Prime Highlights
- EMSTEEL reported a 157% rise in second-quarter net profit as revenue and operating margins improved.
- Strong demand, higher selling prices and cost optimisation supported growth across the steel and cement businesses.
Key Facts
- EMSTEEL is one of the Middle East’s largest publicly listed steel and building materials manufacturers.
- The company reported second-quarter revenue of AED2.4 billion and increased its net cash position to AED1.64 billion.
Background
EMSTEEL reported strong financial results for the second quarter, helped by higher steel and cement prices, better cost control, and steady demand in the UAE market. The company’s revenue rose 11% year-on-year to AED2.4 billion.
EBITDA increased 67% to AED457 million, while the EBITDA margin improved to 19.1% from 12.8% a year earlier. Net profit grew sharply by 157% to AED262 million.
The company said its strong performance came from stable domestic demand, continuous supply of steel and building materials, and efforts to reduce operating costs across the business.
The steel division reported revenue of AED2.1 billion, up 9% from last year. Its EBITDA increased 71% to AED382 million, and the EBITDA margin improved to 18.2%. Better selling prices and lower operating costs supported the division’s performance, even though raw material costs increased during the quarter because of more expensive transport routes.
The cement division also recorded strong growth. Revenue rose 29% to AED287 million, while EBITDA increased 47% to AED75 million. This division enjoyed favorable market conditions as well as rising cement prices.
Steel sales were constant at 806,000 tons for the quarter. Cement and clinker sales were up 28% at 1.1 million tons.
As of the end of June, EMSTEEL held a net cash position of AED1.64 billion. For the first half of the year, revenue increased 6% to AED4.6 billion, while EBITDA rose 74% to AED941 million.
Group CEO Eng Saeed Ghumran Al Remeithi said the results reflected the company’s focus on cost control, operational efficiency, and long-term growth. He said EMSTEEL would continue investing in innovation, stronger products, and sustainable business growth.
