Emsteel Building Materials Pjsc · ADX:EMSTEEL
Emsteel Building Materials Pjsc — H1 2026 Earnings Presentation
24 slides from Emsteel Building Materials Pjsc's earnings presentation, July 2026
Slide 1: EMSTEEL Q2 and H1 2026 Financial Results
EMSTEEL Q2 and H1 2026 Financial Results Public
Slide 2: Legal Disclaimer
Legal Disclaimer These materials have been prepared by EMSTEEL Building Materials PJSC (“EMSTEEL” or the “Company”). The Company relies on information obtained from sources believed to be reliable. No representation, warranty or undertaking, stated or implied, is given as to the accuracy of the info
Slide 3: Table of Contents
TABLE OF CONTENTS HSE and ESG 4 Market Context 7 Financial and Operational Highlights 12 Appendix 19 EMSTEEL GROUP 3
Slide 4: HSE and ESG
HSE and ESG Public 4
Slide 5: Focus on HSE Delivers Tangible Results
Focus on HSE Delivers Tangible Results EMSTEEL continuously implements measures to further enhance health and safety As of Q2’26, EMSTEEL Group achieved a Lost-Time Injury Frequency Rate standards across the Group. The following are some of the key initiatives the (LTIFR) of 0.16 and a Total Recorda
Slide 6: Q2'26 - On track to achieve Decarbonization targets
Q2’26 - On track to achieve Decarbonization targets Group Emissions* 0.93 0.91 0.86 0.78 0.72 0.67 0.66 0.69 0.64 0.65 0.65 0.61 0.68 0.68 0.64 0.64 0.64 0.55 2,588 1,996 2,128 2,362 2,230 2,357 1,674 1,807 3,203 2,535 2,553 2,605 2,205 2,117 1,091 2,057 1,029 1,922 2019 2020 2021 2022 2023 2024 202
Slide 7: Market Context
Market Context Public 7
Slide 8: Global Steel Demand: stabilising at +0.3% in 2026; GCC continues growth
Global Steel Demand: stabilising at ▲+0.3% in 2026; GCC continues growth despite the conflict disruption Apparent steel use, growth 2026F, by region %, worldsteel SRO Apr'26 World Demand 2026F World Demand 2027F India 7.4% 1,724 Mt 1,762 Mt GCC 3.9% ▲+0.3% ▲+2.2% United States 1.7% UAE demand: in 20
Slide 9: Raw material prices remained elevated during Q2'26
Raw material prices remained elevated during Q2’26, before declining toward the end of the quarter as demand weakened Global Iron Ore prices in Q2’26 : Iron Ore Fines 65% Fe, CFR China, USD/t • By the end of the Q2’26 declined by ▼-9% vs the peak 135 price in Q1’26, due to higher Chinese port invent
Slide 10: Weaker demand and lower raw material costs led to price correction
By Jun’26 weaker demand and lower raw material costs led to a correction in semi-finished and finished steel products prices Billet, CFR Southeast Asia, USD/t By the end of the Q2’26, billet prices decreased by 530 approximately ▼-6% from their peak in May’26. 513 510 At the same time Q2’26 billet p
Slide 11: UAE steel imports declined by 40% following Mar'26 disruption
Following the disruption in Mar’26, UAE steel imports declined by 40%, driving increased focus on domestic primary steel production UAE steel imports by month, kt 801 Steel Imports (Jan–May 2026 vs 2025) 739 717 707 694 ▼ -40.5% volume · ▼ -44.8% value 585 578 This is a UAE-specific decline due to t
Slide 12: Financial and Operational Highlights
Financial and Operational Highlights 12
Slide 13: Q2'26 Sales performance
Q2’26 Sales performance In Q2’26 sales of finished steel products remained in line with Q2’25. In Q2’26 EMSTEEL total cement and clinker sales grew by ▲+28% YoY, reaching 1.1m tonnes, reflecting strong demand during the period. The Group's steelmaking plants operated at ~100% utilization rate. With
