The following combined discussion is separately filed by DTE Energy and DTE Electric. However, DTE Electric does not make any representations as to information related solely to DTE Energy or the subsidiaries of DTE Energy other than itself.
EXECUTIVE OVERVIEW
DTE Energy is a diversified energy company and is the parent company of DTE Electric and DTE Gas, regulated electric and natural gas utilities engaged primarily in the business of providing electricity and natural gas sales, distribution, and storage services throughout Michigan. DTE Energy also operates two energy-related non-utility segments with operations throughout the United States.
The following table summarizes DTE Energy's financial results:
Three Months Ended June 30, Six Months Ended June 30,
2026 2025 2026 2025
(In millions, except per share amounts)
Net Income Attributable to DTE Energy Company $ 282 $ 229 $ 529 $ 674
Diluted Earnings per Common Share $ 1.35 $ 1.10 $ 2.53 $ 3.24
The increase in Net Income Attributable to DTE Energy Company for the three months ended June 30, 2026 was primarily due to higher earnings in the Energy Trading segment and Corporate and Other, partially offset by lower earnings in the Electric segment. The decrease for the six-month period was primarily due to lower earnings in the DTE Vantage and Energy Trading segments, and Corporate and Other, partially offset by higher earnings in the Electric segment.
STRATEGY
DTE Energy's strategy is to achieve long-term earnings per share growth with a strong balance sheet and attractive dividend.
DTE Energy's utilities are investing capital to support a modern, reliable grid and cleaner, affordable energy through investments in base infrastructure and new generation. Increasing intensity of windstorms and other weather events, coupled with increasing electric vehicle adoption and future data center load, will drive a continued need for substantial grid investment over the long-term.
DTE Energy plans to reduce the carbon emissions of its electric utility operations 65% by 2028, 85% by 2032, and 90% by 2040 from 2005 carbon emissions levels. DTE Energy plans to end its use of coal-fired power plants in 2032 and is committed to a net zero carbon emissions goal by 2050 for its electric and gas utility operations.
Additionally, as a result of legislation passed by the state of Michigan in 2023, DTE Energy will be required to meet a 100% clean energy portfolio standard by 2040. Clean energy sources include renewables, nuclear, and natural gas-fired plants equipped with a carbon capture and storage system that is at least 90% effective in reducing carbon emissions to the atmosphere. The legislation also requires 50% of an electric utility's energy to be generated from renewable sources by 2030 and 60% by 2035. DTE Energy is currently assessing the impacts of this legislation and will include updates in its next Integrated Resource Plan, currently planned for the third quarter of 2026, to comply with the new requirements.
To achieve carbon reduction goals at the electric utility, DTE Energy will continue its transition away from coal-powered energy sources and is replacing or offsetting the generation from these facilities with renewable energy, natural gas, battery storage, and energy waste reduction initiatives. Refer to the "Capital Investments" section below for further discussion regarding DTE Energy's retirement of its aging coal-fired plants and transition to renewable energy and other sources. Over the long-term, DTE Energy is also monitoring and pursuing the advancement of emerging technologies such as long-duration storage, modular nuclear reactors, and carbon capture and sequestration, and how these technologies may support clean, reliable generation and customer affordability.
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For the gas utility, DTE Energy aims to cut carbon emissions across the entire value chain. DTE Energy plans to reduce the carbon emissions from its gas utility operations by 65% by 2030 and 80% by 2040, and is committed to a goal of net zero emissions by 2050 from internal gas operations and gas suppliers. To achieve net zero, DTE Energy is working to source gas with lower methane intensity, reduce emissions through its gas main renewal and pipeline integrity programs, and if necessary, use carbon offsets to address any remaining emissions. DTE Energy also aims to help DTE Gas customers reduce their emissions by approximately 35% by 2040 by increasing energy efficiency, pursuing advanced technologies such as hydrogen and carbon capture and sequestration, and through the CleanVision Natural Gas Balance program which provides customers the option to use carbon offsets and renewable natural gas.
DTE Energy expects that these initiatives at the electric and gas utilities will continue to provide significant opportunities for capital investments and result in earnings growth. DTE Energy is focused on executing its plans to achieve operational excellence and customer satisfaction with a focus on customer affordability. To support its goals for customer affordability, DTE Energy is working to implement operational efficiencies and optimize opportunities to generate tax credits relating to renewable energy, nuclear generation, energy storage, and carbon capture and sequestration. These tax credits may reduce the cost of owning related assets and reduce customer rate impacts from any future cost recoveries. DTE Energy's utilities operate in a constructive regulatory environment and have solid relationships with their regulators.
