EarningsQ4 2025 Earnings Report
MX:DRXN Q4 2025 EPS Results
Actual EPS-$9.29
Consensus EPS$13.95
Beat/MissMissed by -$23.25
One Year Ago EPS$11.34
MX:DRXN Q4 2025 Revenue Results
Actual Revenue$63.21B
Expected Revenue$72.44B
Beat/MissMissed by -$9.23B
YoY Revenue Growth-8.75%
Earnings Announcement Details
QuarterQ4 2025
Date02/26/2026
TimeBefore Open
Conference CallThursday, February 26, 2026
MX:DRXN Upcoming Earnings
Drax Group plc's next earnings date is estimated for February 25, 2027, based on past reporting schedules.
Q4 2025 Earnings Call Audio
No earnings call audio is available for this earnings event.
Q4 2025 Earnings Slide Deck
No slide deck is available for this earnings event.
Q4 2025 Earnings Call Summary
Earnings Call Sentiment|Positive
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.Company Guidance
Strong Group Financial Performance
Adjusted EBITDA of GBP 947 million in 2025; adjusted EPS 137.7p, up 7% versus 2024; net debt GBP 784 million representing 0.8x 2025 EBITDA (well below 2x target); total cash and committed facilities GBP 942 million.
Record Renewable and Pellet Production
Record biomass power generation of 15 TWh in 2025 and record pellet production of 4.2 million tonnes (new high), reinforcing vertical integration between U.S. South pellet operations and Drax Power Station.
Low-Carbon Dispatchable CfD Signed
Signed post-2027 low-carbon dispatchable Contract for Difference covering the equivalent of 6 TWh/year (~30% of unit load), enabling predictable contracted cash flows and flexibility to reprofile generation to high-value periods.
Free Cash Flow and Capital Allocation Plan
Target to generate around GBP 3 billion of free cash flow between 2025 and 2031 (GBP 0.5 billion delivered in 2025); plan to allocate initially over GBP 1 billion to shareholders (including an ongoing GBP 450 million buyback) and up to ~GBP 2 billion to growth investments.
Shareholder Returns and Buybacks
Completed GBP 300 million buyback in 2025 and commenced a further GBP 450 million program; purchased GBP 57 million under the new program to date; expected full-year dividend of 29p per share, up 11.5% year-over-year.
FlexGen & Battery Storage Progress
Built a gigawatt-scale BESS pipeline with operational control of over 700 MW of batteries across 5 sites; committed on the order of GBP 0.5 billion to batteries; acquired 260 MW development projects (Apatura) with options for +289 MW and tolling agreements for 450 MW; committed GBP 300 million to battery tolling agreements.
Strategic Technology & Optimization Acquisitions
Acquired Flexitricity for ~GBP 36 million to internalize asset optimisation capability (platform serving ~900 MW of third-party customers), strengthening in-house trading and optimisation of flexible assets.
Cruachan Pumped Storage Performance & Investment
Cruachan utilization increased from ~20% to ~60% since 2018; can run up to 16 hours at full load with >7 GWh stored energy; investing ~GBP 80 million (2025–2027) to replace 2 turbines to increase capability and extend value.
MX:DRXN Earnings History
The table shows recent earnings report dates and whether the forecast was beat or missed. See the change in forecast and EPS from the previous year.
Beat
Missed