By Anthony O. Goriainoff

Drax Group raised its earnings guidance for the year, driven by strong performance in the second half.

The U.K. power-generation company on Thursday said it expects adjusted earnings before interest, taxes, depreciation and amortization to be at the top end of consensus estimates. Company-compiled consensus for the metric stands at 902 million pounds ($1.21 billion) and within a 892 million to 909 million pounds range.

Drax said that on an adjusted basis--which strips out exceptional and other one-off items--it continues to target Ebitda of 600 million to 700 million pounds per annum after 2027 before development expenditure.

Drax said that as at Dec. 9 it had around 2.3 billion pounds of contracted forward power sales between 2025 and the first quarter of 2027 on its renewables obligation biomass, pumped storage and hydro generation assets.

The renewables obligation refers to a key U.K. government mechanism used to encourage the generation of electricity from eligible renewable sources.

"Our year-to-date operational and financial performance has been strong, and we are focused on delivering around 3 billion pounds of free cash flow between 2025 and 2031, which can support investment in energy security, data centers and flexible, renewable energy underpinning long-term value creation and returns to shareholders," Chief Executive Will Gardiner said.

Write to Anthony O. Goriainoff at anthony.orunagoriainoff@dowjones.com

(END) Dow Jones Newswires

December 11, 2025 02:54 ET (07:54 GMT)

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