development and just ballparking it out, I mean, we have a 4% when it comes to the tariffs. That will diminish after Q1. And then we also have the very logical setup when you start to produce something new, in this case, chillers in North America, I mean, you will gradually then move the margins up on that.

So from that perspective, if I take a look on the full year, that is why I say that when it comes to DCT, it is, of course, a very strong delivery of top line and also a restored profitability in DCT for the second half of the year. And when it comes to AirTech, the easiest way to describe it is by adding some volumes that we are at current and by cutting out the costs of the SEK 250 million to SEK 300 million, we will step-by-step restore that margin as well.

Just to clarify quickly, I guess the question -- I appreciate all the color on the near-term outlook or the 2026 outlook. But I guess my question is also more related to medium term or long term. Do you feel like high teens is still sustainable even as your backlog grows. Okay.

Yes. And also here, I think I said it loud and clear that we have the operational footprint of handling 50% more order intake. What we need to then, of course, adjust that is man hours that is -- but that is in the larger scheme just adjustments, if I put it like that.

Great. That's the number I was looking for. I'll get back in the queue.

We can take another caller.

The next question comes from Karl Bokvist from ABG Sundal Collier.

A follow-up here a bit on what you've already talked about. But would just like to understand the time line of events that hold back the margins here. So one thing that we've talked about, of course, were the tariffs in DCT. But the dual side factory situation. You said it was complete by year-end '25, i.e., this is something you have alluded to how much it has impacted margins. But should this be now entirely out of the margins from Q1 '26?

I mean, as I said, I mean, we have completed that. And then, of course, when you start it up, it will have small impacts also in the startup process. But the majority of that has disappeared, yes.

All right. Understood. And then also on the just general industrial improvement here, is there anything in particular that you would highlight here within AirTech, I'm talking about now, whether or not it's just about hesitancy becoming -- with customers seeing a bit more clarity on their investment decisions? Or is there any particular -- any other kind of trigger that you see would really make this area start to improve again?

But it's a very good question. And if I sort of then take it region by region, you can see a openness, improved, call it, market across all the different segments. In Europe, we see in, call it, the base business and improvements in the outlooks, and I give you a couple of examples there. We can talk about restoration. We can talk about defense, et cetera. There, we see a stronger order intake. Here, we talk about, of course, many smaller projects, not the large projects.

And in North America, what we see there, that is still a hesitancy, but the order backlog in all 3 regions are moving up -- or sorry, not order backlog, the pipeline of orders are moving up. So normally, when you see that at a certain given time, then you start to open up. So that's the reason why I'm positive. I don't see, yes, now it is substantially better, but it's a stronger market in the non-battery market across all regions.

And we will take another caller from the telephone conference.

The next question comes from Carl Deijenberg from DNB Carnegie.

So a couple of questions from my side. I just wanted to maybe start on the phasing on the invoicing. Of course, I heard your comments sort of on the full year for '26 expectation and also the ramp-up towards the latter part of H2. But when we go now into Q1 is just from a sort of revenue standpoint, is that what you're seeing now a similar level to what we saw in Q4? Because, yes, it sounds like you're going to have -- facing the sort of similar issues now very near term. So is that a...

If I put it like this, I mean, we will have the chiller production fully up and running in U.S. after Q1. So the big increase of deliveries in U.S. will, of course, start to come from Q2 and forward. And then during the year, that will then quarter-by-quarter increase in progression. The first quarter, we had pretty much the same setup as now. So then it's more driven out what type of demands, when would customers like to have certain deliveries, so to speak. But the best, call it, guidance that is we will have a full-fledged production in U.S. from Q2, and then we will definitely increase the deliveries.

Great. Then I wanted to also follow up a little bit on the large orders you have announced here in Q4 '25. I know that some of them have been announced in Swedish krona, whereas a couple of other ones have been announced in U.S. dollars. So just wanted to understand a little bit sort of currency structure you're taking on, let's say, currency risk in between those 2. I know that you have a very local cost base in the U.S. But how does that work with the orders that you've announced in Swedish krona now given the currency movements?

I can start, and then I can also hand it over to Katharina. But if you take the current currency exposure is on and about depending on the different business areas in between 7% to 11% and the highest then is in Data Center.

Then if you take a look upon the order intake situation, we have an extremely high then currency effect, but that is pure mathematics. I mean, you have a low comparison and then you add an humongous large order quantity on top of that, and then it becomes, I mean, 11% on a very high number becomes a large percentage on the lower number, if I put it like that then.

But if I then summarize it, you can say, as long as we deliver from Europe to U.S., then we will have a currency effect. But when we start to deliver from U.S. production, I mean, U.S. dollar is the U.S. dollar. So then the exposure in U.S. dollar will disappear because then we balance it off, if that made sense. Katharina, any more favors on this then.

No, but the U.S. contracts are in U.S. dollars. And yes, we have most of our cost base in U.S. dollars as well.

Yes. No, the reason for asking was just that I noted that some of the large orders were announced in Swedish krona.

Yes. It's just the way that we announced it in the press release, Carl, so the order is taken in U.S. dollars, but it's just the way we have chosen to announce the results. It's taken in U.S. dollars.

Perfect. Then finally, I also wanted to ask on AirTech. I heard your comments what you're talking about sort of the mix change that you've seen this year measured in battery becoming a smaller part. And of course, you've taken quite a few sort of measures now on production and utilization and so forth. And I just wanted to understand, we've seen in the past that this battery contract that you took back in '22, in particular, were quite profitable for the division, whereas now you're sort of entering '26-'27 with a little bit of a different, let's say, end market mix. And on the back of the changes you've done here on the production and utilization side, is it still a material margin difference in battery relative to other segments? Or is that more balanced now, you would say?

