Drax lifts profit guidance as summer heatwave drives UK energy demand

The FTSE 250 company said it delivered a “strong performance” in July and August

Power generation firm Drax has upgraded its profit forecast for the year following a surge in demand driven by the summer heatwave.

The Yorkshire company’s shares edged upwards on Thursday morning in response to the announcement.

Drax group chief executive Will Gardiner said robust trading momentum had continued into the second half of 2026, as its facilities “helped meet power demand through the summer heatwave, turning up and turning down as required to help balance the system”.

The National Energy System Operator (Neso) issued four appeals for additional power capacity during the summer months, with the majority of these linked to soaring temperatures.

The FTSE 250 firm informed shareholders that it had delivered a “strong performance” throughout July and August. It now anticipated adjusted earnings for 2026 to land “around the top” of analyst expectations.

Drax said its performance had also been strengthened by its acquisition of renewable infrastructure investor Bluefield Solar Income Fund (BSIF). The £561m takeover of Bluefield was completed in August as part of the company’s strategy to diversify its power generation portfolio.

Mr Gardiner said: “Our strong operational performance has continued into the second half of 2026, as our generation assets have helped meet power demand through the summer heatwave, turning up and turning down as required to help balance the system. At the same time we are investing for the future in UK energy security, growing our megawatts under management and transitioning Drax into a broader business at the heart of the UK energy system, whilst keeping the lights on for millions of households across the country.

“The addition of BSIF brings significant benefits to the group and the integration is going well. Alongside the rest of our portfolio, BSIF gives us a fantastic opportunity to grow our asset base and system services further. This is an exciting time for Drax and through our plans for solar, batteries, OCGTs, hydro and 4GW of grid access at our Selby site, we are helping to drive economic growth across the country and support jobs, aligned to the priorities of the UK Government.”