Summary of DTE Energy Q2 2026 Earnings Call

1Key Financial Results and Metrics:

Operating Earnings: $274 million, or $1.32 per share, for Q2 2026.

DTE Electric Earnings: $270 million, down $48 million from Q2 2025, primarily due to timing of taxes, higher rate base costs, and colder weather.

DTE Gas Earnings: $10 million lower than Q2 2025, impacted by higher costs and warmer weather.

DTE Vantage Earnings: Increased to $45 million, up $14 million year-over-year, driven by custom energy solutions and RNG platforms.

Energy Trading Earnings: $41 million, up $17 million from the prior year, primarily due to timing in the power portfolio.

Balance Sheet: Targeting $500 million to $600 million in annual equity issuances through 2028 to support capital investments.

2Strategic Updates and Business Highlights:

Storm Response: A severe storm in July affected nearly 400,000 customers, highlighting the importance of grid investments. Areas with prior reliability investments performed better.

Data Center Development:

The 1.4 gigawatt Oracle data center is under construction.

A 1-gigawatt agreement with Google is progressing through regulatory approval.

A pipeline of 5 to 6 gigawatts of additional opportunities is in various stages of discussion.

Reliability Investments: Plans to invest approximately $11 billion over the next five years to enhance grid reliability, with significant improvements noted in outage duration and frequency.

Regulatory Strategy: Electric and gas rate cases are underway to support critical investments, with a focus on maintaining affordability for customers.

3Forward Guidance and Outlook:

Operating EPS Growth: DTE remains confident in achieving the high end of its 2026 operating EPS guidance, targeting 6% to 8% growth through 2030.

Rate Case Stay-Out: If the Google contract is approved, it could allow for a potential rate case stay-out until at least 2028.

IRP Filing: Expected in Q3 2026, will outline plans for meeting long-term generation and capacity needs, incorporating data center load.

4Bad News, Challenges, or Points of Concern:

Weather Impact: The mild weather in the first half of 2026 and the severe July storm created challenges for earnings, particularly for DTE Electric.

Regulatory Challenges: The upcoming electric rate case testimony could present uncertainties, particularly regarding the proposed stay-out mechanism and the impact of data center load growth.

Credit Concerns: Oracle’s recent credit downgrade by S&P, while still investment-grade, raised questions about potential impacts on the project and collateral requirements.

5Notable Q&A Insights:

Data Center Pipeline: Discussions are ongoing with multiple customers, including hyperscalers and colocators, with zoning and commercial agreements being key challenges.

Regulatory Mechanisms: DTE is optimistic about the reception of its stay-out proposal and believes data center load growth will positively influence rates.

Future Contracts: The company is confident in securing additional agreements by year-end, which could enhance growth prospects beyond the current guidance.

Economic Development: Data centers are seen as significant economic opportunities for Michigan, with substantial tax benefits and job creation potential. Overall, DTE Energy is navigating challenges while maintaining a positive outlook on growth driven by strategic investments in reliability and data center development.