LatAm Transport and Capital Goods "Daily Take-Off: WEG, TUPY, RAPT, EMBJ,..."

研报英文原文证据摘录

LatAm Transport and Capital Goods "Daily Take-Off: WEG, TUPY, RAPT, EMBJ,..."

2029 and 2030) capacity plan reinforce the supply-side ramp.

WEG: Management highlights tariff mitigation, T&D capacity expansion and

sustained growth outlook

During the 2Q26 earnings call, management highlighted ongoing uncertainty around

U.S. tariffs, particularly following the implementation of Section 301 measures.

While the long-term impact remains difficult to quantify given frequent regulatory

changes, WEG reiterated that it is actively adopting mitigation measures. The

company noted that approximately 33% of U.S. sales are produced locally, 40% in

Mexico and 21% in Brazil, helping reduce tariff exposure. Management also provided

an update on its T&D capacity expansion. Around 25% of the new capacity at the

Betim transformer plant is already available and should begin contributing

gradually to revenues in 2H26, with a more meaningful impact in 2027. Additional

capacity in Mexico and Colombia is expected to come online in early 2027. While

ramp-up costs may temporarily pressure profitability, the company expects the new

facilities to reach full utilization and targeted returns by 2028. On margins,

management remained constructive, citing favorable product mix, positive pricing,

fixed-cost dilution and lower FX volatility as key drivers. Pricing conditions for

transformers in North America remain attractive, supported by strong demand,

while tariff pass-through clauses continue to provide protection for newer

contracts. Regarding growth, management expects GTD Brazil to reaccelerate,

supported by transmission and distribution projects, distributed generation, and

hydro and thermal investments. In Industrial Equipment, demand remains healthy