Weg S.A. - ADR

Revenue Decline: WEG's operating revenue decreased by 5.3% in Q4 2025 compared to Q4 2024, primarily due to the absence of centralized wind and solar generation products. While industrial activity in Brazil remained positive, the external market showed strong demand in power generation, with continued deliveries especially in North America.

EBITDA Margin Improvement: The EBITDA margin improved to 22.4%, up from last year, due to a better product mix and efforts to offset the impact of rising international tariffs. While EBITDA dropped 4% YoY, the improvement in margin indicates effective cost management despite revenue decline.

Investment Plan for 2026: WEG announced a significant capital expenditure plan of BRL 3.6 billion for 2026, split evenly between domestic and international projects. This investment aims to enhance production capacities and expand operations, particularly in battery energy storage systems and transformers.