DTE Energy also has significant investments in non-utility businesses and expects growth opportunities in its DTE Vantage segment. DTE Energy employs disciplined investment criteria when assessing growth opportunities that leverage its assets, skills, and expertise, and provides attractive returns and diversity in earnings and geography. Specifically, DTE Energy invests in targeted markets with attractive competitive dynamics where meaningful scale is in alignment with its risk profile.
A key priority for DTE Energy is to maintain a strong balance sheet which facilitates access to capital markets and reasonably priced financing. Growth will be funded through internally generated cash flows and the issuance of debt and equity. DTE Energy has an enterprise risk management program that, among other things, is designed to monitor and manage exposure to earnings and cash flow volatility related to commodity price changes, interest rates, and counterparty credit risk.
CAPITAL INVESTMENTS
DTE Energy's utility businesses will require significant capital investments to maintain and improve the electric generation and electric and natural gas distribution infrastructure and to comply with environmental regulations and achieve goals for carbon emission reductions. Capital plans may be regularly updated as these requirements and goals evolve and may be subject to regulatory approval.
DTE Electric's capital investments over the 2026-2030 period are estimated at $30 billion, comprised of $11 billion for distribution infrastructure, $4 billion for base infrastructure, and $15 billion for cleaner generation including renewables.
DTE Electric has retired all eleven coal-fired generation units at the Trenton Channel, River Rouge, and St. Clair facilities, as well as one unit at the Belle River facility. DTE Electric has also announced plans to retire its remaining five coal fired generating units, including the remaining unit at the Belle River facility in 2026. The four units at the Monroe facility are expected to be retired in two stages in 2028 and 2032. DTE Electric plans to repurpose the Trenton Channel facility to a battery energy storage system in 2026, and convert the Belle River facility from a base load coal plant to a natural gas peaking resource in 2026. Generation from the retired facilities will continue to be replaced or offset with a combination of renewables, energy waste reduction, demand response, battery storage, and natural gas fueled generation.
DTE Gas' capital investments over the 2026-2030 period are estimated at $4.5 billion, comprised of $2.7 billion for base infrastructure and $1.8 billion for the gas renewal program, which includes main and service renewals, meter move-out, and pipeline integrity projects.
DTE Electric and DTE Gas plan to seek regulatory approval for capital expenditures consistent with ratemaking treatment.
DTE Energy's non-utility businesses' capital investments are primarily for expansion, growth, and ongoing maintenance in the DTE Vantage segment, including approximately $2.0 billion from 2026-2030 for custom energy solutions and renewable energy, while expanding into carbon capture and sequestration.
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ENVIRONMENTAL MATTERS
The Registrants are subject to extensive environmental regulations, including those addressing climate change. Additional costs may result as the effects of various substances on the environment are studied and governmental regulations are developed and implemented. Actual costs to comply could vary substantially. The Registrants expect to continue recovering environmental costs related to utility operations through rates charged to customers, as authorized by the MPSC.
Increased costs for energy produced from traditional coal-based sources due to recent, pending, and future regulatory initiatives could also increase the economic viability of energy produced from renewable, natural gas fueled generation, and/or nuclear sources, energy waste reduction initiatives, and the potential development of market-based trading of carbon instruments.
For further discussion of environmental matters, see Note 12 to the Consolidated Financial Statements, "Commitments and Contingencies."
OUTLOOK
Over the coming years, DTE Energy and the broader energy sector are expected to undergo significant transformation. DTE Energy's strong utility base, combined with its integrated non-utility operations, position it well for long-term growth.
Looking forward, DTE Energy will focus on several areas that are expected to improve future performance:
•electric and gas customer satisfaction;
•electric distribution system reliability;
•new electric generation and storage;
•gas distribution system renewal;
•reducing carbon emissions at the electric and gas utilities;
•rate competitiveness and affordability;
•regulatory stability and investment recovery for the electric and gas utilities;
•strategic investments in growth projects at DTE Vantage;
•employee engagement and health, safety, and wellbeing;
•cost structure optimization across all business segments; and
•cash, capital, and liquidity to maintain or improve financial strength.
DTE Energy will continue to pursue opportunities to grow its businesses in a disciplined manner if it can secure opportunities that meet its strategic, financial, and risk criteria.
