By Brazil Stock Guide – At 3 a.m., an electric bus sits idle in a depot in São Paulo’s ABC industrial belt. A WEG technician swaps battery modules so the vehicle can return to the streets a few hours later.
The scene captures WEG’s new phase. Having become in 2024 the world’s largest manufacturer of low-voltage motors, the company must now both defend that title and diversify. It aims to become a global provider of solutions for the energy transition.
At WEG Day 2025, held on October 3 in Jaraguá do Sul, its headquarters in southern Brazil, the company unveiled a multibillion plan to consolidate its position and expand into new areas. Its global leadership in low-voltage motors, achieved in 2024 with a 16% market share, was a strategic victory.
But CEO Alberto Kuba stressed that is not enough. “Just as we doubled our market share in motors, we will expand in energy. We are already prepared to deliver machines of up to 300,000 kW, an unprecedented milestone for the company.”
Consolidated investments
Diversification is underpinned by projects totaling R$ 2.2 billion (US$ 514 million). Underway are: a new plant in Rugao, China (2026); a factory in Santa Catarina, Brazil for high-voltage motors and turbogenerators (2028); two transformer plants in Mexico and Colombia (2026); and an expansion of special transformers in Missouri, U.S. (2028).
CFO André Luís Rodrigues reported R$ 20 billion (US$ 3.6 billion) in net revenue in 1H25, up 17.2%, with EBITDA margin at 21.9% and ROIC at 32.9%, above 30% for the second year in a row. “We remain disciplined in capital allocation and focused on sustainable growth in profit and dividends,” he said.
Exports and internationalization
WEG has expanded to more than 135 countries, with exports rising sharply to the U.S. and Europe. The strategy is to cut reliance on Brazil and move production closer to global clients, mitigating tariff risks and bolstering supply chains.
Kuba acknowledged that holding onto leadership requires navigating difficult terrain. “The global energy market is evident, but tariff barriers and protectionism demand that WEG maintain a diversified production base. That is why we are investing in multiple geographies, reducing exposure to shocks.”
Even with its global breakthrough, investors remain cautious. WEG’s shares, which multiplied more than fivefold over the past decade, have fallen about 30% in 2025, pressured by high interest rates and weaker risk appetite. Still, WEG points to rising global demand for electrification and digitalization as support for its new capex cycle.
E-mobility and circularity
WEG already equips over 60% of Brazil’s electric bus fleet. In September, it opened the eMobility Center in São Bernardo do Campo, a 1,250-square-meter facility.
The site is a service hub, handling repairs, diagnostics and fast-track maintenance on traction systems and chargers, ensuring buses are ready at dawn.
It also acts as a circular economy platform. Batteries are reused, extending fleet life to as much as 20 years. Spent modules are redirected to energy storage systems (BESS) or recycling.
Beyond maintenance, it doubles as an innovation lab, testing 640 kW ultra-fast chargers (certified by Inmetro) and developing 1 MW versions for heavy-duty vehicles. It is also piloting V2X integration (Vehicle-to-Home and Vehicle-to-Grid), letting buses feed power back into the grid.
Microgrids for industry and homes
WEG has delivered 1.2 GW in solar EPC projects and now integrates hybrid microgrids combining solar, batteries and diesel. They have replaced diesel generators on farms in Brazil’s Midwest, powered mining operations and supplied clean energy to Amazon communities in partnership with cosmetics group Natura.
For households, it launched WEG Home, a “nano grid” linking rooftop solar panels, batteries, appliances and electric cars. The system stores power during the day for nighttime use, cuts bills during peak hours and can be voice-controlled through Alexa.
On the large-scale grid, WEG’s 2024 acquisition of Reivax reinforced its position in automation. The company now has 1,233 MVAr in synchronous compensators under execution, is bidding for another 1,950 MVAr in Brazil, and has 4,650 MVAr abroad. Clients such as Cargill and Gerdau already use its digital substations with cloud-based monitoring and artificial intelligence.
Global competition
The strategy pits WEG against heavyweights ABB, Siemens, Schneider and BYD, which dominate electrification and digitalization. WEG’s edge is end-to-end integration: engineering, equipment, software and services. The challenge is sustaining margins above 20% in markets that are more regulated and tariff-sensitive.
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