DTE ENERGY CO (DTE)

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AI: Fair-priced

Price checkThe current price looks reasonable, but it leaves little room for disappointing execution.

The $140.84 August 14 close equals 18.4 times the midpoint of DTE’s $7.59–$7.73 operating earnings guidance. Operating earnings remove items management considers unusual. The $1.165 quarterly dividend annualizes to $4.66, producing a 3.3% yield. My illustrative range of 17–19 times guided earnings gives roughly $130–$146. The price therefore appears fair, near that range’s upper half, provided earnings keep growing and financing costs remain manageable.

Big pictureProfit has grown steadily, while heavy investment consumes more cash than operations provide.

Net income increased from $907 million in 2021 to $1.46 billion in 2025, while earnings per share rose from $4.67 to $7.03 despite a 7.2% increase in shares. However, 2025 operating cash of $3.41 billion did not cover $5.30 billion of investing outflows and $871 million of dividends. That left a $2.77 billion combined funding gap before financing. This is common during utility expansion, but it makes durable earnings dependent on regulators allowing DTE to recover prudent construction costs.

Business strengthRegulated customers support dependable earnings, but debt and outside funding reduce financial flexibility.

DTE’s electric and gas utilities serve 2.3 million and 1.4 million customers, respectively, supporting recurring demand. Operating income reached $2.37 billion in 2025, up from $1.50 billion in 2021. The counterweight is $24.67 billion of debt, equal to 5.9 times 2025 earnings before interest, taxes and non-cash depreciation. Cash was only $208 million, and current assets covered 80% of near-term liabilities. Trading and weather also create quarterly swings: trading gains offset weaker utility results in the second quarter.

What could change the storyData-center growth could lift earnings, while regulatory setbacks or outages could weaken returns.

The bull case strengthens if the 1,383-megawatt Saline project and Google’s planned one-gigawatt facility arrive on schedule, customer-funded infrastructure limits risk, and guided earnings are achieved without meaningful share issuance. The bear case is concrete: regulators approved only $242 million of DTE’s previous $574 million request, while annual utility investment exceeds $6 billion. Another large reduction, higher borrowing costs or reliability failures could widen funding needs. Sustained earnings growth with stable leverage would improve value; missed guidance or delayed cost recovery would undermine it.

$140.84 price considered

AI: News

Profit beat, mixed qualityQuarterly profit beat expectations, but volatile trading gains masked weaker utility results.

On July 28, DTE reported second-quarter operating earnings of $1.32 per share, above the $1.17 analyst estimate but below $1.36 a year earlier. Trading-unit operating profit rose 70.8%, while electric-segment profit fell 15%. Management retained full-year guidance of $7.59–$7.73. Reuters reported a 2% morning share gain, although the stock closed 0.8% lower. That reversal makes any single-event explanation uncertain.

Storm response investigationA major storm inquiry raised questions about reliability spending and future regulatory support.

On July 16, Michigan regulators opened an investigation after July 3 storms caused 492,000 reported DTE customer outages, some lasting several days. The commission received more than 1,500 complaints concerning three utilities and ordered detailed response reports by August 27. No reliable stock reaction was identified. The financial concern is indirect: poor reliability evidence could make future spending requests harder to defend or require additional work before DTE earns an allowed return.

Data-center storage advancesRegulators advanced customer-funded storage, lowering the risk that existing customers subsidize data-center growth.

On July 16, regulators approved two storage agreements totaling 300 megawatts for the 1,383-megawatt Saline data center. This followed March approval of the first 332 megawatts of company-owned storage. Green Chile Ventures must fund the planned 1,383 megawatts of storage over 15 years, while DTE owns and operates the assets. The arrangement can enlarge DTE’s investment base, but DTE remains responsible for costs it cannot recover from the customer.

Another rate requestDTE sought another large rate increase, but its previous request was sharply reduced.

DTE filed for a $474 million electric-rate increase on April 28, according to reporting published April 30. The requested change would raise a typical residential bill about 9.7% and, if approved, begin in 2027. The outcome is uncertain: regulators had reduced DTE’s preceding $574 million request to $242 million. Approval supports recovery of grid spending and earnings growth; another substantial reduction would increase the amount that must be financed without matching customer revenue.

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	2025	2024	2023	2022	2021	2020	2019	2018	2017	2016	2015	2014	2013	2012	2011	2010	2009	2008	2007
Revenue	—	—	—	—	—	—	—	—	$12.61B	$10.63B	$10.34B	$12.30B	$9.66B	$8.79B	$8.86B	$8.53B	—	—	—
Operating expenses	—	—	—	—	—	—	—	—	—	—	—	—	—	—	—	—	$6.76B	$8.07B	$6.87B
Operating income	$2.37B	$2.09B	$2.24B	$1.75B	$1.50B	$1.55B	$1.43B	$1.59B	$1.71B	$1.49B	$1.24B	$1.59B	$1.20B	$1.28B	$1.42B	$1.47B	$1.25B	$1.26B	$1.60B
EBITDAderived	$4.21B	$3.82B	$3.85B	$3.22B	$2.87B	$2.85B	$2.60B	$2.72B	$2.74B	$2.46B	$2.09B	$2.73B	$2.30B	$2.30B	$2.42B	$2.50B	$2.27B	$2.16B	$2.53B
Net income	$1.46B	$1.40B	$1.40B	$1.08B	$907.0M	$1.37B	$1.17B	$1.12B	$1.13B	$868.0M	$727.0M	$905.0M	$661.0M	$610.0M	$711.0M	$630.0M	$532.0M	$546.0M	$971.0M
Basic EPSper diluted share	$7.04	$6.78	$6.77	$5.53	$4.68	$7.09	$6.32	$6.18	$6.32	$4.84	$4.05	$5.11	$3.76	$3.56	$4.19	$3.75	$3.24	$3.34	$5.70
Diluted EPSper diluted share	$7.03	$6.77	$6.76	$5.52	$4.67	$7.08	$6.31	$6.17	$6.32	$4.83	$4.05	$5.10	$3.76	$3.55	$4.18	$3.74	$3.24	$3.34	$5.69

Review source filings at SEC.gov ↗

Insider buys & sells

Jul 1, 2024–Jun 30, 2026

Buys0$0.00 disclosed value

Sells (SEC code S)5$1.93M disclosed value

Transaction	Insider	Type	Shares	Price	Value	Owned after
May 14, 2026Form 4	Muschong Lisa A.VP, Corp Sec & Chief of Staff	SellCommon Stock	1.0K	$143.72	$143.7K	6.2K
Aug 14, 2025Form 4	Muschong Lisa A.VP, Corp Sec & Chief of Staff	SellCommon Stock	1.6K	$140.53	$224.8K	4.2K
Feb 24, 2025Form 4	Chavez JoAnnSr VP & Chief Legal Officer	SellCommon Stock	7.1K	$132.40	$935.0K	14.1K
Feb 19, 2025Form 4	Myrick Tracy JChief Accounting Officer	SellCommon Stock	1.0K	$129.92	$131.7K	3.4K
Feb 19, 2025Form 4	Paul Matthew T.Pres. & COO-DTE Electric Co.	SellCommon Stock · indirect	3.8K	$129.56	$492.5K	7.0K

Review ownership filings at SEC.gov ↗

DTE ENERGY CO (DTE)

Financial charts

Financial statements

Insider buys & sells