UAE construction demand lifts EMSTEEL profit 157% in second quarter

Dubai: EMSTEEL’s net profit rose 157% year on year to Dh262 million in the second quarter of 2026, supported by higher steel and cement prices, cost controls and continued demand from the UAE construction market.

Revenue increased 11% to Dh2.4 billion, while earnings before interest, taxes, depreciation and amortisation climbed 67% to Dh457 million.

The group’s EBITDA margin expanded to 19.1% from 12.8% in the same period last year, reflecting improved profitability across its steel and cement operations.

Steel prices rise 10%

EMSTEEL’s steel division generated revenue of Dh2.1 billion during the quarter, representing annual growth of 9%.

The division’s EBITDA rose 71% to Dh382 million, while its EBITDA margin reached 18.2% compared with 11.6% in the second quarter of 2025.

Improved earnings were supported by cost controls and a 10% annual increase in the average selling price of finished steel products.

Material costs began to reflect the impact of the regional conflict during the quarter as lower-cost raw material inventories purchased earlier in the year were gradually replaced by supplies delivered through more expensive alternative logistics routes.

Total steel sales volumes, including finished products and billets, stood at 806,000 tonnes, broadly unchanged from the corresponding period last year.

Cement demand remains strong

Revenue from EMSTEEL’s cement division increased 29% year on year to Dh287 million, supported by continued demand and a 30% rise in average cement selling prices.

The division recorded EBITDA of Dh75 million, an increase of 47%, while its margin widened to 26.1% from 22.8% a year earlier.

Cement and clinker sales volumes rose 28% to 1.1 million tonnes during the quarter.

Excluding the Pipes and Other segment, which was divested in December 2025, the cement division’s EBITDA increased 89% on a comparable basis.

First-half earnings climb

EMSTEEL recorded revenue of Dh4.6 billion during the first half of 2026, an increase of 6% compared with the same period last year.

First-half EBITDA rose 74% to Dh941 million.

The group ended June with a net cash position of Dh1.64 billion, up from Dh1.17 billion at the end of December 2025 and Dh1.3 billion at the end of March.

EMSTEEL said supply continuity and cost optimisation measures helped it maintain its position as a domestic supplier of steel and building materials during the reporting period.

High-strength steel rolled out

The group officially launched its ES600 high-strength steel rebar during the quarter, describing it as the highest-strength steel grade currently produced in the UAE.

The product can reduce steel consumption by between 18% and 24% and is already being used across major developments in the country.

EMSTEEL also signed a collaboration agreement with the Technology Innovation Institute to validate the performance of ES600 and develop new reinforcement grades for national infrastructure and strategic assets.