I have to give you a little bit lengthy answer, and then I will sum it up. Generally speaking, the non-battery side has always had a slightly better margin than the large batteries orders. With that said, when you have a very large battery orders and you take another large battery order, then you set up a production system, so you have, call it, volume effects, so you can bring out a higher margin on that side.

So if I then go back to service, components and base business, in general, product margins have a higher margin than the larger projects. But then, of course, if you can fill a factory and deliver like we do in Data Center, then you have volume benefits on that then, if it makes sense. So moving forward, I see that if we have a couple of quarters in the range of the SEK 2 billion that we have now, I mean, then we will have a good load of factories and a good way forward. And that will most probably be filled more of what I referred to general base business than battery projects.

And we will take another caller.

Yes. Yes. Yes.

The next question comes from Gustav Berneblad from Nordea.

It's Gustav here from Nordea. Just coming back a bit to the tariff situation there of 400 bps. How much -- I mean, how much would you say that you're able to offset with the new production line of chillers in Virginia, meaning sort of looking at H2 2026, if we say sort of ballpark, is it fair to assume closer to 1 percentage point tariff headwind? Or is it less? Or if you can just comment a bit.

And now I think when it comes to tariffs, let's start with a little bit of a joke and then I will come. Tariffs have a tendency to change depending on the President's mood. But if we take as an assumption, nothing is changing. If we take that as an assumption. I mean, the tariffs are built up by 2 components. One is if we deliver a full-fledged system to U.S., which we are when it comes to chillers, I mean, then what we have, that is, first of all, we have the general, the 15% tariff. Then there are other tariff components that is steel as an example.

And then you have to add another tariff ingredients on that then on the steel part in what you have. When we start to produce in U.S., I mean, the first component is gone. Then the second component will be more or less gone due to the fact that if we can then supply with U.S. steel, et cetera, I mean, then we will have no effect. But if we need to supply as all other U.S. companies have to supply then steel outside U.S., I mean, then we have a tariff component. But if I sort of summarize it, everything will not disappear after Q2 because there is a little bit of residual. But if we follow our plans, the very large majority of this will disappear in H2. Am I fair to say that, Katharina?

You're exactly right.

Perfect. That's very clear. And then coming back to the cost savings program in AirTech there. I mean, can you just give us a bit more nuance on how we should interpret this in terms of what you're actually doing? Is it mainly personnel and we will see a sort of a front heavy or more front-end loaded cost savings? Or how should we think this progressing in 2026?

No, I've been talking so much. Maybe I hand this over to Katharina here.

For the program that we announced then in Q3, the one that to deliver SEK 250 million to SEK 300 million in savings, that will start to come into play already in the first quarter. So that program is progressing well to plan. Then there is a second part of that program that will come into play more in the second half.

But is it possible to say anything if it's the weight of the cost program is more tilted towards Q1 here or H1 or?

Yes. I mean, towards the end of the year, it will be the full run rate, so to say, but it will start to build already from now.

So you can put it a little bit like this. I mean, everything that has been executed by end of this year, I mean, that will month by month add up. And then you will have a second go, put it like that, that will start to add up from mid end of Q2. And then those 2 streams will then accumulate up to the total of SEK 250 million to SEK 300 million.

We can take another caller.

The next question comes from Anders Roslund from Pareto Securities.

Yes. I have just one question regarding the margin in DCT in the fourth quarter. If adding back the 4% for tariff, is this relatively well reflecting the new product assortment? Or is it parts coming from the high-margin cycle and less? Or what sort of...

I mean it's a very good question. And so the easy thing to deduct, if I call it like that, I mean, that is the 4%. That is just the way it is. Then we have other minor components, and that is, as you referred Anders, we have the shift in the product portfolio, the mix. That then brings down its slightly, let's say, 1 bp, 1% more or just to take a number there.

Moving forward, if you keep the 4% then at the end of next year, that is gone basically then. Then what -- the way you should look upon this, that is when we then are ramping up the chillers, then that will gradually then improve a positive product mix by the end the second half or starting, I mean, mid-quarter 2. So you will have a little bit of cycle effect, but then let's call it the chiller effect then when that is gradually then moving up in margins. So in the beginning, now we have a negative product mix. And at the end of next year, you can sell relatively said, you have a positive product mix.

But there's no cycle left in Q4 in the deliveries. Those have been completed.

Okay. Excellent. And how do you see in general, you only talk about chiller production, how is the production ramping up for the other product categories? And how will that affect margins?

That is -- if we take a CRAH as an example, there are some variations in between the CRAHs in margins. I mean, when you have a high density, high capacity CRAH, you have slightly higher margin. But CRAHs, as you know, look upon them as, call it, slightly lower margins, but a stable margin. A CRAH is CRAH, and we are good in producing that. So that is just adding up.

And then, of course, if you produce 100 and then 200, you are a little bit better. But call it, not that much efficiency, more in between an efficient or, call it more a me-too type of CRAH. But there, I mean, there, as I referred to earlier, there you can say that has been the negative product mix at current that we are selling more CRAHs than versus cycles. Moving forward, I mean the CRAHs will be at a stable level, and then it will be a larger mix of chillers then. I hope that was -- well enough described.

Excellent. No, that's okay for me.

And I think we have another caller.

The next question comes from Mats Liss from Kepler.

Well, looking at chiller production there in Italy, and I guess you will sort of move part of that sourcing to the U.S. gradually during the year. But what will happen in Italy? Will that capacity come down until you get sufficient amount of demand in the European market? Or could you sort of -- say something about...

But It's a very good question, Mats. We are also gaining traction in Europe of chillers. We are actually also at current and there, we have no tariff effects. We are, to some extent, supplying Asia, from Europe. So without being -- because I cannot be too specific, but I don't see any, call it, overcapacity or worries that we will have not good enough coverage in our factories in Europe. When we have production up and running in U.S., I mean, not from day 1, but in a quarter, everything after a quarter that is sold in U.S. will be produced in U.S. if there is not a specific, call it, emergency that we need to supply it in between. So we will have a strong base capacity in Europe for Europe, but also towards Middle East and towards Asia.

