WEG shares fall after third-quarter results miss market expectations

Brazilian electrical equipment manufacturer WEG saw its shares drop significantly following the release of its third-quarter 2026 results. While the company reported a net profit of R$1.67 billion—a 0.9% increase compared to the same period last year—the figures fell short of market analyst expectations, which had projected a profit of R$1.71 billion.

Net revenue for the quarter rose 5.7% to R$10.86 billion, driven largely by international demand. Notably, external markets accounted for 62.5% of total revenue, the highest level in the company’s history. North American sales saw a substantial increase of 31.1% in dollars, fueled by demand for transformers and generators used in power grid reinforcement and data centers.

Despite revenue growth, profit margins were pressured by rising raw material costs, specifically copper, unfavorable exchange rates, and the impact of import tariffs in the United States. The company’s EBITDA was R$2.35 billion, a 3.1% annual increase, which also missed the R$2.40 billion anticipated by the market.