Emsteel sales jump 24% in H1, revenues top $1.17bn

31/07/2025 06:41 AST

Emsteel, one of the largest publicly traded steel and building materials manufacturers in the region, has delivered strong operational performance during the first half of 2025, increasing its sales volumes of finished steel products by 24% year-on-year (YoY) to 1,616,000 tonnes.

The group's strong performance demonstrates its resilience amid global steel industry challenges and continued progress in strengthening its market leadership in the UAE, said Emsteel.

Financial and operational highlights for H1 2025:
 The group's growth was driven by sustained momentum in the UAE's construction sector and its solid market presence. In H1 2025, strong demand and optimised capacity utilisation enabled the full conversion of semi-finished products into finished goods to better serve customers. Additionally, cement and clinker sales volumes rose by 21% YoY to 1,613 thousand tonnes.

 Despite a 4% YoY decline in average steel prices and a strategic shift towards prioritising sales of finished products and phasing out sales of semi-finished products in H1 2025 - which accounted for 9% of the steel division's revenue in H1 2024 - Emsteel reported revenues of AED4.3 billion ($1.17 billion) for the first half of 2025, marking a 9% increase compared to the same period last year.

 EBITDA reached AED540 million, up 6% YoY, with an EBITDA margin of 12.6%, compared to 12.8% in H1 2024. Margin pressure from lower prices was mitigated by improved production costs in Q2 2025, enhanced capacity utilisation, and ongoing process optimisation initiatives. Profit after tax for H1 2025 amounted to AED188 million, compared to AED174 million for the same period last year.

 The Emirates Steel division contributed AED3.9 billion in revenue, representing a 7% increase compared to H1 2024, and generated AED 449 million in EBITDA.

 The Emirates Cement division recorded AED428 million in revenue, reflecting 21% YoY growth, and generated AED 91 million in EBITDA. Within this division, the Pipes & Other segment is reported as Assets Held for Sale, reflecting its ongoing divestment process. This segment contributed AED 90 million in revenue during the period.

 As of 30 June 2025, the group maintained a robust net cash position of AED372 million, compared to AED337 million as of 31 December 2024.

 The group's revenue for Q2 2025 increased by 18% and EBITDA grew by 27% compared to the same period last year. This strong financial performance during Q2 2025 was driven by the same factors outlined for H1 2025, in addition to a low base effect from Q2 2024, when Emsteel's operations were partially impacted by adverse weather conditions.

Strategic highlights for Q2 2025:
 Emsteel received a provisional "AA" ESG rating from MSCI, positioning the company at the forefront of environmental and social risk management. The rating highlights Emsteel's responsible carbon reduction efforts and exceptional workforce health and safety practices, with performance across majority of the ESG categories ranked above global industry averages.

 Emsteel signed a strategic partnership with Finland's Magsort to produce decarbonised cement, following a successful pilot at its Al Ain plant using 10,000 tonnes of materials that reduce carbon, which have been developed by incorporating steel-slag. This milestone strengthens Emsteel's circular economy model and supports its 2030 and 2050 decarbonisation targets across the steel and cement value chains.

 Emsteel launched its first Green Finance Framework, enabling the issuance of green bonds, and loans to fund low-carbon steel and cement projects. Aligned with global standards, the initiative reinforces Emsteel's sustainability strategy and supports its long-term net-zero ambitions.

Eng Saeed Ghumran Al Remeithi, Group Chief Executive Officer 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."

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