Annual Financial Report

Summary by AI ^BETAClose X

Drax Group PLC reported full-year results for the twelve months ended 31 December 2025, with Adjusted EBITDA decreasing to £947 million from £1,064 million in 2024, primarily due to lower achieved power prices, though Adjusted basic EPS increased to 137.7 pence from 128.4 pence, supported by share buybacks and lower finance costs. The company generated record renewable generation, contributing 6% of UK power, and proposed a dividend per share of 29.0 pence, an 11.5% increase from 2024. Significant events included the signing of a low carbon dispatchable Contract for Difference for Drax Power Station and a £300 million share buyback programme completion, with a £450 million extension commenced. The company also made commitments of approximately £0.5 billion in Battery Energy Storage Systems developments and an acquisition.

Disclaimer*

	Notes	As at 31 December
Assets
Non-current assets
Goodwill		396.2	415.1
Intangible assets		42.7	68.1
Property, plant and equipment		2,427.2	2,802.0
Right-of-use assets		69.6	100.9
Investments		-	3.6
Retirement benefit surplus		23.8	24.7
Deferred tax assets		37.0	48.6
Derivative financial instruments		24.4	81.7
		3,020.9	3,544.7
Current assets
Inventories		223.8	302.0
Renewable certificate assets		542.1	540.0
Trade and other receivables and contract assets		337.8	470.3
Derivative financial instruments		68.6	175.6
Current tax assets		0.1	-
Cash and cash equivalents		302.1	356.0
		1,474.5	1,843.9
Liabilities
Current liabilities
Trade and other payables and contract liabilities		(1,090.9)	(1,289.1)
Lease liabilities		(28.2)	(26.0)
Current tax liabilities		-	(9.6)
Borrowings		(61.3)	(119.0)
Provisions		(17.6)	(20.2)
Derivative financial instruments		(174.2)	(71.1)
		(1,372.2)	(1,535.0)
Net current assets		102.3	308.9
Non-current liabilities
Borrowings		(917.7)	(1,057.7)
Lease liabilities		(70.4)	(90.5)
Provisions		(85.0)	(75.7)
Deferred tax liabilities		(261.3)	(280.4)
Derivative financial instruments		(75.6)	(262.2)
		(1,410.0)	(1,766.5)
Net assets		1,713.2	2,087.1

Shareholders' equity
Issued equity	6	49.9	49.4
Share premium	6	448.5	443.8
Hedge reserve		(63.1)	(7.9)
Cost of hedging reserve		(12.8)	6.9
Other reserves	6	179.8	467.0
Retained profits		1,110.9	1,118.1
Total equity attributable to owners of the parent company		1,713.2	2,077.3
Non-controlling interests		-	9.8
Total shareholders' equity		1,713.2	2,087.1

	Issued equity £m	Share premium £m	Hedge reserve £m	Cost of hedging £m	Other reserves £m	Retained profits £m	Non- controlling interests £m	Total £m
At 1 January 2024	49.1	441.2	207.4	18.7	588.2	666.4	12.0	1,983.0
Profit/(loss) for the year	-	-	-	-	-	526.6	(1.1)	525.5
Other comprehensive (expense)/income	-	-	(218.9)	5.1	(6.6)	4.2	(0.8)	(217.0)
Total comprehensive (expense)/income for the year	-	-	(218.9)	5.1	(6.6)	530.8	(1.9)	308.5
Equity dividends paid	-	-	-	-	-	(93.5)	-	(93.5)
Issue of share capital (note 6)	0.3	2.6	-	-	-	-	-	2.9
Distributions to non-controlling interests	-	-	-	-	-	-	(0.3)	(0.3)
Repurchase of own shares through share buyback programmes (note 6)	-	-	-	-	(115.4)	-	-	(115.4)
Total transactions with the owners in their capacity as owner	0.3	2.6	-	-	(115.4)	(93.5)	(0.3)	(206.3)
Movements on cash flow hedges released directly from equity	-	-	4.8	-	-	-	-	4.8
Deferred tax on cash flow hedges released directly from equity	-	-	(1.2)	-	-	-	-	(1.2)
Movements on cost of hedging released directly from equity	-	-	-	(22.6)	-	-	-	(22.6)
Deferred tax on cost of hedging released directly from equity	-	-	-	5.7	-	-	-	5.7
Movement in equity associated with share‑based payments	-	-	-	-	0.8	13.0	-	13.8
Deferred tax on share-based payments released directly from equity	-	-	-	-	-	1.4	-	1.4
At 1 January 2025	49.4	443.8	(7.9)	6.9	467.0	1,118.1	9.8	2,087.1
Profit/(loss) for the year	-	-	-	-	-	73.0	(4.8)	68.2
Other comprehensive expense	-	-	(79.1)	(16.5)	(66.8)	(2.1)	(0.2)	(164.7)
Total comprehensive (expense)/income for the year	-	-	(79.1)	(16.5)	(66.8)	70.9	(5.0)	(96.5)
Equity dividends paid	-	-	-	-	-	(95.7)	-	(95.7)
Issue of share capital (note 6)	0.5	4.7	-	-	(0.2)	-	-	5.0
Movement in equity associated with forward contracts to purchase own shares to satisfy share-based payment arrangements	-	-	-	-	-	(7.2)	-	(7.2)
Own shares utilised to satisfy share-based payment arrangements (note 6)	-	-	-	-	0.9	(0.9)	-	-
Distributions to non-controlling interests	-	-	-	-	-	-	(1.2)	(1.2)
Acquisition of non-controlling interests without a change in control	-	-	-	-	-	2.9	(3.6)	(0.7)
Repurchase of own shares through share buyback programmes (note 6)	-	-	-	-	(221.1)	-	-	(221.1)
Total transactions with the owners in their capacity as owner	0.5	4.7	-	-	(220.4)	(100.9)	(4.8)	(320.9)
Movements on cash flow hedges released directly from equity	-	-	31.8	-	-	-	-	31.8
Deferred tax on cash flow hedges released directly from equity	-	-	(7.9)	-	-	-	-	(7.9)
Movements on cost of hedging released directly from equity	-	-	-	(4.3)	-	-	-	(4.3)
Deferred tax on cost of hedging released directly from equity	-	-	-	1.1	-	-	-	1.1
Movement in equity associated with share‑based payments	-	-	-	-	-	15.7	-	15.7
Deferred tax on share-based payments released directly from equity	-	-	-	-	-	7.1	-	7.1
At 31 December 2025	49.9	448.5	(63.1)	(12.8)	179.8	1,110.9	-	1,713.2

