EMSTEEL, one of the largest publicly traded steel and building materials manufacturers in the region, reported a 1 per cent increase in revenue to AED2.2 billion (US$600 million), showing resilience despite the headwind that the steel industry is facing.
Despite a 6 per cent year-on-year decrease in average steel prices, EMSTEEL powered ahead on the back of strong domestic demand.
EMSTEEL reports strong Q1
The company, in its Q1 2025 financial results, highlighted a significant increase in operational output, with finished goods steel production volume surging by 17 per cent year-on-year. This strong performance resulted in a 21 per cent increase in finished goods steel sales volumes, reaching 811,000 tonnes.
EMSTEEL attributed this growth to the sustained momentum in the UAE’s construction sector and effective market positioning. The filing also stated that the company strategically converted all semi-finished products into finished goods during the quarter.
Semi-finished products accounted for 10 per cent of total revenues in Q1 2024, when almost 100,000 tonnes of billets were sold. However, strong demand and optimised capacity utilisation allowed the conversion of all semi-finished products into finished products.
EBITDA reached AED266 million, with an EBITDA margin of 12.3 per cent, which was down from 13.7 per cent in Q1 2024. Margin pressure from lower prices was mostly offset by improved capacity utilisation. Profit before tax was AED94 million (US$25.6 million), with net profit after tax amounting to AED86 million (US$23.4 million).
The Emirates Steel division contributed AED1.96 billion (US$530 million) in revenue, generating AED226 million (US$61.54 million) in EBITDA. The Emirates Cement division recorded revenue of AED205 million (US$55.82 million), up 17 per cent YoY, with EBITDA of AED40 million (US$10.9 million).
The group maintained a robust liquidity position, with AED881 million (US$239.9 million) in cash on hand, compared to AED823 million (US$224.1 million) at the end of 2024.
Saeed Ghumran Al Remeithi, Group Chief Executive Officer, commented: “EMSTEEL’s performance in Q1 2025 underscores our ability to deliver consistent value through operational excellence and strategic foresight. Amid a shifting global landscape, we continue to invest in innovation, sustainability, and regional partnerships that future-proof our business.
“Our strategic investments – ranging from decarbonisation and advanced production upgrades to regional logistics and solar infrastructure – demonstrate our long-term vision for sustainable, shareholder-driven growth. These initiatives are designed not only to strengthen our competitiveness, but also to unlock value across the business as we continue to align operational execution with environmental responsibility and market demand.”
During the quarter, EMSTEEL announced its comprehensive decarbonisation strategy, targeting a 40 per cent reduction in GHG emissions in its Steel Business Unit and a 30 per cent reduction in its Cement Business Unit by 2030, with a goal of net-zero emissions by 2050.
It also signed strategic agreements with Hafeet Rail Infrastructure and Minerals Development Oman to enable sustainable cross-border transportation of up to 4.2 million tons of raw materials annually from Oman to the UAE.
