Business
Trading Update
Drax Group plc anticipates its full-year 2025 Adjusted EBITDA to be at the top end of consensus estimates, driven by strong performance in FlexGen, Pellet Production, and Biomass Generation. The company is targeting £600-700 million in annual Adjusted EBITDA post-2027 and £3 billion in free cash flow from its existing business between 2025 and 2031, which will support over £1 billion in shareholder returns and up to £2 billion for growth investments in energy security, data centres, and flexible renewable energy. Drax has secured approximately £2.3 billion in contracted forward power sales through Q1 2027 and has completed a £300 million share buyback program, with a further £450 million program initiated. The company is also developing a GW-scale pipeline of Battery Energy Storage System opportunities, including the acquisition of three BESS projects totaling 260MW for £157.2 million. Furthermore, Drax is exploring options to develop a 100MW data centre at its power station site, with potential for over 1GW in the long term. Disclaimer*
About this update from Drax Group Plc
[{"type":"text","content":"\n\n11 December 2025\n \nDrax Group plc\n(\"Drax\", \"the Group\", \"Drax Group\", \"the Company\"; Symbol: DRX)\n \nTrading Update\nTrading update - highlights\n· Strong performance - FlexGen(1), Pellet Production and Biomass Generation\n· Full year 2025 expectations for Adj. EBITDA(2) around the top end of consensus estimates(3)\n \nAdj. EBITDA and free cash flow targets from existing business\n· Continuing to target post 2027 Adj. EBITDA of £600-700 million pa(4)\n· Targeting £3 billion of free cash flow(5) from the existing business (2025 to 2031), supporting:\n· >£1 billion returns to shareholders\n· Up to c.£2 billion for options to invest in growth\n \nOptions to invest in growth - energy security, data centres and flexible, renewable energy\n· FlexGen - flexible, renewable energy, including GW scale pipeline of BESS(6) opportunities\n· Drax Power Station site - development of options to utilise 4GW of capacity and grid access\n· Planning application in development for potential option for c.100MW data centre\n· Ambition to grow to >1GW data centre post 2031\n· Potential to further develop system support capabilities and FlexGen\n \nDrax Group CEO, Will Gardiner, said: \"It is vital that the UK maintains its energy security and delivers affordable routes to decarbonisation into the 2030s and beyond. Drax stands ready to invest in and grow our portfolio to deliver the renewable and flexible power the country needs while also supporting economic growth in the communities where we operate.\n \n\"By 2050, demand for power is expected to double, while secure gas generation reduces and intermittent renewable generation increases, meaning more dispatchable and reliable generation will be required to help keep the lights on when the wind isn't blowing and the sun isn't shining.\n \n\"Aligned to the UK's future energy needs and underpinned by a strong balance sheet, good cash generation, and a disciplined approach to capital allocation, we are working to maximise the value of our existing portfolio, while driving growth over the short, medium and long term.\n \n\"Our year to date operational and financial performance has been strong, and we are focused on delivering c.£3 billion of free cash flow ...