Great. And I guess it sounds like you experience this very good demand in Data Center segment going into 2026 as well. And I just want to -- well, get a feel for, do you see customers maybe placing dual orders here to secure supply? Or is it sort of not possible for them to do that? Or could you say something in...

I mean when you take a look upon the extraordinary order size we had in Q4 then and then take that into when will that be delivered, so to speak, will be delivered during 2026. I've said like this, I expect a turnover of plus 30% and maybe a turnover increase of plus 40% depending on customer preferences of deliveries in Data Center during the year. But then a large part of this SEK 9 billion order is also moved into 2027. And actually a few of those are moved into 2028. So I have never been this comfortable when it comes to the load situation in data center. '26 done. We can take some more. We have availability. But as you know, I mean, after Q1, it's not very much you can fill there.

And then we have a good situation already now for '27. And there, we have at least 5, 6 quarters more to go when it comes to fill that up. And we have already started to fill 2028. We had a book-to-bill of 7x in the quarter. Is that prebooking? Or is it, call it, just customers that would like to have a relaxed situation when it comes to will they have it or not? I cannot say that. But that is how it is. We are well covered into 2027 and actually also into '28 to some extent.

Thank you. I think we have Karl back on the line. We can take one question for you and then we have to finish off.

The next question comes from Karl Bokvist from ABG Sundal Collier.

All right. So just a comment there on what you see ahead on the growth there. I assume this is talking about current prevailing currency rates, i.e., organic or assuming existing currencies, on the sales growth from the backlog to 30% to 40%?

Yes. I mean what we reported, that is in, call it, year-end currency rate. And then currency move up and down, but you can say that the majority of what is currency neutral in a way that it is sold in U.S. and the majority after -- or pretty much all that will be produced after Q1 sort of everything that will be delivered after Q1 will also be produced in. So you may have a top line effect there, but you will not have a bottom line effect.

Thank you very much. I think, we will finish off there. Thank you, Klas and Katharina for presenting today.

Thank you. Thank you very much.

Thank you, everyone, for listening in. And please feel free to reach out to us at Investor Relations if you have further questions or if you would like to meet up with us during the quarter. So thank you for listening and see you next time.

Thank you.

Thank you.

Good morning, and welcome to Munters' Q3 presentation for 2025. My name is Line Dovarn, and I'm Head of Investor Relations, joined here with -- by Klas Forsstrom, our CEO; and Katharina Fischer, our CFO.

We will begin with a presentation of today's results, and we will then kick off the Q&A session. So if you do have questions from the webcast, you can post these questions throughout the presentation by using the chat function below, and we will address them at the end. So Klas, let's go.

Thank you, Line. And once again, good morning, and very much welcome to this Q3 report.

Let me start, as always, to give you some summarizing a few words of the quarter that has passed. A very strong order intake and invoicing complemented with robust profitability in an operating working capital development that pleases me very much. Data center technology in FoodTech, very well positioned for continued strong growth in the years to come. That thanks to the strategic decisions we made and the execution on those decisions.

We see solid underlying demand drivers of both business areas, data center demand and the digitization of the food supply chain and our offer is very well fit to capture this growth. AirTech in general is meeting a continued tough battery market and a generally tight industrial investment climate in U.S. and EMEA. To offset these headwinds, we are resetting AirTech to be better fit for the future. They will be well positioned to capture growth when the demand returns with modern factories, continuous sharper R&D and a clearer commercial drive across several sectors.

Yet Munters are creating a business with several legs to stand on in a world of continued tariffs, geopolitical tensions and general unpredictability , so this makes us well equipped for continued growth and market share gains.

So over to the quarter then that has passed. Strong growth and solid profitability. That is what I think is the headline of the quarter. And drilling into the different components of this. Order intake a 57% increase. If I deduct the currency, it is 70% growth in comparable currency. AirTech showing growth, positive development in APAC and to some extent in Americas when it comes to order, Data Center Technologies increased, continued strong demand in Americas. And as you later will see also margin improvements and market gains in Asia as well. FoodTech, increased as well, solid demand in Americas, EMEA.

Toward the backlog, 2% smaller backlog, but compensated to currency actually adjust 4% up. This has mainly been driven by Data Center Technologies. And the orders we receive now that brings us into 2026 and 2027, a pleasing book-to-bill of 1.1.

Moving over then to net sales, 17% up, 9% currency, so that would end up in 20% in comparable currencies. AirTech, here, it declined, lower sales across all regions. Data Center Technologies, continued increase, successful execution on the backlog and also FoodTech increased and were driven mainly by controllers in this quarter. Very pleasing to see controllers, an area that we have allocated a lot of more resources into.

Solid profitability, as I said. EBITDA margin of 13.5%, driven by DCT, the volume growth, production efficiency, still pleasing product mix and continuous lean improvements. FoodTech, strong contribution, although impacted by continued investments and to some extent, the product mix, as we all know, I mean, a software product has a higher margin than a controller, even if controllers is also on a good level. AirTech, impacted by lower volumes, unfavorable product and regional mix as well as uneven capacity utilization. This has been, to some extent, offset by cost and efficiency initiatives.

And in the quarter, we had currency headwinds and more specifically, tariff impacts in DCT, and this I will come back to later on. A fair description of how the world looks like right now, variations in between regions and end markets. Americas represents close to 70% of our total order intake. EMEA about 20%; and APAC, 12%. If I divide it in between the different business areas, you can see that DCT, if I start with that, is -- continues to be dominated by the U.S. market, but very pleasing to see that we have started to make inroads into Asia already now. And when it comes to EMEA or Europe, I would say it is not us. It is the European weaker market that is holding our growth in Europe back.

