Morning and welcome to WEG's Second Quarter 2025 Earnings Conference Call. I would like to highlight that simultaneous translation is available on the platform through the interpretation button via the globe icon at the bottom of your screen. We would like to inform you that this conference call is being broadcast, and after its conclusion, the audio will be available on our investor relations website. During the company's presentation, all participants will be on mute. Following the presentation, we'll begin the Q&A session. To ask a question, please click on the raise hand icon at the bottom of your screen to join the queue. When announced, a request to unmute your mic will appear on your screen, and then you should turn on your mic to ask your question. If you have more than one question, we recommend that you ask them all at once. If we do not have time to answer all questions live, please feel free to send your questions to our email at ri@weg.net, and we will answer your questions after the conclusion of the conference call. We would like to emphasize that any forward-looking statements contained in this document, or any statements that may be made during the conference call regarding future events, business outlook, operational and financial projections, goals, and WEG's potential future growth, are merely the beliefs and expectations of WEG's management based on currently available information. These statements involve risks and uncertainties, and therefore depend on circumstances that may or may not occur. Investors should understand that general economic conditions, industry conditions, and other operational factors could affect WEG's future performance and lead to results that will be materially different from those in the forward-looking statements. Joining us today from Jaraguá do Sul are André Luiz Rodrigues, Chief Administrative and Financial Officer; André Menegueti Salgueiro, Financial and Investor Relations Officer; and Felipe Scopel Hoffmann, Investor Relations Manager. Please, Mr. André Rodrigues, you may proceed. Good morning, everyone. It's a pleasure to be with you once again for WEG's Earnings Conference Call. Let me begin with the highlights for the quarter. On slide three, our net operating revenue grew 10.1% compared to the second quarter 2024. In Brazil, we had a positive performance in the solar generation business and continued delivery of transmission and distribution projects. Despite slower overall growth, due mainly to a significant drop in revenue from the wind generation business. Abroad, we saw another quarter of growth in the power generation, transmission, and distribution businesses, particularly in North America, along with a healthy level of industrial activity and higher sales of short-cycle equipment across key regions where we operate. Our operating results, measured by EBITDA, reached BRL 2.3 billion, up 6.5% from 2Q 2024. EBITDA margin closed the quarter at 22.1%, remaining at a very healthy level. Along the presentation, André Salgueiro will provide you more details on these points. Return on invested capital, one of our key financial indicators, remained at a high level of 32.9%, as we'll see in more detail on the next slide. Revenue growth and operating margins in the period helped maintain return on invested capital at a high level, even though there was a decline compared to the same period last year. In addition to the increase in invested capital due to investments in fixed assets and acquisitions during the period, it's important to note that the second quarter 2024 return on invested capital was positively impacted by the recognition of non-recurring tax incentives. Now, turn to André Salgueiro. Thanks, André. Good morning, everyone. On slide five, I will go over revenue trends across our business areas. In Brazil, we saw a strong demand for low-voltage electric motors spread across the various segments we serve. For serial automation equipment, demand fluctuated mainly due to high inventory levels at key clients. For long-cycle equipment, such as medium-voltage electric motors and automation panels, project delivery slowed down, reflecting a more cautious environment for large-scale investments. In the GTD segment, despite lower wind projects revenues in 2025, we maintained a high volume of centralized solar generation project deliveries, combined with solid performance in the T&D business. This contributed positively to the quarter. It's worth noting that excluding the wind generation business, all relevant segments posted double-digit growth this quarter. In the commercial motors and appliances segment, we maintained sales in line with the same period last year, with solid results in key sectors such as air conditioning and motor pump manufacturers, although revenue in the washing machine segment declined. In coatings and furnaces, demand remained strong, particularly in the water and sanitation and agricultural equipment segments. Abroad, industrial activity improved across all our main regions of operation, with solid performance in short-cycle equipment such as electric motors and serial automation