Good morning. It is a pleasure to be with you once again for WEG's earnings conference call. I will begin with key figures on slide three, where net operating revenue decreased 6.1% vis-à-vis the first quarter 2025. In Brazil, the decline in revenue was mainly driven by a lower level of deliveries in solar generation due to the absence of new projects. Despite this impact in the quarter, we maintain a positive outlook for other businesses, supported by our solid level of order intake and backlog, especially in long cycle businesses with Power Generation, Transmission, and Distribution segment. In international markets, industrial activity remained positive with highlights in segments such as Oil & G as, V entilation, and Refrigeration systems. The Power Generation, Transmission, and Distribution segment also delivered strong performance with solid delivery volumes in transmission and distribution in North America besides the generation businesses.
Despite solid performance in local currencies, revenue growth in Brazil was impacted by exchange rate fluctuations during the quarter. EBITDA margin increased compared to the same period last year, reaching 22.2% for the quarter. EBITDA totaled BRL 2.1 billion, representing a decrease of 3.2% vis-à-vis the first quarter 2025. Throughout the presentation, André Salgueiro will provide further details on these points. ROIC, one of our key financial indicators, remained at a very high level of 33.1%, and we will see this with more detail in the next slide. The ROIC remained at a healthy level, virtually stable compared to the first quarter 2025, reinforcing the quality of our investments, our discipline in capital allocation, and the consistency of our long-term strategy. I will now turn the floor over to André Salgueiro to continue.
Thank you, André. Good morning, everybody.
On slide five, I will walk you through revenue performance across our business areas. In Brazil, demand for short-cycle equipment declined, driven by lower business volumes across different segments. On the other hand, long-cycle equipment contributed positively with a solid level of deliveries reflecting the order backlog built in recent quarters. In GTD, revenue was mainly impacted by the decline in solar generation business, as had been anticipated with lower demand compared to the first quarter 2025, which was the highest solar generation revenue quarter in WEG's history. The T&D business contributed positively, particularly driven by deliveries of large transformers and substations. In the Commercial and Appliance Motor segment, growth in the quarter was impacted by sales volatility, inventory adjustments in certain key segments such as Air Conditioning Motors, despite a positive dynamic in sectors like Washing Machines.
In Coatings and Varnishes, demand remained stable and diversified across the different end markets, with highlights in Oil & G as and Mining. In the international markets, despite the negative impact from the depreciation of the U.S. dollar, short-cycle equipment such as low-voltage electric motors delivered solid performance, particularly in Oil & G as and Ventilation and Refrigeration systems for data centers. We recorded strong delivery in long-cycle equipment, especially in high-voltage motors, in addition to an improvement in order intake, contributing to the buildup of a healthy backlog for the coming quarters. In GTD segment, the T&D business continues to perform well, mainly driven by deliveries in the U.S., combined with healthy demand in other key markets such as Colombia. In the Generation business, we continue to observe a positive dynamic across most regions, especially in North America and Europe.
In Commercial and Appliance Motors, demand remained stable across most regions, with highlights in Mexico and the U.S. In Coatings, revenue growth was also supported by the strong performance of operations in Mexico and U.S.A. and the positive contributions of the Heresite business. On slide six, we present the evolution of EBITDA. EBITDA margin reached 22% for the quarter, increasing compared to the same period last year, mainly reflecting a more favorable product mix and improvement in other operating expenses, particularly due to a higher reversal of the profit-sharing provision from the previous year. On slide seven, we show you the evolution of investments totaling BRL 622 million, evenly split between Brazil and international operations. In Brazil, we continue with the modernization and expansion of production capacity in T&D, as well as investments aimed at productivity gains in our operations in Jaraguá do Sul.
Internationally, we advanced investments in transformer plants in Mexico, Colombia, and voltage production capacity in China. With that, I conclude my remarks and return the floor to André.
On slide eight, before moving on to the Q&A session, I would like to highlight the following. At the end of February, WEG was acknowledged in the S&P Global 2026 Sustainability Yearbook, including the top ESG-rated companies in each sector. This is an important international recognition that reinforces the consistency of our sustainability strategy on a global scale. Finally, we continue to see a healthy operating environment which, combined with our product mix, should continue to support solid operating margins. Order intake for long-cycle equipment remains strong in the Industrial segment and in the T&D business, alongside a recovery in industrial activity across our main international markets.