AirTech then more even balanced, 44% in AirTech in Americas and about 1/3 in EMEA and about 1/4, 25% in APAC then. And FoodTech then very much American and EMEA focused.

Drilling down in Americas, AirTech the market remains soft, pockets though of growth. DCT continued to rapidly expand, led by hyperscaler investments and a drive across the full sector, to some extent definitely AI-driven. FoodTech, a growing market. Yes, avian flu, bird flu is controlled, but a pickup will take, as always, after that type of outbreak, some time to recover. EMEA, a mixed market sentiment across the sectors, competitive price environment when it comes to AirTech.

As I alluded to earlier, DCT, slower markets with signs of picking up, focusing on energy efficiency, and that is good for us because we have the most energy-efficient solution there is in the data center market. And FoodTech positive market outlook, driven by increased regulation and push for better practices in this sector. APAC, signs of improvements in China, though continued high competition, Southeast Asia and India also showing growth as markets. Very pleasing to see that we are making inroads into Asia with data center. That is according to the plan, but it's always good to see that you're executing on the plan as well then. And FoodTech, China is not the focus market, but still, we are making inroads into China and Southeast Asia.

Moving over to AirTech then. All in all, a stable growth situation in a challenging environment. You've heard me say many times that I have predicted that the battery segment would be in between 10% to 20% in the coming quarters. Now we were at the low end of 10%, and I will come back with some outlooks on the battery and what is happening there later on. Besides that then, about 50% of AirTech's markets do have a slight positive outlook moving forward. So you can see the blue arrows then in about 50% of the total market of what we have today, that is slightly positive.

The order backlog decreased, highlighting here that is clean technology generated good growth in the volatile organic compound area, and that has been supported with good execution of the acquisitions we have done. And then in other areas, as I said earlier, that remained at the flat level in all regions, but not at a lower level.

This is one of my favorite pictures. And you can have different views on this. If I take it on the long term, I would say that it's a fairly flat, solid demand across the segments. If I go into a couple of other inroads here, one inroad that as you can see, if you compare quarters to quarters, i.e., quarter 3 over the years, I see a small uptick in each and every quarter, and this is a currency adjusted graph then. And then if you see then last year compared to this year, I will also say, in general, a slight up pick on the total of the year, so to speak.

But if I summarize this then, battery is still being in this 10% to 20%. Clean Technology continued to slowly increase, creating another leg to stand on and the other industrial, fairly stable, but a weaker investment climate in Americas. And that, I think, is something that you've heard from all industrial companies that it's a damp industrial economy in Americas at current.

Moving over to sales then, lower volumes and profitability. I'm not pleased with the profitability that we generated. It has been affected with some not strong enough execution on move of factories and how we have been able to work with our internal areas. I'm not worried about this. I mean I look upon this as a quarter or 1.5 quarters delay on certain of that, but I'm not really pleased with this. The other side of the coin, that is that it is also a continued weak market as such. I would have anticipated that we would have seen somewhat of an uptick then.

And all of this is also leading into that we then, as I will talk about later, are increasing our traction on how to reset AirTech for the future. Also very important, something that makes me very proud. That is, how do we drive investments then. Investment -- or should I say, innovation. Innovation can be driven by that we only innovate internally. For me, innovation is more and more about collaboration, collaborative work. This can be done with academia. This can be done with companies. This can be done by co-investing in certain areas.

And here, you see a couple of examples where we have, over the last couple of years, made minority investments in different companies to fuel our innovation. Some highlights, ZutaCore, DCT being very, very close to the ship and how to handle that. AgriWebb and Farmsee FoodTech, when it comes to how to drive digitalization and software in different areas. And Capsol, the latest then addition, where we started to invest a little bit more than a year ago, and we have now invested even more. And now we talk about carbon capture and moving forward in clean technology. For me, this shows that we can co-innovate with others not only inside our own house, so to speak.

Coming back then to AirTech. We have come to the conclusion, and this is something that is needed to be done that we need to reset AirTech. That means that we will intensify our cost out and how we work with AirTech. The market demand is lower than expected, and I foresee that it will continue to be flattish, especially when it comes to batteries moving forward. So we need to reset AirTech, position AirTech to the right level at current, but continue to keep it ready for a strong recovery when the market returns.

What are we doing then here? We adjust on investments. We drive footprint optimizations. We are more selective on where should we then fuel certain investments. We are optimizing the workforce. We are balancing capacity while safeguarding core competencies. And all in all, we expect here to have an impact of some 200 positions globally. We drive increased efficiency. And you may say, I mean, okay, you don't have enough load in the factory, but you continue to drive efficiency. Yes, that is the never-ending story you have to do because when the market returns, you have an even more modern, even more efficient factory layout that can then have a very, very positive drop through on the way down.

And we're on top of that also driving our commercial activities to reach out in wider sectors. All in all then, this will generate a net cost saving of about SEK 250 million to SEK 300 million at the end of 2026. It will generate a restructuring charge of about SEK 150 million, the majority taken in Q4 this year and some of it taken in Q1 next year. This is on top of the previously announced cost savings that are delivering according to plan. It is about resetting and be fit for the future when it comes to AirTech.

What about battery? As you saw today, we announced a battery order. And I think this is really telling the story about battery sector. First of all, there is a battery sector. It is not dead, but it's a sector where decision processes are taking much longer time. I can take this as an example. This project that we then recently received, we have been discussing, working, talking about this for about a year. And then they put the thumb on the green button, so to speak, and they released it. I think that tells the story about the battery sector right now.

