DTE Energy Company 2020 Series

DTE reported second-quarter 2026 operating earnings of $274 million, or $1.32 per share. DTE Electric earnings were $270 million, down $48 million from Q2 2025, with timing of taxes, higher rate base costs, and colder weather partly offset by rate implementation. DTE Gas earnings were down $10 million year over year, while DTE Vantage rose $14 million to $45 million and Energy Trading rose $17 million to $41 million. Management said 2026 guidance reflects 6% to 8% operating EPS growth off the 2025 guidance midpoint and that the company remains on track to reach the high end of guidance this year. They also reaffirmed 6% to 8% long-term operating EPS growth through 2030, with upside from the Google agreement and other data-center opportunities pending MPSC approval.

Joi Harris said the company is executing well, with a strong focus on customer affordability, reliability, and disciplined capital deployment. She framed the July storm as evidence of both the value of recent grid investments and the work still needed, while noting upgraded portions of the system performed significantly better. On growth, she emphasized that Oracle is on track, the Google deal is advancing through approval, and the broader pipeline remains active with multiple customers in discussion.

Dave Ruud said Q2 operating earnings of $274 million and $1.32/share put DTE on track to land at the high end of 2026 guidance. He highlighted that Electric was pressured by timing of taxes, higher rate base costs, and weather, while Gas was hurt by higher rate base and O&M costs plus warmer weather. On capital needs, he said DTE is targeting annual equity issuance of $500 million to $600 million from 2026 through 2028, with similar levels through 2030, and that about $350 million was priced in Q1 plus another $150 million in Q2, effectively fulfilling 2026 equity needs. He also said the company is targeting an FFO-to-debt ratio of approximately 15% and wants to maintain investment-grade credit.

Analysts focused on the data-center pipeline, asking whether the 2 GW in advanced discussions are hyperscalers, what remains to be done before agreements close, and whether the guidance range would be updated to a higher plus format. Management said the advanced pipeline includes a mix of hyperscalers and colocators, with zoning, site plans, and commercial modeling still being worked through, and reiterated that the guidance framework stays at 6% to 8% plus upside rather than a new range. Questions also probed the electric rate case stay-out, Oracle credit/collateral protections, and the IRP; DTE said the stay-out mechanism has been viewed positively, Oracle protections include collateral triggers for downgrades, and the Q3 IRP will reflect the two signed contracts in the base case and the broader pipeline in the high case.