WEG plans BRL 2.1 billion transformer push across Americas

Brazilian electrical equipment manufacturer WEG plans to invest BRL 2.1 billion across six transformer plants in Brazil, Colombia, Mexico, and the United States. The program includes three facilities in Brazil and one in each of the other three countries. Chief Financial Officer André Rodrigues detailed the plans on Friday, October 2, 2026, during the company's WEG Day event.

The company also plans to allocate BRL 330 million to build a battery energy storage systems (BESS) factory in Brazil with a production capacity of 4 GWh. WEG expects these manufacturing plants to be completed between 2026 and 2028.

For full-year 2026, WEG projected total capital expenditures of BRL 3.6 billion across all business units, having already deployed BRL 1.4 billion during the first half of the year. Rodrigues said these investments aim to lift production capacity bottlenecks starting in 2026 and 2027. He noted that the company's return on invested capital reached 32.5% in 2025, sustaining an average above 30% since 2021.

The expansion continues despite a 3.3% decline in revenue during the first half of 2026 compared with the same period in 2025, totaling BRL 19.6 billion. Rodrigues attributed the decrease to the appreciation of the Brazilian real against foreign balance-sheet currencies and a comparison against a historic high in centralized solar generation in 2025. Measured in US dollars, international revenue rose 15.9% in the first half, driven by oil and gas, ventilation, and cooling systems for data centers in the United States and Europe.