Revenue stream (Segment)	Nature and timing of performance obligations, including significant payment terms	Method of recognising revenue, including any estimation uncertainties
Pellet sales (Pellet Production)	The Group's Pellet Production business produces biomass pellets which are sold to external customers. Customers generally obtain control of the pellets at the point the pellets are loaded onto the shipping vessel. Where freight is also arranged for the customer, these sales are known as cost, insurance and freight (CIF) sales. The freight component is considered a separate performance obligation. Invoices are raised in line with contractual terms and are usually payable within 4-10 days.	Revenue is recognised at the point that the pellets are loaded onto the shipping vessel. The amount of revenue recognised is based on the contracted price and volume of the pellets. For CIF sales, revenue for the freight portion is recognised over the period the vessel sails.
Electricity sales (Biomass Generation and Flexible Generation)	The Group's Biomass Generation and Flexible Generation businesses have contracts for wholesale electricity sales. Performance obligations, being the supply of electricity, are met either via generation or through the procurement of electricity from counterparties. The performance obligations for these contracts are deemed to be a series of distinct goods that are substantially the same and transfer consecutively. Control is deemed to have transferred to the customer at the point that the electricity has been supplied in accordance with the contractual terms. Invoices for electricity are typically raised on the fifth banking day following the month of supply, in line with the Grid Trade Master Agreement (GTMA) contractual terms, and are payable on the fifth banking day following the date of invoice.	Revenues from sales contracts fulfilled through generation are recognised at a point in time based upon metered output at rates specified under contractual terms. Revenue from sales contracts fulfilled through procured electricity is recognised at the point at which this electricity or gas is supplied to the counterparty in accordance with the contractual terms at rates specified under the contract. These are recognised under the output method, whereby revenue is recognised based on the value transferred to the customer.
Renewable certificate sales (Biomass Generation, Flexible Generation and Energy Solutions)	Renewables Obligation Certificates (ROCs) and Renewable Energy Guarantees of Origin (REGOs) are sold to counterparties at a point in time. ROCs sold are invoiced in line with contractual terms and are usually payable within two to five days. Invoices for REGOs are raised in line with contractual terms and are usually payable within 7-30 days.	External ROC and REGO sales are recognised at the point the relevant renewable certificates are transferred to the counterparty.
CfD income (Biomass Generation)	The Group's Biomass Generation business is party to a CfD with the Low Carbon Contracts Company (LCCC), a UK Government-owned entity responsible for delivering elements of the UK Government's Electricity Market Reform programme. Under the contract, the Group receives income in respect of electricity dispatched from a specific biomass-fuelled generating unit. Invoices are raised 7-10 days following the date of supply and are settled within 28 days.	The Group recognises the income arising from the CfD in the Consolidated income statement as a component of revenue at the point the Group meets its performance obligation under the CfD agreement. This is considered to be the point at which the relevant generation is delivered. See CfD income section below for further details.
Ancillary services (Biomass Generation and Flexible Generation)	Ancillary services refer to the provision of a range of system support services to National Grid. Most contracts are for the delivery of a specific service either continually or on an ad-hoc basis over a period of time. Invoices are raised and subsequently settled in line with the National Grid company ancillary services settlement calendar, typically monthly.	Revenue is recognised over time for ancillary services as the Group provides the service of either being available and ready to support the UK Electricity Grid or providing a service when called upon to support the UK Electricity Grid. Revenue is recognised over time by reference to the stage of completion of the contractual performance obligations, which for stand ready performance obligations are calculated by reference to the amount of the contract term that has elapsed. Revenue recognised for providing services when called upon are recognised over the time the service is being provided to support the UK Electricity Grid. Depending on contract terms, this approach may require judgement in estimating probable future outcomes when the amount of consideration the Group is entitled to is variable based on its performance over a period of time.
Electricity and gas sales (Energy Solutions)	The Group's Energy Solutions business sells electricity and gas directly to non-domestic customers. Energy supplied is measured based upon metered consumption and contractual rates. The Energy Solutions business also has long-term contracts for the sale of electricity and gas, which are a series of distinct goods or services that are substantially the same and have the same pattern of transfer and are a performance obligation that is deemed as being satisfied over time in line with the progress of the contracts. Invoices are raised in line with contractual terms which for most customers is monthly. Payment is generally due between 28-90 days.	Revenue is recognised on the supply of electricity or gas when a contract exists, supply has taken place, a quantifiable price has been established or can be determined, and the amounts receivable are expected to be recovered. Where supply has taken place but has not yet been measured or billed, revenue is estimated based on consumption statistics and selling price estimates and is recognised as accrued income. This estimate is not considered to be a key source of estimation uncertainty because historical experience has demonstrated that these estimates are materially accurate based on the subsequent billings and settlements. Where contracts for the sale of electricity and gas are held, revenue is recognised in line with the progress of the contracts. Revenue recognised for fixed price contracts is based on the input method. Revenue is recognised based on the costs incurred and the estimated margin to be obtained over the life of the contract. For variable price contracts revenue is recognised based on the output method. Revenue is recognised based on the volume supplied and the contracted price. Assumptions are applied consistently but third-party costs can vary, therefore actual outcomes may vary from initial estimates.
EBDS income (Energy Solutions)	The UK Government introduced the EBDS running from 1 April 2023 to 31 March 2024. Under this scheme, energy supplied to eligible non-domestic customers had a discount applied to each unit of electricity and gas. Certain customers were eligible for higher levels of support dependent on the sector in which they operated. The discount provided was then able to be claimed back from the UK Government by the supplier. Payment was due 10 days post submission of a claim, which typically occurred monthly.	The discounted price of electricity and gas supplied under EBDS was recognised in revenue as it was supplied. The amount claimed back from the UK Government was recognised within revenue over the same period as the underlying discounted revenue it related to was recognised. The revenue received from the UK Government is included in the EBDS income line in the table below. The Group did not recognise any additional revenue from the scheme than it would have done had it not been introduced.
Other income (All segments)	Other income is derived from the sale of goods. The customer obtains control typically at the point of delivery to their premises or upon collection. Invoices are raised in line with contractual terms. The majority of invoices are raised quarterly and are payable within 30 days.	Revenue is recognised at the point the control of the goods is transferred to the customer.

