14/05/2026 02:15 AST
Emsteel on Wednesday reported a sharp improvement in profitability in the first quarter of 2026, supported by cost optimisation, stronger pricing and operational efficiencies, reinforcing its position as a key supplier to the UAE's construction and industrial sectors.
The Abu Dhabi-listed steel and building materials group posted revenues of Dh2.2 billion for the three months to March, broadly in line with the same period last year. Ebitda surged 82 per cent year on year to Dh483 million, lifting the Ebitda margin to 22.3 per cent from 12.3 per cent a year earlier, while net profit jumped 246 per cent to Dh299 million.
The margin expansion was driven by lower raw material costs, disciplined cost controls and a 3 per cent year-on-year increase in average selling prices for finished steel products, according to the company.
The steel division remained the group's main earnings engine, generating revenues of Dh1.9 billion and Ebitda of Dh403 million, up 79 per cent year on year. Steel sales volumes dipped 6 per cent to 768,000 tonnes, partly due to a planned rolling mill maintenance shutdown in January. In contrast, cement and clinker volumes rose 32 per cent to 1.1 million tonnes amid strong demand and improved output.
Emsteel ended the quarter with net cash of Dh1.3 billion, up from Dh1.17 billion at the end of 2025, bolstering its balance sheet flexibility. The group also secured an additional Dh227 million under an existing working capital facility to enhance short-term liquidity.
Saeed Ghumran Al Remeithi, Group Chief Executive Officer of Emsteel, said the performance reflected strong execution across the business.
"Emsteel has delivered a strong start to 2026, with resilient revenue performance and significantly improved profitability driven by disciplined cost optimization and operational efficiency across the business," he said. "Our results reflect the strength of our integrated platform and our ability to adapt to evolving market dynamics while continuing to support the UAE's industrial growth."
Looking ahead, he said the group remained cautious but focused. "In light of ongoing regional developments, we remain attentive to potential impacts on market conditions and supply chains. While the outlook continues to evolve, we are taking a measured and flexible approach, prioritising resilience, operational agility, and disciplined risk management," Al Remeithi added.
Khaleej Times
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