Abu Dhabi-based steel and building materials producer Emsteel reported a sharp rise in first-quarter profit on Wednesday, supported by lower production costs, improved pricing and stronger operational performance across its businesses.
The company posted revenues of Dh2.2 billion for the three months ending in March, largely unchanged from the same period a year earlier. However, earnings before interest, taxes, depreciation and amortisation (Ebitda) climbed 82 per cent year on year to Dh483 million.
The increase lifted the company’s Ebitda margin to 22.3 per cent, compared with 12.3 per cent in the first quarter of 2025. Net profit rose 246 per cent to Dh299 million, reflecting what the company described as disciplined cost management and operational efficiencies.
Emsteel said profitability improved due to lower raw material prices, tighter control of expenses and a 3 per cent increase in average selling prices for finished steel products.
The steel division remained the group’s main source of earnings. The segment generated Dh1.9 billion in revenue and Ebitda of Dh403 million, representing a 79 per cent increase from a year earlier.
Steel sales volumes declined 6 per cent to 768,000 tonnes during the quarter, partly due to a planned maintenance shutdown at one of the company’s rolling mills in January. Despite the lower volumes, improved pricing and efficiency measures helped offset the impact on earnings.
The company’s cement and clinker business recorded stronger growth, with sales volumes rising 32 per cent to 1.1 million tonnes amid robust demand and higher production output.
Emsteel also strengthened its financial position during the quarter. Net cash increased to Dh1.3 billion from Dh1.17 billion at the end of 2025, giving the company additional flexibility as regional economic conditions remain uncertain.
The group secured an extra Dh227 million under an existing working capital facility to support short-term liquidity requirements.
Chief executive Saeed Ghumran Al Remeithi said the company’s results reflected solid execution across its operations and the resilience of its integrated business model.
He said Emsteel had delivered a strong start to 2026 through disciplined cost optimisation and operational efficiency while continuing to support industrial growth in the UAE.
Al Remeithi added that the company remains cautious about broader regional developments that could affect market conditions and supply chains in the months ahead.
He said the company is maintaining a flexible approach focused on resilience, operational agility and disciplined risk management as the outlook for regional markets continues to evolve.
Emsteel is one of the UAE’s largest producers of steel and construction materials and plays a major role in supplying infrastructure and industrial projects across the country.