It is important to remain attentive to the global macroeconomic environment and potential risks and volatility, such as raw material cost fluctuations and the continued depreciation of the US dollar, which... Q&A session.
Should you wish to pose a question, please click on the icon at the bottom of the screen. If announced, a request to activate your microphone will show up on your screen, which should enable you to pose your question. We kindly ask you to make all questions at once. Our first question comes from Rogério Araújo. You may proceed, Rogério.
Good morning. Thank you for taking my question. I have two questions here. The first referring to the line item Other Operating Results, which was positive in BRL 42 million.
We perceived a line of significant investments, capital investments, and another line of reversal of profit sharing, 2.5 points margin in terms of the positive effect. Was there any negative impact or only these two that we were able to map? If it is truly only these, what impacted your recurring margin? Was it the 50% tariff from the United States for Brazilian exports? This should be reverted in the second half of the year. That's the first question. The second question refers to long-cycle equipment in the international market. There seems to be an improvement in order intake, which is a signal that investment of companies abroad are being postponed because of uncertainties. Has this improved, or is it too early to refer to this?
This is André Rodrigues. Rogério, thank you for the question.
Let me speak about the first part of your question, the non-recurring events. We did have a share left over from the previous exercise. What happened here? The bonus for managers and others showed that we had not complied with some of the goals of 2025. This reduced the amount. As part of the goals that we measured at the end of the year, each department has their own goals, and we carry out an adjustment in the subsequent period. This was the impact that refers to that share. We also had non-recurring effects of some operations in WEG outside of Brazil. For example, a company restructuring in South Africa, the share of a controlled company with accounting gains in the quarter, and the effect of monetary correction in countries with hyperinflation, such as Turkey.
We did have a negative impact on that line item that you asked about. Well, what led to that difference between the EBITDA margin and the gross margin this quarter? Despite the product mix, we observed some negative impacts. What is more relevant for the quarter was the increase of expenses with staff personnel. At the beginning of the year, we have a salary readjustment in the countries, and the drop in revenue, of course, means we have lower attribution of fixed costs, especially in moments with high inflation. We need to control our staff. The highlight refers to T&D operations that, throughout the year, will resume some operations that we have been investing in. This is part of the preparation for a capacity increase that we have foreseen.
We hope to normalize that impact during the year as the factories come into operation and, of course, growth will return to expected levels. We also had the increase of some raw materials such as copper, short-term volatility of exchange rate, reductions in revenues from exports, which also brought about an impact. The tariffs of the U.S.A., of course, are related to some rules in Section 232. Because of this less favorable dynamic during the period, we're seeking operational efficiency and operational gains which will contribute to WEG's competitiveness.
Hello. Regarding the foreign market, the first comment that I would like to highlight is that the market had a general performance. In general, we had a growth of 16.1% in dollars, and even in local currency, the dollar is losing its appreciation.
In local currency, we had a growth of two digits, a growth of 3% in the quarter. For a short cycle, this is a very healthy and positive growth, and for the long cycle, the situation improved. Here we have two aspects. In GTD, we were doing very well. With T&D, we had no changes. Quite the contrary, we only confirmed the positive outlook, and the portfolio is being built up for coming years. In GTD, we have alternators, Marathon alternators with the performance improving in the last quarters, and simple compensators, an issue we have been discussing with you, with a very healthy dynamic and greater need for this equipment.
What was perhaps lacking was the industrial part because of a decline in dynamic, but we did see an improvement in intake for industrial long cycle in Germany and United States, some projects that have become part of our backlog. I can't say that this will be something constant or recurrent because of the general macroeconomic situation, but we do see an improvement in order intake, which points towards positive outlooks for coming quarters.
If you allow me a follow-up in the first question, the 50% tariff of Brazilian imports was canceled in the U.S.A. in February. Is this effect alone enough to allow you to make estimates, and will it bring back an increase in the recurrent margins to the levels of previous quarters?
Rogério, it's too early to give you any estimate here. There's a change of dynamic when we compare this with the fourth quarter.
If we look at the 232, now the situation was more favorable for exports from Mexico, less favorable for imports from Brazil with 232 and the tariff from 122 decreasing to 10%. We have a more favorable situation for Brazil going forward, as long as that remains in place, and less favorable for Mexico.
Thank you. Thank you very much, André Salgueiro.
Our next question is from Lucas Marquiori from BTG Pactual. Your microphone has been activated.