APM	Closest IFRS equivalent measure	Purpose	Definition
Adjusted results	Total results	The Group's Adjusted results are consistent with the way the Board and executive management assess the performance of the Group. Adjusted results are intended to reflect the underlying trading performance of the Group's businesses and are presented to assist users of the Consolidated financial statements in evaluating the Group's trading performance and performance against strategic objectives on a consistent basis. Adjusted results excludes exceptional items and certain remeasurements. Exceptional items are those transactions that, by their nature, do not reflect the trading performance of the Group in the period. Certain remeasurements comprise fair value gains and losses that do not qualify for hedge accounting (or hedge accounting is not effective). The Group regards all of its forward contracting activity to represent economic hedges and therefore by excluding the volatility caused by recognising fair value gains and losses prior to maturity of the contracts, the Group can reflect these contracts at the contracted prices on maturity, reflecting the intended purpose of entering these contracts and the Group's underlying performance. Adjusted results are the metrics used in the calculation of Adjusted basic EPS and Adjusted diluted EPS.	Total results measured in accordance with IFRS excluding the impact of exceptional items and certain remeasurements. Exceptional items and certain remeasurements are defined above.
Adjusted EBITDA	Operating profit⁽¹⁾	Adjusted EBITDA is the primary measure used by the Board and executive management to assess the financial performance of the Group as it provides a more comparable assessment of the Group's year-on-year trading performance. It is also a key metric used by the investor community to assess the performance of the Group's operations.	Earnings before interest, tax, depreciation, amortisation, other gains and losses and impairment of non-current assets, excluding the impact of exceptional items and certain remeasurements. Adjusted EBITDA excludes any earnings from associates or attributable to non‑controlling interests.
Adjusted basic EPS	Basic EPS	Adjusted basic EPS represents the amount of Adjusted earnings (Adjusted profit after tax) attributable to each ordinary share outstanding.	Adjusted basic EPS is calculated by dividing the Group's Adjusted earnings attributable to owners of the parent company (Adjusted profit after tax) by the weighted average number of ordinary shares outstanding during the period.
Adjusted diluted EPS	Diluted EPS	Adjusted diluted EPS demonstrates the impact upon the Adjusted basic EPS if all outstanding share options, that are expected to vest on their future maturity dates and where the shares are considered to be dilutive, were exercised and treated as ordinary shares as at the reporting date.	Adjusted diluted EPS is calculated by dividing the Group's Adjusted earnings (Adjusted profit after tax) attributable to owners of the parent company by the weighted average number of ordinary shares outstanding during the period and dilutive potential ordinary shares outstanding under share plans during the period.
Borrowings	n/a⁽²⁾	Borrowings provides information relating to the Group's use of debt. It is a key measure of leverage and provides information on the sources of liquidity for the Group.	Borrowings includes external financial debt, such as loan notes, term loans and amounts drawn in cash under revolving credit facilities (RCFs). Borrowings does not include other financial liabilities such as pension obligations, trade and other payables including supply chain finance, lease liabilities calculated in accordance with IFRS 16, and working capital facilities linked directly to specific payables (such as credit cards and deferred letters of credit) that provide a short extension of payment terms of less than 12 months (see note 5).
Net debt	Borrowings and lease liabilities less cash and cash equivalents	Net debt is a key measure of the Group's liquidity and its ability to manage its financial obligations. Net debt is used as a basis by debt rating agencies to assess credit risk, and in the calculation of the Group's financial covenant requirements. The impact of hedging instruments included within Net debt shows the economic substance of the Net debt position, in terms of actual expected future cash flows to settle that debt.	Borrowings (as defined above) including the impact of hedging instruments, and lease liabilities calculated in accordance with IFRS 16 less cash and cash equivalents. Net debt excludes the proportion of cash, lease liabilities and borrowings in non-wholly owned entities that would be attributable to the non-controlling interests. Net debt includes the impact of foreign currency hedging instruments, meaning that any borrowings that have associated hedging instruments in place are adjusted to reflect those borrowings at the hedged rate. Net debt includes the impact of any cash collateral receipts from counterparties or cash collateral posted to counterparties.
Net debt to Adjusted EBITDA ratio	Borrowings and lease liabilities less cash and cash equivalents divided by operating profit⁽¹⁾	The Net debt to Adjusted EBITDA ratio is a debt ratio that gives an indication of how many years it would take the Group to pay back its debt if Net debt and Adjusted EBITDA are held constant. The Group has a long-term target for Net debt to Adjusted EBITDA of around 2.0 times.	Net debt divided by Adjusted EBITDA for the last twelve months expressed as a multiple.
Cash and committed facilities	Cash and cash equivalents	This is a key measure of the Group's available liquidity and the Group's ability to manage its current obligations. It shows the value of cash available to the Group in a short period of time.	Total cash and cash equivalents plus the value of the Group's committed but undrawn facilities (including the Group's RCF, loan facilities and the Energy Solutions non-recourse trade receivables monetisation facility, to the extent that there are eligible receivables available to utilise undrawn amounts).
Capital expenditure⁽³⁾	Property, plant and equipment (PPE) additions and intangible asset additions	Used to show the Group's total spend on PPE and intangible assets in a year.	PPE additions plus intangible asset additions, excluding capitalised borrowing costs and capital plant spare additions.