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RESULTS OF OPERATIONS
The following sections provide a detailed discussion of the operating performance and future outlook of DTE Energy's segments. Segment information, described below, includes intercompany revenues, expenses, and other income and deductions that are eliminated in the Consolidated Financial Statements.
Three Months Ended June 30, Six Months Ended June 30,
2026 2025 2026 2025
(In millions)
Net Income (Loss) Attributable to DTE Energy by Segment
Electric segment $ 270 $ 318 $ 488 $ 441
Gas segment (4) 6 206 212
DTE Vantage segment 45 31 (14) 70
Energy Trading segment 49 (16) (29) 51
Corporate and Other (78) (110) (122) (100)
Net Income Attributable to DTE Energy Company $ 282 $ 229 $ 529 $ 674
ELECTRIC SEGMENT
The Results of Operations discussion for DTE Electric is presented in a reduced disclosure format in accordance with General Instruction H(2) of Form 10-Q.
The Electric segment consists principally of DTE Electric. Electric results and outlook are discussed below:
Three Months Ended June 30, Six Months Ended June 30,
2026 2025 2026 2025
(In millions)
Operating Revenues
Utility operations $ 1,751 $ 1,682 $ 3,468 $ 3,136
Non-utility operations 24 4 51 9
1,775 1,686 3,519 3,145
Operating Expenses
Fuel and purchased power — utility 479 435 989 845
Fuel and purchased power — non-utility 5 — 18 —
Operation and maintenance 398 368 795 713
Depreciation and amortization 423 380 832 762
Taxes other than income 100 88 203 182
Asset (gains) losses and impairments, net — — 2 —
1,405 1,271 2,839 2,502
Operating Income 370 415 680 643
Other (Income) and Deductions 110 107 218 215
Income Tax Benefit (10) (10) (26) (13)
Electric Segment Net Income Attributable to DTE Energy Company $ 270 $ 318 $ 488 $ 441
Reconciliation of Electric Segment to DTE Electric Net Income (4) — (7) (2)
DTE Electric Net Income $ 266 $ 318 $ 481 $ 439
See DTE Electric's Consolidated Statements of Operations for a complete view of its results. Differences between the Electric segment and DTE Electric's Consolidated Statements of Operations are primarily due to non-utility operations at DTE Sustainable Generation (some of which includes intra-segment activity that is eliminated in consolidation) and the classification of certain benefit costs. Refer to Note 13 to the Consolidated Financial Statements, "Retirement Benefits and Trusteed Assets" for additional information.
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Operating Revenues increased $89 million and $374 million in the three and six months ended June 30, 2026, respectively. Revenues associated with certain mechanisms and surcharges, including recovery of fuel and purchased power, are offset by related expenses elsewhere in the Registrants' Consolidated Statements of Operations. The increase in both periods was due to the following:
Three Months Six Months
(In millions)
Power Supply Cost Recovery $ 118 $ 173
Implementation of new rates 60 100
Regulatory Mechanism — RPS (44) 54
Non-utility revenues(a) 20 42
Base sales / rate mix 25 27
Interconnection sales (65) (8)
Weather (32) (21)
Other regulatory mechanisms and other 7 7
$ 89 $ 374
______________________________
(a)The increase was primarily due to the acquisition of a non-utility business by DTE Sustainable Generation during the third quarter 2025.
Revenue results are impacted by changes in sales volumes, which are summarized in the table below:
Three Months Ended June 30, Six Months Ended June 30,
2026 2025 2026 2025
(In thousands of MWh)
DTE Electric Sales
Residential 3,503 3,577 7,167 7,237
Commercial 3,909 3,912 7,778 7,798
Industrial 2,064 2,051 3,988 4,104
Other 39 42 89 95
9,515 9,582 19,022 19,234
Interconnection sales 1,250 3,083 3,217 5,583
Total DTE Electric Sales 10,765 12,665 22,239 24,817
DTE Electric Deliveries
Retail and wholesale 9,515 9,582 19,022 19,234
Electric retail access 1,092 1,142 2,157 2,220
Total DTE Electric Sales and Deliveries 10,607 10,724 21,179 21,454
Fuel and purchased power — utility expense increased $44 million and $144 million in the three and six months ended June 30, 2026, respectively. The increase in both periods was due to the following:
Three Months
(In millions)
Purchased power - higher prices and higher volumes primarily due to lower generation $ 67
Higher transmission expenses 16
Gas - higher consumption partially offset by lower prices 7
Nuclear fuel - lower amortization due to refueling outage in 2026 (10)
Coal - lower consumption and prices (37)
Other 1
$ 44
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Six Months
(In millions)
Gas - higher consumption and prices $ 116
Purchased power - higher prices and higher volumes primarily due to lower generation 98
Higher transmission expenses 26
Nuclear fuel - lower amortization due to refueling outage in 2026 (14)
Coal - lower consumption and prices (84)
Other 2
$ 144
Fuel and purchased power — non-utility expense increased $5 million and $18 million in the three and six months ended June 30, 2026, respectively. The increase in both periods was primarily due to the Electric segment acquisition of non-utility assets in the third quarter of 2025.
