North Yorkshire power generator Drax Group said on Thursday it plans to return more than £1 billion to shareholders through dividends and share buybacks in 2026.

The news came as Drax reported 2025 results showing adjusted EBITDA fell 11% to £947 million. 

“This reflects a strong operational and financial performance, with a continued high level of renewable power generation and system support services, partially offsetting lower average achieved power prices,” said Drax.

“Our balance sheet is strong, with total cash and committed facilities of £942 million and net debt of £784 million …”

“Throughout the year, the group has remained focused on shareholder value. In October 2025, the group completed a £300 million share buyback programme, which had commenced in August 2024.

“The group subsequently began a £450 million share buyback programme (first announced in July 2025), with an initial £75 million tranche.

“In aggregate, during 2025, the share buyback programmes have purchased c.34 million shares for c.£221 million. When combined with dividend payments this represents total returns to shareholders of c.£317 million during 2025.”

Profit before tax in 2025 plummeted from £753 million to £190 million.

Full year 2025 dividend will rise 11.5% to 29p per share.

Drax shares have risen about 40% over the past year to around £9 to give the firm a stock market value of £3 billion.

Drax Group CEO Will Gardiner said: “In 2025, we produced more renewable power than ever before, delivering energy security for the UK. Our colleagues and supply chain partners work around the clock to help keep the lights on for millions of the UK’s households and businesses, no matter the weather.

“The signing of the new low carbon dispatchable CfD is an inflection point for the Group. It provides the foundation for us to keep supporting the UK with the flexible, renewable power it needs for security of supply this decade and beyond.

“The energy transition and growth in AI are creating opportunities for us to invest and grow our business further in line with the country’s energy needs.

“We are making good progress on this with our initial investments in Battery Energy Storage Systems (BESS), which we see as an attractive market.

“We will continue to explore options to invest in flexible and renewable energy, creating value for stakeholders and attractive returns for shareholders in line with our capital allocation policy.”