EMSTEEL Q3 net profit surges 99% to Dh190 million
Revenue rises 15 per cent to Dh2.5 billion despite regional cost pressures
EMSTEEL, one of the largest publicly traded steel and building materials manufacturers in the region, announced its financial results for the third quarter of 2026.
During the reporting period, EMSTEEL continued to strengthen its position as the UAE’s leading and reliable domestic producer of steel and building materials, ensuring supply continuity and supporting national demand. These developments, supported by Group-wide measures to enhance operational efficiency and maintain cost discipline, helped deliver resilient financial results and stronger profitability margins.
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Financial and operational highlights for Q3 2026
EMSTEEL reported revenues of Dh2.5 billion for the third quarter of 2026, an increase of 15 per cent compared to the corresponding period in the prior year.
EMSTEEL reported EBITDA of Dh381 million for the third quarter of 2026, representing a 35 per cent year-on-year (YoY) increase. EBITDA margin expanded to 15.3 per cent, compared to 13.1 per cent in Q3 2025. Net profit for the period amounted to Dh190 million, reflecting a 99 per cent YoY increase.
EMSTEEL’s Steel division reported revenues of Dh2.2 billion for the third quarter of 2026, a 15 per cent YoY growth, and generated EBITDA of Dh306 million, representing a 34 per cent YoY increase. Steel division EBITDA margin reached 13.7 per cent, compared to 11.9 per cent in Q3 2025. The YoY improvement was driven by disciplined SG&A cost control measures and a 17 per cent YoY increase in average selling prices for finished steel products. At the same time, the Steel division’s EBITDA margin declined from 18.2 per cent in Q2 2026 to 13.7 per cent in Q3 2026, primarily reflecting the impact of higher costs associated with the regional geopolitical situation. Inventories of raw materials acquired earlier in the year at lower landed costs were gradually replaced by newly supplied raw materials delivered through more expensive alternative logistics routes.
EMSTEEL’s Cement division recorded revenue of Dh252 million in the third quarter of 2026, representing a 12 per cent YoY increase, with EBITDA of Dh75 million, up 44 per cent YoY. In Q3 2026, the Cement division achieved an EBITDA margin of 29.7 per cent, up from 23.3 per cent last year. The Cement division’s solid financial performance was supported by continued strong market demand. On a like-for-like basis, excluding the Q3 2025 performance of the Pipes & Other segment, which was divested in December 2025, the Cement division’s EBITDA increased by 73 per cent YoY.
During the third quarter of 2026, EMSTEEL recorded total steel sales volumes, comprising finished steel products and billets, of 770,000 tonnes, representing a 5 per cent decline compared to Q3 2025, primarily reflecting constraints on exports of heavy sections and sheet piles. Cement and clinker sales volumes increased by 12 per cent YoY, reaching 921,000 tonnes, reflecting continued strong demand for cement products during the period.
As of September 30, 2026, EMSTEEL maintained a robust net cash position of Dh1.8 billion, compared to Dh1.2 billion as of December 31, 2025, and Dh1.6 billion as of June 30, 2026.
The Group’s revenue for 9M 2026 increased by 9 per cent YoY to Dh7.0 billion, and EBITDA grew by 61 per cent compared to the same period last year to Dh1.3 billion.
Strategic highlights for Q3 2026
EMSTEEL was reappointed for a second term as Co-Chair of the Alliance for Industry Decarbonization (AFID), led by the International Renewable Energy Agency (IRENA), alongside BASF. The role positions EMSTEEL at the centre of international collaboration across industry, energy and finance to advance practical and scalable decarbonisation solutions, particularly across hard-to-abate sectors.
EMSTEEL achieved the highest level of EcoVadis sustainability recognition, strengthening the Group’s position as a responsible global supplier. EMSTEEL advanced from Bronze in 2025 to Platinum in 2026, achieving a score of 95 out of 100 and placing in the 99th percentile, among the top 1 per cent of companies assessed globally during the previous 12 months.
EMSTEEL secured five honours at the Gulf Sustainability Awards 2026, comprising four Gold Awards and one Bronze Award across sustainable products, circular economy, ESG reporting, environmental sustainability and sustainable technology innovation. The recognised initiatives included ES600 high-strength rebar, industrial by-product utilisation, independently verified ESG reporting, hydrogen-based steel, clean energy and industrial decarbonisation technologies.
Strong results during Q3 despite a challenging market environment
Eng. Saeed Ghumran Al Remeithi, Group Chief Executive Officer, EMSTEEL, said: “EMSTEEL delivered strong results during the third quarter despite a challenging market environment marked by geopolitical uncertainty, supply chain disruptions, and cost pressures. Our ability to adapt quickly, maintain operational discipline, and respond proactively to changing market dynamics demonstrates the resilience of our business and the strength of our integrated operating model. These results reflect our continued focus on creating sustainable value for shareholders while ensuring reliable supply to support the UAE's economic and infrastructure growth.”
He added: “Beyond our financial performance, we continue to strengthen EMSTEEL's position as a global leader in responsible steelmaking and industrial sustainability. Achieving EcoVadis Platinum status and advancing our role in international decarbonization initiatives reflects the progress we are making and our belief that competitiveness and sustainability can go hand in hand. As the industry evolves, we remain committed to innovation, agility, and long-term growth, while supporting the UAE's vision for a more sustainable and resilient industrial future.”
