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Drax Group (DRX) investor relations material
Drax Group H2 2025 earnings summary
Complete event summary combining all related documents: earnings call transcript, report, and slide presentation.Executive summary
Delivered strong operational and underlying financial performance in 2025, with record renewable power and pellet production, supporting robust cash generation for growth and shareholder returns.
Advanced strategic priorities, including preparing for the new low-carbon dispatchable CfD regime, investing in U.K. energy transition, expanding FlexGen and battery storage, and acquiring a 260MW BESS portfolio.
Signed a low-carbon dispatchable CfD for Drax Power Station, marking a strategic inflection point for future earnings visibility.
Over £1 billion returned to shareholders and up to £2 billion available for further investment in growth.
Sustainability remains central, with top-tier third-party ratings, a public biomass supply chain tracker, validated climate targets to 2040, and new sustainability frameworks.
Financial highlights
Adjusted EBITDA reached £947 million in 2025, driven by strong December market conditions and record 15 TWh biomass power production, though down from £1,064 million in 2024.
Adjusted EPS rose to 137.7p, supported by share buybacks and lower net finance costs.
Net debt reduced to £784 million (0.8x EBITDA), with cash and facilities at £942 million.
Full-year dividend of 29.0p per share, up from 26.0p in 2024.
£300 million share buyback completed and £450 million new program commenced.
Outlook and guidance
Targeting post-2027 Adjusted EBITDA of £600–700 million per annum across pellet production, biomass generation, and FlexGen.
Expecting £3 billion free cash flow between 2025 and 2031, with over £1 billion allocated to shareholder returns and up to £2 billion for growth investments.
FlexGen expected to comprise a greater share of EBITDA mix over time.
BESS (battery storage) investments not yet included in medium-term guidance; update expected later in the year.
Forward power sales of £1.0 billion underpin earnings through Q1-27, with 13.3TWh contracted at an average price of £78/MWh.
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