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WEG S.A. (WEGZY) is a high-quality compounder in a capital-intensive sector, boasting ~19.5% EBIT margins and ROE above 32%. WEGZY's growth is driven by long-term global trends like electrification, automation, and energy efficiency, with a 5-year revenue CAGR of ~18.5%. Recent results show a 170 bps decline in ROIC and more modest earnings, highlighting the challenge of sustaining high growth at scale.
WEG S.A. (WEGZY) Q4 2025 Earnings Call Transcript
Following the external shocks of 2025—tariffs and a temporary slowdown in energy—WEG enters 2026 having preserved the integrity of its operating model, with margins and returns. The ADR's rebound from mid-2025 lows has been driven more by a favorable macro backdrop for Brazilian equities and emerging markets than by a renewed acceleration in company-specific fundamentals. With valuation still demanding and limited near-term catalysts, the investment case for WEG has shifted from multiple expansion to value preservation, supporting a constructive neutral stance heading into 2026.
Shares of Weg S.A. (OTCMKTS:WEGZY - Get Free Report) rose 1.4% on Wednesday. The stock traded as high as $8.7250 and last traded at $8.68. Approximately 16,914 shares were traded during trading, a decline of 58% from the average daily volume of 40,346 shares. The stock had previously closed at $8.56. Wall Street Analysts
WEG S.A. is a global industrial leader, transforming into a diversified energy and automation platform with strong exposure to electrification and grid renewal trends. Recent results show resilient growth, robust profitability, and disciplined investment, with international expansion and strategic acquisitions like Tupinambá Energia enhancing recurring revenue streams. WEGZY trades at a significant discount to historical and peer multiples, despite superior margins, returns, and diversification, presenting a compelling re-rating opportunity.
WEG S.A. (OTCPK:WEGZY) Q3 2025 Earnings Call October 23, 2025 10:00 AM EDT Company Participants André Rodrigues - CFO, Administrative & Financial Director and Member of Executive Board André Salgueiro - Finance Director & Investor Relations Officer & Member of Executive Board Conference Call Participants Lucas Esteves - Santander Investment Securities Inc., Research Division Gabriel Rezende - Itaú Corretora de Valores S.A., Research Division Lucas Marquiori - Banco BTG Pactual S.A.
WEG S.A. (OTCPK:WEGZY) Analyst/Investor Day October 3, 2025 7:30 AM EDT Company Participants Carlos Jose Grillo - Executive Officer, Chief Officer & Director of Digital & Systems and Member of Executive Board Alberto Kuba - CEO & Member of Executive Board João Paulo da Silva - Director of WEG Energy & Member of Executive Board Harry Schmelzer Allan de Oliveira Vicente Paulo Sinoti Presentation Carlos Jose Grillo Executive Officer, Chief Officer & Director of Digital & Systems and Member of Executive Board Good morning, everyone. Once again, I will try to start this topic of the modernization of the Grid business.
EBITDA margin above 22% indicates cost control and resilience, even with macroeconomic pressures. High capex puts pressure on ROIC in the short term, but strengthens the company's competitive advantages in the medium and long term. 5-year DCF model with exit EBITDA multiple and conservative assumptions indicates a fair price of $8.33, a 28% upside.
WEG S.A. (OTCPK:WEGZY) Q2 2025 Earnings Call July 24, 2025 10:00 AM ET Company Participants André Rodrigues - CFO, Administrative & Financial Director and Member of Executive Board André Salgueiro - Finance Director & Investor Relations Officer & Member of Executive Board Conference Call Participants Rogério Araújo - BofA Securities, Research Division Lucas Laghi - XP Investimentos Corretora de Câmbio, Títulos e Valores Mobiliários S.A., Research Division Lucas Marquiori - Banco BTG Pactual S.A.
WEG is down 16% in 2025, even with superior fundamentals and recovery of AI infrastructure competitors. This deserves a discussion about what happens. The company has a consistent track record of revenue and margin growth, even in recessions, with 56% of revenue coming from abroad. The recent margin drop was a one-off, and WEG's management maintains high credibility with a track record of sound strategic decisions.
I recommend buying WEG shares due to strong annual revenue growth and potential benefits from protectionist policies, despite recent quarterly declines. WEG's net revenue increased by 25.5% y/y, driven by strong performance abroad, but faced a quarterly drop due to seasonality and product mix. Costs and expenses rose, impacting margins, with COGS up 26% y/y and SG&A expenses up 32% y/y, leading to lower operating leverage.
WEG S.A. (OTCPK:WEGZY) Q1 2025 Earnings Conference Call April 30, 2025 10:00 AM ET Company Participants André Luís Rodrigues - Administrative & Financial Superintendent André Menegueti Salgueiro - Finance & Investor Relations Officer Conference Call Participants Lucas Laghi - XP Rogerio Araujo - Bank of America João Frizo - Goldman Sachs Alberto Valerio - UBS Marcelo Motta - JPMorgan Jens Spiess - Morgan Stanley Andre Mazini - Citi Operator Good morning. Welcome to WEG's Earning Conference Call for the First Quarter 2025.
