Drax Group (DRX) Trading update summary

Operational performance and outlook

• Strong operational performance supports UK energy security amid geopolitical uncertainty.

• Full year 2026 Adj. EBITDA expected in line with consensus estimates (£665m, range £643–£682m).

• Assets provide over 5% of UK electricity and up to 18% of renewable power at peak.

• Supply chain remains resilient with primary biomass sourcing from North America.

• Ongoing optimisation of generation to meet high demand periods.

Regulatory and market developments

• UK Government to remove Carbon Price Support from April 2028; no change to expectations.

• Electricity Generator Levy extended and increased, but not expected to impact 2026 Adj. EBITDA.

• From April 2027, Drax Power Station to operate under CfD, exempt from EGL.

FlexGen and asset development

• Cruachan Power Station units 1 and 2 performing well; units 3 and 4 in planned outage and refurbishment.

• Hirwaun Power Station (first of three OCGT plants) to come under control soon.

• Flexitricity acquisition completed, supporting GW-scale BESS pipeline ambitions.

• Over £500m committed to BESS assets and tolling contracts, operations from late 2027.