WEG (WEGE3) Investor Day 2026 summary

Financial performance and capital allocation

• 6M26 net operating revenue fell 3.3% YoY in BRL; external-market revenue rose 4% in BRL and 15.4% in USD, while domestic revenue declined 9%.

• 2025 foreign sales were BRL 15.4bn, 38% of revenue, nearly 6x 2016; external-market revenue grew 12.3% CAGR in USD over 10 years and was ~3x higher.

• 6M26 investment was BRL 1.417bn, against a BRL 3.6bn 2026 budget; investment is above the historical 3%-5% of revenue to capture opportunities.

• June 2026 net cash was BRL 3.7bn; 78% of EBITDA converted to operating cash, supporting investment while preserving the balance sheet.

• Operating margins remained above historical averages for 3.5 years; revenue growth is expected to return to 3%-5% after the transformer and generator investment cycle.

Capacity and investment priorities

• Largest investment cycle to date targets internationalization, capacity expansion, modernization and automation; capacity constraints are expected to ease from 2026.

• Transformer facility investment of BRL 765m is scheduled for Q1 2027 completion; Colombia transformer site investment is BRL 109m, also due Q1 2027.

• U.S. special-transformer capacity is set to rise 50% with BRL 430m investment by Q1 2028; Betim T&D expansion is scheduled for 2026, and Gravataí investment is BRL 128m for Q1 2027 completion.

• BESS capacity expanded from 2 GWh to 4 GWh with BRL 330m investment and Q3 2027 completion; order intake includes microgrid, utility-scale and industrial projects.

• Mexico generator plan: BRL 122m Phase 1 starts production in April 2027, targeting 10 units/day by year-end; BRL 718m Phase 2 starts Q3 2028, targeting 50 units/day by end-2029.

Data center portfolio and opportunity

• Portfolio spans substations, transformers, switchgear, UPS, busways, generators, motors, drives, automation and cooling; addressable share is ~15% of facility cost, excluding servers.

• Portfolio roadmap targets a robust offering by 2030; data center demand is driven by digital transformation, 5G, IoT and AI, with higher rack power density supporting 800 VDC adoption.

• AI training racks already exceed 500 kW; 800 VDC and solid-state converters are emerging technology opportunities under consideration.

• U.S. data centers represented 18.5% of transformer order intake; Latin American activity is developing rapidly, with supplies in Mexico, Brazil, Chile, Colombia and Uruguay.

• Brazil's REDATA regime, approved September 2026, offers tax benefits and requires renewable or low-emission power; announced U.S. contracts include 25,000 liquid-cooling motors and 9,000 compact ECM motors.