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Drax Group (DRX)

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Twelve months ended 31 December	2025	2024
Key financial performance measures
Adjusted EBITDA^(1/2/3) (£ million)	947	1,064
Net debt⁽⁴⁾ (£ million)	784	992
Adjusted basic EPS⁽¹⁾ (pence)	137.7	128.4
Dividend per share (pence)	29.0	26.0
Total financial performance measures
Operating profit (£ million)	241	850
Profit before tax (£ million)	190	753

£ million	2025	2024
Adj. EBITDA	947	1,064
Pellet Production	129	143
Biomass Generation	725	814
Pumped Storage and Hydro	111	138
Energy Solutions - Industrial & Commercial (I&C)	54	81
Energy Solutions - Small and Medium-sized Enterprise (SME)	(5)	(30)
Flexible Generation & Energy Solutions	160	188
Elimini	(37)	(47)
Innovation, Capital Projects and Other	(31)	(34)

Contracted power sales as at 24 February 2026	2026	2027	2028

Net RO, hydro and gas (TWh)⁽⁸⁾	10.9	2.1	0.2
Average achieved £ per MWh⁽⁹⁾	77.8	79.5	71.3

CfD (TWh)	2.2	-	-

Event Title:	Drax Group plc - Full Year Results 2025
Event Date:	Thursday 26 February 2026
Event Time:	9:00am (GMT)

Webcast Live Event Link:	https://sparklive.lseg.com/DraxGroup/events/040c5009-459c-4213-9610-1794266ffe22/full-year-results-for-the-twelve-months-ended-31-december-2025

Conference Call and Pre-register Link:	Full year results for the twelve months ended 31 December 2025 Registration Page!

		Year end 31 December
		2025	2024
Financial performance (£m)	Total gross profit	1,513	1,877
	Operating expenses	(641)	(761)
	Depreciation, amortisation and impairment of non-current assets	(621)	(256)
	Other	(10)	(10)
	Total operating profit	241	850
	Exceptional items and certain remeasurements	430	(50)
	Adjusted operating profit	671	800
	Adjusted depreciation, amortisation and similar charges and share of losses from associates	275	264
	Adjusted EBITDA	947	1,064
Capital expenditure (£m)	Capital expenditure	202	321
Cash and Net debt (£m unless otherwise stated)	Cash generated from operations	1,000	1,135
	Net debt	784	992
	Net debt to Adjusted EBITDA (times)	0.8	0.9
	Cash and committed facilities	942	806
Earnings (pence per share)	Adjusted basic	137.7	128.4
Earnings (pence per share)	Total basic	20.7	137.5
Distributions (pence per share)	Interim dividend	11.6	10.4
Distributions (pence per share)	Proposed final dividend	17.4	15.6
	Total dividend	29.0	26.0

