UK's Drax Group 2025 adjusted EBITDA beats estimates

Drax

26/02/2026 07:15

Overview

UK renewable energy provider's 2025 adjusted EBITDA beat analyst expectations

Company achieved record renewable generation, producing 6% of UK power

Company completed £300 mln share buyback, started £450 mln extension

Outlook

Drax targets post-2027 Adj. EBITDA of £600-700 mln annually

Company expects £3 bln free cash flow from existing business pre-growth investment by 2031

Drax signed low carbon dispatchable CfD with UK Government for biomass generation from 2027

Result Drivers

RENEWABLE GENERATION - Record levels of renewable generation contributed to strong operational performance

LOW CARBON DISPATCHABLE CfD - Signing of CfD for Drax Power Station provides foundation for future energy security

INVESTMENTS IN FLEXIBLE ENERGY - Investments in BESS and FlexGen support growth strategy

Company press release: ID:nRSZ4527Ua

Key Details

Metric
Beat/Miss
Actual
Consensus Estimate
FY Adjusted EBITDA
Beat
GBP 947 mln
GBP 913.73 mln (10 Analysts)
FY Dividend
GBP 0.29
FY Net Debt
GBP 784 mln
FY Operating Profit
GBP 241 mln
FY Pretax Profit
GBP 190 mln


Analyst Coverage

The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 5 "strong buy" or "buy", 3 "hold" and 1 "sell" or "strong sell"

The average consensus recommendation for the renewable fuels peer group is "buy"

Wall Street's median 12-month price target for Drax Group PLC is GBP923.00, about 4.6% above its February 25 closing price of GBP882.50

The stock recently traded at 12 times the next 12-month earnings vs. a P/E of 9 three months ago

For questions concerning the data in this report, contact Estimates.Support@lseg.com. For any other questions or feedback, contact reuters.support@thomsonreuters.com.

(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)