products. For long-cycle equipment, we continue to see good demand in the oil and gas and water and sanitation sectors. However, the current global political and economic scenario has been impacting decision-making for new investments. In GTD, we continue to benefit from opportunities in the T&D market in North America, despite a lower concentration of project deliveries this quarter. It's important to highlight that the T&D order backlog remains healthy, and plants are running at full capacity. Generator business from Marathon in the United States and China also contributed to segment growth. In commercial motors and appliances, we saw revenue growth in several key regions, especially in China and North America. In coatings and furnaces, demand growth was mainly driven by the strong performance of our operations in Mexico, along with exports from Brazil to other Latin American countries. Slide six shows EBITDA evolution, which grew 6.5%. While EBITDA margin closed the quarter at 22.1%, improving compared to the first quarter 2025 and slightly down versus the same period last year. This is mainly due to the change in the product mix, as well as the consolidation of acquired businesses during the period. Finally, on slide seven, we show the evolution of our investments, which totaled BRL 583 million, with 63% allocated in Brazil and 37% abroad. In Brazil, we continue to modernize and expand T&D production capacity, as well as increase capacity and productivity gains in Jaraguá do Sul. Abroad, we are moving forward with investments in Mexico, particularly with the construction of a new transformer plant. That concludes my remarks, and I'll turn the floor back to André. On slide eight, before we move on to the Q&A session, I'd like to highlight the following. First, in May, we announced the acquisition of the assets of Heresite Protective Coatings, a U.S.-based industrial coatings company founded in 1935. Heresite is well established in the industrial coatings market, with operations in the U.S. and a strong international presence. Last week, we also announced our continued and significant improvement in the FTSE4Good Index, one of the world's leading benchmarks for corporate sustainability performance. WEG has been part of the index since 2016, and this recognition reflects our ongoing efforts to foster sustainable business practices both within and outside the company. Finally, a few words on the outlook for the rest of the year. We continue to see healthy operational dynamics, and the product mix should keep supporting good operation margins. We remain confident in our strategy based on global presence, a diversified product portfolio, and operations across several segments. This allows us to respond quickly to changing scenarios and mitigate potential macroeconomic impacts. Lastly, it's essential to keep a close eye on the geopolitical and macroeconomic context, as shifts in this environment could affect business dynamics throughout the rest of the year. This concludes our presentation, and we can now proceed to the Q&A session. We'll now start the Q&A session. To ask a question, click on the raise hand icon to join the queue. If announced, a request to activate your mic will show up on your screen. Then you should enable audio to ask your question. We kindly ask you to make all questions at once. [Foreign language] [Foreign language] [Foreign lagnuage] [Foreign language] [Foreign language] Hi, Rogério. Good morning, this is Salgueiro. Thanks for your questions. I'm going to start talking about GTD, the first part of your question. First, it's important to mention that we have GTD abroad with a high exposure of T&D, but we also have generation. So in mega numbers, we are talking about 75% for T&D, and 35% is generation. When we see the performance in the last quarters, mainly, specifically the first and second quarter this year, we see performance that is very healthy in T&D, as we have been reporting for some time now. A full backlog. The plant is running at full operation. For operations, full capacity too, and showing growth comparing to last year. In practice, that can change a bit from quarter to quarter, depending on the level of deliveries that you have. You might have some differences. It's natural in this kind of process. When we look at T&D as a whole, the segment continues with a very good prospect for the year and growth for the year. What is happening and is somehow interfering in our performance is generation. Generation had a weaker quarter in Q1, and we also saw the same dynamic in Q2. We have some operations, especially in India, with our joint venture, and also exports in Brazil that are running at a slightly lower level than the previous year. Consolidated numbers showed a decelerated growth. Basically, this is because of generation and some delays in T&D delivery. Again, this is going to be offset as we move on to the next quarters. As for the performance of GTD Brazil, indeed, we do have some important segments that are changing dynamics from one year to the other. Wind, as you mentioned, and we have been mentioning that since the end of last year