Drax 1H26 Results First Take

Research evidence excerpt

Drax 1H26 Results First Take

C A Z E N O V E Europe Equity Research

30 July 2026

Drax Not Rated

DRX.L, DRX LN

1H26 Results First Take Price (29 Jul 26):760p

Noteworthy Areas: Drax has reported 1H26 Adj. EBITDA down 29% y/y driven European Utilities & Clean Energy

by a step-down in biomass generation. The company has introduced FY29 Adj. Pavan Mahbubani, CFA AC

EBITDA guidance of £650-800mn, an update of the £600-700mn post-2027 (44-20) 7134-3056

guidance, reflecting the expected contribution of BESS capacity additions. The pavan.mahbubani@jpmorgan.com

company plans to increase its FY26 dividend by 11% to 32.2p/shr. During the half- Mukund Verma

year the company has completed its Flexitricity acquisition as well as commencing (44-20) 7742-4181

operations on the first of three OCGTs. mukund.verma@jpmorgan.com

J.P. Morgan Securities plc

• Outlook & Guidance: Drax has introduced FY29 Adj. EBITDA guidance of Specialist Sales contact details:

£650-800mn which includes Pellet Production, Biomass Generation, Flexgen

and 0.7 GW of BESS developments expected to be commissioned from 2027 Ian Mitchell - Specialist Sales - European Energy

onwards. The company continues to target >£150mn of target annual structural (44-20) 7134-1356

savings per year from 2027 vs a 2024 cost base. The company expects capital ian.e.mitchell@jpmorgan.com

investment to be £210-250mn for the year, £100mn of growth capex in BESS,

J.P. Morgan Securities plc (which

pumped storage, hydro upgrades and OCGTs as well as £130mn of

conducts its UK investment banking maintenance and other capex including an outage at Drax Power Station.

business activities as J.P. Morgan

• Conference Call Details: At 9:00 AM UKT, the link to join can be found here Cazenove) is acting as Sole Financial