Good morning, everybody. Allow me to pose two questions. To speak about the 232, that sum of rules that have been altered is considerable. Perhaps you can comment on the net-net of the 232 of metal components and all the classification of products of the motor and the transformer as well, which is a more favorable change for Brazil.
Between motors and transformers, is this going to be of help? Is it hampering your exports, or is it something neutral when it comes to exports to the USA? For the short cycle, more motors, we know that the portfolio is short, as the motor also depends on looking at the 232. I think the 122 has been stabilized. Have you seen any change in your order intake in this specific item in the U.S.A.? Is it about to improve or not?
Lucas, regarding tariffs, a very important topic to mention here is that conditions at present are the same for all countries. To explain to you what changed, previously we had a situation where Brazil had a tariff of 50%. With this new rule of the 122, the tariff dropped to 10%.
It, of course, depends on the products, but when we speak about motors, below 200 HP, the tariff is practically zero, and above 200 HP, it increases. Above 200 HP, it will go on to 25%, and below that it will remain at the 10% tariff. 5% was for the 232. Let me begin a little better here. The 122 has a 10% tariff for motors, Commercial Motors and Appliance, the tri-phase motors, up to 200 HP. Above 200 HP, we have a tariff per product and no longer per components. In our case, this refers more to aluminum, and the tariff would be more than 25%.
In Mexico, when we speak about the main equipment, because of the agreement between U.S.A. and Mexico, the countries will follow the 12 2, 20% for transformers up to 10 MVA, and for oil transformers above 10 MVA, the tariff will go to more than 15%. The situation in Mexico, well, we used to tax part of the equipment. In the case of the transformer, the steel, more specifically, that referred to 50%. This was the rule in effect. Now the taxation is 25% for almost all of the parts of the transformers for distribution. They're under a lower aliquot than that of 15%, but this is a great change. Formerly, we had a rule where we would tax part of the equipment. Now there is an aliquot that will encompass the entire product.
This is Salgueiro regarding the short cycle portfolio in the U.S.A. It continues to be positive. It is a short cycle portfolio. We don't have more visibility for the United States for both short cycle and long cycle. The situation is quite healthy. We highlighted some segments such as oil and gas, refrigeration, for data centers where the demand continues to increase for electric motors in the industrial part. That's a highlight. As a whole, both are performing relatively well.
Well, thank you. Thank you very much.
Our next question comes from Kiepher Kennedy from Citibank. You may proceed.
Good morning. Thank you for taking my question. Simply a follow-up in terms of tariffs for Mexico. Last year, they prepared to operate through Mexico to operate part of these effects. It's very clear that we now have a change.
I would like to understand what has happened with the company plans regarding what you had thought about previously, if there are any difficulties or if it is easy to change that dynamic that you had last year to operate in the best way possible to mitigate these effects. Should we expect improvements in the coming quarters? Now, in the day-to-day of the company, how are you going to do this? A second question, we're going to begin to see this more at the end of this year, an update on the evolution of CapEx in the plants. I think only in 2027 we will better see those revenues being generated. If all the geopolitical tensions that you referred to at the beginning of the call, if you have observed a change in appetite on behalf of the customers or if this is not a relevant issue?
Hello, Kiepher. Regarding the change of those tariffs, has announced and a large part of our plan was announced last year. We had a good evolution. We don't see anything substantial left to do. We were able to properly address most of that transfer of production to Mexico. I think this was a very ascertained movement on the part of Brazil. Well, some parts have a advantage in terms of production and logistic gains. We don't observe any change in our plans vis-à-vis what we announced in the past, and our investment plan that is being carried out in Mexico will not change with this new entry of capacity. I think this will pose new opportunities for the company. Regarding CapEx, we have a budget of approved CapEx of BRL 3.6 billion for 2026.
We spent BRL 622 million in the first quarter. We will increase the pace in coming quarters. Most of the projects are focused on the T&D area. We have the Betim plant in Brazil that should be ready mid-year. We have other projects in Gravataí, the new plant in Colombia that should be ready at the end of the year, and the plant of Mexico that will be ready at the beginning of 2027. We have significant investments in other businesses. We have an investment in the new plant in Itajaí, the new BESS plant that will begin at the end of the year. Part of the investments will remain for 2027. Investments in Guaramirim in the present day plant and the new plant that we're building that will begin this year and the coming year.
