EMSTEEL Posts 157% Profit Surge in Q2 2026 on Strong Steel and Cement Demand
EMSTEEL, the UAE's largest steel and building materials company, delivered net profit of Dh262 million in the second quarter of 2026, marking a 157% increase compared to the same period last year. The result was driven by higher steel and cement prices, disciplined cost management and robust demand from the country's expanding construction sector.
Revenue for the quarter climbed 11% year on year to Dh2.4 billion, while earnings before interest, taxes, depreciation and amortisation surged 67% to Dh457 million. The group's EBITDA margin widened to 19.1% from 12.8% in the second quarter of 2025, underscoring improved profitability across both divisions.
The company, which was formed in October 2021 through the merger of Emirates Steel Industries and Arkan Building Materials Company, now controls 60% of the UAE steel market and contributes 11% of Abu Dhabi's manufacturing output. It is 87.5% owned by ADQ, the Abu Dhabi government holding company, with 12.5% of shares trading on the Abu Dhabi Securities Exchange.
Steel division gains momentum
EMSTEEL's steel operations generated Dh2.1 billion in revenue during the quarter, up 9% annually. The division's EBITDA rose 71% to Dh382 million, lifting its margin to 18.2% from 11.6% a year earlier. The average selling price of finished steel products increased 10% year on year, contributing to the improved earnings performance.
Total steel sales volumes, including finished products and billets, held steady at 806,000 tonnes. Material costs began reflecting the impact of regional conflict during the period as lower-cost raw material inventories purchased earlier in the year were gradually replaced by supplies delivered through more expensive alternative logistics routes.
While revenues grew by 11%, our profitability improved significantly, with EBITDA increasing by 67% year-on-year and margins expanding to 19.1%. These results demonstrate the strength of our integrated business model and our ability to create value in a dynamic market environment.
— Saeed Ghumran Al Remeithi, group chief executive officer
Cement operations deliver strong growth
The cement division posted revenue of Dh287 million, up 29% from the prior-year quarter, supported by sustained demand and a 30% rise in average cement selling prices. EBITDA for the division reached Dh75 million, an increase of 47%, while the margin expanded to 26.1% from 22.8%. Cement and clinker sales volumes climbed 28% to 1.1 million tonnes. Excluding the Pipes and Other segment, which was divested in December 2025, the cement division's EBITDA increased 89% on a comparable basis.
Favourable market conditions support outlook
The company's performance comes amid a buoyant construction market in the UAE. The sector is expected to grow 6.2% in 2026 to reach Dh189.59 billion, following a compound annual growth rate of 7.3% during 2021-2025. Industry expansion is being driven by rising foreign direct investment, increased construction lending and growth in the oil sector.
The Abu Dhabi government announced a Dh240 billion investment plan in December 2025 targeting housing, transportation, healthcare and education over the next seven to ten years, providing a sustained pipeline of demand for construction materials.
Advanced steel product gains traction
During the quarter, EMSTEEL officially launched its ES600 high-strength steel rebar, which it describes as the highest-strength steel grade currently produced in the UAE. The product, which has a minimum yield strength of 600 MPa and is certified to Abu Dhabi specification ADS 29/2022 and international ICC acceptance criteria AC525, can reduce steel consumption by 18% to 24% in construction projects.
ES600 is already being deployed across major developments in the country. The company has set targets to reduce carbon emissions by 40% by 2030 and achieve net-zero emissions by 2050, with the new product supporting those sustainability objectives. EMSTEEL plans to expand ES600 production capacity following completion of a Dh625 million asset enhancement programme.
The group also signed a collaboration agreement with the Technology Innovation Institute to validate ES600 performance and develop new reinforcement grades for national infrastructure and strategic assets.
First-half results and financial position
For the first half of 2026, EMSTEEL recorded revenue of Dh4.6 billion, up 6% compared to the same period in 2025. EBITDA for the six-month period rose 74% to Dh941 million. The group ended June with a net cash position of Dh1.64 billion, compared with 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.
