Weq: Read-Thru from European Capital Goods Conf. – Strong Electrification Demand and Pricing Power

Research evidence excerpt

Weq: Read-Thru from European Capital Goods Conf. – Strong Electrification Demand and Pricing Power

J P M O R G A N Latin America Equity Research

18 June 2026

Weg Neutral

WEGE3.SA, WEGE3 BZ

Read-Thru from European Capital Goods Conf. – Price (17 Jun 26):R$43.80

Strong Electrification Demand and Pricing Power

Latin American Capital Goods

In this report, we share the takeaways from JPM’s European Capital Goods Marcelo Motta AC

Conference, which was hosted earlier this week, and provide our read-through for (55-11) 4950-6712

investors looking at WEG. Please view here the full report from our colleague Phil marcelo.g.motta@jpmorgan.com

Buller on the event. The feedback reinforced that electrification remains a Jonathan S. Koutras

structural growth driver and appears to be accelerating, with data centers (55-11) 4950-3549

(DCs) and grids repeatedly cited as standout positives, while the Middle East jonathan.s.koutras@jpmchase.com

Banco J.P. Morgan S.A.

conflict has (so far) manifested more through input-cost inflation than

demand disruption and corporates generally sounded comfortable with 1H/FY

margin guidance. We view WEGE trading at 19.4x EV/EBITDA 2026e and 29.4x Please click here to register for a call with

P/E 2026e, relative to peers at 18.5x and 27.0x, respectively. the senior analysts who cover the

companies that attended the conference.

1) Growth: DC + grid constraints are pulling electrification forward

The call is scheduled for June 19 at

• Data Centers (DC): The clearest quantitative signal is that DC-related 3:30PM UK / 11:30 AM BZ / 10:30 AM ET

electrification is no longer “incremental” for parts of the value chain—it is

increasingly a core mix. Legrand stated DC is now ~30% of group sales, and