UAE’s EMSTEEL, one of the largest publicly traded steel and building materials manufacturers in the region, reported significantly stronger second-quarter financial results, supported by higher steel selling prices, disciplined cost optimization and resilient domestic demand despite regional geopolitical disruptions.
Group revenue increased 11pct YoY to AED 2.4 bln (USD 651 mln) during the second quarter of 2026. EBITDA rose 67pct to AED 457 mln (USD 124.4 mln), with the EBITDA margin improving to 19.1pct from 12.8pct a year earlier. Net profit surged 157pct YoY to AED 262 mln (USD 71.3 mln).
EMSTEEL’s steel division generated AED 2.1 bln (USD 572 mln) in revenue during the quarter, up 9pct YoY, while EBITDA increased 71pct to AED 382 mln (USD 104 mln). The division’s EBITDA margin improved to 18.2pct from 11.6pct in the second quarter of 2025, supported by disciplined cost control measures and a 10pct increase in average selling prices for finished steel products. The company noted that raw material costs began reflecting the impact of the regional conflict during the quarter as inventories purchased earlier at lower landed costs were gradually replaced by higher-cost shipments using alternative logistics routes.
The cement division reported revenue of AED 287 mln (USD 78.1 mln), up 29pct YoY, while EBITDA increased 47pct to AED 75 mln (USD 20.4 mln). EBITDA margin improved to 26.1pct from 22.8pct, supported by continued strong market demand and a 30pct increase in average cement selling prices. On a like-for-like basis, excluding the divested Pipes & Other business, the division’s EBITDA increased 89pct YoY.
During the second quarter, EMSTEEL sold 806,000 tons of steel products, including finished steel and billets, broadly unchanged from the corresponding period last year. Cement and clinker sales increased 28pct YoY to 1.1 mln tons, reflecting continued strong demand for construction materials. Despite higher logistics costs and lower export volumes resulting from regional geopolitical developments, the company maintained supply continuity through operational excellence and disciplined cost management.
For the first half of 2026, group revenue increased 6pct YoY to AED 4.6 bln (USD 1.25 bln), while EBITDA grew 74pct to AED 941 mln (USD 256 mln). Net profit attributable to shareholders reached AED 560.5 mln (USD 153 mln), up 198pct from the corresponding period last year.
Headquartered in Abu Dhabi, EMSTEEL has an annual production capacity of 3.5 mln tons of steel and 4.6 mln tons of cement. The group exports to more than 70 markets, which account for around 30pct of total sales, and offers a broad portfolio of steel products including wire rod, rebar, heavy sections and sheet piles.
1 USD / 3.67 AED