We are working with 3, 4 different projects of some 100 million sizes moving forward. But what is clear, what earlier took perhaps half a year to decide, in current capital squeezed market, especially in the automotive sector, that can take up to a year, sometimes even longer. My other point here, that is, we have the best products in the marketplace. Here, we talk about, I mean, you that are nerds, into dehumidification then a minus 78 degrees Celsius. That means that we can extract humidity at a very, very low temperature, a high-performing type of product. All in all, this generated a USD 30 million towards a U.S. battery cell manufacturer and the planned deliveries for mid and end of 2026.

Moving over to another reality. I'm so pleased to see that our strategic initiatives, our execution of those, are delivering order intake where it should be. So an order intake that generated a book-to-bill of close to 1.4 in the quarter, orders that we delivered into 2026 -- during 2026 and into 2027. We received it across the full product portfolio. And I think this is something that's extremely important. We have widened our assortment. And even if I'm a little bit biased, I still say we have the widest and in my book, the most competitive product offering in the cooling market of data centers.

EMEA did grow, especially driven by CRAHs and service offer. APAC started to show good growth as well. So all in all, when it comes to orders, I'm very pleased. And I'm also looking forward, I'm very optimistic for the underlying market. But as always, some quarters are very, very high in orders and others could be lower. But with that said, I'm continuous very optimistic moving forward.

If we move over to the other side then, net sales increased, successful delivery on the backlog, SyCool and CDUs, CRAHs the full assortment something to highlight. This is the last quarter with SyCool, so that will generate some product mix changes moving forward. We generated an adjusted EBITDA margin that continued to be strong. We had some tariff headwinds of 2 percentage units in the quarter. And here, I can say, I'm not happy to have this but I'm not too disappointed either because what we have, that is the most innovative and efficient chiller product in the market. And at current, we cannot produce that in U.S. We are building up capacity here. And I'm happy that we take and receive orders, so this tariff headwinds, I'm willing to eat, and I know that also data center because we gain market share moving forward.

So all in all, we invest in strategic growth initiatives. We had solid volume growth in the quarter and also high production utilization. So a very strong quarter in all aspects in data center this quarter. And here, you can see that we are filling up, and this is just examples of publicized orders and other orders of significant size that and how they are delivered moving forward. In summary, you can say the majority of the orders we receive now that is for 2026 and 2027.

Now I have to balance here in between trying to explain this is in as simple words as possible. And at the same time, when I return back to the Munters headquarter also get good enough grades from my experts then saying that I was not shortcutting this too much. But if I try to balance that then, liquid cooling is about the full scheme. It is the large loop, and liquid cooling is about dissipation, capture, transfer and release. You can say in simple terms that this consists of 2 different loops.

One loop that is in the dissipation that is close to the chip, very, very close to the heat source, that is one loop then. And then you have the larger loop, the loop where we are the market leader in. That is the capture, transfer and release loop then. Let's call one technology loop and let's call one facility rejection loop. And the thing here that is we have all the products in the facility loop and we have the products that creates this plug and play in between. It is the connection in between the CDU and the LCDs that created this link.

So I think what we should remember that is when we talk about liquid cooling, it is 2 loops. And those loops are connected, and they work together. And we have solutions to whatever is happening in the technology loop, we can attach and we can capture, reject and transfer it out. And then on top of that, we are also collaborating with the key players in the dissipation area. So I'm super excited about the different technologies that are here, and I'm super proud of what we have delivered when it comes to innovation and collaboration in this area.

On another side then, but I'm also very, very happy about that is, I think that we have started to be the trend finder. I think we have started to be the trend setter. I think we have started to be the trend innovator. And what do I mean with that then? Let me give you a couple of examples. We brought to the market SyCool split, the first and very energy-efficient type of non-water coolant solution. We brought new CDUs of never before seen efficiency to the market. And we decided that either we develop the best chillers in the market, or we acquire the company that provides the best chillers in the market, and we decided to do the second.

So we acquired Geoclima. We spotted the trends on where they were going, we developed that, and we brought it to the market. And I can tell you that customers are really saying that we are leading the innovation and technology game here. So that brings me to another trend, a trend that is emerging. I call it modularity in a different way. You have heard me talk about modularity many times. Then we talk about components that can be used in different type of products, and that drives efficiency internally.

But when it comes to data center, it's another type of modularity. Look upon this as a little bit of Lego blocks that you put together subsystems and then you can build those subsystems. You can have 1, 2 or many together then. This is a trend that will complement other trends. And I can just tell you that we are also trend setters, trend spotters and working actively with the ones that are driving those trends in the market. So once again, I think we are ahead of the curve in this area as well, super excited about this.

If I then go into another area, FoodTech. Here, I think we have something that we can really be proud of. We have made a transition of FoodTech from a more classic old equipment driven company to be now a fully-fledged digital and software company. Many, many companies are talking about this change. Here, we have done this. And this is just in the beginning of what this can deliver. So when it comes to order intake, it increased. Software is growing. Controllers, the new acquisitions and what we had inside our own house are generating good order intake.

Synergies is worked in between the old controller companies and the new controller companies. And the order backlog increased in a good way. When it comes to ARR, we are continuing to increase in between 20% to 40% quarter-by-quarter. Here, we have decided to show this in U.S. dollar to take away the currency effect because now we have definitely currency headwind. But here, you can see more volume-driven type of increases and apples-to-apples. Super excited about this, and we are just in the beginning of this trend shift then.

So what about artificial intelligence? Artificial intelligence are driving data center growth, yes. But what can a company get out of artificial intelligence using it. Let me introduce to our recently new employers. One, Calvin that are driving internal efficiency and one, Clarity that is driving how to work with our customers. Calvin, that is how do we program in a better way? How do we automate? How are we doing code reviews? How are we becoming faster and more efficient in developing software?

