Drax Group PLC (DRX.L), a renewable energy company, announced that it now expects 2025 full-year Adjusted EBITDA to be around the top end of consensus estimates. Full-year expectations remain subject to continued strong operational performance.
In its trading update, the company highlighted that by 2050, demand for power is expected to double. At the same time, secure gas generation is projected to decline while intermittent renewable generation increases, creating a greater need for dispatchable and reliable generation to ensure energy security when wind and solar output is low.
The Group continues to target post-2027 Adjusted EBITDA of 600 million pounds -700 million pounds per annum before development expenditure. Between 2025 and 2031, approximately 3 billion pounds of free cash flow is expected to be delivered.
Drax's capital allocation policy remains unchanged. More than 1 billion pounds of free cash flow is expected to be directed to shareholder returns over the period, including the ongoing 450 million pounds three-year share buyback programme and the continuation of its long-standing policy to pay a sustainable and growing dividend. Since 2017, dividend per share has increased on average by 11% per annum.
Up to 2 billion pounds is expected to be allocated to incremental investment, primarily in flexible and renewable energy projects required in the UK, as well as opportunities to maximise value from the Drax Power Station site.
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June 12, 2026 17:14 ET Major central bank action was the focus this week in economic news. The European Central Bank became the first major central bank to move in response to the rising inflationary pressures in the backdrop of the conflict in the Middle East. In North America, the U.S. inflation and trade data as well as Canada’s central bank decision gained attention. The Chinese trade data was the main news in Asia.