The “Emsteel” Group, one of the leading producers of steel and building materials in the region, has reported a net profit of 188 million dirhams for the first half of 2025, representing a 7.7% increase from 174.5 million dirhams during the same period in 2024.
Revenues also grew by 9%, reaching 4.3 billion dirhams, compared to 3.956 billion dirhams in the first half of the previous year.
In its financial statement for the first half of 2025, the group highlighted its strong performance and resilience in addressing the various challenges faced by the global steel industry, alongside its ongoing efforts to solidify its leadership position in the UAE market.
During the first half of 2025, the group achieved robust operational performance, bolstered by continuous momentum in the construction sector within the UAE and the strong presence of “Emsteel” in the local market. Ready-made steel product sales grew by 24% year-on-year, reaching 1,616 thousand tons, driven by increased demand and full utilization of production capacity, enabling the conversion of semi-finished products into finished goods that meet customer needs more efficiently. Similarly, cement and clinker sales rose by 21% year-on-year, totaling 1,613 thousand tons.
“Emsteel” recorded revenues of 4.3 billion dirhams, a 9% increase compared to the same period last year, despite a 4% annual decline in average steel prices and a decrease in semi-finished product sales during the first half of 2025, which contributed 9% of the steel business unit’s revenues in the same period in 2024.
The group’s earnings before interest, taxes, depreciation, and amortization (EBITDA) stood at 540 million dirhams during the first half of 2025, reflecting a 6% annual increase, with a profit margin of 12.6% compared to 12.8% during the same period in 2024. “Emsteel” successfully mitigated the impact of price decreases by improving production costs during the second quarter, enhancing production efficiency, and implementing ongoing initiatives to boost operational efficiency. Net profits after tax reached 188 million dirhams, up from 174 million dirhams during the first half of last year.
“Emirates Steel” contributed revenues amounting to 3.9 billion dirhams during the first half of 2025, representing a 7% growth compared to the same period in 2024. EBITDA also increased to 449 million dirhams.
The cement production unit generated revenues of 428 million dirhams during the first half of 2025, marking a 21% year-on-year growth. It also recorded EBITDA of 91 million dirhams. Additionally, the pipes and other assets division is categorized under assets held for sale, indicating the group’s ongoing strategy to divest non-core activities. This segment contributed 90 million dirhams in revenues during this period.
As of June 30, 2025, the group maintained a strong net cash position of 372 million dirhams, compared to 337 million dirhams at the end of 2024.
Revenue Performance
The company’s revenues increased by 18% in the second quarter of 2025, while EBITDA rose by 27% compared to the same quarter in 2024. This strong financial performance is attributed to the continued operational momentum and positive factors supporting the results of the first half, alongside the influence of a low-base effect, as “Emsteel” operations were partially impacted in the second quarter of the previous year due to adverse weather conditions.
Engineer Saeed Ghamran Al Rumaithi, CEO of “Emsteel”, stated that the strong results for the first half of 2025 reflect the flexibility of “Emsteel” and its capability to adapt to ongoing changes in global markets. The 9% revenue growth and sustained strength in EBITDA signify the success of our strategy focused on operational efficiency, expanding our portfolio of value-added products, and reinforcing our leadership in the local market. We take pride in our teams that have demonstrated their ability to turn industry challenges into growth and innovation opportunities.
Al Rumaithi added, “The launch of our green financing framework, alongside our strategic partnership with ‘Magsort’, marks two significant milestones in our efforts to develop a more efficient and sustainable production ecosystem in the steel and cement sectors. These initiatives, coupled with our continued progress towards carbon removal objectives, underscore ‘Emsteel’s’ commitment to adopting innovative solutions that enhance our competitiveness and responsiveness to future requirements. With a strong financial foundation, advanced environmental, social and governance (ESG) standards, and a long-term vision, we continue to solidify our position as a reliable industrial partner, capable of achieving sustainable growth that benefits all of our stakeholders.”
Strategic Initiatives
“Emsteel” has received an “AA” rating from the MSCI (Morgan Stanley Capital International) index in recognition of its leadership in managing risks and opportunities related to environmental, social, and corporate governance issues in the steel sector. The MSCI assessment highlights the group’s efforts to minimize its environmental impact by implementing responsible and innovative practices to reduce carbon emissions, along with enhancing health, safety, and occupational welfare standards for its workforce, an area where the group has performed nearly twice the global average.
Moreover, “Emsteel” has established a strategic partnership with the Finnish company “Magsort” to produce low-carbon cement, following a successful trial operation at its facility in Al Ain, where more than 10,000 tons of innovative emissions-reducing materials developed by integrating iron residues were utilized. This achievement marks a progressive step in “Emsteel’s” efforts to adopt a circular economy model and demonstrates its commitment to achieving carbon removal goals within the iron and cement production value chains by 2030 and 2050.
“Emsteel” has launched its first green financing framework, facilitating the issuance of green bonds and private loans to fund low-carbon steel and cement production projects. This step aligns with international standards for sustainable financing, strengthening the group’s sustainability strategy and supporting its long-term goals towards achieving net-zero emissions.