DRAX GROUP

Drax has agreed with Brookfield and Radiant to develop an AI datacentre on its North Yorkshire site with eventual capacity over 1GW and an initial phase of up to 100MW operational from Q1 2028. The project could attract more than £20bn of investment and Drax aims to begin directly powering the campus by the early 2030s to secure future revenues after planned subsidy cuts. The plan drew positive market reaction, lifting Drax’s value almost 9%, but raises environmental concerns given the site’s high CO2 emissions and questions over grid capacity and reliance on off‑grid gas. » More on theguardian.com

UBS raises its adjusted 2026 earnings per share forecast for Drax to 83.90 pence and upgrades the stock from "sell" to "hold" due to already priced-in short-term disappointments. The bank sets a 12-month price target of 745 pence but cuts its 2027 estimate because of higher biomass costs and expects delays to the remaining share buyback until early 2027. UBS views the takeover of Bluefield Solar and investments in battery storage as offsets to declining biomass returns, but warns that capital allocation, cost inflation and buyback delays are downside risks. Potential upside factors include government intervention to preserve non-gas capacity, stronger power contracts in 2027/28 and initial data centre projects. » More on de.investing.com

Drax reported adjusted EBITDA of £279m for H1 2026, a 39% decline year-on-year and 4% below analyst estimates. The company confirms its 2026 adjusted EBITDA expectation at consensus level of £665m (range £643–681m). For 2029 Drax sets a new adjusted EBITDA target of £650–800m (previously £600–700m), with £50–100m expected from the battery storage/BESS segment; potential contributions from a BSIF acquisition are excluded. At the half-year net debt/EBITDA was 1.3 and available cash plus committed credit facilities amounted to £630m. » More on de.investing.com