WEG (WEGE3) Weg Day 2025 summary

Strategic direction and growth initiatives

• Transitioning from a product-based to a solutions-based company, focusing on energy transition, digitalization, and internationalization.

• Major CapEx investments in new plants and automation across Brazil, Mexico, China, Europe, and the US to double capacity by 2027, targeting T&D, high-voltage motors, and energy solutions.

• Strategic acquisitions (Marathon, Cemp, Rotor, Volt, Reivax, Heresite) and R$4.7 billion invested in M&A and vertical integration since 2020 to access new markets and technologies.

• Expansion of service offerings and digital solutions, including asset management, predictive maintenance, and grid modernization, to create recurring revenue streams.

• Sustainability targets include reducing Scope 1 and 2 emissions by 52% by 2030, achieving neutrality by 2050, and 67–70% of energy from renewables.

Financial performance and capital allocation

• Net operating revenue grew 17.2% YoY, with strong external market performance, especially in T&D (28% growth) and industrial equipment (24%).

• EBITDA margin remains robust at 21.9% for the first half of 2025, with expectations to maintain margins in the 22–23% range.

• ROIC continues above 30%, reaching 32.9% in 2024, reflecting efficient capital allocation.

• Ongoing CapEx cycle of BRL 2.5 billion, with total investments of R$1.85 billion in 2024 and a focus on capacity, modernization, and internationalization.

• Dividend policy distributes about 50% of net income, with a fivefold increase in dividends and EPS rising to R$1.51 in 2024.

Innovation, sustainability, and energy transition

• 55.1% of 2024 revenue from products launched in the last five years, highlighting innovation.

• Carbon Neutral Program: 67% of electricity from renewables, Scope 1 and 2 emissions reduced by 28.2% since 2021, and SBTi-approved targets for 2030.

• Recognized by Ecovadis (Gold, Top 5%) and Sustainalytics (Low ESG Risk) for sustainability leadership.

• Launch of microgrid and nanogrid solutions integrating solar, BESS, and digital controls for various sectors.

• Expansion in electric mobility, including battery packs, BMS, charging infrastructure, and partnerships with automakers.