WEG (WEGE3) investor relations material

Executive summary

• Net operating revenue reached R$10,271.5 million in 3Q25, up 4.2% year-over-year, driven by strong industrial activity in Brazil and international markets, with growth in both domestic and external segments.

• EBITDA was R$2,275.5 million, 2.3% higher than 3Q24, with a margin of 22.2%.

• Net income rose 4.5% year-over-year to R$1,650.5 million, with a net margin of 16.1%.

• ROIC was 32.4%, down 470 basis points year-over-year, reflecting higher invested capital and the absence of prior non-recurring tax incentives.

• Net operating profit after taxes increased 8.6% year-over-year, with invested capital up 24.5%.

Financial highlights

• Gross margin was 33.6%, down 90 bps year-over-year due to higher raw material costs and product mix changes.

• SG&A expenses increased 5.2% year-over-year, representing 11.6% of net revenue.

• Cash flow from operations totaled R$4,238.3 million for the nine months ended September 2025.

• Net cash position at quarter-end was R$3,441.5 million, with total cash and equivalents of R$7,349.1 million.

• Investments (CAPEX) in 3Q25 totaled R$672.6 million, split 52% in Brazil and 48% abroad.

Outlook and guidance

• Annual revenue growth and high operating margins are expected to continue, supported by international presence, product diversification, and a robust capital budget.

• Management remains confident in long-term growth, citing operational flexibility and global presence as key strengths to navigate macroeconomic instability.

• Geopolitical and macroeconomic uncertainties present short-term challenges, but investment plans remain focused on growth in Brazil and abroad.