UK's Drax Group H1 adjusted EBITDA dips on lower power prices
UK's Drax Group H1 adjusted EBITDA dips on lower power prices
Overview
UK renewable power generator's H1 adjusted EBITDA fell 39% yr/yr to £279 mln
Adjusted basic EPS dropped to 29.8p from 65.6p yr/yr
Company returned £48 mln to shareholders via share buybacks, now paused pending BSIF deal
H1 EBITDA decline mainly due to lower power prices and planned/unplanned outages
Outlook
Drax expects FY-26 adjusted EBITDA in line with consensus estimates of £665 mln
Company targets adjusted EBITDA of £650-800 mln in 2029, excluding BSIF acquisition impact
Drax expects full-year 2026 dividend to rise 11% to 32.2 pence per share
Result Drivers
LOWER POWER PRICES - Co said lower achieved power prices were a primary driver of reduced H1 earnings
OUTAGES - Planned and unplanned outages, especially at Cruachan pumped storage and hydro, weighed on results
BIOMASS GENERATION - Lower forward contracted prices led to a 52% drop in Biomass Generation adjusted EBITDA
Company press release: ID:nRSd4559Oa
Key Details
Metric | Beat/Miss | Actual | Consensus Estimate |
H1 Adjusted EBITDA | Miss | GBP 279 mln | GBP 294.06 mln (2 Analysts) |
H1 Pretax Profit |
| GBP 222.30 mln |
|
Analyst Coverage
The current average analyst rating on the shares is "hold" and the breakdown of recommendations is 3 "strong buy" or "buy", 4 "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 GBp910.00, about 19.8% above its July 29 closing price of GBp759.50
The stock recently traded at 11 times the next 12-month earnings vs. a P/E of 12 three months ago
Reuters Recommended Reads
July 28 - Engie's First Hydro to upgrade Welsh hydropower plant
July 29 - Germany's Nordex beats Q2 revenue estimates, confirms FY guidance
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.)