Earnings Report

Emsteel Building Materials

H1 26

1. Company Overview & Earnings Context

EMSTEEL Building Materials PJSC is the UAE's largest integrated steel and building materials company, producing steel, cement and concrete blocks to support domestic infrastructure and construction projects. During H1 2026, the Group delivered a strong financial performance despite regional geopolitical challenges, supported by operational excellence, disciplined cost management and favourable market conditions across its Steel and Cement businesses.

2. Financial Performance Snapshot

Revenue: AED 4.56 Billion
Gross Profit: AED 839.0 Million
Operating Profit: AED 620.7 Million
Finance Income: AED 16.9 Million
Finance Costs: AED 20.8 Million
Profit Before Tax: AED 616.8 Million
Income Tax Expense: AED 56.3 Million
Net Profit: AED 560.5 Million
Basic & Diluted Earnings Per Share (EPS): AED 0.082

Compared with H1 2025:

Revenue increased 6.0% to AED 4.56 billion.
Gross profit increased 63.3% to AED 839.0 million.
Operating profit increased 155.2% to AED 620.7 million.
Profit before tax increased 199.7% to AED 616.8 million.
Net profit increased 198.1% to AED 560.5 million.
Earnings per share increased from AED 0.027 to AED 0.082.

3. Operational Highlights & Key Metrics

Total Assets: AED 11.76 Billion
Total Equity: AED 9.80 Billion
Cash & Bank Balances: AED 1.64 Billion
Property, Plant & Equipment: AED 6.14 Billion
Inventories: AED 2.06 Billion
Trade & Other Receivables: AED 1.65 Billion
Net Cash Generated from Operating Activities: AED 669.1 Million
Capital Expenditure: AED 200.9 Million
Steel Division Revenue: AED 4.00 Billion
Steel Division Operating Profit: AED 491 Million
Cement & Blocks Revenue: AED 556 Million
Cement & Blocks Operating Profit: AED 130 Million

4. Key Performance Drivers

EMSTEEL's strong performance was driven by higher profitability across both its Steel and Cement & Blocks divisions, supported by operational efficiencies, disciplined cost management and favourable market conditions. While regional geopolitical developments resulted in higher logistics costs and lower export activity, these headwinds were more than offset by improved operating performance. The disposal of the non-core Anabeeb division at the end of 2025 also streamlined the business, allowing management to focus on its core steel and building materials operations.

5. Outlook & Forward Guidance

Management remains focused on supporting the UAE's industrial growth by ensuring market stability, supply continuity and operational excellence. The Group believes it is well positioned to expand both domestically and internationally while creating new growth opportunities and strengthening its role as the UAE's national industrial champion.

6. Investor Takeaway

EMSTEEL delivered an impressive H1 2026 performance, with revenue growth translating into a sharp increase in profitability through strong cost control and operational execution. Supported by a robust balance sheet, healthy cash generation and improved margins across its core businesses, the Group enters the second half of 2026 from a position of financial strength.