Despite the global headwinds being faced by the steel industry in the wake of President Donald Trump’s tariffs, UAE’s EMSTEEL showed resilience in its financial results for the first half of 2025.
Sustained momentum in the UAE’s construction sector helped EMSTEEL deliver strong operational performance during the period, increasing sales volumes of finished steel products by 24 per cent year-on-year (YoY) to 1,616 thousand tonnes.
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 per cent YoY to 1,613 thousand tonnes.
EMSTEEL reports strong H1 2025 growth
EMSTEEL reported revenues of AED 4.3 billion (US$1.17 billion) for the first half of 2025, marking a 9 per cent increase compared H1 2024. This was despite a 4 per cent YoY decline in average steel prices and a strategic shift towards prioritising sales of finished products and phasing out sales of semi-finished products, which accounted for 9 per cent of the steel division’s revenue in H1 last year.
EBITDA reached AED 540 million (US$147 million), up 6 per cent YoY, with an EBITDA margin of 12.6 per cent, compared to 12.8 per cent 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.
The Emirates Steel division contributed AED 3.9 billion (US$1.06 billion) in revenue, representing a 7 per cent increase compared to H1 2024, and generated AED 449 million (US$122.26 million) in EBITDA. The Cement division recorded AED 428 million (US$116.5 million) in revenue, reflecting 21 per cent YoY growth, and generated AED 91 million (US$24.8 million) in EBITDA.
Profit after tax for H1 2025 amounted to AED 188 million (US$51.2 million), compared to AED 174 million (US$47.4 million) for the same period last year.
Saeed Ghumran Al Remeithi, Group Chief Executive Officer of EMSTEEL, commented: “Our strong H1 2025 performance underscores the resilience and adaptability of EMSTEEL in an evolving global market. The 9 per cent 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.
“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.”
As of 30 June 2025, the group maintained a net cash position of AED 372 million (US$101.3 million), compared to AED 337 million (US$91.76 million) as of 31 December 2024.
During the second quarter of 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.
The company 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.
