Drax ended 2025 with lower earnings but a stronger balance sheet and a clearer sense of where its future growth lies as the UK leans harder on flexible low-carbon power.
Adjusted EBITDA fell to £947m from £1,064m in 2024, reflecting weaker power prices and tougher market conditions.
Net debt dropped sharply from £992m to £784m and earnings per share rose to 137.7p, supported by share buybacks and lower finance costs. The full-year dividend increased 11.5% to 29.0p.
The key strategic development was the signing of a new low-carbon dispatchable Contract for Difference for Drax Power Station. The agreement provides longer-term revenue visibility and underpins the site’s role in supplying power during periods when renewable output is low.
During the year, Drax generated 15.0TWh of renewable electricity, accounting for around 6% of UK power and 11% of renewables.
Chief Executive Will Gardiner said: “In 2025, we produced more renewable power than ever before, delivering energy security for the UK. The signing of the new low carbon dispatchable CfD is an inflection point for the Group.”
The company continued to shift capital towards flexibility, committing around £0.5bn to battery storage projects totalling 710MW and advancing its FlexGen portfolio, which includes pumped storage, hydro and open-cycle gas turbines.
Operating profit fell to £241m due largely to £378m of non-cash impairments, including Canadian pellets and paused BECCS development but its cash generation remained solid at £1.0bn.
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