Longspur Clean Energy - Drax Group - Trading in Line, Optionality Growing

4 hours ago

Research on Drax Group plc (DRX:LON) from Longspur Clean Energy

Today’s update has confirmed trading is in line and the business is continuing to perform amidst a volatile geopolitical backdrop. Management has reiterated FY26 Adjusted EBITDA in line with consensus of c.£665m on the back of good operational performance year-to-date, while capital returns continue at pace with the first £75m buyback tranche complete and a second £75m tranche kicking off in May, alongside a 17.4p final dividend. Strategically, the closing of the Flexitricity acquisition and £11m of new Capacity Market awards, taking the total to £650m, extend earnings visibility and help to de-risk the pivot to flexible generation. Combined with over £1bn of forward power sales locked in for 2026–2028, the update points to earnings visibility, robust capital discipline, and growing strategic optionality.

View Full Research

Disclaimer & Declaration of Interest

The information, investment views and recommendations in this article are provided for general information purposes only. Nothing in this article should be construed as a solicitation to buy or sell any financial product relating to any companies under discussion or to engage in or refrain from doing so or engaging in any other transaction. Any opinions or comments are made to the best of the knowledge and belief of the writer but no responsibility is accepted for actions based on such opinions or comments. Vox Markets may receive payment from companies mentioned for enhanced profiling or publication presence. The writer may or may not hold investments in the companies under discussion.

Market Sectors

Blencowe releases final batch of assays from Beehive, JORC resource expected shortly

Harena appoints Jack Allardyce as chief financial officer

KEFI updates on Saudi assets, Jeff Rayner returns

Prospex Energy reports steady Selva production and higher Q1 revenues

MedPal AI acquires Remedi pharmacy assets to scale NHS dispensing operations

VP: Research

Polar Capital Holdings: Research

Impax AM: Research

AO World: Research

Eco Animal Health: Research

Oriole has 1.2 million ounces of gold from surface at Mbe

This commodity cycle will be bigger than 2002-2007

Bradda Head poised to benefit from lithium rebound

Halo Minerals plans IPO for high-margin Chilean copper tailings

The most extraordinary week in commodities I've ever witnessed

Longspur Clean Energy - Drax Group - Trading in Line, Optionality Growing