EMSTEEL, a publicly traded manufacturer of steel and building materials, has revealed its financial performance for the first half of 2025. The group‘s results highlight its resilience amid challenges in the global steel industry and its ongoing efforts to solidify its market leadership in the UAE, according to a statement.
During this period, the Group showcased remarkable operational performance, achieving a 24 percent year-on-year (YoY) increase in sales volumes of finished steel products, totaling 1,616 thousand tons. This growth can be attributed to sustained momentum in the UAE’s construction sector and EMSTEEL’s solid market presence. In H1 2025, strong demand and optimized capacity utilization facilitated the full conversion of semi-finished products into finished goods, enhancing customer service. Furthermore, cement and clinker sales volumes surged by 21 percent YoY, reaching 1,613 thousand tons.
Financial highlights for H1 2025
Despite a 4 percent YoY decline in average steel prices and a strategic pivot towards prioritizing the sale of finished products—while phasing out semi-finished product sales in H1 2025, which had accounted for 9 percent 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 percent increase compared to the same period last year. EBITDA climbed to AED540 million ($147 million), reflecting a 6 percent YoY increase, with an EBITDA margin of 12.6 percent, down from 12.8 percent in H1 2024. The margin pressure stemming from lower prices was alleviated by improved production costs in Q2 2025, enhanced capacity utilization, and ongoing process optimization initiatives. Profit after tax for H1 2025 reached AED188 million, up from AED174 million for the same period last year.
The Emirates Steel division contributed AED3.9 billion in revenue, representing a 7 percent increase compared to H1 2024, and generated AED449 million in EBITDA. Meanwhile, the Emirates Cement division recorded AED428 million in revenue, reflecting 21 percent YoY growth, and produced AED91 million in EBITDA. Notably, the Pipes & Other segment is reported as Assets Held for Sale, indicative of its ongoing divestment process, and this segment contributed AED90 million in revenue during the period. As of June 30, 2025, the Group maintained a robust net cash position of AED372 million, compared to AED337 million as of December 31, 2024.
The Group’s revenue for Q2 2025 increased by 18 percent, with EBITDA growing by 27 percent compared to the same period last year. This strong financial performance during Q2 2025 was driven by the same factors outlined for H1 2025, along with a low base effect from Q2 2024 when EMSTEEL’s operations were partially affected by adverse weather conditions.
Achieving “AA” ESG rating
In terms of 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. This rating underscores EMSTEEL’s responsible carbon reduction initiatives and exceptional workforce health and safety practices, with performance across the majority of ESG categories ranking above global industry averages. Additionally, EMSTEEL entered into a strategic partnership with Finland’s Magsort to produce decarbonized cement, following a successful pilot at its Al Ain plant utilizing 10,000 tons of materials designed to reduce carbon, developed through incorporating steel-slag.
This milestone strengthens EMSTEEL’s circular economy model and bolsters its decarbonization targets for 2030 and 2050 across the steel and cement value chains. Furthermore, EMSTEEL launched its inaugural Green Finance Framework, enabling the issuance of green bonds and loans to fund low-carbon steel and cement projects. Aligned with global standards, this initiative reinforces EMSTEEL’s sustainability strategy and supports its long-term net-zero ambitions.
Read more: Abu Dhabi’s EMSTEEL achieves ESG Leader status with ‘AA’ provisional rating from MSCI
Focus on value-added products
Eng. Saeed Ghumran Al Remeithi, group chief executive officer of EMSTEEL, stated: “Our strong H1 2025 performance underscores the resilience and adaptability of EMSTEEL in an evolving global market. The 9 percent 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 decarbonization 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.”
