Weg S.A (WEGE3 BZ): Buy: 2Q26 beat driven by strength in short cycle demand

研报英文原文证据摘录

Weg S.A (WEGE3 BZ): Buy: 2Q26 beat driven by strength in short cycle demand

.4% ahead of consensus and

52-WEEK PRICE (BRL)1% ahead of us driven by strength in Brazil Electro-Electronic Equipment (EEI) on

improving short cycle demand despite still high interest rates. EBITDA declined 2.1% 60.00

y-o-y to BRL2,213m and beat consensus by 4.7% but was in line with our estimate, 46.00

delivering a 21.8% margin which contracted 30bp y-o-y given a tough comparison

32.00

base, as positive product mix was offset by higher raw materials (particularly copper) 07/25 01/26 07/26

and US tariffs, plus higher SG&A. EPS declined 2.1% y-o-y to BRL0.37, beating Target price: 57.00 High: 54.03 Low: 35.50 Current: 42.47

consensus by 4.3% and in line with our estimate, following the operating results. Source: LSEG IBES, HSBC estimates

Segments: Industrial Electro-Electronic Equipment (EEI) sales were up 6% y-o-y

Wesley Brooks, CFA

and beat consensus by 4% given strength in Brazil which grew 17% y-o-y and beat Senior Analyst, Industrials and Autos

consensus by 10% due to positive industrial activity in the country, while External sales HSBC Securities (USA) Inc. wesley.brooks@us.hsbc.com

grew 2% y-o-y and were in line as strength in US and Europe was offset by a 10.9% +1 212 525 0337

BRL appreciation against the USD. Generation, Transmission, and Distribution Laisha Zaack*

(GTD) sales declined 9% y-o-y and were in line with consensus, with a 22% y-o-y Analyst,HSBC Mexico,IndustrialsS.A., Institucionand Autosde Banca Multiple, Grupo

decline in Brazil given the lack of large solar projects, while External sales grew 6% y-o-y Financiero HSBC

laisha.zaack@hsbc.com.mx

(c17% in USD) on strength in US grid infrastructure and alternators on data center +52 55 8551 3796

demand.