03/08/2026 04:36 AST
Abu Dhabi-based steel and building materials manufacturer EMSTEEL reported a 157 per cent increase in net profit to Dh262 million in the second quarter of 2026, supported by higher selling prices, disciplined cost controls and continued demand for steel and cement products.
The company's revenue increased 11 per cent year-on-year to Dh2.4 billion during the quarter, while EBITDA rose 67 per cent to Dh457 million. EBITDA margin expanded to 19.1 per cent from 12.8 per cent in the corresponding period last year.
For the first half of 2026, revenue increased six per cent to Dh4.6 billion, while EBITDA climbed 74 per cent year-on-year to Dh941 million.
EMSTEEL's steel division generated revenue of Dh2.1 billion in the second quarter, up nine per cent year-on-year, while EBITDA increased 71 per cent to Dh382 million. EBITDA margin improved to 18.2 per cent from 11.6 per cent a year earlier.
The company attributed the improvement to tighter cost controls and a 10 per cent increase in average selling prices for finished steel products.
It added that material costs began to reflect the impact of the regional conflict during the quarter, as inventories of lower-cost raw materials purchased earlier in the year were gradually replaced with new supplies delivered through more expensive alternative logistics routes.
Steel sales volumes, including finished products and billets, remained broadly stable at 806,000 tonnes during the quarter.
Cement demand remains strong
The cement division recorded revenue of Dh287 million during the second quarter, up 29 per cent year-on-year, while EBITDA increased 47 per cent to Dh75 million.
EBITDA margin expanded to 26.1 per cent from 22.8 per cent in the same period last year, supported by continued strong market demand and a 30 per cent increase in average cement selling prices.
Cement and clinker sales volumes increased 28 per cent year-on-year to 1.1 million tonnes.
As of June 30, 2026, EMSTEEL's net cash position strengthened to Dh1.64 billion, compared with Dh1.17 billion at the end of 2025.
New product launch
During the second quarter, the company launched ES600 high-strength steel rebar, which it said is the highest-strength steel grade currently produced in the UAE and is designed for infrastructure and high-rise developments while reducing steel consumption.
EMSTEEL also signed a collaboration agreement with the Technology Innovation Institute to validate the performance of the new steel product and develop next-generation reinforcement grades for strategic infrastructure projects.
Saeed Ghumran Al Remeithi, Group chief executive officer of EMSTEEL, said the company's performance reflected its commercial strategy, operational efficiency and continued focus on cost optimisation despite a dynamic market environment.
"EMSTEEL remains uniquely positioned to support this growth through reliable domestic supply, advanced high-strength steel solutions, and industry-leading sustainability initiatives," he said. "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."
Khaleej Times
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