Besides Brazil and Mexico, T&D in Colombia, we have a new plant in Mexico, a reducer plant in Turkey as well, and the motor plant of average voltage in China, which is a project that should advance this year. These are the main projects for this year. We have BRL 3.6 billion foreseen for this year. We have a significant increase compared to the BRL 2.7 billion of investments in the past. This points to the opportunities the company will detect going forward for the development of the business in coming years. Regarding your final question, we're in the middle of the conflict of all of these geopolitical issues. Of course, this brings about uncertainties, increases in raw material, and this could induce demand for some sectors such as oil and gas, but we're always at the very beginning of this process.
The market is sort of on standby awaiting a result and hoping for a definite resolution of this conflict so that things can become stabilized and we have, we can have a clearer view of opportunities and know where the business is going in the long term.
Thank you. Thank you very much.
Thank you, Kiepher. Our next question comes from Daniel Gasparete. Your microphone has been unmuted.
Good morning, everybody. Thank you for taking my question, a follow-up on the previous questions. It's very difficult to speak about margin and variables for the company, but we can speak about trends. At the beginning, you spoke about the increase of costs with staff, the increase in copper, the fact about the revenues that had a reduction this quarter. Is the trend to be closer to 2020 vis-à-vis 2022?
I know that this will increase during the year, in the next quarter, should there be a trajectory that will be closer to the lower level with increases in the rest of the year, which will be the trend then? The second question about the direction that you had presented about the growth of revenue, being closer to two digits for the year. What will happen with the exchange rate, with the delays, postponements? Simply to know your mindset.
Thank you, Gasparete. When we speak about margin expectations, we're always very cautious when the margin is very strong or when it is below the expectations. This is never a benchmark of what will happen in longer periods. We're working with healthy margins in the last three years. We have emphasized this. The margins in the first quarter were impacted because of non-recurring events.
I explained this in Rogério's question. The expectation is to deliver margins based on the averages of the last few years. What supports what I have said for the second half of the year where we should have a normalization of the impacts, a more normal situation, all of this should contribute to that. It is important to follow up on the market to see if that dynamic will change with the variation of the exchange rate, with what will happen with revenue, and the change in the price of commodities and changes in the tariff rates. First, the expectation of growth for revenue, it will bring about improvements in the margins. It is also important to remind you we had a price increase because of the increase in raw material in the last few months.
With the expectation of a normalization of the exchange rate, should this materialize, we will have an impact in profitability in the long term. Regarding the growth expectation that we had mentioned at the end of last year, we carried out an exercise for this year, and every time we do this, we base ourselves on a constant exchange rate. We're thinking of BRL 5.50, BRL 5.60 in terms of the exchange rate for the dollar, and this to obtain that initial expectation. We have seen an appreciation of the real. In the last weeks, below BRL 5 per dollar. We do end up having a challenge when it comes to delivering our original expectation. That is why we base ourselves on constant currency until the end of the year. Everything will depend on the variations. This is something we do not control.
We're going to follow up on this and observe the evolution. The first half of the year has always had lower growth, weaker growth. We had a drop in this quarter. We had the leftover of the solar drop in this first quarter. We should increase the pace in coming quarters. We have to follow up on the evolution of the exchange rate.
Thank you. Thank you very much.
Our next question is from Lucas Laghi from XP. Your microphone has been activated. You may proceed.
Good morning. Can you hear me?
Yes. Yes, we can hear you well, Lucas.
Well, thank you for the questions, for taking my questions. I don't want to continue to insist on profitability. In the present-day context, we no longer have that tariff for Brazil. We have copper, steel, aluminum, silver, plus your competitors.
Simply to understand if after the price increases of your company and industry as a whole, if you will be able to recompose your profitability. Will there be room for further price increases in those projects that have been more impacted because of the tariffs and the price of commodities? Is there still room in the industry for further price increases to enhance your profitability? My second question, you very quickly referred to the conflict. Historically, we see that when you have commodities at a high-level price, the appetite of investors increases, then we have that issue of a shock of demand, making the price of commodities increase. Are there any sectors that draw your attention at present, questions of your customers regarding those sectors?
It's still very early on for this, are sectors standing out, perhaps referring to a more traditional position of these sectors in coming quarters. That super cycle suggested by the price of commodities perhaps could reflect on demand for you going forward. These are my questions.
