EMSTEEL Group Achieves AED 2.2 Billion Revenue In First Quarter Of 2025

EMSTEEL Group has released its financial performance for the first quarter of 2025, showing a revenue of AED2.2 billion. This represents a slight increase of one percent compared to the same period in the previous year. The group's EBITDA was AED266 million, with an EBITDA margin of 12.3 percent, down from 13.7 percent in Q1 2024.

The Emirates Steel division was a major contributor, generating AED1.96 billion in revenue. The group saw a notable rise in finished steel product volumes, increasing by 17 percent from 2024 levels. Sales of these products also grew by 21 percent year-on-year to reach 811,000 tonnes, driven by strong demand in the UAE's construction sector and effective market strategies.

In early 2025, EMSTEEL Group initiated an Asset Enhancement Programme worth AED625 million. This programme aims to boost production capabilities and diversify its product offerings with high-strength steel solutions. Additionally, the group has embarked on a comprehensive decarbonisation strategy targeting significant reductions in greenhouse gas emissions by 2030.

The group has entered into strategic agreements with Hafeet Rail Infrastructure LLC and Minerals Development Oman (MDO). These partnerships will facilitate sustainable cross-border transportation of up to 4.2 million tonnes of raw materials annually from Oman to the UAE.

The Emirates Cement division reported revenue of AED205 million and an EBITDA of AED40 million. Sales volumes increased by 17 percent year-on-year. Within this division, the Pipes & Other segment is classified as Assets Held for Sale due to its ongoing divestment process, contributing AED45 million in revenue.

As of March 31st, 2025, EMSTEEL Group maintained strong liquidity with AED881 million in cash reserves, up from AED823 million at the end of December 2024. This financial stability supports the group's ongoing initiatives and strategic investments.

Sustainability Efforts and Future Projects

EMSTEEL Group is committed to achieving net-zero emissions by 2050 through its decarbonisation strategy. The plan includes reducing emissions by 40 percent in its Steel Business Unit and by 30 percent in its Cement Business Unit by 2030.

The group has partnered with Yellow Door Energy to develop the UAE's largest industrial solar photovoltaic rooftop project. This project involves a 31.5 MWp installation across 40 facility roofs in ICAD 1, Abu Dhabi, with commissioning expected in 2026.

In Q1 2024, nearly all semi-finished products were converted into finished goods due to strong demand and optimised capacity utilisation. This shift reflects EMSTEEL's ability to adapt to market needs effectively.

With inputs from WAM