Slide 14: H1'26 Sales performance
H1’26 Sales performance In H1’26 sales of finished steel products decreased by ▼-4% YoY, to In H1’26 EMSTEEL total cement and clinker sales grew by ▲+30% YoY, 1.5m tonnes. The decrease was primarily attributable to a planned reaching 2.3m tonnes. maintenance shutdown of a rolling mill in Q1’26. Clin
Slide 15: Q2'26 Financial results
Q2’26 Financial results In Q2’26 EMSTEEL Revenue was AED 2.4bn, up ▲+11% YoY. In Q2’26 EBITDA reached AED 457m, up ▲+67% YoY. EBITDA margin Emirates Steel Revenue increased by ▲+9% YoY, primarily due to ▲+10% expanded to 19.1% compared to 12.8% in Q2’25. The improvement was YoY growth in average sel
Slide 16: H1'26 Financial results
H1’26 Financial results In H1’26 EMSTEEL Revenue was AED 4.6bn, up ▲+6% YoY. In H1’26 EBITDA reached AED 941m, up ▲+74% YoY. EBITDA margin expanded to 20.6% compared to 12.6% in H1’25. Emirates Steel Revenue increased by ▲+3% YoY, primarily driven by a ▲+6% increase in the average selling price for
Slide 17: Persistent FCF generation setting up foundation for future growth
Persistent FCF generation setting up foundation for future growth and enhancing financial flexibility In Q2’26 EMSTEEL reported OCF of AED 407m, up ▲+20% YoY, and FCF of Since the merger in Oct’21, EMSTEEL has steadily improved its leverage AED 355m, up ▲+30% YoY. YoY improvement is primarily driven
Slide 18: Capex focused on maximizing current business value and diversifying product portfolio
EMSTEEL Capex is focused on maximizing current business value and diversifying product portfolio In Q2’26 total Capex increased by +36% YoY, primarily driven by Growth Asset Enhancement Programme 2025 - 2027 Capex, which reached AED 45m (vs AED 5m in Q2’25). At the same time, total Maintenance Capex
Slide 19: Appendix
Appendix 19
Slide 20: Consolidated statement of financial position
Consolidated statement of financial position Assets, AED mn Q2’26 2025 2024 Equity and Liabilities Q2’26 2025 2024 Non-current assets Net equity 9,804 9,244 8,720 PPE 6,139 6,241 6,416 Non-current liabilities Goodwill - - - Lease liabilities 315 323 321 Right-of-use assets 195 207 214 Provision for
Slide 21: Consolidated statement of profit or loss
Consolidated statement of profit or loss AED mn 2Q’26 2Q’25 1H’26 1H’25 Revenue 2,390 2,144 4,558 4,300 Cost of sales (1,977) (1,871) (3,719) (3,787) Gross profit 413 273 839 514 Selling and distribution expenses (17) (18) (27) (29) General and administrative expenses (101) (127) (199) (247) Other i
Slide 22: Consolidated statement of cash flows
Consolidated statement of cash flows AED mn 2Q’26 2Q’25 1H’26 1H’25 Operating cash flows before movements in working capital 474 291 959 569 Net movements in working capital (62) 54 (282) (342) Cash generated from operations 411 345 677 227 Employees' end of service benefit paid (4) (6) (7) (11) Cor
Slide 23: FY Operational & Financial results
FY Operational & Financial results Steel Cement & Clinker * Financial Results Production, kt Production, kt Revenue, AED bn EBITDA, AED bn & EBITDA Margin, % 3,327 3,404 3,300 2,964 3,237 3,254 1.3 2,835 2,246 1.2 2,695 2,184 8.9 8.9 1,878 8.3 1,839 0.9 14.2% 13.9% 10.9% 2023 2024 2025 2023 2024 202
Slide 24: Thank You
THANK YOU Gleb Diachkov-Gertcev Director of Investor Relations ir@emsteel.com Public
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