	31 December 2025 £m	31 December 2024 £m
Cash and cash equivalents	302	356
Current borrowings	(61)	(119)
Non-current borrowings	(918)	(1,058)
Impact of hedging instruments and NCI	(8)	(55)
Lease liabilities	(99)	(117)
Net debt	(784)	(992)
Adjusted EBITDA	947	1,064
Net debt to Adjusted EBITDA	0.8	0.9

		Year ended 31 December 2025			Year ended 31 December 2024
	Notes	Adjusted results ⁽¹⁾ £m	Exceptional items and certain remeasurements £m	Total results £m	Adjusted results ⁽¹⁾ £m	Exceptional items and certain remeasurements £m	Total results £m
Revenue	2	5,355.4	35.3	5,390.7	6,081.2	81.3	6,162.5
Cost of sales		(3,793.8)	(84.0)	(3,877.8)	(4,130.1)	4.9	(4,125.2)
Electricity Generator Levy		-	-	-	(160.8)	-	(160.8)
Gross profit/(loss)		1,561.6	(48.7)	1,512.9	1,790.3	86.2	1,876.5
Operating and administrative expenses		(614.6)	(23.3)	(637.9)	(698.5)	(22.1)	(720.6)
Impairment of financial assets		0.5	(3.8)	(3.3)	(27.3)	(12.7)	(40.0)
Depreciation		(228.9)	-	(228.9)	(224.8)	-	(224.8)
Amortisation		(14.2)	-	(14.2)	(17.0)	-	(17.0)
Impairment of non-current assets	3	(27.2)	(350.5)	(377.7)	(11.8)	(2.6)	(14.4)
Other (losses)/gains		(4.4)	(3.6)	(8.0)	(8.5)	1.2	(7.3)
Share of losses from associates		(1.6)	-	(1.6)	(2.2)	-	(2.2)
Operating profit/(loss)		671.2	(429.9)	241.3	800.2	50.0	850.2
Foreign exchange gains/(losses)		8.2	(2.4)	5.8	(9.4)	-	(9.4)
Interest payable and similar charges		(73.9)	(1.5)	(75.4)	(106.9)	(0.6)	(107.5)
Interest receivable and similar gains		17.8	-	17.8	20.1	-	20.1
Profit/(loss) before tax		623.3	(433.8)	189.5	704.0	49.4	753.4
Total tax (charge)/credit		(137.6)	16.3	(121.3)	(213.0)	(14.9)	(227.9)
Profit/(loss) for the period		485.7	(417.5)	68.2	491.0	34.5	525.5
Attributable to:
Owners of the parent company		485.8	(412.8)	73.0	492.1	34.5	526.6
Non-controlling interests		(0.1)	(4.7)	(4.8)	(1.1)	-	(1.1)

Earnings per share		Pence		Pence	Pence		Pence
For net profit for the period attributable to owners of the parent company
- Basic earnings per share		137.7		20.7	128.4		137.5
- Diluted earnings per share		134.5		20.2	126.0		134.8

	Notes	Year ended 31 December
	Notes	2025 £m	2024 £m
Profit for the period		68.2	525.5
Items that will not be subsequently reclassified to profit or loss:
Remeasurement of defined benefit pension surplus		(2.8)	5.5
Deferred tax on remeasurement of defined benefit pension surplus		0.7	(1.3)
Items that may be subsequently reclassified to profit or loss:
Exchange differences on translation of foreign operations attributable to owners of the parent company	6	(66.8)	(6.6)
Exchange differences on translation of foreign operations attributable to non-controlling interests		(0.2)	(0.8)
Net fair value losses on financial assets at fair value through other comprehensive income		(18.5)	(25.5)
Net fair value losses on financial assets at fair value through other comprehensive income reclassified to profit or loss		18.5	25.5
Net fair value (losses)/gains on cost of hedging		(21.9)	6.8
Deferred tax on cost of hedging		5.4	(1.7)
Net fair value gains/(losses) on cash flow hedges		39.6	(49.0)
Net losses on cash flow hedges reclassified to profit or loss		(145.1)	(242.9)
Deferred tax on cash flow hedges		26.4	73.0
Other comprehensive expense		(164.7)	(217.0)
Total comprehensive (expense)/income for the year		(96.5)	308.5
Attributable to:
Owners of the parent company		(91.5)	310.4
Non-controlling interests		(5.0)	(1.9)