Thank you for the questions, Lucas. When it comes to the price dynamic question, as we tend to say, readjustments are made based on market conditions, the impact on the business dynamic exchange rate, and the cost of raw material. We have to assess that case by case. Some of the price increases are very recent, and we have to follow up to see what will happen with the market. Of course, the conflict may have an impact on this, and we will reposition.
Now, when we speak about commodity industries, we're referring to industries that demand our products: Oil & G as, Mining, Pulp and Paper, Steel [Mines]. These are process industries. We come from a very positive dynamic in most of them. In Oil & G as, we highlighted it in the call presentation. Oil & G as is at a positive situation and tends to continue positively because of the cost of the barrel of oil. This will unharness investments, of course, in the U.S.A. The cost will remain at high levels, so we will have more structural investments for the long term. We're following up on this and speaking with customers about opportunities. I do highlight oil & G as. If that movement continues in other commodities, pulp and paper and metals, these demand our products and equipment.
Thank you.
Our next question comes from Jens Spiess, a question in English. You may proceed.
Hello. Yes. Hello, everybody. My question is on EEI domestic. You mentioned that you saw some, like, short cycle weakness. Just wondering how much visibility you have into that, and also if that weakness has been mainly driven by order volume or if you're actually seeing also some pricing pressure, and if this is typical of an election year. Just any additional color of what's driving that weakness would be much appreciated. Thank you.
Jens, this is André. I will keep my answer in Portuguese for the simultaneous translation. For industrial equipment in Brazil, the growth was limited with short cycle, with a drop in revenues. We had an improvement in the long cycle demand for short cycle in Brazil. The demand was truly weaker. We see this in Commercial Motors and Appliance with a drop of 7.2% in the quarter. We have a macro environment that is not favorable, a very high interest rate. Yesterday we had the second reduction in interest rate, but they continue to be very high. We do have that year of elections that always brings about instability in demand. What I can share is that we saw an evolution throughout the quarter.
In March, for example, in terms of order intake, it was better than January and February, and this trend will remain for the coming months. We should see an improvement in the pace of growth of the short cycle part. We have not had an impact on price here. It's all about volume. We had a price recomposition, as mentioned by André recently. The price effect will simply advance, will progress. I think basically it's all about a drop in volume.
Perfect. Thank you.
Our next question comes from Alberto from UBS. Your microphone has been activated. You may proceed.
Good morning, Salgueiro, Rodrigues, Felipe. Thank you for taking my question. Could you give us more color in the projects we have for Brazil? As you mentioned, you had a negative surprise in terms of demand.
Yesterday we had a auction for batteries with the response that still is not out. The revenues are BRL 1 billion for the year for the contract of that auction. Now, has anything changed, according to the business outlook? Will this extend to 2027, or can all of this materialize in 2026?
Alberto, this is Salgueiro. The performance of Brazil, I was speaking about the short cycle for the Industrial segment, began weakly, improved in March. When we looked at projects, we had a first quarter in the long cycle that did present growth. We had growth in electric, electronic industrial equipment. Of course, we have opportunities in GTD. In GTD, we had a reduction because of the renewable energy, solar energy, because of deliveries that we were not able to replicate this year. We have good growth in T&D.
When we look at the rest of the year, we do have other opportunities. T&D will continue to assess. Although we still have not had the auction, we did obtain a significant order last year, the project in Fernando de Noronha. Part of it should come in this year. Recently we had the T&D auction, which included synchronous compensators, and there's a backlog for us. I think all of this will materialize the coming year. Part of this will be delivered in 2027, 2028. In terms of our order backlog, we do see an improvement, especially in GTD.
Very good. For the year, you have a full portfolio, a full backlog, everything that will be coming in for 2027.
Well, it depends on the product. If we go to the industrial area, we still have time.
If anything comes in until mid-year, we will have a better performance in the second half of the year. For larger machines, T&D, we can do this. For large size transformers or synchronous transformers or larger projects, it's natural that this will be part of the backlog for 2027 or 2028.
Thank you very much.
Thank you. Our next question is from Marcelo Motta from JP Morgan. You may proceed.
Good morning, everybody. If you could speak about your price increase, you did mention them. If you have a range of the magnitude so that we can verify this with an increase of raw material now, or is there still room for you to catch up in term of those recent price increases we have observed?
A second point, to go back to how you see the revenue growth throughout the year. In the first half of the year, a certain weaker performance. Will this compromise your figures for the year? In terms of solar energy, we seem to have a carryover. Should we perhaps see better revenues in the second half of the year, or do you deem this to be very difficult? Thank you.
