Emsteel reported a 99 per cent year-on-year increase in net profit to Dh190 million in the third quarter of 2026, supported by higher steel selling prices, cost control measures and strong demand for building materials.
The Abu Dhabi-listed company said revenue rise 15 per cent to Dh2.5 billion, while earnings before interest, taxes, depreciation and amortization increased 35 per cent to Dh381 million.
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The group’s Ebitda margin improved to 15.3 per cent from 13.1 per cent in the same period last year, despite higher costs linked to regional geopolitical tensions and supply chain disruptions.
For the first nine months of 2026, Emsteel s revenue increased 9 per cent to Dh7 billion, while Ebitda jumped 61 per cent to Dh1.3 billion.
Higher steel prices support earnings
The company’s steel division recorded revenue of Dh2.2 billion during the quarter, up 15 per cent year-on-year, while Ebitda increased 34 per cent to Dh306 million.
The improvement was supported by a 17 per cent increase in average selling prices for finished steel products and tighter control of selling, general and administrative expenses.
However, the division’s Ebitda margin declined to 13.7 per cent from 18.2 per cent in the second quarter of 2026, reflecting rising raw material and logistics costs.
Emsteel said lower-cost inventories purchased earlier in the year were gradually replaced by more expensive materials transported through alternative routes because of the regional geopolitical situation.
Steel sales volumes declined 5 per cent to 770,000 tonnes, mainly due to restrictions affecting exports of heavy sections and sheet piles.
Cement demand remains strong
Emsteel ‘s cement division reported a 12 per cent increase in revenue to Dh252 million, supported by continued market demand.
The division’s Ebitda rise 44 per cent to Dh75 million, while its margin improved to 29.7 per cent from 23.3 per cent a year earlier.
Cement and clinker sales volumes increased 12 per cent to 921,000 tonnes during the quarter.
Strong cash position
Emsteel maintained a net cash position of Dh1.8 billion at the end of September, compared with Dh1.2 billion at the end of December 2025.
Saeed Ghumran Al Remeithi, Group Chief Executive Officer of Emsteel, said the company delivered strong results despite geopolitical uncertainty, supply chain disruptions and rising costs.
He said the group’s ability to adapt to changing market conditions and maintain operational discipline helped strengthen profitability while supporting demand for steel and building materials in the UAE.
The company also continued its sustainability initiatives, achieving EcoVadis Platinum status in 2026 with a score of 95 out of 100, placing it among the top one per cent of companies assessed globally.
Emsteel was also reappointed as co-chair of the Alliance for Industry Decarbonization, alongside Basf, as part of efforts to support lower-carbon industrial production.
Source: Khaleej Times