	Year ended 31 December 2025
	Pellet Production £m	Biomass Generation £m	Flexible Generation £m	Energy Solutions £m	Innovation, capital projects and other £m	Intra-group eliminations £m	Adjusted results £m	Exceptional items and certain re-measurements £m	Total results £m
Revenue
External sales	329.3	2,314.7	78.1	2,633.3	-	-	5,355.4	35.3	5,390.7
Inter-segment sales	574.1	2,090.4	93.4	-	-	(2,757.9)	-	-	-
Total revenue	903.4	4,405.1	171.5	2,633.3	-	(2,757.9)	5,355.4	35.3	5,390.7
Cost of sales	(550.9)	(3,453.6)	(24.5)	(2,524.6)	(6.9)	2,766.7	(3,793.8)	(84.0)	(3,877.8)
Gross profit/(loss)	352.5	951.5	147.0	108.7	(6.9)	8.8	1,561.6	(48.7)	1,512.9
Operating and administrative expenses	(222.2)	(225.8)	(36.1)	(60.8)	(67.4)	(2.3)	(614.6)	(23.3)	(637.9)
Impairment of financial assets	-	(0.3)	-	0.8	-	-	0.5	(3.8)	(3.3)
Depreciation	(95.7)	(105.3)	(19.2)	(0.9)	(7.0)	(0.8)	(228.9)	-	(228.9)
Amortisation	(4.3)	(3.9)	-	(4.2)	(1.8)	-	(14.2)	-	(14.2)
Impairment of non-current assets	(25.6)	-	-	-	(1.6)	-	(27.2)	(350.5)	(377.7)
Other (losses)/gains	(7.0)	(0.2)	(0.8)	-	3.6	-	(4.4)	(3.6)	(8.0)
Share of losses from associates	(1.6)	-	-	-	-	-	(1.6)	-	(1.6)
Operating (loss)/profit	(3.9)	616.0	90.9	43.6	(81.1)	5.7	671.2	(429.9)	241.3

As at 31 December	Capital expenditure on intangible assets		Capital expenditure on property, plant and equipment
As at 31 December	2025 £m	2024 £m	2025 £m	Restated ⁽¹⁾ 2024 £m
Pellet Production	-	-	54.5	100.2
Biomass Generation	-	0.5	38.3	67.9
Flexible Generation	-	-	84.8	137.0
Energy Solutions	3.3	3.8	1.0	0.3
Innovation, capital projects and other	9.6	2.6	10.3	8.5
Total	12.9	6.9	188.9	313.9

	Intra-group trading revenue
	Year ended 31 December
	2025 £m	2024 £m
Pellet Production segment sale of biomass pellets and provided associated services to the Biomass Generation segment	574.1	602.0
Biomass Generation segment sale of electricity, gas and renewable certificate assets to the Energy Solutions segment	2,007.0	2,928.7
Biomass Generation segment sale of electricity to the Flexible Generation segment	16.2	36.5
Biomass Generation segment sale of biomass pellets to the Pellet Production segment	67.2	74.8
Flexible Generation segment sale of electricity and renewable certificate assets to the Biomass Generation segment	90.1	145.9
Flexible Generation segment sale of electricity to the Energy Solutions segment	3.3	2.6
Total inter-segment sales (note 2)	2,757.9	3,790.5

	Revenue (based on location of customer)
	Year ended 31 December
	2025 £m	2024 £m
North America (Canada and US)	8.4	7.9
Europe (excluding UK)	7.5	25.8
Asia	251.2	242.5
UK	5,123.6	5,886.3
Total	5,390.7	6,162.5

	Non-current assets ⁽¹⁾ (based on asset's location)
	As at 31 December
	2025 £m	2024 £m
Canada	84.2	356.5
US	541.6	698.9
Asia	0.2	0.2
UK	2,309.7	2,334.1
Total	2,935.7	3,389.7

	Year ended 31 December 2025			Year ended 31 December 2024
	External £m	Inter-segment £m	Total £m	External £m	Inter-segment £m	Total £m
Pellet Production
Pellet sales	320.1	574.1	894.2	329.6	597.5	927.1
Other income	9.2	-	9.2	10.5	4.5	15.0
Total Pellet Production	329.3	574.1	903.4	340.1	602.0	942.1
Biomass Generation
Electricity and gas sales	1,582.8	1,599.6	3,182.4	1,426.6	2,510.7	3,937.3
Renewable certificate sales	507.4	423.6	931.0	284.8	454.5	739.3
CfD income	192.4	-	192.4	148.6	-	148.6
Ancillary services	18.0	-	18.0	18.7	-	18.7
Other income	14.1	67.2	81.3	2.0	74.8	76.8
Total Biomass Generation	2,314.7	2,090.4	4,405.1	1,880.7	3,040.0	4,920.7
Flexible Generation
Electricity sales	28.8	83.8	112.6	22.1	141.2	163.3
Renewable certificate sales	-	9.6	9.6	-	7.3	7.3
Ancillary services	21.2	-	21.2	24.2	-	24.2
Other income	28.1	-	28.1	28.0	-	28.0
Total Flexible Generation	78.1	93.4	171.5	74.3	148.5	222.8
Energy Solutions
Electricity and gas sales	2,619.5	-	2,619.5	3,734.0	-	3,734.0
EBDS income	-	-	-	14.4	-	14.4
Renewable certificate sales	13.8	-	13.8	37.4	-	37.4
Other income	-	-	-	0.3	-	0.3
Total Energy Solutions	2,633.3	-	2,633.3	3,786.1	-	3,786.1
Elimination of inter-segment sales	-	(2,757.9)	(2,757.9)	-	(3,790.5)	(3,790.5)
Total consolidated revenue in Adjusted results	5,355.4	-	5,355.4	6,081.2	-	6,081.2
Certain remeasurements	35.3	-	35.3	81.3	-	81.3
Total consolidated revenue in Total results	5,390.7	-	5,390.7	6,162.5	-	6,162.5

