EMSTEEL, one of the largest publicly traded steel and building materials manufacturers in the region, reported revenues of AED2.4 billion ($653.51 million) for the second quarter of 2026 (Q2), an increase of 11% compared to the corresponding period in the prior year.
EMSTEEL reported EBITDA of AED457 million ($124.44 million) for Q2, representing a 67% year-on-year (YoY) increase. EBITDA margin expanded to 19.1%, compared to 12.8% in Q2 2025. Net profit for the period amounted to AED262 million ($71.34 million), reflecting a 157% YoY increase.
During the reporting period, EMSTEEL reinforced its role as the UAE’s leading and dependable domestic steel and building materials producer, maintaining supply continuity and supporting national demand. Combined with disciplined cost optimization initiatives implemented across the organization, this contributed to solid financial performance and improved margins, the company said.
EMSTEEL’s Steel division reported revenues of AED2.1 billion for the second quarter of 2026, a 9% YoY growth, and generated EBITDA of AED382 million, representing a 71% YoY increase. Steel division EBITDA margin reached 18.2%, compared to 11.6% in Q2 2025. The improvement was driven by disciplined SG&A cost control measures, and a 10% YoY increase in average selling prices for finished steel products. In Q2 2026, material costs began to reflect the impact of the regional conflict as inventories of raw materials acquired earlier in the year at lower landed costs were gradually replaced by new raw materials delivered through more expensive alternative logistics routes.
EMSTEEL’s Cement division recorded revenue of AED287 million in the quarter, representing a 29% YoY increase, with EBITDA of AED75 million, up 47% YoY.
In Q2 2026 Cement division achieved an EBITDA margin of 26.1%, up from 22.8% last year. Cement division robust financial performance was supported by continued strong market demand, and a 30% YoY increase in average selling prices for cement products. On a like-for-like basis, excluding the Q2 2025 performance of the Pipes & Other segment, which was divested in December 2025, Cement division’s EBITDA increased by 89% YoY.
During the quarter, EMSTEEL recorded total steel sales volumes, comprising finished steel products and billets, of 806,000 tonnes, remaining broadly in line with Q2 2025. Cement and clinker sales volumes increased by 28% YoY, reaching 1.1 million tonnes, reflecting continued strong demand for cement products during the period.
As of 30 June 2026, EMSTEEL maintained a robust net cash position of AED1,639 million, compared to AED1,165 million as of December 31, 2025 and AED1,297 million as of March 31, 2026.
The group’s revenue for H1 2026 increased by 6% YoY, to AED4.6 billion, and EBITDA grew by 74% compared to the same period last year, to AED941 million.
Eng Saeed Ghumran Al Remeithi, Group Chief Executive Officer, EMSTEEL, said: “EMSTEEL delivered strong performance in the second quarter of 2026, reflecting the effectiveness of our disciplined commercial strategy, operational excellence, and continued focus on cost optimization across the business. While revenues grew by 11%, our profitability improved significantly, with EBITDA increasing by 67% year-on-year and margins expanding to 19.1%. These results demonstrate the strength of our integrated business model and our ability to create value in a dynamic market environment.”
He added: “As the UAE continues to invest in infrastructure, manufacturing, and sustainable development, EMSTEEL remains uniquely positioned to support this growth through reliable domestic supply, advanced high-strength steel solutions, and industry-leading sustainability initiatives. We will continue investing in innovation, operational excellence, and product development to meet the evolving needs of our customers while creating sustainable long-term value for all stakeholders.” - TradeArabia News Service
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