Drax lifts profit outlook as summer heatwave spikes power demand
Drax said its 2026 earnings outlook now sits near the top of forecasts after a heatwave drove up electricity demand.
Shares of Drax rose modestly after the company announced that adjusted earnings for 2026 are expected to be at the upper end of market forecasts. The boost comes as the summer heatwave prompted the National Energy System Operator to request additional power, and Drax’s flexible plants responded to the higher demand. CEO Will Gardiner highlighted the firm’s role in balancing the grid and its investment in UK energy security.
In August, Drax finalised a £561 million purchase of Bluefield, adding the BSIF portfolio to its assets. Gardiner said the integration is progressing well and will help grow megawatts under management. The company’s shares traded at 826p, up 0.8% in early trading.
Why it matters
The guidance shift shows how extreme weather can quickly affect energy company earnings and grid stability.
In this story