Segment name	CGUs contained within segment	As at 31 December 2025
Segment name	CGUs contained within segment	Goodwill £m
Pellet Production	Northern Pellets	-
	Biomass (Southern Pellets)	156.7
Biomass Generation	Biomass (Drax Power Station)	-
Flexible Generation	Lanark	11.3
	Galloway	40.1
	Cruachan	26.9
	Hirwaun	-
	Millbrook	-
	Progress	-
	Daldowie	-
Energy Solutions	Drax Energy Solutions	161.2
	Opus Energy	-
		396.2

CGU	Carrying amount including allocated goodwill £m	Length of detailed cash flows £m	Pre-tax discount rate	Perpetuity growth rate
Northern Pellets	84.2	15 years	19.3%	2.0%
Biomass	1,412.3	14 years	11.5%	n/a
Drax Energy Solutions	178.2	5 years	9.2%	2.0%
Lanark	44.3	15 years	8.0%	2.0%
Galloway	174.2	15 years	8.0%	2.0%
Cruachan	298.6	15 years	8.0%	2.0%

CGU	Calculation method used to determine recoverable amount	Significant assumptions for ViU or FVLCD calculation	Management's bases for determining estimates used in ViU or FVLCD calculation
Northern Pellets	FVLCD	- Production costs - Production volumes - Sales volumes - Sales prices - Central costs - Discount rate	- Future production costs are estimated based on a combination of current and historical costs, inflation expectations and maintenance/operating assumptions - Production volumes are estimated based on the sales volumes agreed under contractual pellet supply arrangements entered into with third parties as well as forecast sales volumes, taking into account planned and unplanned downtime provisions, and fibre availability - Sales volumes are estimated based on contractual pellet supply arrangements entered into with third parties and assumed further contracted volumes after current contracts expire based on third-party market demand forecasts and current contract negotiations - Sales prices are forecast based on contractual sales agreements and an assumed market price after current contracts expire based on third-party market forecasts and current contract negotiations - Central costs are estimated based on historical costs and adjustments that a third-party market participant could reasonably expect to implement - See below for details of the basis used to estimate discount rates
Biomass	ViU	- Power prices - Biomass support mechanisms - Post-March 2031 income - Pellet costs (self-supply and third-party) - Pellet production volumes - Ancillary income - Volume of generation - Discount rate	- Power revenue is derived from hedged power sales, future wholesale energy price estimates and an assumption of additional value added through the balancing market and optimisation - Future wholesale energy price estimates are based on market traded power prices for around three years (the period they are liquid), gas market prices as a proxy for power for another two years, then the Group's long-term power price forecast, which is prepared using externally provided gas price forecasts and demand inputs - Biomass support mechanism income is based on the terms of existing biomass support schemes applicable to Drax Power Station for the period up to March 2027 and for the period April 2027 to March 2031 are based on the agreed terms of the low carbon dispatchable CfD agreement with the UK Government - Post-March 2031 biomass generation income is based on the assumption that the levels of income forecast under the low carbon dispatchable CfD agreement for the period April 2027 to March 2031 will continue at a similar level of value up to 2039 - Self-supply pellet production costs are estimated based on a combination of current and historical costs, inflation expectations and maintenance/operating assumptions - Third-party pellet costs are based on historical third-party pellet supply contracts, current pricing and offers, and ongoing negotiations - Pellet production volumes are estimated based on a combination of the capacity of the plant, current and historical volumes produced, planned and unplanned downtime provisions, and fibre availability - Ancillary income assumptions are based on past performance and current agreed prices with National Grid - Volume of generation is based on renewable support scheme terms and power price forecasts - See below for details of the basis used to estimate discount rates
Lanark, Galloway and Cruachan	ViU	- Power prices - Ancillary income - Volume of generation - Discount rate	- Power revenue is derived from hedged power sales, future wholesale energy price estimates and an assumption of additional value added through the balancing market and optimisation - Future wholesale energy price estimates are based on market traded power prices for around three years (the period they are liquid), gas market prices as a proxy for power for another two years, then the Group's long-term power price forecast, which is prepared using externally provided gas price forecasts and demand inputs - Ancillary income assumptions are based on past performance and current agreed prices with National Grid - Volume of generation for the run-of-river hydro assets is derived from historical rainfall averages - Volume of generation for Cruachan is based on forecast volatility in power prices and assumed weather patterns - See below for details of the basis used to estimate discount rates
Drax Energy Solutions	ViU	- Customer margins - Supply volumes - Third-party cost estimates - Renewables services growth rates - Discount rate	- Customer margins are estimated based on current contracted prices and on current and previously achieved profitability - The expectation of future organic supply volumes is based on past performance and management's expectations of market developments - Third-party cost estimates are based on a combination of externally published rates, management analysis of key market input assumptions, and forecasts from external experts - Renewables services growth is based on assumptions about the growth of relevant markets, such as electric vehicles - See below for details of the basis used to estimate discount rates

