EMSTEEL benefits from stronger steel and cement prices, with net cash reaching Dh1.64 billion.
Dubai: EMSTEEL’s net profit surged 157% year on year to Dh262 million in the second quarter of 2026, driven by higher steel and cement prices, effective cost management and sustained demand from the UAE’s construction sector.
Revenue rose 11% to Dh2.4 billion, while earnings before interest, taxes, depreciation and amortisation (EBITDA) increased 67% to Dh457 million.
The group’s EBITDA margin improved to 19.1%, compared with 12.8% during the same period last year, highlighting stronger profitability across its steel and cement businesses.
“While revenues grew by 11%, our profitability improved significantly, with EBITDA rising 67% year on year and margins expanding to 19.1%. These results highlight the strength of our integrated business model and our ability to deliver value in a dynamic market environment,” said Saeed Ghumran Al Remeithi, Group CEO of EMSTEEL.
Steel prices rise 10%
EMSTEEL’s steel division recorded revenue of Dh2.1 billion in the quarter, marking 9% annual growth.
The division’s EBITDA increased 71% to Dh382 million, with its EBITDA margin improving to 18.2% from 11.6% in the second quarter of 2025.
The stronger performance was supported by cost-control measures and a 10% year-on-year rise in the average selling price of finished steel products.
Material costs began to reflect the effects of the regional conflict during the quarter, as lower-cost raw material inventories acquired earlier in the year were gradually replaced with supplies transported through more expensive alternative logistics routes.
Total steel sales volumes, including finished products and billets, reached 806,000 tonnes during the quarter, remaining broadly stable compared with the same period last year.
Cement demand remains strong
EMSTEEL’s cement division recorded a 29% year-on-year increase in revenue, reaching Dh287 million, supported by sustained demand and a 30% rise in average cement selling prices.
The division reported EBITDA of Dh75 million, up 47% year on year, while its EBITDA margin expanded to 26.1% from 22.8% in the same period last year.
Cement and clinker sales volumes increased 28% to 1.1 million tonnes during the quarter.
Excluding the Pipes and Other segment, which was divested in December 2025, the cement division’s EBITDA rose 89% on a comparable basis.
First-half earnings climb
EMSTEEL recorded revenue of Dh4.6 billion in the first half of 2026, marking a 6% increase compared with the same period last year.
First-half EBITDA climbed 74% to Dh941 million.
The group closed June with a net cash position of Dh1.64 billion, up from Dh1.17 billion at the end of December 2025 and Dh1.3 billion at the end of March.
EMSTEEL said supply continuity and cost optimisation initiatives helped it maintain its role as a key domestic supplier of steel and building materials during the reporting period.
High-strength steel product launched
EMSTEEL officially introduced its ES600 high-strength steel rebar during the quarter, describing it as the highest-strength steel grade currently manufactured in the UAE.
The product can reduce steel consumption by 18% to 24% and is already being used in major development projects across the country.
EMSTEEL also signed a collaboration agreement with the Technology Innovation Institute to validate ES600’s performance and support the development of new reinforcement steel grades for national infrastructure and strategic assets.