And I'm amazed to see how much efficiency, how much innovation can be driven by this new employer, asked them. Controllers, the other area, not software. Here, we have Clarity. An agent that is a virtual assistant that is driving training for us, that is driving training for customers, that are generating customer support online and so on. And look upon those, yes, it is perhaps not tens of thousands of customers, but for Munters and FoodTech, there is an increasingly large amount of the users that we have. 1,300 users have joined Munters Academy. We have more than -- close to 200 training videos. We received more than 3,000 inquiries that was answered by Clarity, and we support 20 languages with our new digital-driven agent and Clarity.

So 2 examples of what we do with artificial intelligence to drive efficiency and customer satisfaction.

With that, I hand it over to you, Katharina, and please take us through the numbers.

Yes. Thank you, Klas. I'm pleased to talk about the continued strong performance for the group. In the third quarter, organic growth contributed with 56% to order intake and 15% to net sales. This was complemented by nonorganic growth of 14% and 11%, respectively. At the same time, we continued to experience negative currency effects of minus 39%.

Worth highlighting is also the order backlog, that currency adjusted developed well and then increased about 4% in the quarter. The adjusted EBITA margin remained solid at 13.5%, although lower than prior year's exceptionally high level. Here, data center and FoodTech continued to deliver very strong margins, so really demonstrating operational discipline across the business. As you heard Klas say, the margin in AirTech declined, both compared to prior year and also versus -- slightly versus prior quarter. And this was due to lower volume, unfavorable product and regional mix and then also continued dual site costs for the transition into the new factory in Amesbury, which has taken longer than anticipated and is expected to be fully operational by the end of the year.

A key achievement in the quarter was the continued improvement in operating working capital. Here, we have reduced to now 8.3% of net sales. which is well below our target range of 13% to 10%. So this is a clear result of very disciplined work across the organization.

Our net debt increased, and this is mainly reflecting then the acquisitions made, debt finance acquisitions and also the higher lease liabilities due to the new facility in Amesbury.

Looking at the margin development then. As mentioned, the margin remains solid then at the 13.5%, even though it was lower compared to the high -- tough comparison last year. The different factors then, volume growth for data center and FoodTech had a positive impact on the margin. And for AirTech, it was a negative impact from volume, obviously then. I'm pleased to see that we continue to drive positive net price increases, mainly in data center and FoodTech. We also saw a negative mix impact, both for AirTech due to the higher mix from APAC and also product mix, regional mix from FoodTech.

Also then, as Klas has highlighted, we had negative impacts from tariffs in DCT with 2 percentage points, and this is something that we anticipate to remain until the U.S. production of US chillers is up and running then in the U.S. On the operational side, the under-absorption in AirTech weighted on the margin, although there was a positive offset from the high factory utilization in data center. And then it's worth mentioning also that all business areas continue to drive very strong efficiency improvements.

We also continue to invest in our strategic initiatives, as we have mentioned in prior quarters, and this has to do with building digital capabilities, system support and further strengthening our footprint across the globe then. And then finally, the currency had a negative impact for this quarterly result.

Turning to cash flow then. If we look at the main cash flow movements, cash flow was strong for the first 9 months, although slightly lower than prior year, and this was due to lower -- slightly lower operating earnings and also a less favorable development in working capital.

If we look at the individual business areas, data center continued to deliver very solid cash flow, supported by customer advances and strong profitability. And in AirTech, there was a negative cash flow then due to the weakness in the battery market and also the continued under-absorption. If we look at cash flow from investments, you see that the main part there is that we, earlier this year, bought the remaining shares in the software company, MTech, and also the continued investments in the manufacturing footprint and mainly in Amesbury.

Also, this slide is showing the continuing operations. If you look at the discontinuing operations, you will also see the SEK 1 billion that we received for the divestment of the FoodTech equipment business earlier this year. And we, of course, continue to maintain a very strong focus on cash management, and I'm very pleased to see the positive effects of all the efforts that we have ongoing to increase operational efficiency and also the capital discipline across the group.

Looking at investments then. We maintain a highly disciplined approach to the capital allocation. We focus our investments in the areas that generates the strongest long-term growth and also supports profitable, sustainable growth. In the third quarter, the ratio CapEx to net sales was 3.9%. And if you look 12 months rolling, it was 6.7%, so although the quarterly level was a little bit lower in Q3, in the near term, we expect it to be somewhat elevated above the historical levels, as we continue to invest in automization and innovation and digital capabilities.

And an example of this, of course, in the coming quarters, is the ongoing expansion of the Virginia site for data center, where we are setting up chiller production then in the U.S. and also investing in a new test lab. And these investments, of course, strengthen our technological capabilities and also the regional manufacturing footprint. So we are very well positioned then to remain and be able to capture future growth in this area for Americas.

Looking at leverage. The leverage ratio was 2.8, which is then unchanged compared to the second quarter. if you compare to Q3 last year, it's somewhat elevated then, and this is due to the acquisitions made recently, and then also the increased liability for Amesbury. And in the coming quarters, I want to highlight that we will be paying some holdbacks relating to some acquisitions made recently, including Geoclima and MTech. And we maintain our ambition to keep leverage within 1.5 and 2.5%. And we are comfortable staying above this level temporarily since this is due to the strategic investments that are so important for us to really further develop our competitive position and support our long-term growth.

I also want to mention that we, in the third quarter, issued our second green bond, so now we have more access to the credit market, and we have been able then to diversify our funding beyond the bank, traditional bank loans.

Moving to service then. So expanding service is, of course, a key priority across all our business areas. And in the quarter, we had an organic growth of 6% for service. And of course, here, we want to keep our systems running for our customers in a very efficient and sustainable way through the whole life cycle. But of course, also for Munters, it creates stable and recurring earnings base for us. So that is also important. And service is defined as aftermarket service across the business areas and then also the software revenue for FoodTech.

Components has also developed well in the quarter. And this is, as you know, sold mainly within AirTech. So here, we have dehumidification rotors and evaporative pads as growth drivers. And the group's ambition for service and components is to be above 1/3 of group net sales. And in the quarter, we were at 24%. And also if you look 12 months rolling, it was on 24%.