Operation and maintenance expense increased $30 million and $82 million in the three and six months ended June 30, 2026, respectively. The increase in the second quarter was primarily due to higher distribution operations expense of $8 million, higher benefits and other compensation of $7 million, higher EWR expense of $6 million, higher corporate support costs of $6 million, and higher uncollectible expense of $4 million. The increase in the six-month period was primarily due to higher distribution operations expense of $25 million, higher plant generation expense of $23 million, higher benefits and other compensation of $12 million, higher corporate support costs of $10 million, higher uncollectible expense of $7 million, and higher RPS expense of $6 million.
Depreciation and amortization expense increased $43 million and $70 million in the three and six months ended June 30, 2026, respectively. The increase in both periods was primarily due to higher depreciable base, including the 15-year amortization of the undepreciated Monroe plant balance which began in February 2025.
Taxes other than income increased $12 million and $21 million in the three and six months ended June 30, 2026, respectively. The increase in the second quarter was primarily due to higher property taxes of $6 million and higher payroll taxes of $3 million. The increase in the six-month period was primarily due to higher property taxes of $13 million and higher payroll taxes of $5 million.
Other (Income) and Deductions increased $3 million in both the three and six months ended June 30, 2026. The increase in the second quarter was primarily due to higher net interest expense of $18 million, partially offset by higher AFUDC equity of $12 million and higher investment earnings of $3 million. The increase in the six-month period was primarily due to higher net interest expense of $30 million, partially offset by higher AFUDC equity of $23 million and higher investment earnings of $2 million.
Income Tax Benefit increased $13 million in the six months ended June 30, 2026. The change in the six-month period was primarily due to higher investment tax credits, partially offset by higher earnings.
Outlook — DTE Electric will continue to move forward in its efforts to achieve operational excellence, sustain strong cash flows, and earn its authorized return on equity. DTE Electric expects that planned significant capital investments will result in earnings growth. DTE Electric will maintain a strong focus on customers by increasing reliability and satisfaction while working to keep customer rate increases affordable. Looking forward, additional factors may impact earnings such as weather, the outcome of regulatory proceedings, uncertainty of legislative or regulatory actions regarding environmental compliance, and effects of energy waste reduction programs.
In March 2026, DTE Electric entered into a 1.0 gigawatt data center agreement. Generation and storage requirements related to this agreement are expected to increase capital expenditures by approximately $5.0 billion through 2032 which are incremental to DTE Electric's 5-year capital investment plan in the "Capital Investments" section above. DTE Electric is targeting regulatory approvals to be complete by the latter half of 2026.
DTE Electric filed a rate case with the MPSC on April 28, 2026 requesting an increase in base rates of $474 million based on a projected twelve-month period ending February 29, 2028, and an increase in return on equity from 9.9% to 10.25%. The requested increase in base rates was primarily due to capital investments required to support continued reliability improvements and the ongoing transition to cleaner energy. A final MPSC order in this case is expected in February 2027.
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On May 8, 2026, DTE Electric filed an application with the MPSC requesting a financing order to approve the securitization of $601 million of qualified costs primarily related to the net book value of the Belle River generating plant and tree trimming surge program costs. The filing requests recovery of these qualifying costs from DTE Electric's customers. A final MPSC order is expected by August 2026.
