UAE Construction Surge Boosts EMSTEEL's Q2 Profit by 157%

Jul 31, 2026

80 min

Jul 31, 2026 05:30

UAE construction demand lifts EMSTEEL profit 157% in second quarter

## Strong Financial Performance

EMSTEEL reported a significant increase in net profit for the second quarter of 2026, rising by 157% to Dh262 million. This growth was driven by higher prices for steel and cement, alongside effective cost management and robust demand from the UAE construction sector.

## Revenue and Profit Margins

The company's revenue saw an 11% increase, reaching Dh2.4 billion. Earnings before interest, taxes, depreciation, and amortization (EBITDA) surged by 67% to Dh457 million, with the EBITDA margin improving to 19.1% from 12.8% in the previous year.

## Steel Division Performance

EMSTEEL's steel division generated Dh2.1 billion in revenue, marking a 9% growth. The division's EBITDA rose by 71% to Dh382 million, with a margin increase to 18.2%. This was supported by a 10% rise in the average selling price of steel products.

## Cement Division Growth

The cement division experienced a 29% revenue increase to Dh287 million, driven by strong demand and a 30% rise in cement prices. EBITDA for this division grew by 47% to Dh75 million, with margins expanding to 26.1%.

## First-Half Financials

For the first half of 2026, EMSTEEL's revenue reached Dh4.6 billion, a 6% increase from the previous year. The company's EBITDA for this period rose by 74% to Dh941 million, with a net cash position of Dh1.64 billion by the end of June.

## New Product Launch

EMSTEEL introduced its ES600 high-strength steel rebar, which is the strongest steel grade produced in the UAE. This product aims to reduce steel consumption by up to 24% and is already being utilized in major projects across the country.

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