Business

EMSTEEL Delivers $600 Million In Revenue for Q1-25

EMSTEEL, one of the largest publicly traded steel and building materials manufacturers in the region and listed on Abu Dhabi Securities Exchange (ADX), on Wednesday reported a revenue of $600 million for the first quarter of 2025.

The Group delivered strong operational performance during the period, increasing the volume of finished goods steel production by 17% compared to the levels produced in 2024, it said in a bourse disclosure this morning.

On the other hand, the volume of finished goods steel sales increased by 21% y-o-y to 811,000 tonnes, supported by continued momentum in the UAE’s construction activity and effective market positioning. In Q1 of 2024, almost 100,000 tonnes of semi-finished products (billets) were sold.

In this year’s first quarter, strong demand combined with optimised capacity utilisation allowed the conversion of all semi-finished products into finished products to serve the company’s customers. Furthermore, sales volumes for Emirates Cement increased by 17% y-o-y.

Despite a 6% y-o-y drop in average steel prices and the impact of negligible sales of semi-finished products in Q1 of 2025, which accounted for 10% of total revenues in Q1-2024, EMSTEEL reported revenues of $600 million, representing a 1% increase compared with the same period last year.

EBITDA reached $72.42 million, with an EBITDA margin of 12.3%, compared with 13.7% for the same period last year. Margin pressure from lower prices was mostly offset by improved capacity utilisation.

The company’s profit before tax was $25.59 94 million, with net profit after tax amounting to $23.41 million. The Emirates Steel division contributed $530 million in revenue, generating $61.53 million in EBITDA.  

The Emirates Cement division recorded revenue of $55.81 million, with EBITDA of $10.89 million. Within this division, the Pipes & Other segment is reported as Assets Held for Sale, reflecting its ongoing divestment process. This segment contributed $12.25 million in revenue.

As of 31 March 2025, the Group maintained a robust liquidity position, with $239.86 million in cash on hand, compared with $224.07 million as of 31 December 2024.

Strategic Highlights

EMSTEEL launched a $170.16 million Asset Enhancement Programme to enhance production capabilities and expand its product portfolio with high-strength, value-added steel solutions.

The Programme includes advanced upgrades to rolling mills, focusing on ES600 and ASTM Grade 80/100 rebars, and the future installation of a 500 KTPA new wire rod outlet. 

The company announced its comprehensive decarbonisation strategy, targeting a 40% reduction in GHG emissions in its Steel Business Unit and a 30% reduction in its Cement Business Unit by 2030, with a goal of net-zero emissions by 2050. 

EMSTEEL Group CEO Saeed Ghumran Al Remeithi said that the company’s performance in Q1 of 2025 underscored their ability to deliver consistent value through operational excellence and strategic foresight.

Amid a shifting global landscape, we continue to invest in innovation, sustainability, and regional partnerships that future-proof our business and reinforce our commitment to the UAE’s industrial growth, he said.

“Our strategic investments—ranging from decarbonisation and advanced production upgrades to regional logistics and solar infrastructure—demonstrate our long-term vision for sustainable, shareholder-driven growth. These initiatives are designed not only to strengthen our competitiveness, but also to unlock value across the business as we continue to align operational execution with environmental responsibility and market demand,” he added.

Global Business Magazine

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