GAS SEGMENT
The Gas segment consists principally of DTE Gas. Gas results and outlook are discussed below:
Three Months Ended June 30, Six Months Ended June 30,
2026 2025 2026 2025
(In millions)
Operating Revenues — Utility operations $ 315 $ 316 $ 1,247 $ 1,192
Operating Expenses
Cost of gas — utility 38 45 416 376
Operation and maintenance 158 149 310 305
Depreciation and amortization 59 55 117 109
Taxes other than income 36 33 74 70
291 282 917 860
Operating Income 24 34 330 332
Other (Income) and Deductions 29 26 62 55
Income Tax Expense (Benefit) (1) 2 62 65
Net Income (Loss) Attributable to DTE Energy Company $ (4) $ 6 $ 206 $ 212
Operating Revenues — Utility operations decreased $1 million and increased $55 million in the three and six months ended June 30, 2026, respectively. Revenues associated with certain mechanisms and surcharges, including recovery of the cost of gas, are offset by related expenses elsewhere in DTE Energy's Consolidated Statements of Operations. The decrease in the second quarter and the increase in the six-month period were primarily due to:
Three Months Six Months
(In millions)
Gas Cost Recovery $ (7) $ 40
Infrastructure recovery mechanism 10 20
Midstream storage and transportation revenues 2 13
Weather (6) —
Normalized base sales 4 (6)
Regulatory mechanism — EWR (4) (10)
Other — (2)
$ (1) $ 55
Revenue results are impacted by changes in sales volumes, which are summarized in the table below:
Three Months Ended June 30, Six Months Ended June 30,
2026 2025 2026 2025
(In Bcf)
Gas Markets
Gas sales 17 19 88 90
End-user transportation 36 32 88 80
53 51 176 170
Intermediate transportation 137 139 289 303
Total 190 190 465 473
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Cost of gas — utility expense decreased $7 million and increased $40 million in the three and six months ended June 30, 2026, respectively. The decrease in the second quarter was primarily due to lower cost of gas of $4 million and lower sales volumes of $3 million. The increase in the six-month period was primarily due to higher cost of gas of $48 million, partially offset by lower sales volumes of $8 million.
Operation and maintenance expense increased $9 million and $5 million in the three and six months ended June 30, 2026, respectively. The increase in the second quarter was primarily due to higher uncollectible expense of $7 million and higher benefits and other compensation expense of $2 million. The increase in the six-month period was primarily due to higher uncollectible expense of $5 million, higher gas operations expense of $5 million, and higher benefits and other compensation expense of $4 million, partially offset by lower EWR expense of $9 million.
Depreciation and amortization expense increased $4 million and $8 million in the three and six months ended June 30, 2026, respectively. The increase in both periods was primarily due to higher depreciable base.
Taxes other than income increased $3 million and $4 million in the three and six months ended June 30, 2026, respectively. The increase in both periods was primarily due to higher property taxes.
Other (Income) and Deductions increased $3 million and $7 million in the three and six months ended June 30, 2026, respectively. The increase in both periods was primarily due to higher interest expense.
Outlook — DTE Gas will continue to move forward in its efforts to achieve operational excellence, sustain strong cash flows, and earn its authorized return on equity. DTE Gas expects that planned significant infrastructure capital investments will result in earnings growth. Looking forward, additional factors may impact earnings such as weather and the outcome of regulatory proceedings. DTE Gas expects to continue its efforts to improve productivity and decrease costs while improving customer satisfaction with consideration of customer rate affordability.
DTE Gas filed a rate case with the MPSC on November 13, 2025 requesting a net increase in base rates of $163 million based on a projected twelve-month period ending September 30, 2027, and an increase in return on equity from 9.8% to 10.25%. The net increase is based on a total revenue deficiency of $238 million, net of the IRM roll-in of $75 million. The requested net increase in base rates was primarily due to continued infrastructure investment and increasing operations and maintenance costs needed to ensure the continued safe and reliable delivery of natural gas to customers. A final MPSC order in this case is expected in September 2026.
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DTE VANTAGE SEGMENT
The DTE Vantage segment is comprised primarily of renewable energy projects that sell electricity and pipeline-quality gas and projects that deliver custom energy solutions to industrial, commercial, and institutional customers. DTE Vantage results and outlook are discussed below:
Three Months Ended June 30, Six Months Ended June 30,
2026 2025 2026 2025
(In millions)
Operating Revenues — Non-utility operations $ 200 $ 169 $ 427 $ 357
Operating Expenses
Fuel, purchased power, and gas — non-utility 104 82 235 179
Operation and maintenance 76 70 254 130
Depreciation and amortization 15 14 30 29
Taxes other than income 3 4 9 9
Asset (gains) losses and impairments, net 1 (1) 1 (2)
199 169 529 345
Operating Income (Loss) 1 — (102) 12
Other (Income) and Deductions (23) (18) (43) (37)
Income Taxes
Expense 6 4 8 12
Tax credits (27) (17) (53) (33)
(21) (13) (45) (21)
Net Income (Loss) Attributable to DTE Energy Company $ 45 $ 31 $ (14) $ 70
Operating Revenues — Non-utility operations increased $31 million and $70 million in the three and six months ended June 30, 2026, respectively. The increase in both periods was due to the following:
Three Months Six Months
(In millions)
Higher demand and prices in the Steel business $ 25 $ 67
New project in the On-site business 3 6
Higher (lower) sales in the Renewables business 3 (5)
Other — 2
$ 31 $ 70
Fuel, purchased power, and gas — non-utility expense increased $22 million and $56 million in the three and six months ended June 30, 2026, respectively. The increase in both periods was primarily due to higher demand and prices in the Steel business.
