Weg S.A. - ADR

Strong Revenue Growth: WEG reported a net operating revenue growth of 26.4% year-over-year in Q4 2024, driven by robust demand for long-cycle equipment, particularly in transmission and distribution (T&D) projects, as well as the recovery of centralized solar generation projects.

EBITDA Improvement: EBITDA reached R$ 2.4 billion, reflecting a 30.5% increase compared to Q4 2023, with the EBITDA margin increasing slightly to 22.1%. The margin improvements are attributed to better performance in long-cycle equipment and the ongoing positive trends in short-cycle businesses.

Market Dynamics and Backlogs: There is a healthy order backlog, particularly in long-cycle projects in T&D, with expectations for continued revenue growth in 2025. The company has a good visibility for centralized solar generation capabilities into the first half of 2025, although demand fluctuations in the short cycle equipment market, particularly in the U.S., have been noted.