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(Sharecast News) - Energy generation firm Drax lifted its full-year outlook on Thursday after a stronger secondhalf performance and the completion of its £561m acquisition of Bluefield Solar Income Fund.
Drax said adjusted underlying earnings for 2026 were now expected to come in around the top end of consensus estimates of £680m to £711m, supported by solid operational delivery through the summer and the addition of BSIF from 1 August. Drax also highlighted further cost savings, mainly in warehousing.
BSIF added 0.9GW of operational solar and wind capacity and a 2.9GW development pipeline, taking total megawatts under management to around 6.1GW. Drax also said the integration plan was progressing, with BSIF set to operate as a dedicated Solar & Wind segment from 2027.
The FTSE 250-listed company also highlighted that it expects "significant" synergies from improved powercontract management, routetomarket access and lower costs following BSIF's delisting. To fund the deal, Drax drew £800m from a bridge facility and repaid £300m of BSIF debt, retaining £200m of existing facilities.
Drax added that net debt was expected to sit above the group's longterm 2x EBITDA target in 2026, before falling back towards that level by the end of 2027.
As of 1020 BST, Drax shares were up 0.73% at 825.50p.
Reporting by Iain Gilbert at Sharecast.com
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