Post by : Badri Ariffin

In its first quarter of 2026, EMSTEEL achieved impressive financial results, showcasing a significant increase in profits and earnings attributed to enhanced operational efficiency, reduced costs, and rising selling prices.

The company recorded a revenue of AED2.2 billion for Q1 2026, showing stability in comparison to the previous year.

EMSTEEL’s EBITDA for the quarter reached AED483 million, marking an 82% improvement year-on-year. The EBITDA margin rose to 22.3%, up from 12.3% in the same quarter of 2025.

This positive trend was primarily fueled by lower raw material expenses, ongoing optimization efforts, strict cost management strategies, and a 3% rise in average selling prices for finished steel products compared to Q1 2025, along with a 1% increase from Q4 2025.

The net profit for the quarter surged to AED299 million, reflecting a remarkable 246% increase from the prior year.

EMSTEEL’s steel division contributed AED1.90 billion in revenue for Q1 2026, generating an EBITDA of AED403 million—an increase of 79% year-on-year.

Additionally, the cement division also showed strong performance, with revenue climbing 31% YoY to AED269 million, while EBITDA doubled to AED80 million.

When considering only ongoing operations, excluding the Pipes & Other division sold in December 2025, the EBITDA for the cement segment soared by 169% year-on-year.

During this quarter, EMSTEEL achieved total steel sales volumes of 768,000 tonnes, encompassing finished steel products and billets—a 6% decrease compared to last year, largely attributed to a scheduled maintenance shutdown of the rolling mill in January 2026.

Conversely, cement and clinker sales volumes experienced robust growth, increasing 32% YoY to 1.1 million tonnes, driven by strong market demand and enhanced operational performance.

Saeed Ghumran Al Remeithi, the Group Chief Executive Officer of EMSTEEL, expressed confidence in the company’s strong start to 2026, highlighting stable revenues and significantly improved profitability.

He noted that the results underscore EMSTEEL’s integrated business model and its adaptability to fluctuating market conditions while continuing to bolster the UAE’s industrial sector.

Al Remeithi stated that the company is vigilant regarding regional developments that may impact market conditions and supply chains, emphasizing its commitment to resilience, operational flexibility, and prudent risk management to navigate uncertainties and support customers and stakeholders.

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