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Drax Group plc (DRX) Share Price & Analysis
DRX Stock Chart & Stats
- Day’s Range
- GBX 805.00 - GBX 824.50
- 52-Week Range
- GBX 699.50 - GBX 937.50
- Previous Close
- GBX 823.00
- Volume
- N/A
- Average Volume (3M)
- 710.82K
- Market Cap
- GBP 2.72B
- Enterprise Value
- GBP 3.64B
- Total Cash (Recent Filing)
- GBP 179.60M
- Total Debt (Recent Filing)
- GBP 1.20B
- Price to Earnings (P/E)
- 53.9
- Beta
- 0.73
- Next Earnings
- Feb 25, 2027 (Est.)
- EPS Estimate
- 0.6
- Last Dividend Ex-Date
- Sep 24, 2026
- Dividend Yield
- 5.90%
Bulls Say, Bears Say
Bulls Say
Strong Cash Generation
Operating cash flow of ~809.8M and free cash flow of ~527.8M provide internal funding for maintenance, investment and obligations. Free cash flow also rose ~2.0% year over year, supporting resilience even as reported earnings weakened.
Manageable And Improving Leverage
Lower debt and a debt-to-equity ratio of ~0.67 improve financial flexibility and reduce balance-sheet pressure. This gives Drax more capacity to fund operations and manage volatility than during its higher-leverage period.
Diversified Renewable And Flexibility Platform
Combining renewable generation with hydro, flexible assets and system-support services diversifies Drax’s operating model. These capabilities address persistent decarbonisation and grid-reliability needs rather than relying on a single revenue stream.
Bears Say
Severe Profitability Deterioration
The sharp decline in net income and margins shows that recent earnings are materially less profitable than the prior run-rate. If margins do not recover, weaker retained earnings and lower returns could constrain reinvestment and shareholder returns.
Declining Revenue Trend
Lower revenue indicates reduced top-line momentum across the generation and related-services model. Sustained contraction would make it harder to absorb fixed operating costs, support investment and rebuild profitability without stronger output or pricing.
Weaker Equity Base And Returns
A smaller equity base combined with sharply lower ROE signals reduced profitability and less efficient use of shareholder capital. This weakens the quality of the balance sheet and may limit the company’s ability to compound value through internal returns.
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Drax Group plc Stock Smart Score
Company Description
Drax Group plc
Drax Group plc, operating alongside its various subsidiaries, primarily focuses on generating renewable energy across the United Kingdom. Its business activities are structured into three distinct divisions: Generation, Customers, and Pellet Production. The Generation segment delivers flexible, sustainable power and critical grid support services. The Customers division offers energy management solutions and non-generation system assistance. Low-carbon fuel production is the core activity of the Pellet Production segment. Drax possesses a notable collection of power generation assets, including the 2,000-megawatt (MW) Drax Power Station in Selby, North Yorkshire, which serves as its primary facility. It also oversees the 440 MW Cruachan Power Station, a pumped-hydro storage site located in Argyll and Bute, and operates the Lanark and Galloway hydro-electric stations in southwest Scotland, which collectively supply 126 MW. In addition to power generation, the company runs the Daldowie fuel plant, converting sludge into dry, low-odour fuel pellets. Drax further manufactures and markets compressed wood pellets and supplies renewable electricity. Incorporated in 2005, Drax Group plc is headquartered in Selby, United Kingdom.
- Sector
- Utilities
- Industry
- Renewable Utilities
- CEO
- Dwight Daniel Willard Gardiner
- Employees
- 2,974
- Website
- www.drax.com
- Address
- Drax Power Station, Selby, NY, YO8 8PH, GB
Drax Group plc (DRX) Earnings & Revenues
DRX Earnings Call
Earnings Call SentimentPositive
The call presented a broadly positive strategic and financial position: strong 2025 operational execution, record renewable and pellet production, robust balance sheet (0.8x leverage) and clear capital allocation plans including shareholder returns and a sizeable growth pipeline (notably >700 MW of BESS and data center optioning). Material negatives were disclosed — notably significant impairments (total ~GBP 385m) tied to the Canadian pellet business and paused projects, workforce reductions, and near-term operational outages — but management framed these as strategic realignment and disciplined capital allocation while emphasizing contracted cash flows from the newly signed low-carbon dispatchable CfD and the growth pathway in FlexGen. On balance, the positive operational and financial momentum, the secured CfD, and the progressing BESS/data center pipeline outweigh the setbacks and one-time charges.
View all GB:DRX earnings summariesDRX Stock 12 Month Forecast
Average Price Target
Technical Analysis
Overall Consensus
| Indicator | Bullish | Neutral | Bearish |
|---|---|---|---|
| Overall Consensus | 14 | 2 | 6 |
| Technical Analysis | 4 | 2 | 4 |
| Moving Averages | 10 | 0 | 2 |