Operation and maintenance expense increased $6 million and $124 million in the three and six months ended June 30, 2026, respectively. The increase in the second quarter was primarily due to higher costs in the Steel business of $4 million. The increase in the six-month period was primarily due to additional litigation penalties in the Steel business relating to the EES Coke judgment of $112 million and higher costs in the On-site business of $4 million, Steel business of $3 million, and Renewables business of $3 million.
Other (Income) and Deductions increased $5 million and $6 million in the three and six months ended June 30, 2026, respectively. The increase in the second quarter was primarily due higher interest income of $5 million associated with a new project in the On-site business. The increase in the six-month period was primarily due to higher interest income of $11 million associated with a new project in the On-site business, partially offset by lower equity earnings of $5 million in the Renewables business.
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Income Taxes — Expense increased $2 million and decreased $4 million in the three and six months ended June 30, 2026, respectively. The increase in the second quarter was primarily due to higher earnings. The decrease in the six-month period was primarily due to lower earnings, partially offset by the non-deductible portion of the EES Coke judgment.
Income Taxes — Tax credits increased $10 million and $20 million in the three and six months ended June 30, 2026, respectively. The increase in both periods was primarily due to higher production tax credits generated in the Renewables business.
Outlook — DTE Vantage will continue to leverage its extensive energy-related operating experience and project management capability to develop additional renewable natural gas projects and other projects that will provide customer specific energy solutions. DTE Vantage is also developing decarbonization opportunities relating to carbon capture and sequestration projects.
ENERGY TRADING SEGMENT
Energy Trading focuses on physical and financial power, natural gas and environmental marketing and trading, structured transactions, enhancement of returns from its asset portfolio, and optimization of contracted natural gas pipeline transportation and storage positions. Energy Trading also provides natural gas, power, environmental, and related services, which may include the management of associated storage and transportation contracts on the customers' behalf and the supply or purchase of environmental attributes to various customers. Energy Trading results and outlook are discussed below:
Three Months Ended June 30, Six Months Ended June 30,
2026 2025 2026 2025
(In millions)
Operating Revenues — Non-utility operations $ 1,153 $ 1,324 $ 3,504 $ 3,350
Operating Expenses
Purchased power, gas, and other — non-utility 1,054 1,320 3,481 3,226
Operation and maintenance 30 21 51 50
Depreciation and amortization 1 2 2 3
Taxes other than income 1 2 4 4
1,086 1,345 3,538 3,283
Operating Income (Loss) 67 (21) (34) 67
Other (Income) and Deductions 2 — 5 (1)
Income Tax Expense (Benefit) 16 (5) (10) 17
Net Income (Loss) Attributable to DTE Energy Company $ 49 $ (16) $ (29) $ 51
Operating Revenues — Non-utility operations decreased $171 million and increased $154 million in the three and six months ended June 30, 2026, respectively. The following tables detail changes relative to the comparable prior periods:
Three Months
(In millions)
Gas structured and gas transportation strategies - ($201) primarily due to lower gas prices, ($14) settled financial hedges $ (215)
Unrealized MTM - $35 gains compared to $29 gains in the prior period 6
Other realized gain (loss) 38
$ (171)
Six Months
(In millions)
Realized gas structured and gas transportation strategies - $434 primarily due to higher gas prices, ($72) settled financial hedges $ 362
Unrealized MTM - ($127) losses compared to $141 gains in the prior period (268)
Other realized gain (loss) 60
$ 154
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Purchased power, gas, and other — non-utility expense decreased $266 million and increased $255 million in the three and six months ended June 30, 2026, respectively. The following tables detail changes relative to the comparable prior periods:
Three Months
(In millions)
Gas structured and gas transportation strategies - primarily lower gas prices $ (219)
Unrealized MTM - ($30) gains compared to $46 losses in the prior period (76)
Other realized (gain) loss 29
$ (266)
Six Months
(In millions)
Realized gas structured and gas transportation strategies - primarily higher gas prices $ 356
Unrealized MTM - ($55) gains compared to $146 losses in the prior period (201)
Other realized (gain) loss 100
$ 255
Operation and maintenance expense increased $9 million and $1 million in the three and six months ended June 30, 2026, respectively. The increase in the second quarter was primarily due to higher compensation costs.