that we wouldn't have a backlog for this year. When we take a look at the performance last year, it was a positive performance with higher concentration in the first quarter of the year. The first and second quarters of last year were more relevant in terms of wind revenue. Then revenues started to go down as of the third quarter. For wind generation, we should have a lower impact from now on. What I think is important to mention is that we do have solar, and solar is picking up in terms of relevance in centralized generation as of the fourth quarter last year. When we are looking at the fourth quarter this year, you're going to have a stronger base of a comparison for solar, but not as much for wind. The third and fourth quarter had a slower comparison base. Finally, when you talked about long cycle, internationally or overall in electric and electronic industrial equipment, we have seen some fluctuation in revenues. I would say that the most relevant impact, or at least the signs that we are having, is basically our backlog. I think that, you know, with the new tariffs and geopolitic discussions, this is being a bit impacted, especially when people think of new projects. We do see a deceleration, but overall short cycles continue very positive. When you think of electrical, electronic, industrial equipment, foreign market for the second quarter of the year, we did see a significant improvement compared to Q1. It is more concentrated on long-term projects, and we have to see what happens in the coming days. Very clear, very clear answers. Thank you very much. Moving on, our next question comes from Lucas Laghi from XP. Mr. Laghi, you may go on. Good morning, everyone. Thanks for taking my question. I'd like also to touch some points with regards to revenue and a follow-up on the previous question. Organic growth first. If you remove the effect of acquisitions and we adjust for FX, we do see a deceleration. It's 1% year-on-year, excluding the effects, if I'm not mistaken, with the greatest impact from wind. Just to try and understand the prospects for the future. First, North America. Even thinking of the results of the competition, we do see a strong backlog, especially for motion equipment, short cycle equipment. What draws our attention is this difference of short cycle and long cycle equipment. Generally, short cycle equipment decelerates before long cycles, and we see just the opposite. For North America, what do you think can explain this difference? Is it any movement of pre-buy for short cycle equipment just expecting the tariffs to escalate? Or how do you see in July this new orders for these two categories? Again, in this context of higher tariffs. Just to understand if this difference of performance, because generally it's the opposite. Short cycle starts to decelerate before. T&D, we understand that the capacity is full, so occupancy is very high. Given that the last orders came to your backlog in a context of lower supply, we would expect higher prices as you start billing these orders. Thinking of revenue growth, can you consider an acceleration for the second half or in 2026 for T&D, even with a low idle capacity? Or should we see that more in 2025 when the new capacities in Mexico and the United States start operations? Basically, short cycle, long cycle, united in North America, and then thinking of acceleration or deceleration of revenues for the future. Okay, Lucas, thanks for your questions. As we did mention in Q1, we did view an accommodation of revenues in North America, but we were seeing a prospect for an improvement in orders for short cycle. What we are seeing is an opportunity in this process. We have to remember that short cycle, you have a visibility of portfolio of your backlog for two, three months. We do see an improvement in the coming of orders, but we do not know if this is going to be sustainable along the year. We do have a better prospect than Q1 for short cycles. Long cycle, this is very much related to what André Salgueiro mentioned. It has to do with geopolitical uncertainties and tariffs. We will have to follow from close what is going on. When we talk about T&D, this is something that we have also been saying, is that abroad we see a certain price accommodation. We are not working with a scenario of raising prices. I think prices are already at a high level, and we prefer to be a bit on the ground this time, focus on the deliveries that we have in our backlog. I think the main challenge of T&D for WEG today and for the coming quarters, especially in 2026, is to deliver as fast as possible the capacity that we are building and developing. Eliminate bottlenecks in the United States, Mexico, Brazil. The capacity will start to be delivered along 2026. If everything goes right, the expectation is for the beginning of 2027 to close with all those investment cycles. Remember, in the last two WEG days, we announced the volume of investments of T&D. In 2027, we are going to double the production capacity compared to what we had in 2024. I think that is it. I think that is the main challenge of ours, to move faster, to have capacity, and