Drax Group plc (LSE: DRX) closed Thursday’s session at 783.50p, up 1.56% as buyers returned to the biomass power and energy solutions group.

The stock had been trading in a broadly supportive range since its full-year 2025 results in February, when adjusted EBITDA came in at £947 million with record biomass power output and pellet production.

Adjusted earnings per share rose 7% to 137.7 pence for the year, with the board responding by announcing an 11.5% dividend increase and a new share buyback programme.

Net debt of £784 million remained well below Drax’s long-term target levels, providing a solid balance sheet as the company pursues investments in battery energy storage, data centres, and bioenergy with carbon capture and storage.

The company signed a new dispatchable power agreement with the UK government in late 2025, extending supply commitments from Drax Power Station by four more years post-2027, adding long-term revenue visibility.

Drax also completed the £36 million acquisition of Flexitricity, a UK-based optimiser of flexible energy assets, in January 2026, bolstering its Energy Solutions division.

In early 2026, the company launched a consultation that could result in the loss of up to 350 jobs, or approximately 10% of its workforce, as part of a restructuring focused on reducing costs in Canadian operations and centralising activities.

Citi had upgraded Drax to a Buy rating in December 2025 with a 850p price target, pointing to limited downside risk and a supportive policy environment for renewable generation.

The 52-week range for the stock extends from 616.50p to 937.50p, indicating that Thursday’s close sat in the middle of that band, with the shares still some way from last year’s highs.

Thursday’s gain reflected continued confidence in Drax’s strategic positioning as the UK transitions toward cleaner sources of dispatchable power.