Natural gas structured transactions typically involve a physical purchase or sale of natural gas in the future and/or natural gas basis financial instruments which are derivatives and a related non-derivative pipeline transportation contract. These gas structured transactions can result in significant earnings volatility as the derivative components are marked-to-market without revaluing the related non-derivative contracts.
Operating Income (Loss) increased $88 million for the three months ended June 30, 2026, which includes a $46 million favorable change in timing related gains and losses primarily related to gas strategies that will reverse in future periods as the underlying contracts settle. The increase also includes a $18 million favorable change in timing related gains primarily related to gas strategies that were recognized in previous periods and reversed in the current period as the underlying contracts settled.
Operating Income (Loss) decreased $101 million for the six months ended June 30, 2026, which includes a $16 million unfavorable change in timing related losses primarily related to gas strategies that will reverse in future periods as the underlying contracts settle. The decrease also includes a $34 million unfavorable change in timing related gains and losses primarily related to gas strategies that were recognized in previous periods and reversed in the current period as the underlying contracts settled.
Other (Income) and Deductions expense increased $2 million and $6 million in the three and six months ended June 30, 2026, respectively. The increase in the six-month period was primarily due to higher interest expense.
Outlook — In the near-term, Energy Trading expects market conditions to remain challenging. The profitability of this segment may be impacted by the volatility in commodity prices and the uncertainty of impacts associated with regulatory changes, and changes in operating rules of Regional Transmission Organizations. Significant portions of the Energy Trading portfolio are economically hedged. Most financial instruments, physical power and natural gas contracts, and certain environmental contracts are deemed derivatives; whereas, natural gas and environmental inventory, contracts for pipeline transportation, storage assets, and some environmental contracts are not derivatives. As a result, Energy Trading will experience earnings volatility as derivatives are marked-to-market without revaluing the underlying non-derivative contracts and assets. Energy Trading's strategy is to economically manage the price risk of these underlying non-derivative contracts and assets with futures, forwards, swaps, and options. This results in gains and losses that are recognized in different interim and annual accounting periods.
See also the "Fair Value" section herein and Notes 7 and 8 to the Consolidated Financial Statements, "Fair Value" and "Financial and Other Derivative Instruments," respectively.
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CORPORATE AND OTHER
Corporate and Other includes various holding company activities, holds certain non-utility debt, and holds certain investments, including investments supporting regional development and economic growth. The net loss of $78 million and $122 million for the three and six months ended June 30, 2026, respectively, represents a decrease of $32 million and an increase of $22 million from the net loss of $110 million and $100 million in the comparable 2025 periods. The decrease in the second quarter was primarily due to effective income tax rate adjustments and lower state income taxes, including the $14 million impact from the Illinois state tax law change in the second quarter of 2025, partially offset by higher net interest expense. The increase in the six-month period was primarily due to higher net interest expense and effective tax rate adjustments, partially offset by lower state income taxes.
Outlook — Corporate and Other will continue to support DTE Energy's goals to achieve long-term earnings growth by managing corporate costs such as interest and tax expense. Corporate and Other will also continue to support DTE Energy in achieving a strong balance sheet, access to capital markets, and implementation of a financing plan that includes interest rate management in order to manage interest costs.
CAPITAL RESOURCES AND LIQUIDITY
Cash Requirements
DTE Energy uses cash to maintain and invest in the electric and natural gas utilities, to grow the non-utility businesses, to retire and pay interest on long-term debt, and to pay dividends. DTE Energy believes it will have sufficient internal and external capital resources to fund anticipated capital and operating requirements. DTE Energy expects that cash from operations in 2026 will be approximately $3.9 billion. DTE Energy anticipates base level utility capital investments, including environmental, renewable, and expenditures for non-utility businesses of approximately $6.8 billion in 2026. DTE Energy plans to seek regulatory approval to include utility capital expenditures in regulatory rate base consistent with prior treatment. Capital spending for growth of existing or new non-utility businesses will depend on the existence of opportunities that meet strict risk-return and value creation criteria.
