Q2 2025 WEG SA Earnings Call (English, Portuguese) Transcript
Key Points
- Net operating revenue grew by 10.1% in Brazil, driven by strong performance in the solar generation business and continued delivery of transmission and distribution projects.
- International growth was observed in power generation, transmission, and distribution businesses, particularly in North America, with healthy industrial activity and higher sales of short cycle equipment.
- EBITDA reached BRL2.3 billion, up 6.5% from the previous year, with a healthy margin of 22.1%.
- Return on invested capital remained high at 32.9%, supported by revenue growth and operating margins.
- The acquisition of Heresite Protective Coatings and improvements in the FTSE4Good Index highlight WEG's commitment to sustainability and strategic growth.
- Revenue from the wind generation business significantly dropped, impacting overall growth.
- Demand for serial automation equipment fluctuated due to high inventory levels at key clients.
- Long cycle equipment projects slowed down, reflecting a cautious investment environment.
- Global political and economic uncertainties are impacting decision-making for new investments, particularly in long cycle equipment.
- Tariffs and geopolitical tensions pose risks, requiring strategic adjustments in production and pricing to mitigate potential impacts.
(technical difficulty)
These statements involve risks and uncertainties and therefore depend on circumstances that may or may not occur. Investors should understand that general economic conditions, industry conditions, and other operational factors could affect WES's future performance and lead to results that will be materially different from those in the forward-looking statements.
Joining us today from [Zaragua deu] are Andre Luis Rodrigues, Chief Administrative and Financial Officer; Andre Menegueti Salgueiro, Finance and Investor Relations Officer; and Felipe Scopel Hoffmann, Investor Relations Manager.
Please, Mr. Andre Luis Rodrigues, you may proceed.
(interpreted)
Good morning, everyone. It's a pleasure to be with you once again for WEG's earnings conference call. Let me begin with the highlights for the quarter on slide 3. Where net operating revenue grew 10.1% compared to the second quarter 24 'in Brazil. We had a positive
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