DTE Energy (NYSE:DTE) used its year-end earnings call to highlight improved electric reliability, growing data center-related demand, and an expanded capital plan that management said supports continued earnings growth in 2026 and through the end of the decade.
2025 results beat guidance as utilities and Vantage contributed
Chief Financial Officer Dave Ruud said 2025 operating earnings were $1.5 billion, translating to operating earnings per share (EPS) of $7.36, which was above the high end of the company’s 2025 guidance range. President and CEO Joi Harris described 2025 as a “very successful” year, citing reliability progress, growth execution, and a continued focus on affordability.
- DTE Electric operating earnings were about $1.2 billion, up year over year, driven by base rate implementation, favorable weather, lower storm expense, and higher earnings from clean energy projects, partially offset by higher operations and maintenance (O&M) and rate base costs.
- DTE Gas operating earnings were $295 million, up year over year, driven by colder winter weather and new base rates, partially offset by higher O&M and rate base costs. Ruud said gas O&M rose as expenses returned to more “normalized” levels following prior one-time reductions.
- DTE Vantage generated $162 million of operating earnings, with the increase primarily attributed to renewable natural gas (RNG) production tax credits and new project development in custom energy solutions, offset partly by lower investment tax credits than in 2024 and lower steel-related earnings.
- Energy Trading posted operating earnings of $114 million as the “contracted and hedged” physical power and gas portfolios continued to perform strongly.
- Corporate and Other was unfavorable by $73 million year over year, primarily due to higher interest expense and one-time tax items.
2026 outlook calls for 6%–8% operating EPS growth
Management issued 2026 operating EPS guidance of $7.59 to $7.73, representing 6% to 8% growth over the midpoint of 2025 guidance. Harris and Ruud both said the company expects to deliver toward the high end of the range, pointing to RNG production tax credits at DTE Vantage as a key driver.
Ruud said utility growth in 2026 is expected to come from customer-focused investments, including distribution and cleaner generation at DTE Electric and main renewal and infrastructure improvements at DTE Gas. He added that trading results are still guided to $50 million to $60 million, though some structured contracts extend into 2026 and provide “tailwinds.”
Reliability gains, renewables build-out, and the cleaner energy transition
Harris said the company delivered significant electric reliability improvements in 2025, attributing the results to investments, process improvements, and more favorable weather. She said DTE achieved its best all-weather SAIDI performance in nearly 20 years, with a nearly 90% reduction in average outage duration compared to 2023. When storms occurred, she said crews restored power to 99.9% of impacted customers within 48 hours.
Harris reiterated DTE’s long-term reliability goals: reducing the number of outages by 30% and cutting outage duration in half by 2029. She described a four-point plan that includes deploying smart-grid devices, upgrading existing infrastructure, rebuilding older sections of the grid, and continuing extensive tree trimming. Harris said customers have experienced a 90% increase in reliability in areas where rebuild work has been completed and that DTE has trimmed more than 40,000 miles of trees since 2015.
On clean energy, Harris said DTE placed 330 megawatts (MW) of solar in service last year and has an additional 745 MW under construction. She said the company now has about 2,500 MW of renewable generation online. Major projects underway include a 220-MW battery storage project at the former Trenton Channel Power Plant site, and the Bell River Power Plant conversion in 2026 to a 1,300-MW natural gas peaking resource. Harris said DTE expects to build roughly 900 MW of renewables per year over the next five years and noted that the company has safe-harbored investment tax credits through 2029.
Data centers drive capital plan expansion and potential upside to growth
A major theme of the call was data center load growth. Harris said DTE executed its first large data center agreement for 1.4 gigawatts (GW) of load and received Michigan Public Service Commission (MPSC) approval, with construction underway. She said the agreement includes customer protections such as a 19-year power supply contract with minimum monthly charges and a 15-year energy storage contract. The load is expected to ramp over two to three years.
To meet the full requirement, Harris said DTE is developing new energy storage, driving nearly $2 billion of incremental storage investment, along with tolling agreements and associated capacity mechanisms. She also said DTE is in advanced discussions with hyperscalers for more than 3 GW of additional load, with another 3 to 4 GW behind that, and that the company expects to reach final terms on another agreement “in the coming weeks.”
In response to analyst questions, Harris said that 3 GW of incremental data center load could push compound annual operating EPS growth above 8% between 2027 and 2030, and that the next agreement—part of that 3 GW—could bring growth to “at least 8%” in that timeframe as related capital enters the plan beginning around 2027.
Harris also addressed local concerns and moratoriums in Michigan communities, saying the contract currently being negotiated does not appear at risk of delays and that some reported moratorium locations are “not suitable” for large-load data centers. She emphasized that contracts are structured so revenues fully support load and associated costs, stating customers will not be burdened by data center additions. She pointed to the existing data center deal as providing $300 million of annual affordability benefits to existing customers once fully ramped.
On resource planning, Harris said DTE has taken steps to prepare for combined-cycle gas turbine (CCGT) developments that are carbon capture and storage (CCS) capable and could support up to 2.8 GW of new load. She said the company has entered the MISO queue and placed turbine down payments given lead times, while noting the integrated resource plan (IRP) process will determine the final resource mix. DTE expects to incorporate incremental generation requirements into its 2026 IRP filing.
Affordability messaging and funding plan include equity issuance targets
Harris repeatedly emphasized affordability, saying DTE’s average annual bill increases over the past four years have been below national and Great Lakes region averages. She said residential electric bills are 18% below the national average and represent less than 2% of median household income for DTE customers. Harris also said DTE helped income-qualified customers access $125 million in energy assistance in 2025 and donated $15 million to the Heat and Warmth Fund, the Salvation Army, and United Way partners.
During the Q&A, Harris said DTE has been engaging with Michigan’s 2026 gubernatorial candidates and focusing on reliability improvements and affordability, including the contribution data center load growth can make when “done right.”
Ruud said the company is targeting $500 million to $600 million of annual equity issuance from 2026 through 2028, with similar levels through 2030, to support the increased capital plan while maintaining credit metrics. The five-year capital investment plan increased by $6.5 billion to $36.5 billion, driven by the data center transaction and modernization and cleaner generation investments. Ruud said DTE is targeting an FFO-to-debt ratio of about 15% and ended 2025 at roughly 15.4%.
Management also discussed Michigan regulatory items. Harris said the company has seen support in staff testimony in its electric rate case, including support for expanding the infrastructure recovery mechanism (IRM) to roughly $1 billion over the next couple of years and pulling forward $200 million of pole-top maintenance into 2026. On return on equity (ROE), Harris said DTE expects its ROE to remain flat, and she referenced an administrative law judge recommendation of 9.9% in DTE’s case. She also said the company believes an 8.2% ROE cited in another context is not a reasonable benchmark given borrowing costs.
About DTE Energy (NYSE:DTE)
DTE Energy is an integrated energy company headquartered in Detroit, Michigan, that combines regulated utility operations with non-utility energy businesses. Its regulated subsidiaries operate electric and natural gas utility services that deliver generation, transmission and distribution to residential, commercial and industrial customers. The company’s utility segment focuses on maintaining and upgrading energy delivery infrastructure, ensuring reliable service and meeting regulatory requirements in its service territory.
Beyond its regulated utilities, DTE Energy operates non-utility businesses that develop, own and operate power generation and energy-related projects.
