EMSTEEL reports strong first-half results for 2025

Sales volumes of finished steel products rose by 24% year-on-year (YoY) to 1.616 million tonnes, driven by sustained construction activity and EMSTEEL’s solid market presence.

The group also reported a 21% YoY increase in cement and clinker sales, reaching 1.613 million tonnes.

Improved capacity utilisation allowed EMSTEEL to fully convert semi-finished products into finished goods to meet rising customer demand.

Despite a 4% YoY drop in average steel prices and a strategic decision to scale back sales of semi-finished products, EMSTEEL posted revenues of AED 4.3 billion for the period, up 9% compared to the first half of 2024.

EBITDA rose by 6% to AED 540 million, yielding a margin of 12.6%, only slightly lower than the 12.8% recorded in H1 2024. Margin pressure from lower steel prices was partially offset by improved production costs, enhanced plant utilisation, and ongoing operational optimisation.

Profit after tax reached AED 188 million, compared to AED 174 million during the same period last year.

The Emirates Steel division generated AED 3.9 billion in revenue and AED 449 million in EBITDA, while the Emirates Cement division recorded AED 428 million in revenue and AED 91 million in EBITDA.

Within this division, the Pipes & Other segment (which is currently in divestment) contributed AED 90 million in revenue and is classified as Assets Held for Sale.

As of 30 June 2025, EMSTEEL maintained a strong net cash position of AED 372 million, up from AED 337 million at the end of 2024.

For Q2 2025 alone, revenue increased by 18% and EBITDA by 27% YoY, benefitting from the same drivers as H1 and a favourable comparison to Q2 2024, when operations were disrupted by severe weather.

EMSTEEL also made progress on its strategic initiatives. It received a provisional “AA” ESG rating from MSCI, highlighting strong carbon reduction practices and workforce safety.

The company signed a partnership with Magsort to produce decarbonised cement using steel slag and introduced its first Green Finance Framework to support future low-carbon projects in steel and cement.

Saeed Ghumran Al Remeithi, group CEO of EMSTEEL, said, “Our strong H1 2025 performance underscores the resilience and adaptability of EMSTEEL in an evolving global market. The 9% growth in revenue and continued EBITDA strength reflect our strategic focus on value-added products, operational efficiency, and domestic market leadership. We are proud of our team’s ability to convert industry headwinds into opportunities for growth and innovation.”

He added, “As we advance our decarbonisation journey, the launch of our Green Finance Framework and our strategic partnership with Magsort mark important milestones in building a more sustainable, circular steel and cement ecosystem. With a solid financial foundation, strong ESG credentials, and a clear long-term vision, EMSTEEL remains well-positioned to deliver sustainable value to all stakeholders.”