EMSTEEL reports strong Q3 performance despite supply chain disruptions

EMSTEEL's net profit increased 99 pct YoY to AED 190 mln (USD 52 mln) in the third quarter of 2026, supported by higher selling prices, operational efficiencies and cost control measures despite rising costs linked to regional geopolitical disruptions.

Group revenue increased 15 pct YoY to AED 2.5 bln (USD 681 mln), while EBITDA rose 35 pct to AED 381 mln (USD 104 mln). The EBITDA margin improved to 15.3 pct from 13.1 pct in Q3 2025.

The steel division's revenue increased 15 pct YoY to AED 2.2 bln (USD 599 mln), while EBITDA rose 34 pct to AED 306 mln (USD 83 mln). The division's EBITDA margin improved to 13.7 pct from 11.9 pct a year earlier, supported by a 17 pct increase in average selling prices for finished steel products and lower selling, general and administrative costs.

However, the steel division's EBITDA margin declined from 18.2 pct in the previous quarter as raw materials purchased earlier at lower landed costs were gradually replaced by supplies delivered through more expensive alternative logistics routes due to the regional geopolitical situation.

Total steel sales volumes, including finished steel products and billets, declined 5 pct YoY to 770,000 tons during the quarter, mainly due to constraints on exports of heavy sections and sheet piles.

The cement division reported revenue of AED 252 mln (USD 69 mln), up 12 pct YoY, while EBITDA increased 44 pct to AED 75 mln (USD 20 mln). Its EBITDA margin improved to 29.7 pct from 23.3 pct a year earlier, supported by continued strong market demand.

For the first nine months of 2026, EMSTEEL's revenue increased 9 pct YoY to AED 7.0 bln (USD 1.91 bln), while EBITDA rose 61 pct to AED 1.3 bln. Net profit reached AED 751 mln (USD 205 mln), compared with AED 283 mln in the same period last year.

Commenting on the results, Group CEO Saeed Ghumran Al Remeithi said the company had maintained operational discipline and adapted to geopolitical uncertainty, supply chain disruptions and cost pressures while ensuring reliable supply to support UAE demand.

Headquartered in Abu Dhabi, EMSTEEL has annual production capacity of 3.5 mln tons of steel and 4.6 mln tons of cement. The group exports to more than 70 markets, which account for around 30pct of total sales, and produces a broad range of steel products including wire rod, rebar, heavy sections and sheet piles.

1 USD / 3.67 AED