EMSTEEL's Q1 Profits Surge 246% Boosted by Operational Gains

Post by : Bianca Suleiman

EMSTEEL has unveiled impressive financial outcomes for Q1 2026, showcasing a substantial profit uplift bolstered by a drop in costs, elevated selling prices, and enhanced operational performance.

The company's total revenue reached AED2.2 billion in the first quarter, holding steady in comparison to the same quarter last year.

With an EBITDA of AED483 million, an 82% year-on-year boost, EMSTEEL has significantly enhanced its EBITDA margin, which increased to 22.3% from 12.3% in Q1 2025.

This notable progress is primarily attributed to decreased raw material expenses, ongoing optimization strategies, strict cost control initiatives, and higher average charges for finished steel products. Compared to Q1 2025, average steel prices rose by 3% and slightly increased by 1% when compared to Q4 2025.

The net profit soared to AED299 million for the quarter, marking an extraordinary 246% increase in contrast to the same period last year.

EMSTEEL's steel segment generated AED1.90 billion in revenue for Q1 2026, with an EBITDA of AED403 million, reflecting a robust 79% annual growth.

The cement division also demonstrated significant expansion, with its revenue climbing by 31% year-on-year to AED269 million, while its EBITDA experienced a doubling to AED80 million.

When excluding the Pipes & Other segment sold off in December 2025, the cement division’s EBITDA saw a staggering 169% year-on-year increase.

During this quarter, total steel sales volumes decreased to 768,000 tonnes, accounting for both finished steel products and billets, a 6% decline from the previous year primarily due to a planned maintenance shutdown in January 2026.

Conversely, cement and clinker sales surged 32% year-on-year, hitting 1.1 million tonnes, underpinned by high market demand and enhanced operational execution.

Saeed Ghumran Al Remeithi, Group CEO of EMSTEEL, expressed satisfaction with the solid commencement of 2026, marked by stable revenues and considerable profit gains.

He emphasized that these results underline EMSTEEL's cohesive business strategy and adaptability to evolving market dynamics, all while continuing to bolster the UAE's industrial landscape.

Al Remeithi also noted that the company is vigilant towards regional shifts potentially affecting market conditions and supply chains, reiterating a strong focus on resilience, operational agility, and disciplined risk management to mitigate uncertainties and maintain support for its clientele and stakeholders.

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