And then if we look to the individual business areas, you can see that both AirTech and data center increased their service shares. So AirTech is at 22% and data center at 5%. FoodTech here has 21%, which is a decline compared to last year, but that has to do with this year, we have a higher mix of controller sales and they don't have as much service.

So going forward, we will continue, of course, to build on our growing installed base and continue to invest in smarter and more connected and even more energy-efficient products that creates value for our customers and make our products even more reliable.

And then looking at our sustainability initiatives here. So here, we continue to make very meaningful progress. Circularity is something that is part of our daily operations. And one example of this is the circularity program that we have been running them with Combient Pure. So this is about how we can increase circularity within AirTech with regards to their processes and products. So it's about designing for reuse, recycling and do it more efficiently. And here, we have identified opportunities for even higher materiality circularity with 15% and there is also a possibility then to further reduce Scope 3 emission by developing our service offering more broadly.

Just recently, we also announced a very interesting collaboration around innovation. So here, the residues from our rotor production will be reused for plasterboard manufacturing. So this is a really innovative initiative where we will turn waste into new material and really strengthen our regional circular value chain. So I think 2 really good examples within circularity. And of course, this is a continued focus for the group. We will further expand this across the organization, and we will also deepen the supplier engagement further going forward.

With that, I would like to thank you and hand it back to you, Klas.

Thank you very much, Katharina, and let me then start to summarize the quarter before we move into Q&A then. How are we performing towards our overall financial targets? The numbers that is in the quarter. So currency adjusted growth, 26%, adjusted EBITA, 13.5% and operating working capital, 8.3%. So operating working capital ahead or below in positive terms of the target. Adjusted EBITDA a little bit shy of the set target and adjusted currency growth then ahead of the target. And I think this is very much the pattern that we've had the last -- very often, we have 2 out of 3 then beating or be very close to it. So all in all, we continue to progress towards those targets.

If I summarize the quarter, strong performance driven by growth in key industries, predominantly data center and FoodTech. DCT, maintaining a strong momentum, and I said it in the past, and I say even stronger now, I am very confident for the future. We are delivering the right products to the right customers and expanding it to more than just one region. FoodTech advancing on the fully digital business, something that I think has not really brought full attention with one exception. Our customers are very, very interested in this.

And then AirTech navigating short-term challenges, building a long-term strength, as I said, resetting it to current circumstances, but then also be fit for the future with very efficient factories, continued strong innovation and an even more focused sales force that's spread out not only in certain categories, but across the different industrial segments.

So with that, let's go over to Q&A.

Absolutely. Thank you, Klas, and Katharina now. So we are now ready for Q&A session. [Operator Instructions].

[Operator Instructions] The next question comes from Joen Sundmark from SEB.

Congrats on a very nice order intake in data centers. If we start with the margin there, you talked about tariffs impacting margins of some 2 percentage points in data centers. Do you sort of expect to get those 2 percentage points back once you have the new factory in the U.S. up and running? Or will sort of change mix offset that improvement once we are there?

Thank you for the question. So if I divide it into 2 sides then on this coin, as you have heard me say several times, Joen, that is then, yes, we will have a gradual change in the mix, and that will start to intensify next quarter. And then later on then, when we have moved up chiller production and moved it in to be closer to the market, I mean, the mix will start to change back again, the normal pattern. The more we produce, the better it will become, so to speak.

So that is the mix movement, so to speak, and that is according to what we have said for several quarters then. When it comes to the tariffs then and here, we look upon it like this. We have a fantastic product that we know that we will start to produce in U.S. first quarter next year. This product is very sought after. So when we sell it, at current, we will send it over from Europe to U.S. That's the reason why we have the tariffs impact this quarter.

And I can say like this, if we need to take some more tariffs, i.e., if we sell more, I'm happy to take that for a short time period because that generates market share. When we have the production up and running, I mean then the tariffs are gone and at the same time, they have also become much, much better in producing those chillers. So you can say we balance it out over the long run.

Okay. Very clear. Then as you're talking about more measures taken in AirTech, when you sort of look into 2026 and your ability to reach this 13% to 16% margin range. How confident would you say that you are to reach those levels having both cost measures in mind, but then also combined with the current lower demand situation overall?

Also a good question. I mean, the reason why we are driving those cost measures that is, as I said in the beginning, it was a weaker market than we foresee in the beginning of the year. At current, we say that the battery sector will continue to be subdued during the majority of 2026. But with that, and on and off, we may pick up orders, but it will continue to be in the range of 10% to 20% of the total order intake. So that is one thing then. So then we are resetting the organization to be handling that level.

What we need to have in order to come up to the numbers that would please me, the 13% to 16%, of course, that is also more volumes. And that is the reason why we are resetting now and with modernization of the factories that we've done and continued efficiency then we will gradually start to move towards that target. But as I said in earlier statements, I think that we now have a prolonged period of somewhat weaker margins then, and that's the reason for the program.

We'll take another question from the telephone conference.

The next question comes from Adela Dashian from Jefferies.

Klas, it'd be difficult to limit myself to just 2 questions after today, but I'll try my best. Just firstly, on the book-to-bill in DCT, you did promise a ratio above 1 last quarter, and you did deliver that today. So congratulations to you and Stefan and the rest of the team. Should we expect some quarterly volatility going forward? Or are you interpreting this as a new norm given the very strong market drivers that you're seeing in the market?

Adela, thank you for the congrats, and thank you for the question and this is the silver bullet question, I think. My best way to phrase it, that is like this. I see a very strong market that continues for years. I see us having a very, very strong product offer. And then I see customers that sometimes are putting many orders, sometimes are waiting for a longer period. With all that said, I think that we have a strong market, a strong offer and a great team, so I'm optimistic for the future.