WEG S.A. (OTCPK:WEGZY) Q4 2024 Earnings Conference Call February 27, 2025 9:00 AM ET Company Participants Andre Luis Rodrigues - Chief Financial Officer Andre Menegueti Salgueiro - Finance Director and Investor Relations Officer Felipe Scopel Hoffmann - Investor Relations Manager Conference Call Participants Lucas Marquiori - BTG Pactual Rogerio Araujo - Bank of America Joao Frizo - Goldman Sachs Jens Spiess - Morgan Stanley Lucas Laghi - XP Investimentos Daniel Gasparete - Itau BBA Andre Mazini - Citi Victor Mizusaki - Bradesco BBI Marcelo Motta - JPMorgan Alberto Valerio - UBS Operator Good morning, and welcome to WEG's Fourth Quarter 2024 Earnings Conference Call. I would like to highlight that simultaneous translation is available on the platform and the interpretation at the bottom of your screen.
I am raising my recommendation for WEG to buy due to its impressive financial performance and recent share price drop creating a buying opportunity. WEG stands out among global competitors with the highest revenue growth, EBITDA margin, net margin, and ROE over the last 5 years. Valuation presents an opportunity with a potential upside of 29%, targeting a price of $11.55 per share based on PEG multiples.
Ansys technology is instrumental in helping WEG develop an electric industrial motor that enables OEMs to push the limits of innovation through improved efficiency and productivity / Key Highlights Ansys technology delivers an optimal balance of simulation speed and predictively accurate results to help WEG develop W80 AXgen, an electric industrial motor that can achieve efficiency levels beyond the current industry standard WEG used Ansys Mechanical™, Ansys Fluent™, Ansys Granta™, and Ansys Electronics™ to develop a performant, stackable, lightweight motor ideal for industrial applications including air compressors, water pump systems, and generators PITTSBURGH, Pa. , Nov. 13, 2024 /PRNewswire/ -- WEG, a global leader in electrical technologies and automation, used Ansys (NASDAQ: ANSS) simulation solutions to develop a revolutionary industrial motor.
WEG S.A. (OTCPK:WEGZY) Q3 2024 Earnings Call October 31, 2024 10:00 AM ET Company Participants André Luis Rodrigues - Chief Financial Officer Andre Menegueti Salgueiro - Chief Finance and Investor Relations Officer Wilson Watzko - Controller Felipe Scopel Hoffman - Investor Relations Manager Conference Call Participants Daniel Gasparete - Itau BBA Lucas Laghi - XP Lucas Marquiori - BTG Pactual Joan Frizo - Goldman Sachs Rogerio Araujo - Bank of America Alberto Valerio - UBS Andre Mazini - Citi Marcelo Motta - JPMorgan Andre Ferreira - Bradesco BBI Jens Spiess - Morgan Stanley Operator Good morning and welcome to WEG's Conference Call and the Results for the Third Quarter 2024. [Operator Instructions] If we don't have time to answer all the questions live, feel free to send your questions to our e-mail address, ri@weg.net and we will reply after the end of the conference call.
WEG reported decent results in 3Q24, with revenues growing modestly, driven by international performance and exchange rate variation. The company's margins were stable in the quarter, amid the integration of Regal Rexnord assets, which increased SG&A expenses. Although the result was not bad, the company has a stretched valuation and more is expected from WEG to justify this valuation.
WEG S.A. (OTCPK:WEGZY) Q2 2024 Earnings Conference Call August 1, 2024 10:00 AM ET Company Participants Andre Luis Rodrigues - Financial Administrative Superintendent Director Menegueti Salgueiro - Chief Financial Officer & Investor Relations Officer Conference Call Participants Rogério Araújo - Bank of America Andre Pereira - Bradesco Lucas Laghi - XP Lucas Marquiori - BTG Pactual André Mazini - Citi João Frizo - Goldman Sachs Jens Spiess - Morgan Stanley Daniel Gasparete - Itau BBA Alberto Valerio - UBS Marcelo Motta - JPMorgan Lucas Barbosa - Santander Operator Good morning, and welcome to WEG's Conference Call to Announce the Results of the Second Quarter of 2024. I would like to highlight that simultaneous translation is available on the platform, on the interpretation bottom in the globe icon at the bottom of the screen.
The company showed strong revenue growth due to M&A. Organic growth was 9%. The big highlight was the increase in margins, which the market was afraid would worsen due to the incorporation of Regal Rexnord assets. Although the company has a lot of quality, its valuation is very stretched, making it impossible to recommend buying the shares.