EMSTEEL Sees 246% Surge in Q1 Profit Amidst Rising EBITDA

EMSTEEL has announced impressive financial outcomes for Q1 2026, showcasing significant growth in both profit and earnings driven by efficient operations, cost reductions, and enhanced pricing strategies.

The company's revenue for the quarter was AED2.2 billion, remaining consistent with figures from the previous year.

EBITDA soared to AED483 million, reflecting an 82% increase compared to the same quarter last year, with margins improving significantly to 22.3% from 12.3% in Q1 2025.

This performance resulted from declining raw material expenses, ongoing optimization efforts, prudent cost control, and a 3% increase in average selling prices of finished steel products year-on-year.

Net profit for the quarter jumped dramatically to AED299 million, marking a remarkable 246% rise from last year.

The steel division contributed AED1.90 billion in revenue and recorded an EBITDA of AED403 million, highlighting a 79% year-on-year growth.

Similarly, the cement segment posted significant gains, with revenue up 31% year-on-year to AED269 million, while EBITDA doubled to AED80 million.

Excluding the divested Pipes & Other segment, the cement division saw a remarkable 169% increase in EBITDA year-on-year.

Total steel sales volumes for the quarter reached 768,000 tonnes, which is a 6% decline from last year, primarily due to a scheduled maintenance shutdown of the rolling mill in January 2026.

Conversely, sales volumes of cement and clinker surged 32% year-on-year to 1.1 million tonnes, driven by robust market demand and enhanced operational efficiency.

Saeed Ghumran Al Remeithi, Group Chief Executive Officer of EMSTEEL, expressed satisfaction with the company's strong start to 2026, highlighting stable revenues and improved profitability.

He emphasized EMSTEEL's resilient integrated business model and its capacity to adapt to dynamic market conditions while continuing to support the UAE's industrial sector.

Al Remeithi also mentioned that the company remains vigilant regarding regional developments and their potential impacts on market conditions and supply chains, reaffirming EMSTEEL's commitment to operational flexibility and risk management to navigate uncertainties while supporting clients and stakeholders.