really enjoy this extraordinary moment in the market. This is also what we have been saying. We are operating at full capacity with our current facilities. In T&D, except there is a difference in the price composition, we are going to have a lower growth rate until the capacity increase is finished. Okay, very good, André. Thank you very much. Our next question comes from Lucas Marquiori from BTG. Marciano Marquiori, you may go on. Hey pessoal, bom dia. Minha pergunta é. Thank you, everyone. Good morning. My question is more with regards to tariffs. Could you quantify the impact of tariffs in Q2, at least the tariffs that started to be applied in Q2? What did you have in terms of extra cost because of tariffs? We understand that WEG U.S. imports most of the products. I think this is an internal cost. Also hear from you about your plan. We are eventually at the verge of a drastic increase in tariffs. This is a relevant shock to the business. What do you have in terms of a mitigating factor to try and deal with that? Perhaps, I do not know, produce more in Mexico, ramp up capacity in the U.S. When I say tariffs, I'm not talking only about import tariffs, but also tariffs on copper. Basically, that's it. Hi, Lucas. This is André Rodrigues again. The increase of 10% that we had along the second quarter did not show a large impact. Because we did make some price adjustment in the North American market to offset that. The impact on our results was not significant. What is most important is to look into the future, the second part of your question. To start answering your question, I think it's very important to say that right now it's very difficult to have a firm position because of all the uncertainty and volatility in the commercial structures that are being discussed. Given the current situation, WEG has an action plan that can mitigate some of these impacts. I think it's very important to highlight that first. We have global industrial presence, and along the last years, we have been accelerating the amount of investments in production capacity in different geographies where we operate. Now, because we started doing that way back, that can help us in this process. Just for everyone to be on the same page, today in Brazil, a bit less than one-third of what we sell to the U.S. Most of it are electric motors. Transformers, for instance, that are produced in Brazil, the main market is not the U.S. It's basically Brazil and the neighboring countries. What we have today is basically the following. We may relocate export routes. For instance, we can use Brazil to meet the local demand in Mexico and use the production of Mexico to meet the demand in the American market. That can take us some months, but after the change is real, we believe we can mitigate some of these impacts. It's also important to mention that the scenario depends on the level of tariffs of other countries. Today, we are considering the scenario that Brazil is suffering the highest level of tariffs, but we have to assess that. Today, it's very difficult because we don't know if other movements are going to happen. The idea is to continue monitoring market conditions. As we did the first time, assess the commercial strategy and the price of our products. Again, it's important to remember that the local American market depends on the import of finished products and supplies. We see already an increase in price in that market. It's very important to highlight that WEG, in the first Trump administration, did already have an action plan. The discussion at the time was, again, the tariffs. We had a very structured plan, what we would do to mitigate if something came a bit stronger in Mexico a few years ago. Today, we are at a much better position, industrially speaking, to have the flexibility to relocate export chains. In terms of. Copper, we still do not have a position of what the increase is going to be. Thank you, André. Good morning, everyone. Our next question comes from Jens Spiess from Morgan Stanley. Mr. Spiess, you may go on. Yes, hello. Thank you for taking my question. I was just delving into the previous questions about the lower growth of GTD and T&D in particular, and the external markets, more specifically in North America. You mentioned that you do not foresee any relevant price increases for T&D, which means that, as you already mentioned, capacity growth will be key for revenue growth going forward. I was just trying to figure out how capacity, the progression of capacity increases, will evolve in the North American region for T&D. Is it 15%? Is it 10%? How will it happen in, I do not know, for the rest of this year, 2026, 2027? Very interesting to understand that. Obviously, I know there are a lot of uncertainties, but any guidance would be much appreciated. Thank you. Jens, thanks for your question. I am going to continue speaking Portuguese so that we can have the simultaneous translation. As for T&D in North America, and you asked about product prices, when we talk about T&D, most of it, especially in North America, are more long-cycle products, and pricing happens project by project. I