Drax Group Reports First-Half Earnings, Raises Long-Term Targets
Drax Group reported first-half adjusted EBITDA of £279 million for 2026, a decline from the prior year due to lower forward power prices. Despite this, the company maintained its capital expenditure guidance and announced an expected 11% increase in full-year dividends to £0.322 per share. Drax also raised its adjusted EBITDA target for 2029 to between £650 million and £800 million, driven by investments in battery storage and renewable energy expansion. The company is diversifying beyond biomass into flexible generation, battery storage, solar, wind, and renewable services. It plans to manage up to 7.4 GW of capacity by 2029 and has proposed the acquisition of Bluefield Solar Income Fund (BSIF), which would add approximately 900 MW in operating assets and a large development pipeline. Drax is also exploring data-center developments at its Power Station site, potentially supporting significant long-term investment. Financially, net debt stood at £1.025 billion with cash reserves of around £630 million excluding the BSIF transaction. The company paused share buybacks to focus on growth opportunities and aims for over £150 million in annual cost savings by 2027.
Topics: acquisition dividend guidance earnings EBITDA target renewable energy