WEGE3: quote, dividends and indicators for WEG

WEG is a Brazilian industrial company founded in 1961 in the city of Jaraguá do Sul, in the state of Santa Catarina, originally under the name Eletromotores Jaraguá Ltda. The name WEG came from the combination of the initials of its three founders – Werner Ricardo Voigt, Eggon João da Silva, and Geraldo Werninghaus – and has identified the brand since the first electric motors produced. The company’s history is tied to the manufacture of electric motors and the creation of a technical assistance network starting in the 1960s, which helped disseminate the brand in the domestic market. Also in the 1960s, the creation of CentroWEG, a vocational school focused on the technical training of young people, reflected the company’s concern with developing a skilled workforce to sustain production growth. Over the following decades, the company combined capacity expansion, product diversification, and internationalization, while its shares began trading on the stock exchange. Today, WEG is listed on B3, where it trades common shares under the ticker WEGE3.

From the 1970s onward, WEG began a consistent process of national and international expansion, installing a second manufacturing complex and starting exports to Latin American countries. In 1975, it reached the milestone of 1 million motors produced, consolidating its presence in the electrical equipment market. In the 1980s, it began broader diversification with the creation of units dedicated to large rotating electrical machines, electronic components, transformers, and industrial automation. Entry into the industrial and electro-insulating paints segment, through WEG Química, broadened its scope beyond electrical and electronic equipment. The 1990s marked the strengthening of its international presence, with the opening of a distribution branch in the United States and the acquisition of a company in Belgium, cementing the company as one of the main manufacturers of electrical equipment in Latin America. From the 2000s onward, the company accelerated the rollout of manufacturing plants abroad and intensified acquisitions in several countries, covering motors, transformers, turbines, gearboxes, and businesses in wind power, automation, and digital solutions.

WEG’s business model is structured by business areas and industrial units, with strong vertical integration of the production chain. The traditional revenue segmentation is grouped into four main areas: Industrial Electro-Electronic Equipment (EEI), Power Generation, Transmission and Distribution (GTD), Commercial Motors and Appliance (MCA), and Paints & Varnishes (T&V). In 2025, EEI accounted for 49.9% of net revenue, GTD for 38.7%, MCA for 7.2%, and T&V for 4.2%. Internally, the company organizes its industrial operations into seven business units – Industrial Motors, Commercial Motors and Appliance, Automation, Digital & Systems, Energy, Transmission & Distribution, and Paints & Varnishes – having announced, in October 2025, the integration of the Automation and Digital & Systems units into a single Automation & Systems unit. For management and segment reporting purposes, WEG also groups its activities into Industry, Energy, Overseas, and Consolidated, reflecting the importance of both the domestic market and international operations for revenue and profit generation.

In the Industrial Electro-Electronic Equipment area, WEG concentrates its best-known products, such as low-, medium- and high-voltage electric motors, gearboxes, geared motors, drives and controls, as well as a range of automation solutions, electrical infrastructure for the construction industry, and systems for electric mobility and Industry 4.0. This area also includes energy storage systems and digital solutions that connect users, machines, and systems, as well as switchboards, circuit breakers, starters, push buttons, signaling devices, rectifiers, stabilizers, and residential and industrial sockets and switches. In GTD, the company develops and supplies electric generators, alternators, wind turbines, solar generation solutions, hydro and steam turbines, oil-filled and dry transformers, conventional and mobile substations, control panels, and system integration services, including battery energy storage systems and synchronous condensers. In MCA, WEG operates with single-phase motors for commercial and residential applications such as washing machines, air conditioners, motor pumps, automatic gates, and pool pumps, mainly serving manufacturers of durable consumer goods. In Paints & Varnishes, it supplies liquid and powder coatings, electro-insulating varnishes, and solutions for automotive refinishing, white goods, auto parts, metal structures, and marine and anti-corrosion applications.

WEG operates across various markets and sectors, without material concentration in a single client, as there are no individual buyers accounting for more than 10% of total net revenue. In Brazil, the company maintains a diversified industrial park, with factories in Amazonas and Espírito Santo (commercial and residential motors), Minas Gerais (power transformers, e-houses, instrument transformers, and metering sets), Rio Grande do Sul (gearboxes, geared motors, and power transformers), Santa Catarina (electric motors with different technologies, generators, wind turbines, distribution and power transformers, dry transformers, substations, industrial paints, electro-insulating varnishes, foundries, panels, capacitors, solutions for industrial asset management, sockets and switches), and São Paulo (paints, varnishes, enamels, lacquers, gearboxes, high-voltage motors, turbo and hydro generators, safety equipment and sensors, turbines and drives). Abroad, WEG operates manufacturing units in countries such as South Africa, Germany, Argentina, China, Colombia, Spain, the United States, India, Italy, Mexico, Portugal and Turkey, among others, producing everything from electric motors and gearboxes to transformers, generators, panels, industrial paints, and motor components.

In addition to its industrial units, WEG has built a broad international distribution and sales network, composed of subsidiaries in several countries in Africa, Europe, the Americas, Asia, and the Middle East, which handle sales, promotion, technical assistance, assembly, and maintenance of the group’s products. In locations where it has no direct presence, the company operates through partnerships with local distributors and representatives, such as V. J. Pamensky Canada in Canada and Record Electric in Paraguay. This arrangement allows the company to reach different markets, such as power transmission and distribution, renewable generation, infrastructure, oil and gas, mining, construction, the durable consumer goods and capital goods industries, white and brown goods, among others. Geographic and sector diversification reduces reliance on any single market and broadens the range of applications for its equipment and systems.

WEG’s production process is characterized by strong vertical integration, with in-house manufacturing of critical components. The company maintains steel sheet centers responsible for rotors and stators, foundries for cast iron housings and end shields, machining centers for castings and shafts, a copper and aluminum wire plant, packaging units supplied by its own reforestation areas, and a tooling shop dedicated to developing machines, devices, and automation and robotics solutions for its own factories. This structure aims to make production more flexible, quickly adjust the product mix, control the supply of inputs, and embed continuous learning in production stages. Electric motors and generators, for instance, are manufactured with a high level of internal component integration, and transformers follow specific processes of cutting, assembly, coil manufacturing, drying, tank assembly, and electrical testing, in compliance with Inmetro standards and international certification bodies in the countries where the company operates. In the paints and varnishes segment, processes include weighing, dispersion, grinding, property adjustment, and quality control stages, carried out according to application and performance requirements.

In regulatory terms and with respect to environmental, social, and governance practices, WEG operates predominantly as a supplier to sectors regulated by agencies such as Aneel, ANP and ANA, and is generally not the direct holder of sector concessions or licenses in these markets. Its industrial operations are subject to environmental licenses – preliminary, installation, and operating – issued by competent authorities in each location, with compliance with specific operating conditions and periodic renewal. Corporate policies set guidelines for complying with environmental and social legislation, focusing on eco-efficient processes and products, rational use of natural resources, product development considering consumer health and safety requirements, and pursuit of energy efficiency in the manufacture and use of its equipment. Governance includes social responsibility policies focused on relationships with employees and other stakeholders, observing labor and social legislation applicable in the countries where the group operates. In this context, WEG, through its WEGE3 shares traded on B3, represents a diversified industrial company with a global presence, combining operations in electro-electronic equipment, energy, commercial motors, and paints, underpinned by a vertically integrated production base and corporate policies of compliance and socio-environmental responsibility.