If I would say a certain level, the only thing I can guarantee that is that I would be wrong. But I'm very positive moving forward. But to predict, I mean, what will come in orders in a quarter, then I should buy me a lotto ticket at the same time then, but I'm positive.

Well, this quarter, you were right, so and for my second...

And I bought the ticket.

For my second question, I'm going to just try to push 2 into 2 and be a bit broader here. On the order book composition in DCT, I believe so far, the majority of the orders have still been for the traditional air cooling. But you do mention some CDU orders here, and I also noticed that the share of indoor units is increasing. So are you entering now a phase where liquid cooling solutions are starting to gain real traction? And then on the, I guess, flip side, SyCool is now diminishing as a share, but we did hear one of your paper partners announce an integrated platform for waterless direct-to-chip, so could this potentially reinstate the interest in refrigerant-based systems?

I try to answer this expanded question with one answer as well. The first one, that is that we have now, in my book, the widest product offer when it comes to different cooling solution there is. And we have also, and here I'm biased, I know, but I say it anyhow, the most energy efficient and modern assortment. Our vitality Index for the group is about 40, i.e. of what we are selling, what is -- 40% has an age of less than 5 and in data center, much higher than that.

Yes, you're right. We are shifting more and more to what we call them the liquid cooling universe. And here, we have really targeted right type of products. We have 2 different, call it, shifts when it comes to portfolio. One shift is towards the CRAHs that have a weaker profitability. And then we have the CDUs and we have the chillers that have higher than the average of what we have done. We are shifting out the SyCool that had the highest. And then to just complicate this, short term on the chillers, everything we sell into U.S. at current, we have a tariff then surcharge, but that will, of course, disappear.

So if I shorten this up, we will have a headwind when it comes to mix on the quarters to come, but that will then gradually turn around when tariffs and more and more production of chillers, et cetera, are driving through efficiencies. So a little bit tougher moving forward, and then it will lease up. That is what I predict.

Could you just expand a bit about the SyCool and what the trends that you're seeing and...

Absolutely. Here, super excited. I think that we will have opportunities here. But as always, when it comes to this cooling very close to the chip, I mean, the euro is still there, but I'm optimistic for that. I don't see that we will generate short-term billion Swedish krona orders on it, but I'm definitely, call it, looking forward to see orders coming in, in that area. And here, we are unique.

Let's take another question from the telephone conference.

The next question comes from [ Karl Degenberg ] from DNB Carnegie.

So 2 questions from my side. And first of all, on the backlog of SEK 6.6 billion DCT, I just wanted to hear, could you give any sort of quantification of how much of that is for delivery in '26? And a related question to that as well is on invoicing capacity in DCT, I think we had that discussion on the last quarter results again. And that's around, I think you've been at around 1.5% in the revenues in DCT now for roughly 3 quarters. And I just wanted to understand, given the capacity that you're adding and so forth, for '26, '27, what kind of quarterly run rate could you achieve given the capacity additions?

If I generalize, you can say, with current footprint in DCT with one exception that I will come back to then, we could definitely without -- if we add shifts, if we tighten the chip to some extent, we could easily deliver 30% more deliveries out of our factories. And then we have one exception, and that is now we are definitely, we cannot deliver much more when it comes to chillers short term from our European setup to U.S. But as soon as we have that up and running, I mean, we will have close to double capacity of chillers also in U.S. And then, of course, we don't have to pay the tariffs on that, so to speak.

So we have plenty of room to grow. But in one area, we are short term, a little bit squeezed, but that is according to plan.

Yes, yes, very well. And then I'll maybe take my follow-up on the same topic. I mean I guess the chiller exposure came predominantly from the acquisition of Geoclima, correct me if I'm wrong. And given that you -- I mean remembering when you bought that business, it was obviously quite an addition for the division but given that it has a 2 percentage point impact now on the imports on the margins, it sounds like the growth has been very, very significant since you acquired the entity.

So could you say anything, what's the share now? And maybe if you look at your own portfolio, let's say, transformation away from SyCool and so forth, what do you expect the mix to be, let's say, '26, '27 without giving any absolute forecast?

No. What I can say that is -- and now I don't have that picture in front of me, but you see the graph there on one of the slides where we have the different components and how that is spread. There you can have some indications. But if I'm a little bit more straightforward, I'm super pleased with acquisitions of Geoclima. I mean it is the world's best chiller, and we have a very strong sales force. So in my book, we have achieved or we have overdelivered on what the chiller sales could generate here.

And then according to the plan that we deliver on then to add this into the U.S. setup and then we have an in the region, in the market for the market. And suddenly, we also get rid of this volatility when it comes to tariffs then. And here, I just want to underscore, you can never be happy to pay tariffs. But if I have to choose in between having no chillers, and paying tariffs, I'm happy to pay tariffs because we have the world's best chiller in the market.

Sorry, we need to break that, we are running out of time. Thank you very much for that. We do have more callers on the line, but we will reach out to you separately. We also have received some questions here. And I will just finish off with one last question for you, Klas, that you can answer quickly, if you can.

I will try.

What is Munters' biggest challenges going forward, Q4 and further on, 2026 to 2030?

That was a broad-based question. I think that -- and I don't call this a challenge that is we should continue to be on the toes when it comes to drive innovation, when it comes to be very, very close to the customers. And then we need to get best use of our decentralized setup. We have 2 skyrocketing divisions at current and one that has tougher. And that is in the decentralized way. I mean then we handle the opportunities when we are skyrocketing, and we handle the challenges when we have tougher and that is what I think we will continue to work with.

Great. Thank you very much. Thank you, Klas and Katharina, for presenting. Thank you, everyone, for listening in. And we will, as I said, reach out to those of you that we did not have time to talk to. With that, thank you and wish you a nice weekend.

Thank you.

Thank you.