WEGE3 WEG

WEG, issuer of the WEGE3 shares traded on B3, traces its origins to 1961 in the city of Jaraguá do Sul, in the state of Santa Catarina, initially under the name Eletromotores Jaraguá Ltda. From the very first motor manufactured, the WEG brand was used to identify its products, formed from the initials of its three founders: Werner Ricardo Voigt, Eggon João da Silva and Geraldo Werninghaus. Already in the 1960s, the company adopted as a strategy the creation of a broad network of qualified technical assistance and set up CentroWEG, a vocational school focused on training labor for its production processes, linking industrial growth to technical training. Over the following decades, the company underwent a continuous process of national and international expansion, portfolio diversification and acquisition of companies in Brazil and abroad, consolidating its position in the electrical equipment market and expanding its operations into different industrial and energy segments.

Over its history, WEG evolved from an electric motor manufacturer into a large industrial group with a highly integrated and vertically integrated business model. The company manufactures in-house several critical components, such as rotors and stators, cast-iron frames and end shields, shafts, copper and aluminum wires, wooden packaging, as well as special tools and machinery. This vertical integration aims to provide production flexibility, control over plant supply, the ability to customize at scale and cost reduction, enabling the company to serve different markets with shorter delivery times and products tailored to customers’ needs. Its production processes comply with standards and certifications from entities such as INMETRO and international quality organizations in the countries where it operates, which reinforces the standardization and technical compliance required for industrial and energy equipment.

From an operational standpoint, WEG presents its communication with the market in four major business areas: Industrial Electro-Electronic Equipment (EEI), Power Generation, Transmission and Distribution (GTD), Commercial Motors and Appliance (MCA) and Coatings (T&V). In 2024, EEI accounted for 47.2% of net revenue, GTD for 41.5%, MCA for 7.3% and T&V for 4.0%, highlighting the predominance of industrial equipment lines and solutions for the energy sector. Internally, however, the organization is structured into seven Business Units – Industrial Motors, Commercial Motors and Appliance, Automation, Digital & Systems, Energy, Transmission & Distribution and Coatings – which connect to the business areas in a matrix structure. For the WEGE3 investor, these data show the profile of a capital goods company with a strong presence in industrial equipment and systems for energy infrastructure, with complementary businesses in motors for durable consumer goods and industrial coatings.

In the Industrial Electro-Electronic Equipment area, the historical core of the company, WEG manufactures low-, medium- and high-voltage electric motors, gearboxes and geared motors, drives and controls, as well as a range of products for industrial automation, electrical infrastructure and digital solutions. This equipment is used in applications such as compressors, pumps, fans and motion systems across virtually all industrial sectors. The company also develops powertrains for electric vehicles and charging stations to meet e-mobility demands and offers energy storage systems. The line also includes circuit breakers, switchboards, starters, push buttons, signal lamps, custom-built E-houses, panels for construction and infrastructure, industrial plugs, distribution boards, residential sockets and switches, rectifiers and voltage stabilizers. It is a broad portfolio, aimed mainly at capital goods manufacturers (OEMs) and large industries, with a competitive presence in the main global markets.

In Power Generation, Transmission and Distribution, WEG supplies complete solar generation systems, including modules, inverters, transformers, cubicles and substations for residential, commercial and industrial applications. It also operates in wind generation, with wind turbines, and in hydro and steam (biomass) thermal generation, through hydraulic turbines, hydro generators, turbo generators, alternators and gearboxes. The company designs and manufactures oil-filled and dry-type transformers for different power ratings and applications, and also develops, builds, installs and manages conventional and mobile substations on a turnkey basis. This scope is complemented by control panels, measuring instruments and system integration services. Together, these offerings position WEG as a supplier of equipment and solutions for energy infrastructure projects, serving utilities, industries and other agents in the energy sector, although the company does not operate directly as a public utility service provider.

The Commercial Motors and Appliance area focuses on single-phase motors intended for commercial and residential applications, such as motor pumps, automatic gates, kitchen hoods, food processors, pool pumps, washing machines and air conditioners. In the Brazilian market, WEG reports a leading position with the main manufacturers of this equipment, reflecting a strong presence in the durable consumer goods chain. Internationally, it has been expanding this area with a portfolio of commercial motors for global customers, in a short-cycle business where fluctuations in end-consumer demand rapidly impact production and revenue. In Coatings, the company offers primers, varnishes and made-to-order paints for automotive refinish, high-resistance liquid coatings for industrial uses, electrical insulating varnishes for motors, generators and transformers, powder coatings for home appliances, lighting fixtures, tubular furniture and auto parts, as well as marine and anticorrosive solutions for vessels and structures exposed to harsh environments.

WEG has a strong geographic presence both in Brazil and abroad. In Brazil, it maintains manufacturing units in several states, with emphasis on Jaraguá do Sul, which hosts the main industrial plant and corporate functions, producing electric motors, generators, wind turbines, capacitors, drives, panels, digital solutions, sockets, switches and services. Other units spread across Santa Catarina, Rio Grande do Sul, São Paulo, Minas Gerais, Espírito Santo and Amazonas manufacture gearboxes, different types of transformers, substations, turbines, paints, varnishes, commercial motors and related equipment. Abroad, the company operates factories in countries such as Mexico, Argentina, China, India, the United States, Germany, Italy, South Africa, Portugal, Turkey, Canada, the Netherlands, Colombia, Algeria and others, producing industrial and commercial motors, gearboxes, drives, transformers, switchgear, gearboxes, automation systems, generators and components. In addition to its production base, there is an extensive network of distribution and sales units in several regions of the world, supporting its global service strategy.

From a regulatory standpoint, WEG highlights that, as a rule, it does not operate directly in heavily regulated segments, but as a supplier of products and services to companies supervised by agencies such as Aneel, ANP and ANA. Thus, its authorizations are mainly related to legal requirements and environmental licenses typical of industrial activity. The company states that it complies with the environmental and social legislation of the countries where it operates, with preliminary, installation and operating licenses issued for each production unit, subject to renewal and possible changes in conditions. In terms of environmental, social and governance practices, WEG maintains corporate policies on the environment, energy efficiency and social responsibility, with commitments to comply with legislation, pursue continuous improvement through environmental targets, prevent and protect the environment, develop eco-efficient products and consider consumer health and safety requirements. On the social front, the company states that it seeks good relations with employees and stakeholders, aligned with local regulations. These elements, combined with its production structure and business diversification, make up the context in which WEGE3 shares are assessed by investors on B3.