Impairment	Year ended 31 December 2025					Year ended 31 December 2024
Impairment	Longview £m	UK BECCS £m	Northern Pellets £m	Other assets £m	Total £m	Opus Energy £m	Other assets £m	Total £m
Investment in associate	-	-	3.6	-	3.6	-	4.6	4.6
Goodwill - cost	-	-	8.5	-	8.5	-	-	-
Property, plant and equipment - accumulated depreciation and impairment	108.8	47.6	139.3	26.1	321.8	-	6.1	6.1
Right-of-use assets - accumulated depreciation and impairment	-	-	20.1	-	20.1	-	0.1	0.1
Intangible assets excluding goodwill - accumulated amortisation and impairment	-	-	22.6	1.1	23.7	2.6	-	2.6
Other receivables	-	-	-	-	-	-	1.0	1.0
Total impairment of non-current assets	108.8	47.6	194.1	27.2	377.7	2.6	11.8	14.4

	Year ended 31 December 2025
	Revenue £m	Gross profit £m	Operating profit £m	Profit before tax £m	Tax (charge)/ credit £m	Profit/ (loss) for the period £m	Basic earnings per share Pence	Net cash from operating activities £m
Total results IFRS measure	5,390.7	1,512.9	241.3	189.5	(121.3)	68.2	20.7	810.0
Certain remeasurements:
Net fair value remeasurement on derivative contracts	(35.3)	26.6	26.6	29.6	(7.4)	22.2	6.3	-
Exceptional items:
Opus Energy sale of meter points and restructuring	-	-	1.1	1.1	-	1.1	0.3	1.1
Impairment of Longview and related costs	-	22.0	138.0	138.9	(34.7)	104.2	29.5	0.9
Impairment of UK BECCS	-	-	47.6	47.6	(11.9)	35.7	10.1	-
Impairment of Northern Pellets CGU and related costs	-	0.1	197.8	197.8	42.5	240.3	66.8	0.5
Change in fair value of contingent consideration	-	-	9.4	9.4	(2.4)	7.0	2.0	-
Transformation and restructuring	-	-	9.4	9.4	(2.4)	7.0	2.0	5.8
Total	(35.3)	48.7	429.9	433.8	(16.3)	417.5	117.0	8.3
Adjusted results totals	5,355.4	1,561.6	671.2	623.3	(137.6)	485.7	137.7	818.3

	Year ended 31 December 2025
	Attributable to
	Owners of the parent company £m	Non-controlling interests £m	Total £m
Adjusted operating profit/(loss)	671.3	(0.1)	671.2
Depreciation and amortisation	242.1	1.0	243.1
Other losses	4.4	-	4.4
Share of losses from associates	1.6	-	1.6
Impairment of non-current assets	27.2	-	27.2
Adjusted EBITDA	946.6	0.9	947.5

	As at 31 December 2025 £m	As at 31 December 2024 £m	Inflow/ (outflow) £m
Receivables monetisation	348.4⁽¹⁾	400.0	(51.6)
ROC monetisation sales	50.0	-	50.0
Deferred letters of credit	(73.2)	(150.3)	(77.1)

	Borrowings £m	Lease liabilities £m	Hedging instruments⁽¹⁾ £m	Obligation to purchase own shares £m	Total £m
At 1 January 2025	1,176.7	116.5	41.0	-	1,334.2
Cash flows from financing activities	(233.8)	(28.1)	(4.0)	-	(265.9)
Effect of changes in foreign exchange rates	32.1	(5.9)	(33.5)	-	(7.3)
Other movements	4.0	16.1	2.3	7.3	29.7
At 31 December 2025	979.0	98.6	5.8	7.3	1,090.7

	Year ended 31 December
	2025 (number)	2024 (number)
At 1 January	427,770,766	424,923,406
Issued in respect of employee share schemes	4,400,997	2,847,360
At 31 December	432,171,763	427,770,766

	Year ended 31 December 2025		Year ended 31 December 2024
	Number of shares (million)	Total net cost £m	Number of shares (million)	Total net cost £m
Shares repurchased:
£300 million buyback programme	29.4	185.7	17.8	115.4
£450 million buyback programme	4.7	35.4	-	-
Total	34.1	221.1	17.8	115.4

Price paid per share:	Pence		Pence
Average	644.7		645.6
Range	Between 544.3 and 833.3		Between 618.8 and 673.9

	Capital redemption reserve £m	Translation reserve £m	Merger reserve £m	Own shares reserve £m	Total other reserves £m
At 1 January 2024	1.5	75.5	710.8	(199.6)	588.2
Exchange differences on translation of foreign operations	-	(6.6)	-	-	(6.6)
Own shares utilised to satisfy share-based payment arrangements	-	-	-	0.8	0.8
Repurchase of own shares through share buyback programmes	-	-	-	(115.4)	(115.4)
At 1 January 2025	1.5	68.9	710.8	(314.2)	467.0
Exchange differences on translation of foreign operations	-	(66.8)	-	-	(66.8)
Issue of share capital	-	-	-	(0.2)	(0.2)
Own shares utilised to satisfy share-based payment arrangements	-	-	-	0.9	0.9
Repurchase of own shares through share buyback programmes	-	-	-	(221.1)	(221.1)
At 31 December 2025	1.5	2.1	710.8	(534.6)	179.8

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