MWET3: quote, dividends and indicators for Wetzel

Wetzel S.A. is a Brazilian industrial company with a long track record in the metallurgical and electrotechnical sectors, founded on April 11, 1932, originally under the corporate name Schmidt, Wetzel & Cia. Its initial activities focused on manufacturing brass faucets and valves, evolving from 1950 onward into the production of aluminum parts, mainly components for the installation, transmission, and distribution of electric power. In 1966, the company became a corporation (sociedade anônima), adopting the name Metalúrgica Wetzel S.A., and went public in 1984, with its shares starting to trade on B3, currently under the tickers MWET3 and MWET4. Over the following decades, the company expanded its industrial scope by growing its lines of electrical components, creating a unit for cast ferrous metals for electrical fittings, and through acquisitions, such as Metalúrgica Douat S.A. in 1988, which added an iron foundry and an air compressor plant to the group.

Corporate and production reorganization has marked Wetzel’s trajectory. In 1998, the former Metalúrgica Wetzel S.A. merged its subsidiary Wetzel Fundição de Ferro S.A., adopting the name Wetzel S.A. and consolidating different operations under a single corporate structure. The company also pursued strategic partnerships, such as a joint venture with Hengst Filterwerke to produce truck filters between 1999 and 2004, and, in 2010, the incorporation of Wetzel Univolt Indústria de Plásticos Ltda. with Dietzel GmbH, focused on plastic parts for electrical applications. This interest was fully acquired by Wetzel in 2024, when the company was renamed Wetzel Electric Solutions Ltda. On the industrial front, a major milestone was the opening in 2007 of a modern aluminum plant in the Perini Business Park in Joinville (SC), which reinforced its capacity to produce aluminum castings. The company also went through a financial restructuring cycle, with a judicial reorganization (recuperação judicial) process that began in 2016 and ended in 2022, followed in 2024 by the sale of the Isolated Productive Unit (UPI) of Iron Foundry, a transaction that enabled early payment to creditors and investments to modernize the Aluminum and Electrotechnical units.

Wetzel’s business model is structured around the manufacture and sale of cast components in ferrous and non-ferrous metals, as well as plastics, with a focus on the automotive and electrotechnical segments. The company produces aluminum parts and assemblies for the supply chain of light and heavy vehicle manufacturers, covering trucks, buses, and passenger cars, and also supplies materials for exposed electrical installations, industrial and commercial lighting, and applications in hazardous locations. Complementary activities include machining, painting, and heat treatment services for cast parts, as well as maintenance, technical assistance, and consulting services related to its products. The company’s corporate purpose also includes import and export operations associated with its industrial activity and the possibility of taking equity interests in other companies in Brazil and abroad.

In its recent operational structure, Wetzel is mainly organized into two business fronts: the Aluminum Automotive Components unit, known as Wetzel Automotiva, and the Electrical and Lighting Components unit, known as Wetzel Eletrotécnica. Wetzel Automotiva focuses on the production of medium- and high-complexity aluminum parts, using high-pressure die casting, low-pressure casting, and gravity casting processes, supplying raw castings, machined parts, and assembled units according to customers’ technical specifications. The automotive unit’s industrial park, with an area of 16.3 thousand square meters, includes laboratories equipped for testing mechanical properties, metallography, chemical composition, soundness analysis, crack detection, three-dimensional measurements, leak tests, and X-ray inspection. Wetzel Eletrotécnica, in turn, develops and manufactures materials for exposed electrical installations in aluminum and PVC, industrial LED lighting solutions, and electrical installation and lighting products for hazardous areas, with IECEx international certification (referred to as IEX), meeting specific safety requirements for environments with explosion risk.

Wetzel’s target markets mainly encompass two large sectors: automotive and electrotechnical, with a significant impact on industrial and infrastructure supply chains. In the automotive segment, the company’s performance is strongly tied to the level of production and sales of motor vehicles in the country, since its main customers are automakers and tier suppliers that incorporate aluminum components into light and heavy vehicles. In this context, demand tends to follow the cycles of the automotive industry and is subject to seasonality, particularly because some customers suspend activities for about fifteen days between December and January due to collective vacations, which affects production and revenue during that period. In the electrical components and lighting segment, Wetzel Eletrotécnica supplies civil works, infrastructure projects, ports, airports, and general industry, positioning itself in the chain for building and upgrading industrial and commercial facilities. The commercial strategy combines a nationwide network of sales representatives with in-house salespeople and technical consultants for the electrotechnical line, while the automotive line, consisting of special made-to-order parts, is served directly by the plant due to the complexity of scheduling, engineering specifications, and individualized commercial terms.

Wetzel’s customer base is diversified in terms of the sectors it serves, covering the automotive industry, electrical installations, industrial and commercial lighting, and infrastructure projects. While certain business units may have individual customers accounting for more than 10% of their specific revenues, the company states that, on a consolidated basis, no customer accounts for more than 10% of total net revenue. Geographically, revenue is predominantly generated in the Brazilian domestic market, which accounted for about 98.81% of net revenue in 2025, equivalent to approximately R$ 195.20 million, while foreign countries represented 1.19% of revenue, about R$ 2.36 million. The company does not have foreign operations or revenue volumes that subject its activities to significant regulatory impacts in other jurisdictions, concentrating its production and commercial base in Brazil, with a strong presence in the Joinville region in Santa Catarina, where its industrial units are located in the Perini Business Park complex.

Wetzel, issuer of MWET3 and MWET4 shares on B3, operates in a regulatory environment characterized by environmental, labor, and industrial safety requirements. Its foundry and manufacturing operations require environmental operating licenses, water abstraction and treated effluent discharge permits, authorizations to receive and dispose of waste, and location permits. The company also needs specific authorizations to use controlled chemical products, under the oversight of the Brazilian Army and the Federal Police, via registration certificates and operating licenses. Electric power and natural gas suppliers, key inputs for Wetzel’s industrial activity, are regulated by government agencies, which places the company in a context of costs linked to energy sector regulation. From an intellectual property standpoint, the company maintains a policy of protecting its brand in the countries where it operates, with “WETZEL” trademarks registered in several classes at the National Institute of Industrial Property (INPI) and patents maintained for the maximum applicable terms. The company states that it does not make financial contributions to public officeholders, candidates, political parties, or lobbying activities aimed at influencing public policy.

Regarding environmental, social, and governance practices, Wetzel does not currently publish a specific ESG report or a consolidated greenhouse gas emissions inventory, although it participates in a state-level project to develop a corporate emissions inventory with 2025 as the base year. Despite the absence of a dedicated formal report, the company structures its environmental and social management based on internal policies and certifications, maintaining, for example, an environmental management system in line with ABNT NBR ISO 14001:2015 at the automotive unit. Notable initiatives include monitoring indicators such as solid waste sent to industrial landfills and electric power consumption per unit of production, operating its own industrial Effluent Treatment Plant, programs to reduce water and energy consumption, and recycling and reverse logistics actions, including 100% offsetting of the packaging of products from the electrotechnical unit, in compliance with the National Solid Waste Policy. In the social and human resources sphere, the company invests in technical training, periodic training on occupational safety standards, structured professional development programs, and diversity and inclusion initiatives, with a stated zero-tolerance stance on discrimination and harassment. The internal Wetzel School program, created in 2025, systematizes training in topics such as Lean Manufacturing, quality, metallurgy, foundry, dimensional control, maintenance, and logistics, reinforcing workforce qualification and the standardization of industrial processes.