Well, regarding our commercial strategy, well, we don't disclose this information. What we have been saying and reinforcing steadily is that we have already had a price increase in the last few weeks at the beginning of the year for all geographies, with the exclusion of North America. We did this in the fourth quarter because of the tariffs at that time. Now, when it comes to revenues, it doesn't change what we always say.
We had an adverse situation in the first quarter with the exchange rate playing against us. In the second quarter of last year, we had a reduction in the exchange rate, a different rate of comparison. The dollar was $5.85, and this year, in the first quarter, it was $5.25, and it is even lower at present. Now, the fact that we have a centralized solar generation portfolio backlog, well, to give you more color, what we sold in the first quarter of last year was the highest revenue in the history of the company concentrated in a quarter. The second quarter was strong, not the same as in the first quarter, but strong as well.
We maintain that expectation of having an unfavorable situation for solar generation in the first half of the year and a more positive scenario in the second half of the year because the base of comparison will be similar to what is happening at present. We won't have that reduction that we had in the first quarter, and the exchange rate should be somewhat more favorable vis-à-vis what we faced in the 1st quarter last year.
Thank you. Thank you very much, André.
Our next question is from Marcelo Motta from JP Morgan. Once your microphone is activated.
Just ask the question. Thank you very much.
Our next question comes from Daniel from Bradesco BBI. You may proceed.
Good morning, everybody. Thank you for taking my question. Two follow-ups about points we have already discussed. First of all, the cost of personnel with a clear message.
You do have a capacity increase, so you need to hire more people. I would like to speak about your trajectory in last years. Your personnel line item has been expanding gradually year after year as of 2022. I would like to understand the structural dynamic for this. Secondly, you mentioned for capacity increases that are already between, for example, in mid-year. What does this represent? Will this increase the capacity of transformers by 30%, 40%? Could you give us a figure so that we will see what this means in practice and if this will generate revenues for this year? Thank you.
Hello, Daniel. This is André. I will answer the first part of the question referring to personnel. It's natural at the beginning of the year to have a recomposition of salary in most countries, and this becomes diluted through time.
A very important point for comparison with previous years. Let's go back to 2024, where we had a wind and solar portfolio. Well, these are businesses with very expressive revenues. In the case of solar energy, we import the panels. We're an integrator per se, and the amount of personnel devoted to these businesses tends to be smaller. This helps us to dilute the issue of cost referring to personnel and also has an impact when we look at the figures for this year. The main message is that the company has invested continuously in cost reduction programs and automation. For those who have visited our facilities, you will readily see an increase in automation, even in administrative areas with the use of AI. All of this helps us seek out better productivity. We're not going to stop.
Regarding the capacity, perhaps we need to go back to 2023, 2024, two important years. Now, we had an announcement at the beginning of 2024 with an extension of capacity increase until 2027. We have invested in a 10% increase in capacity. We have the coming into operation of Betim. In mid-year that will be 10%, so we will get to 25% increase, which means we have another 75%, the new plant in Colombia and that of Mexico for the beginning of 2027. We're speaking of the plants that are ready. We won't have revenues immediately. We're now contracting, hiring personnel, labor, and of course, the coming into operation. We still are not concerned with the backlog. We're building the backlog. The order intake will appear at the beginning of each operation. It's simply an operational issue at each of the facilities.
We will have the contribution of Betim throughout the second half, and Colombia and Mexico will contribute as of 2027. Let me speak about the initial status, the initial capacity of transformers. At the beginning, the company was balanced.
Did you have most of the operations in Brazil? Which is a domestic expansion, which is the international expansion?
I don't have the figures here, Daniel, but Brazil did most of this work. In investments, marginally we had an increase in the international markets because of the Mexican plant, which is very relevant as it will service Mexico and the U.S.A. In Colombia, which is a greenfield, we have carried out a brownfield, the expansion of an already existing plant.
The additional volume will be more relevant, 75% for the new capacity, basically refer to Colombia and Mexico that will come into operation in 2027.
Thank you. Thank you very much.
We conclude the question-a nd- answer session. Once again, should you still have any doubts, please send your question to our email, ri@weg.net. I will return the floor to Mr. Rodrigues for the closing remarks. You may proceed.
Once again, thank you for your attendance. Have an excellent day. See you at our next call.
The WEG conference call ends here. We would like to thank all of you for your participation. Have a good day.