Emsteel net profit jumps 99% to Dh190 million in Q3 on higher steel prices and cost control

Detailed summary

Revenue rises 15% to Dh2.5 billion despite a decline in steel sales volumes, while higher logistics costs weigh on quarterly margins.

Emsteel reported a 99 per cent year-on-year increase in net profit to Dh190 million in the third quarter of 2026, supported by higher steel selling prices, cost control measures and strong demand for building materials.

The Abu Dhabi-listed company said revenue rise 15 per cent to Dh2.5 billion, while earnings before interest, taxes, depreciation and amortization increased 35 per cent to Dh381 million.

The group's Ebitda margin improved to 15.3 per cent from 13.1 per cent in the same period last year, despite higher costs linked to regional geopolitical tensions and supply chain disruptions.

For the first nine months of 2026, Emsteel s revenue increased 9 per cent to Dh7 billion, while Ebitda jumped 61 per cent to Dh1.3 billion.

The company's steel division recorded revenue of Dh2.2 billion during the quarter, up 15 per cent year-on-year, while Ebitda increased 34 per cent to Dh306 million.

The improvement was supported by a 17 per cent increase in average selling prices for finished steel products and tighter control of selling, general and administrative expenses.

However, the division's Ebitda margin declined to 13.7 per cent from 18.2 per cent in the second quarter of 2026, reflecting rising raw material and logistics costs.

Emsteel said lower-cost inventories purchased earlier in the year were gradually replaced by more expensive materials transported through alternative routes because of the regional geopolitical situation.

Steel sales volumes declined 5 per cent to 770,000 tonnes, mainly due to restrictions affecting exports of heavy sections and sheet piles.

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