WEG (WEGE3) Q2 2026 earnings summary

Executive summary

• 2Q26 net operating revenue was R$10,143.6m, down 0.6% YoY and up 7.1% QoQ.

• EBITDA reached R$2,212.6m, down 2.1% YoY and up 5.2% QoQ; margin was 21.8%.

• Net income was R$1,558.6m, down 2.1% YoY and up 7.0% QoQ; net margin was 15.4%.

• ROIC improved to 33.6%, up 70 bps YoY and 50 bps QoQ.

• External demand and double-digit USD revenue growth offset lower Brazilian solar-generation deliveries and real appreciation.

Financial highlights

• Gross margin was 33.2%, down 50 bps YoY, mainly due to higher raw-material costs and U.S. tariffs.

• SG&A rose 4.1% YoY to 12.5% of net revenue.

• H1 operating cash flow was R$2,451.2m; net cash at quarter-end was R$3,740.6m.

• Possible-loss contingencies totaled R$1,977m at June 30, 2026, including R$968.5m of disputed tax assessments on income earned abroad.

Outlook and guidance

• Capacity expansion and product and solution diversification remain priorities; management cited confidence in the business model, margins and ROIC.

• Healthy industrial equipment and T&D backlogs, particularly in electrical infrastructure, support activity in coming quarters.

• Normalized revenue comparisons and positive external industrial and energy demand are expected to support growth recovery.