Drax Group Full Year 2024 Earnings: EPS Beats Expectations, Revenues Lag

Drax Group (LON:DRX) Full Year 2024 Results

Key Financial Results

• Revenue: UK£6.16b (down 20% from FY 2023).
• Net income: UK£526.6m (down 6.3% from FY 2023).
• Profit margin: 8.5% (up from 7.3% in FY 2023). The increase in margin was driven by lower expenses.
• EPS: UK£1.37 (down from UK£1.43 in FY 2023).

All figures shown in the chart above are for the trailing 12 month (TTM) period

Drax Group EPS Beats Expectations, Revenues Fall Short

Revenue missed analyst estimates by 22%. Earnings per share (EPS) exceeded analyst estimates by 5.8%.

The primary driver behind last 12 months revenue was the Biomass Generation segment contributing a total revenue of UK£4.92b (80% of total revenue). Notably, cost of sales worth UK£4.45b amounted to 72% of total revenue thereby underscoring the impact on earnings. The largest operating expense was General & Administrative costs, amounting to UK£600.1m (50% of total expenses). Explore how DRX's revenue and expenses shape its earnings.

Looking ahead, revenue is expected to decline by 8.1% p.a. on average during the next 3 years, while revenues in the Renewable Energy industry in Europe are expected to grow by 1.2%.

Performance of the market in the United Kingdom.

The company's shares are up 1.0% from a week ago.

Risk Analysis

You should learn about the 3 warning signs we've spotted with Drax Group (including 1 which is concerning).

Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team (at) simplywallst.com.

This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.