Drax Group (DRX) Trading update summary

Upgraded outlook and operational performance

• Upgraded 2026 Adjusted EBITDA guidance to the top of consensus estimates, driven by strong operational performance and system support during the summer heatwave.

• Successful completion and integration of the Bluefield Solar Income Fund (BSIF) acquisition, adding 0.9GW of operational solar and wind and a 2.9GW development pipeline.

• BSIF acquisition supports diversification into solar and wind, complementing existing flexible generation and biomass businesses, bringing total managed capacity to approximately 6.1GW.

• Integration plan for BSIF is progressing, with plans to operate it as a dedicated segment and adjust reporting from 2027.

Financial position and capital allocation

• £0.8 billion bridge facility drawn to fund the BSIF acquisition, with plans to refinance in due course.

• Net debt to Adjusted EBITDA expected above long-term target in 2026 due to acquisition, with deleveraging targeted by end of 2027.

• 2026 capital expenditure expected at £210–250 million, inclusive of BSIF, with potential for incremental investment in new solar capacity.

Contracted sales and growth initiatives

• Over £1 billion in contracted forward power sales between 2026 and 2028, with 14.2TWh net RO, hydro, and gas sales at an average price of £84.9/MWh.

• Substantially contracted all external biomass volumes required for Drax Power Station during the new low carbon CfD period (April 2027–March 2031).

• Ongoing development of a large-scale data centre at Drax Power Station, with a first phase of approximately 100MW.