Drax Group (DRX) Q1 2025 earnings summary

Executive summary

• Strong operational performance across FlexGen, Pellet Production, and Biomass Generation, supporting UK energy security and renewables transition.

• 2025 full year Adjusted EBITDA expected at the top end of consensus (£848–896 million), with recurring post-2027 Adjusted EBITDA targeted at £600–700 million.

• Disciplined capital allocation with significant shareholder returns and continued investment in flexible, renewable generation assets.

Financial highlights

• £300 million share buyback program underway, with £207 million completed to date.

• Final 2024 dividend of 15.6p per share, total 2024 dividend of 26.0p (2023: 23.1p).

• As of April 2025, ~£2 billion in contracted forward power sales (2025–2027), 21.1TWh at £93.6/MWh average.

• Over £650 million in index-linked Capacity Market agreements, extending contracted earnings visibility to 2043.

Outlook and guidance

• 2025 Adjusted EBITDA expected at the top end of consensus, subject to continued strong operational performance.

• Ongoing target for recurring post-2027 Adjusted EBITDA of £600–700 million.

• Negotiations ongoing for a low-carbon dispatchable CfD for Drax Power Station (2027–2031), with contract signing targeted for summer 2025.