Drax Group (LON:DRX) Posts Quarterly Earnings Results

Drax Group (LON:DRX) issued its quarterly earnings results on Thursday. The company reported GBX 29.80 EPS for the quarter, Digital Look Earnings reports. Drax Group had a return on equity of 3.94% and a net margin of 1.35%.

Here are the key takeaways from Drax Group’s conference call:

• H1 adjusted EBITDA was £279 million, while net debt remained modest at £1.025 billion, or 1.3x last-twelve-month EBITDA. Management proposed an 11% increase in the full-year dividend to 32.2 pence per share and has returned £47 million through share buybacks year to date.
• Drax raised its 2029 EBITDA target to £650 million–£800 million, with the £50 million–£100 million increase attributed to its battery energy storage investments. More than 700 MW of owned and tolled BESS capacity has been committed, although the upper end of the range depends on market volatility and operating conditions.
• The proposed acquisition of Bluefield Solar Income Fund is expected to complete after a court hearing on July 31, following 99% shareholder approval. The deal would add roughly 900 MW of operational wind and solar assets, £130 million of 2025 EBITDA, and a 2.9 GW development pipeline, diversifying Drax’s earnings with contracted renewable cash flows.
• Hirwaun’s 300 MW gas peaking plant began operations in May and operated for about 440 hours in grid-stabilization mode during June, demonstrating demand for flexible generation. However, sister plants Millbrook and Progress have been delayed by grid-connection issues and are now expected to commission from late 2026 through 2027.
• Drax is progressing plans for a data center at its power-station site, initially targeting a 100 MW planning application in the second half of 2026, followed by larger behind-the-meter phases. Management said discussions remain ongoing and did not indicate that an offtake agreement is imminent; the project also requires consideration of the station’s continuing security-of-supply role.

Drax Group Stock Down 0.6%

DRX stock opened at GBX 740.84 on Friday. The company has a current ratio of 1.07, a quick ratio of 0.32 and a debt-to-equity ratio of 62.90. The company’s 50 day moving average is GBX 774.30 and its 200 day moving average is GBX 840.68. The stock has a market cap of £2.49 billion, a price-to-earnings ratio of 36.68, a price-to-earnings-growth ratio of 0.10 and a beta of 0.62. Drax Group has a 1-year low of GBX 613.90 and a 1-year high of GBX 937.50.

Analyst Ratings Changes

DRX has been the topic of a number of research reports. Citigroup lowered their price objective on Drax Group from GBX 9,230 to GBX 8,160 and set a “neutral” rating on the stock in a research note on Friday, June 5th. Jefferies Financial Group reiterated a “buy” rating and set a GBX 920 target price on shares of Drax Group in a research report on Friday. Finally, Royal Bank Of Canada reiterated an “outperform” rating and set a GBX 1,000 target price on shares of Drax Group in a research report on Wednesday, May 6th. Two research analysts have rated the stock with a Buy rating and one has given a Hold rating to the company’s stock. Based on data from MarketBeat, the stock has an average rating of “Moderate Buy” and a consensus target price of GBX 3,360.

About Drax Group

Drax Group plc, together with its subsidiaries, engages in renewable power generation in the United Kingdom. It operates through three segments: Pellet Production, Generation, and Customers. The Pellet Production segment produces and sells biomass pellets. The Generation segment provides renewable, dispatchable power, and system support services to the electricity grid. The Customers segment supplies electricity and gas to non-domestic customers. The company owns and operates Drax Power Station located in Selby, North Yorkshire; Cruachan Power Station, a pumped storage hydro station, with an installed capacity of 440 megawatts (MW) located in Argyll and Bute; and Lanark and Galloway hydro-electric power stations with an installed capacity of 126 MW located in southwest Scotland.