WEG expects growth to resume in the second half of 2026

Brazilian industrial manufacturer WEG expects to resume top-line growth starting with its second-half results, administrative and financial vice president André Luís Rodrigues told investors at the annual WEG Day. In the first half of the year, consolidated net revenue dropped 3.3% to R$ 19.6 billion, hit by a stronger Brazilian real reducing foreign earnings in conversion and weaker performance in centralized solar generation.

External revenue grew 15.4% in US dollars during the first half, supported by the oil and gas sector alongside ventilation and cooling systems for data centers. In the domestic market, the generation, transmission, and distribution unit fell 30% due to a tough comparative base in solar power. That drove an overall 14% decline for the unit, despite a 4% expansion for the division abroad.

Rodrigues explained that the expected recovery relies on the largest investment cycle in the company's history. First-half capital expenditures rose 17.6% year over year to R$ 1.4 billion, representing roughly 7.2% of revenue. The company set a total investment budget of R$ 3.6 billion for 2026 to eliminate manufacturing bottlenecks starting in 2026 and 2027.

Recent expansion projects include increasing capital spending on a battery energy storage system plant in Itajaí, Santa Catarina, to R$ 330 million on September 25. On September 28, the company also announced a US$ 165 million investment, equivalent to around R$ 860 million, in North America to increase generator manufacturing capacity for US data center demand.