Drax Group (LSE:DRX) announced it now expects full-year 2026 adjusted EBITDA to land around the top of the range of analyst consensus estimates, which stood at £698 million as of 4 September, with a range of £680 million to £711 million.
The upgrade follows strong operational performance since its half-year results and the completion of its £561 million acquisition of Bluefield Solar Income Fund on 31 July.
Drax, the UK power generator known for biomass, hydro and pumped storage, said the deal brings total capacity under management to approximately 6.1GW, adding around 0.9GW of operational solar and wind alongside a 2.9GW development pipeline of solar and battery storage.
"Our strong operational performance has continued into the second half of 2026, as our generation assets have helped meet power demand through the summer heatwave", said chief executive Will Gardiner, adding that the BSIF integration "is going well".
The Group drew £0.8 billion under a bridge facility to fund the acquisition and expects net debt to Adjusted EBITDA to sit above its long-term target of around 2 times in 2026, before de-levering to that level by the end of 2027.
Full-year capital expenditure guidance remains £210 million to £250 million, inclusive of the BSIF portfolio.
As at 15 September, Drax held over £1 billion of contracted forward power sales for 2026 to 2028 on its RO, hydro and pumped storage assets.
Drax will host a Capital Markets Day on 23 November to set out its growth plans.
News Intelligence what this means for the company
Drax has raised its 2026 EBITDA guidance to the top of analyst consensus (£698m range: £680–711m) following strong operational performance and completion of its £561m Bluefield Solar acquisition on 31 July, which adds 0.9GW of operational solar and wind capacity plus a 2.9GW development pipeline. The upgrade signals confidence in both asset performance and integration, though the company expects leverage to exceed its 2x target in 2026 before de-levering by end-2027.
The guidance lift and successful BSIF integration reinforce Drax's transition toward renewable generation and storage, but near-term leverage above target (funded by £0.8bn bridge facility) creates a refinancing dependency that will test market conditions through 2027. The £1bn+ of contracted forward power sales for 2026–2028 provides earnings visibility.
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