UAE’s EMSTEEL reports Dhs2.2bn Q1 revenue, launches upgrade programme

One of the largest publicly traded steel and building materials manufacturers in the region, EMSTEEL has reported Q1 revenue of Dhs2.2bn for 2025, a 1 per cent increase year-on-year despite lower average steel prices and minimal semi-finished product sales.

The group’s strong operational performance saw finished goods steel production rise 17 per cent and sales volumes increase 21 per cent YoY to 811,000 tonnes, buoyed by robust construction activity in the UAE and effective market positioning.

In contrast to Q1 2024, when nearly 100,000 tonnes of billets were sold, all semi-finished products in Q1 2025 were converted into finished goods to meet customer demand.

EMSTEEL divisional highlghts

Sales volumes for Emirates Cement also grew 17 per cent YoY.

Despite a 6 per cent drop in average steel prices and the absence of billet sales — which accounted for 10 per cent of Q1 2024 revenue — EMSTEEL posted Dhs266m in EBITDA, with an EBITDA margin of 12.3 per cent, compared to 13.7 per cent in the prior-year period. Profit before tax stood at Dhs94m, while net profit after tax was Dhs86m.

The Emirates Steel division contributed Dhs1.96bn in revenue and Dhs226m in EBITDA. Emirates Cement generated Dhs205m in revenue and Dhs40m in EBITDA.

Within the cement division, the Pipes & Other segment, currently under divestment and reported as Assets Held for Sale, contributed Dhs45m in revenue.

As of March 31, EMSTEEL reported a strong liquidity position with Dhs881m in cash on hand, up from Dhs823m at year-end 2024.

The group also announced the launch of a Dhs625m Asset Enhancement Programme aimed at upgrading rolling mills and expanding its portfolio to include high-strength steel products such as ES600 and ASTM Grade 80/100 rebars. Plans also include installing a new 500 KTPA wire rod outlet.

Comprehensive decarbonisation roadmap revealed

Additionally, EMSTEEL revealed its comprehensive decarbonisation roadmap, targeting a 40 per cent reduction in greenhouse gas emissions from its steel business and a 30 per cent reduction from its cement business by 2030, with net-zero emissions set for 2050.

Strategic agreements signed with Hafeet Rail Infrastructure and Minerals Development Oman (MDO) will facilitate sustainable cross-border transport of up to 4.2 million tonnes of raw materials annually from Oman to the UAE.

The group also partnered with Yellow Door Energy to develop a 31.5 MWp solar PV rooftop project across 40 facility roofs in Abu Dhabi’s ICAD 1, slated for commissioning in 2026.

“EMSTEEL’s performance in Q1 2025 underscores our ability to deliver consistent value through operational excellence and strategic foresight,” said Engineer Saeed Ghumran Al Remeithi, group CEO. “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.”