think the comment of André Rodrigues, when we see a plateau of prices, I would say that the prices are somewhat stable at a higher level for some time now. When we take a look at the backlog that we are performing today, transformers that are being delivered today were sold one year, eight months ago. As time progresses, we do have some increase in prices that are going to be seen. Again, as we are seeing this price stable for some time, the increase is going to be less relevant from now on. We are going to have some increase, but less relevant than previous years, just to make it clear. As for production capacity, the number that we released for T&D, considering all the investments, inclusively those in Brazil, is that we want to double T&D capacity to serve all geographies in which we operate, based on the capacity that we had in the end of 2023-2024 and the capacity that we are going to have as of the first quarter of 2027. Part of this capacity has already been added in Brazil and Mexico, and now the second important time is going to happen next year. That is why André Rodrigues mentioned that the expectation for 2026 in terms of new volumes is a bit lower than what we added in previous years. We are going to have, as of the end of 2026 and beginning of 2027, then a new increase in capacity. We are going to have growth again because of this capacity. Now we are at full capacity. The plants are full, the backlog is full, and we have that until the end of 2026. Perfect. Thank you. So we can assume that capacity growth will again accelerate in 2027 relative to 2026. Is that correct? Just to be clear. Thank you. [Foreign language] Yes, that's correct. That's correct. As of 2027. Perfect. Appreciate it. Thank you. [Foreign language] Moving on, our next question comes from Jonathan Koutras from JP Morgan. Mr. Koutras, you may go on. Good morning, André Salgueiro. I have just one question. If you could give me an update about the idle capacity that you have. Especially for the second quarter, and if you see any gap in your EBITDA margin. If the margin is at the double-digit level. Thank you. Hi, Jonathan. This is André Rodrigues. We have to separate, and you're asking specifically about Marathon. Remember, Marathon, we have low-voltage motors, and we have the generators. Low voltage, we are more or less at this capacity that you mentioned, a bit lower than the acquisition, but in generators, we are running at full capacity. We are expecting for the end of September, the first investment to increase our production capacity in generators in North America and a new cycle of investments given the demand and the new orders for this product. Again, very much connected to generative artificial intelligence, the building of data centers, you need redundancy, and therefore you need generators. On one hand, we are moving forward to have a higher number of orders in low-voltage motors, but for generators, the more capacity in the short term, the better. Because, as I mentioned, by the end of September, the idea is to have a new level of capacity and in 2026, new investments to continue growing in generators in North America. Now, when you talk about margin gains and integration, the plan is going on as planned. This is a long-term journey. It will take us some time. I think what we could capture in the short term has been done. Synergy, the buying of inputs. Back office for North America has also been completed in the second quarter, and now the teams are working to re-evaluate our portfolio, see if it's possible to standardize components, and also increase capacity for the production of components so that we have a higher verticalization for maritime businesses that will impact the business for the future. Very clear. Thank you very much, André. Our next question comes from João Friso from Goldman Sachs. Mr. Friso, you may go on. Good morning, everyone. Thanks for taking my questions. I have two. The first is a bit more related to the big picture. You mentioned that long cycle, both in Brazil and abroad for electric industrial motors, is being impacted by a more uncertain scenario abroad and higher interest rates here. I would like to know how this impacts your target of 2026 to grow double digits, because I know this has always been your target, because in the end of the day, you have a lower long cycle, so you are projecting lower revenue for the coming years. I would like to hear from you and also about margins. We did see an evolution of EBITDA margins quarter on quarter. Could you break down this margin to say how much is owed to a lower share of solar, an increase of prices, anticipating tariffs? Because we know this is one of the movements that we saw in different peers abroad. Just for you to understand, to elaborate on these movements. Hi João, thanks for your questions. As for expected growth for 2026, I think it's still a bit early for us to comment on that. We have our budget that is generally designed in October, November of the year, and we still have a lot to be changed. When we talk about industrial long cycle, the lead time is not that long. You're talking