EMSTEEL reported improved profitability for the first quarter of 2026, supported by stronger operating performance in its steel business despite lower sales volumes.
The group’s revenue during the first three months of 2026 increased slightly to AED 2.17 bln (USD 591 mln), compared to AED 2.16 bln (USD 588 mln) in the corresponding period last year. Net profit increased to AED 299 mln (USD 81 mln) from AED 86 mln (USD 23 mln) in the first quarter of 2025.
Revenue from the Emirates Steel division declined to AED 1.9 bln (USD 518 mln) from AED 1.95 bln (USD 531 mln) recorded a year earlier. However, operating profit from the steel segment increased significantly to AED 262 mln (USD 71 mln), compared to AED 87 mln (USD 24 mln) in the same period of 2025.
EMSTEEL said total steel sales volumes, including finished steel products and billets, declined by 6pct YoY to 768,000 tons during the quarter. The company attributed part of the decline to a planned rolling mill maintenance shutdown in January 2026.
According to Group CEO Saeed Ghumran Al Remeithi, the improved results were supported by operational efficiency measures and cost optimization initiatives across the business.
Meanwhile, revenue from the Emirates Cement and Blocks division increased to AED 269 mln (USD 73 mln) from AED 160 mln (USD 44 mln) in the same period last year, while operating profit rose to AED 67 mln (USD 18 mln) from AED 18 mln (USD 5 mln) previously. Cement and clinker sales volumes increased by 32pct YoY to 1.1 mln tons.
EMSTEEL also noted that it completed the divestment of its Anabeeb division, including PVC pipes, GRP pipes, and bags businesses, at the end of 2025.
The company stated that it continues to monitor regional developments and potential impacts on supply chains and market conditions while maintaining a focus on operational flexibility and risk management.
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