DTE Energy Company

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 the second quarter of 2025, mainly due to timing of taxes, higher rate base costs, and colder weather, partially offset by rate implementation. DTE Gas earnings were down $10 million year over year, while DTE Vantage rose to $45 million, up $14 million, and Energy Trading earned $41 million, up $17 million. Management said 2026 guidance implies 6% to 8% operating EPS growth off the 2025 midpoint, and it continues to expect to reach the high end of the range this year. The company also reiterated a long-term 6% to 8% operating EPS growth rate through 2030, with upside from Google and other data-center opportunities.

Joi Harris struck an upbeat but disciplined tone, emphasizing execution, reliability, and affordability. She highlighted the July storm as proof that more grid investment is still needed, while also noting that areas with prior reliability upgrades performed better. On growth, she said the Oracle project is on track, the Google deal is progressing, and the broader data-center pipeline remains strong, with multiple customers advancing through zoning, site plan, and commercial discussions.

Dave Ruud said Q2 operating earnings were $274 million, or $1.32 per share, and broke down the year-over-year changes across the utility and non-utility businesses. He noted DTE Electric was down $48 million, DTE Gas down $10 million, Vantage up $14 million, and Energy Trading up $17 million. On the balance sheet, he said DTE is targeting annual equity issuances of $500 million to $600 million in 2026 through 2028, with up to $100 million expected internally, and that about $350 million was priced in the first quarter plus another $150 million in the second quarter, effectively covering the year’s equity needs. He also reiterated focus on investment-grade credit and an FFO-to-debt ratio of approximately 15%.

Analysts focused heavily on the data-center pipeline, asking how much of the next 2 gigawatts is hyperscalers versus colocators, what is left to get deals signed, and whether the current pipeline can push EPS growth above 8%. Management said the 2 gigawatts includes a mix of hyperscalers and colocators, with zoning, site plans, and commercial modeling still the main gating items, and said they remain confident in landing another agreement by year-end. Questions also centered on the electric rate case stay-out and Oracle credit risk; management said the stay-out mechanism was viewed positively and that Oracle remains protected by collateral triggers and other contract safeguards, with no expected impact on project completion or timing.