about an order that we can have today or in the coming months, and that would already generate revenues for the next year. That will depend a lot on the new orders coming in from here on, and this is connected in Brazil and abroad to different reasons that can change along the year. We have to monitor that and have our budget more towards the end of the year for us to have a bit more clarity for next year. Consolidated numbers, we also have other businesses, other initiatives, and then we go back to diversification of FAC, because remember, when one part of the business is not doing so well, we see growth in other parts of the business. We have mentioned that for some time, synchronous compensators. We are having a very healthy order with a good backlog for next year, even electric mobility gaining a bit more momentum for electric buses, powertrain, and also the BESS business that somehow we did even have a higher expectation for this year because of the action that was delayed for next year. We are seeing orders of smaller orders coming in, and we do have an expectation that this business is going to contribute positively to our growth. We have to follow all these variables, but more towards the end of the year, I think we are going to have a bit more clarity to understand the performance of next year, and then we are going to share the information with you. You know, and we always say that we do not have. Our objective is to grow at double-digit levels. As for the margin of the quarter, there were very many moving parts. It's very hard to say the one thing. It's a bit of everything that you said. We have two aspects about mix. One. If you consider the first quarter, this is basically solar. Solar was lower in the second quarter compared to last year. We also have the wind. And we have all the other effects of the other businesses. Eventually, we are talking about price adjustments outside, abroad, other factors, and better dynamics in terms of demand for short-cycle products, especially in the foreign market. Claro. Thank you, André. Very clear. Our next question comes from Gabriel Rezende from Itaú BBA. Mr. Rezende, you may go on. [Foreign language] Hi, everyone. Can you hear me? Yes, Gabriel, go ahead. I would just like to go back to the tariff dynamics. We have a joke that some competitors of yours in Brazil are very much oriented to exports in the U.S., especially for transformers. I would like to understand if a competitive scenario in some specific segments, especially for transformers in Brazil, would be a problem. What could protect WEG if this competitive scenario deteriorates? The second point, we just discussed margins here. We talked about the price of transformers abroad. Could you mention how you and the competition have been behaving in terms of pass-through of prices abroad, and also for other products other than transformers? Thank you very much. Hi, Gabriel. Thanks for your questions. Okay. How does the large transformer market operate? How are competitors based in Brazil focused on, because these are the products that they are exporting to the U.S.? Basically, from what we see is that they all have contracts, raw material, they are already under production plannings for 2027. We do not see a change in those dynamics, not for the short term, even up to 2027, because that has already been ordered under contract. WEG is going to continue the strategy to serve the markets in regions close to these markets, as we have in Brazil, as we are increasing capacity in Colombia, in Mexico, in the U.S. We can even rethink that a bit longer, but we do not see a scenario, not in the short term, where we are going to have a drastic change in the process of rerouting exports to the Brazilian market. If I understood your question in terms of the prices of transformers, this is a bit of what we mentioned before. We do see a situation in which we are not working with additional price increases compared to prices today, because I think prices are already well adjusted. If we have a higher price in some geographies, you can even give room to new entrants. The market is operating at good prices. Margins for WEG and components are very suitable, so we do not see a change in that. Very clear. If you could talk about other products abroad, especially for motors, we saw the competition talking about good prices in the last half quarter. Do you also see a healthy dynamic? Yes, sorry, I forgot to mention the motors. We, not WEG and the other competitors, did adjust prices because of tariffs in the North American market, but not in other markets. Okay, thank you very much. Our next question comes from André Mazini from Citi. Pode prosseguir, por favor. You may go on. Bom dia, time. Good morning, everyone. Thanks for taking my question. I just have a follow-up on the comments of André about the synchronous compensators. After the blackout that we had in Spain and Portugal, basically because of probably the lack of synchronous compensators there, are you seeing an increase in demand? And yesterday in the COP of Jardim Nova, they talked about the market of synchronous compensators