Drax improves profit guidance after heatwave boosts demand

Power generation firm Drax has lifted its profit outlook for the year after demand was boosted by the summer heatwave.

Shares in the company ticked higher on Thursday morning as a result.

Drax group chief executive Will Gardiner said strong recent trading 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 call-outs for additional power supply during the summer, with most of these linked to soaring temperatures.

The FTSE 250 company told shareholders that it delivered a “strong performance” in July and August.

It now expected adjusted earnings for 2026 to be “around the top” of forecasts.

Drax said it was also boosted by its acquisition of renewable infrastructure investor Bluefield Solar Income Fund (BSIF).

It completed the £561 million takeover of Bluefield in August as part of efforts to broaden its range of power generation.

Mr Gardiner added: “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.”