Drax Group plc (DRX.L)
Powering millions of homes by turning wood pellets into electricity, Drax is a giant balancing act between green energy and traditional coal.
Is Drax Group plc a good stock for a UK beginner?
The honest version: There's no rating here and nothing for sale. In its favour: Provides a significant chunk of the UK's renewable electricity needs. Worth weighing: Recent revenue and earnings growth have both been heading downwards. Below, we lay out what it does, what its numbers mean, and the honest risks, so you can decide for yourself.
Over about 2 years to 2026-07-31. This is the share price only - reinvesting the dividends would add to it. Past performance is not a guide to the future, and it could just as easily have fallen.
How much has Drax Group plc actually fallen?
Over the last 2 years of daily prices, Drax Group plc fell as much as −21% from a high to a later low. Drops of this size are a normal part of owning a share - worth knowing in advance, so a dip doesn't come as a shock.
Worst peak-to-trough fall in the daily closing price over the period we hold. Past falls are not a forecast - it can fall further, or recover.
Based on beta - how much the price swings versus the whole market. Bumpier isn't bad; it just means a rougher ride, which matters more the sooner you might need the money.
Prices move on results, news and the mood of the whole market - no single headline explains a day, and a quiet week is usually just noise, not a signal.
The business successfully transitions into a leader in carbon capture technology alongside sustainable power.
Biomass loses political favour entirely, leaving the company without crucial green support.
What does Drax Group plc do?
Drax runs a massive power station in Yorkshire and manufactures compressed wood pellets across the globe to burn for electricity. It makes its money by generating power and cashing in on government green subsidies for renewable energy. The critical thing to keep an eye on is how political decisions and shifting subsidy rules will treat biomass power going forward.
On our factor screen it looks strongest on value and income, and weakest on growth.
- ✓Pays a dividend - about 4.1% a year
- !Revenue slipped about 6% over the year
- !Thin profits - turns only about 0% of sales into profit
- !High P/E of 92 - big growth is already priced in
- Provides a significant chunk of the UK's renewable electricity needs.
- Offers an attractive dividend yield for income-focused portfolios.
- Lower share price volatility than the broader stock market, reflected in a low beta.
- Quality screens low (24/100)
- Growth screens low (16/100)
- Momentum screens low (22/100)
- Heavy reliance on government policies and environmental subsidies to remain profitable.
- Public and political debate over whether burning wood pellets is truly green.
What do Drax Group plc's numbers mean?
Does Drax Group plc pay a dividend?
Yes - Drax Group plc currently pays a dividend of about 4.1% a year (the yearly payout as a share of the price). A dividend is a slice of profit handed to shareholders; the yield moves as the price moves, and a company can cut or stop it.
What do the numbers say about Drax Group plc's dividend?
There's no rating here, and we don't judge whether the dividend will continue - that would be advice. Here are the figures income investors usually look at, and what each one means, so you can weigh it up yourself.
Figures are from the latest available data and can be distorted by one-off results. Past payments don't predict future ones, and a dividend can be cut at any time. This lays out the numbers to help you understand them - it is not a view on what will happen.
When does Drax Group plc report earnings, and how did recent quarters go?
Drax Group plc is next scheduled to report on about 2027-02-25 - dates can move, and we don't predict results; this just tells you when to look.
Each quarter a company reports its results against what analysts expected. ‘Beating’ or ‘missing’ is about that expectation, not whether the business is doing well in absolute terms.
| Reported | Expected EPS: The earnings per share analysts expected for the quarter - the average of their forecasts. 'Beating' or 'missing' is measured against this number. | Actual EPS | vs expected |
|---|---|---|---|
| 2009-03-15 | £0.26 | £0.16 | Missed -38% |
| 2009-03-15 | £0.26 | £0.16 | Missed -38% |
| 2008-08-04 | £0.24 | £0.23 | Missed -4% |
| 2008-08-04 | £0.24 | £0.23 | Missed -4% |
| 2008-03-16 | £0.30 | £0.28 | Missed -6% |
| 2007-09-05 | £-0.01 | £0.25 | Beat +4854% |
Across the last 6 quarters here, Drax Group plc came in ahead of what analysts expected 1 time. One quarter is noise, not a trend.
See who else reports over the next two weeks →
Reported vs expected earnings per share (EPS) from published results; the expectation is the analyst consensus, not our view. Report dates are estimates that can move.
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Eversource EnergyWhat are the scenarios for Drax Group plc?
An illustrative range for the year ahead, with the assumption behind each case — not a prediction or a price target.
What are the pros and cons of Drax Group plc?
How many points the write-up makes each way — a balance check, not a score or verdict.
- Provides a significant chunk of the UK's renewable electricity needs.
- Offers an attractive dividend yield: The yearly dividend as a percentage of the share price - roughly the income you'd earn from dividends alone. for income-focused portfolios.
- Lower share price volatility than the broader stock market, reflected in a low beta.
- Recent revenue and earnings growth have both been heading downwards.
- Very thin net profit margins leave little room for unexpected expenses.
- Return on equity: How much profit the company makes for each £1 shareholders have put in. Higher usually means a more efficient business. is currently very low.
- Heavy reliance on government policies and environmental subsidies to remain profitable.
- Public and political debate over whether burning wood pellets is truly green.
- Vulnerability to sudden swings in global commodity and energy prices.
The write-up's own warning lights — if these start happening, the case above changes.
- A permanent government decision to phase out all biomass subsidies.
- A major, lasting breakdown in the international supply chain for wood pellets.
Built from public filings & market prices, checked for an education-only tone, and never a price target. How we make these →
This plain-English summary was auto-generated on 2026-08-02 from public data and checked for an education-only, no-advice tone (the figures above carry their own, usually fresher, 'as of' date). It's information, never a recommendation.