would be of $5 billion. I do not know if they are talking about the whole world, and there was an increase also in Saudi Arabia. Could you talk about this market if you are in Saudi Arabia, if you were part of the bid for the synchronous compensators? Because they want to have clean energy until 2030 and they need the product. This is the first question. And then about domestic GTD, the line had a drop of BRL 600 million, and I think there is a lot of solar to leave. I would like to know how much in the solar has already an impact in the margin for the end of the year. Thank you. Hi Mazini, thanks for your questions. The synchronous compensator market, or synchronous condenser market, is something that we have been talking about for some time now, and it is connected to this idea of more renewable energy in the grid. Here we are talking about wind, solar, and energy storage that brings stability to the grid. A way to work with that is the synchronous compensators or condensers. For some time we realized the greater increase for this product. Remember, this is a product that WEG has had in its portfolio for some time now. In practice, the market demand has been increasing a lot in recent years, especially because of renewable energy and also the problem that you mentioned in Spain and Portugal. This is a problem that people have, and more and more we are going to see investments connected to that in several regions in the world. Today we have a backlog for the synchronous condensers that are very healthy. These are projects not only in Brazil. We do have projects in Brazil, but also we are selling to Portugal, the United States, and Chile. In Chile, this is a project that we have a partnership with AlloPart that we already announced to the market. It is a heated market, and we have positive expectations for the remainder of the year and for the coming years, especially considering that for the next transmission T&D auction, part of it is going to be of synchronous condensers in Brazil, which should help the market develop even more in Brazil. As I mentioned, we do see good opportunities also in other markets where WEG is present. As for GTD in Brazil, compared to last year, we did have a drop in revenue, 1.5%. I think it is very important to say that the drop is basically because of wind, and we did mention that in the beginning of our presentation. If you exclude wind from the comparison base of GTD Brazil, we would have grown more than 20%. We did have a concentration of wind in the second quarter and lower revenue this year because what we have this year is maintenance operations. We are not selling new machines. As for the performance of the first quarter, the greatest effect was solar because we had a higher concentration of centralized solar farms in the first quarter, with good performance in the second quarter, but below the level of the second quarter 2024. Very good, Salgueiro. Thanks a lot. Our next question comes from Alberto Valerio from UBS. Mr. Valerio, you may go on. Bom dia, Salgueiro e Rodrigues. Good morning, Salgueiro and Rodrigues. Thanks for taking my question. I would like to ask a question more about your balance sheet, and you can have the follow-up later on. You do not have to answer now. Basically, R&D at this line went up year-on-year at about 3% of the revenue. If you could give us a bit more color on this line, and if you capitalized part of this line and how. Second, about net equity, there was a change also. You had some accrued numbers to the company's capital. Why the change? These are my two questions. Hi, Alberto, this is Salgueiro. Thanks for your questions. Research and development, the 3% that you mentioned is basically our usual number, which is generally 2.5%-3%. Perhaps there was a slight increase this year, but I do not have all the details here. I can get back to you for a better follow-up, but nothing really comes to mind. We continue with investments for the development of new products, and this is what we have been doing regularly along the years. As for the change in net equity, that was an increase in capital that we had in the beginning of the year. Basically, we have an accounting issue that the profit reserve cannot be above the capital stock. When it gets close to this number, we decided to have the capital increase. This is something that happened along the first quarter. Basically, a. Para a capital social. Of this line to capital stock. Perfeito. Okay, very clear. Thank you very much. [Foreign language] We are now closing the Q&A session. Remember that if you have any questions, please feel free to send our questions to our email, ri@weg.net. André Rodrigues, your mic is open for your final remarks. I would like to thank you all for joining us in our earnings conference call for the second quarter. Again, we would like to once again invite you for our WEG Day 2025 in Jaraguá do Sul on the 3rd of October. I hope to see you in Jaraguá on the 3rd. Thank you very much and have a wonderful day. A teleconferência da WEG conference call is now concluded. We thank you all for attending and wish you an excellent day.