EMSTEEL (ADX: EMSTEEL) (“the Group”), one of the largest publicly traded steel and building materials manufacturers in the region, announced today its financial results for the first quarter of 2026. During the reporting period, the Group continued to strengthen its position as a resilient business, committed to supporting the UAE’s economic development. EMSTEEL delivered solid financial performance, with improved margins underpinned by disciplined cost optimization initiatives and operational efficiencies implemented across the organization.
Financial and operational highlights for Q1 2026:
◆ EMSTEEL reported revenues of AED 2.2 billion for the first quarter of 2026, remaining broadly in line with the corresponding period in the prior year.
◆ EMSTEEL reported EBITDA of AED 483 million for the first quarter of 2026, representing an 82% year-on-year (YoY) increase. EBITDA margin expanded to 22.3%, compared to 12.3% in Q1 2025. The improvement was driven by a combination of factors, including lower raw material costs, ongoing optimization initiatives, a 3% YoY increase in average selling prices for finished steel products (and a 1% increase compared to Q4 2025), and disciplined cost control measures across the business. Net profit for the period amounted to AED 299 million, reflecting a 246% YoY increase.
◆ EMSTEEL’s Steel division reported revenues of AED 1.90 billion for the first quarter of 2026 and generated EBITDA of AED 403 million, representing a 79% YoY increase.
◆ EMSTEEL’s Cement division recorded revenue of AED 269 million in the first quarter of 2026, representing a 31% YoY increase, with EBITDA of AED 80 million, up 100% YoY. On a like-for-like basis, excluding the Q1 2025 performance of the Pipes & Other segment, which was divested in December 2025, Cement division’s EBITDA increased by 169% YoY.
◆ During the first quarter of 2026, EMSTEEL recorded total steel sales volumes, comprising finished steel products and billets, of 768 thousand tonnes, representing a 6% YoY decline. The decrease was partially attributable to a planned maintenance shutdown of a rolling mill in January 2026. In contrast, cement and clinker sales volumes increased by 32% YoY, reaching 1.1 million tonnes, reflecting strong demand and improved operational output during the period.
◆ As of 31 March 2026, EMSTEEL maintained a strong net cash position of AED 1,297 million, compared to AED 1,165 million as of 31 December 2025. In March 2026, the Group secured an additional AED 227 million under an existing working capital facility to enhance short-term liquidity and financial flexibility. This had a limited impact on net cash, while increasing total available cash to AED 1,524 million.
Strategic highlights for Q1 2026:
◆ EMSTEEL reaffirmed its commitment to supporting the resilience of the UAE market by maintaining pricing discipline across key domestic steel and building materials products, including reinforcing steel bars, while ensuring reliable supply to customers nationwide.
◆ EMSTEEL signed MoUs with MERED and Modon to explore collaboration on steel solutions for real estate developments in the UAE.
◆ EMSTEEL signed a strategic MoU with Metal Park to enhance the UAE’s downstream steel industry by integrating logistics, storage, and advanced processing services within a centralized hub in Abu Dhabi.
◆ EMSTEEL signed a five-year AED 600 million freight deal with Oldendorff Carriers to transport 5.2 million tonnes of iron ore pellets annually, strengthening supply reliability and logistics efficiency.
◆ EMSTEEL received the ADCCI Diamond Sustainability Label Award from the Abu Dhabi Chamber of Commerce and Industry, reinforcing its commitment to responsible operations.
◆ EMSTEEL renewed its recognition as a Sustainability Charter Member of the World Steel Association for 2026, reaffirming its commitment to responsible steel manufacturing.
Eng. Saeed Ghumran Al Remeithi, Group Chief Executive Officer, EMSTEEL, said: “EMSTEEL has delivered a strong start to 2026, with resilient revenue performance and significantly improved profitability driven by disciplined cost optimization and operational efficiency across the business. Our results reflect the strength of our integrated platform and our ability to adapt to evolving market dynamics while continuing to support the UAE’s industrial growth.”
He added: “In light of ongoing regional developments, we remain attentive to potential impacts on market conditions and supply chains. While the outlook continues to evolve, we are taking a measured and flexible approach, prioritising resilience, operational agility, and disciplined risk management to navigate uncertainty and support our customers and stakeholders.”
