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Drax Group Reports Strong Start to 2025 with Strategic Investments and Sustainability Initiatives

Story Highlights
  • Drax Group expects strong 2025 EBITDA, driven by robust performance and strategic investments.
  • Drax advances sustainability with a low-carbon cement JV and updated biomass policy.
  • Looking for the best stocks to buy? Follow the recommendations of top-performing analysts.

Drax Group plc ( (GB:DRX) ) has shared an update.

Drax Group plc announced a strong operational performance in early 2025, with expectations for full-year adjusted EBITDA at the top end of consensus estimates. The company is progressing with a £300 million share buyback program and plans to enhance its capacity through investments in pumped storage and hydro projects. Drax is also commissioning new Open Cycle Gas Turbines and has secured significant capacity market agreements, extending its earnings visibility to 2043. The company is committed to sustainable practices, including a joint venture for low-carbon cement production and an updated Biomass Sourcing Policy.

Spark’s Take on GB:DRX Stock

According to Spark, TipRanks’ AI Analyst, GB:DRX is a Outperform.

Drax Group plc has strong cash flow and profitability, supported by attractive valuation metrics. Regulatory uncertainties and inconsistent revenue growth present challenges, but strategic initiatives and share buybacks reinforce shareholder value. Technical indicators suggest cautious optimism.

To see Spark’s full report on GB:DRX stock, click here.

More about Drax Group plc

Drax Group plc operates in the energy sector, focusing on renewable power generation, biomass production, and system support services. The company is a leader in flexible renewable generation, aiming to support the UK’s transition to a clean power system with its diverse portfolio, including pumped storage, hydro, and biomass assets.

YTD Price Performance: -4.39%

Average Trading Volume: 1,681,731

Technical Sentiment Signal: Sell

Current Market Cap: £2.15B

For a thorough assessment of DRX stock, go to TipRanks’ Stock Analysis page.

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