Weg SA (WEG3.SA): Investor feedback and conference call takeaways

研报英文原文证据摘录

Weg SA (WEG3.SA): Investor feedback and conference call takeaways

Equity Research

23 July 2026 | 1:57PM BRT

Weg SA (WEGE3.SA): Investor feedback and conference call takeaways

In this note we summarize key takeaways from WEG’s 2Q conference call and the Joao Frizo, CFA

+55(11)3372-0103 | joao.frizo@gs.com

focal points of investor conversations since yesterday’s earnings release. Goldman Sachs do Brasil CTVM S.A.

Bruno Amorim, CFA

For further details on the feedback and conference call, please reach out. +55(11)3371-0764 |

bruno.amorim@gs.com

Goldman Sachs do Brasil CTVM S.A.

n Tariffs. WEG noted the current tariff environment remains complex and volatile,

limiting visibility on the long term impacts. Moreover, the company highlighted its

effort in implementing commercial and operational strategies to maintain

profitability. Under the current scenario, the following tariffs are impacting the

company:

o i) Section 232 impacting large scale motors and transformers (with varying

tariff levels between 15-25% depending on transformer size) including

products sourced from Mexico;

o ii) Section 301 (non applicable to MX due to USMCA and noncumulative

with 232) with 25% tariffs on products exported from Brazil into the US.

Also, the US gov’t is analyzing a potential 12.5% additional tariff under this

section, which WEG noted that it remains attentive to any new

developments.

Additionally, WEG provided updates on the revenue composition for the US

operations, currently ~33% of products sold are produced in the US, ~20% are

produced in Brazil and exported (thus facing 301 tariffs), ~40% produced in MX

(at least partially subject to 232 tariffs) and the remainder coming from other

geographies. Finally, WEG stated that current tariffs could impact margins

negatively going forward.