Drax Group (LON: DRX), the power generator that runs the UK’s largest biomass plant and balances electricity supply on the National Grid, told markets in a pre-market update today that full-year profit will come in at the top end of forecasts.
The stock opened at 852.5p, up from Wednesday’s close of 819.5p, putting shares well within their 52-week range of 636.86p to 918.75p and closer to the top than the bottom.
In the trading update, Drax said it now expects adjusted EBITDA, a measure of underlying operating profit, to land around the top of the consensus range of £680m to £711m, up from a previous consensus estimate of £698m. The company pointed to continued strong operational performance since its half-year results, including system-balancing activity that helped meet power demand through the summer heatwave, and to the completed acquisition of Bluefield Solar Income Fund.
Drax completed the £561m equity value, £1,082m enterprise value purchase of Bluefield Solar on 31 July, adding roughly 0.9GW of operational solar and wind capacity, and consolidated the business into its results from 1 August. To fund the deal, Drax drew £0.8bn under a bridge facility and repaid £0.3bn of Bluefield’s existing borrowing, which will push net debt against EBITDA above the company’s long-term target of around 2x through this year, before it delevers back to that level by the end of 2027.
Chief executive Will Gardiner pointed to the group’s operational performance through the summer heatwave as generation assets were called on repeatedly to keep the grid stable, while the company separately credited the Bluefield acquisition as part of the upgraded guidance.
Our strong operational performance has continued into the second half of 2026, as our generation assets have helped meet power demand through the summer heatwave, turning up and turning down as required to help balance the system.
Will Gardiner, Drax Group CEO
Drax will host a Capital Markets Day on 23 November, when it plans to set out more detail on its longer-term growth strategy, including how it intends to integrate the newly acquired Bluefield renewables portfolio.