Refer below for analysis of cash flows relating to operating, investing, and financing activities, which reflect DTE Energy's change in financial condition. Any significant non-cash items are included in the Supplemental disclosure of non-cash investing and financing activities within the Consolidated Statements of Cash Flows, as applicable.
Six Months Ended June 30,
2026 2025
(In millions)
Cash, Cash Equivalents, and Restricted Cash at Beginning of Period $ 250 $ 88
Net cash from operating activities 1,679 1,729
Net cash used for investing activities (2,914) (2,022)
Net cash from financing activities 1,069 289
Net Decrease in Cash, Cash Equivalents, and Restricted Cash (166) (4)
Cash, Cash Equivalents, and Restricted Cash at End of Period $ 84 $ 84
Cash from Operating Activities
A majority of DTE Energy's operating cash flows are provided by the electric and natural gas utilities, which are significantly influenced by factors such as weather, electric retail access, regulatory deferrals, regulatory outcomes, economic conditions, changes in working capital, and operating costs.
Net cash from operations decreased by $50 million in 2026. The decrease was primarily due to lower Net income and a decrease in cash related to Deferred income taxes, partially offset by higher Depreciation and amortization and an increase in cash related to working capital items.
The change in working capital items in 2026 was primarily due to increases in cash related to Accounts receivable, net, Inventories, and Regulatory assets and liabilities, partially offset by a decrease in cash related to Accounts payable.
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Cash used for Investing Activities
Cash inflows associated with investing activities are primarily generated from the sale of assets, while cash outflows are the result of plant and equipment expenditures and acquisitions. In any given year, DTE Energy looks to realize cash from under-performing or non-strategic assets or matured, fully valued assets.
Capital spending within the utility businesses is primarily to maintain and improve electric generation and the electric and natural gas distribution infrastructure, and to comply with environmental regulations and renewable energy goals.
For the non-utility businesses, cash outflows are primarily driven by capital spending to develop and construct projects for customers through investment in notes receivable and additional capital spending for ongoing maintenance, expansion, and growth. DTE Energy looks to make growth investments that meet strict criteria in terms of strategy, management skills, risks, and returns. All new investments are analyzed for their rates of return and cash payback on a risk adjusted basis. DTE Energy has been disciplined in how it deploys capital and will not make investments unless they meet the criteria. For new business lines, DTE Energy initially invests based on research and analysis. DTE Energy starts with a limited investment, evaluates the results, and either expands or exits the business based on those results. In any given year, the amount of growth capital will be determined by the underlying cash flows of DTE Energy, with a clear understanding of any potential impact on its credit ratings.
Net cash used for investing activities increased by $892 million in 2026 primarily due to higher utility plant and equipment expenditures.
Cash from Financing Activities
DTE Energy relies on both short-term borrowing and long-term financing as a source of funding for capital requirements not satisfied by its operations.
DTE Energy's strategy is to have a targeted debt portfolio blend of fixed and variable interest rates and maturity. DTE Energy targets balance sheet financial metrics to ensure it is consistent with the objective of a strong investment grade debt rating.
Net cash from financing activities increased by $780 million in 2026 primarily due to lower Redemption of long-term debt and higher Issuance of long-term debt, net of discount and issuance costs, partially offset by higher repayment of Short-term borrowings, net.
Sources of Cash
DTE Energy expects cash flows from operations to increase over the long-term, primarily as a result of growth from the utility and non-utility businesses. Growth in the utilities is expected to be driven primarily by capital spending which will increase the base from which rates are determined. Further, the current tax laws allow for extended tax benefits for renewable technologies, including PTCs and ITCs. DTE Electric expects to continue to monetize these tax credits to generate cash flows in the near-term. DTE Energy expects long-term growth in sales related to vehicle electrification and data center load, but no significant impacts in the near-term. Non-utility growth is expected from additional investments in the DTE Vantage segment, primarily related to renewable energy and custom energy solutions, while expanding into carbon capture and sequestration. DTE Vantage also expects enhanced growth opportunities in decarbonization, including tax credits for renewable natural gas and carbon capture projects.
DTE Energy's utilities may be impacted by the timing of collection or refund of various recovery and tracking mechanisms, as a result of timing of MPSC orders. Energy prices are likely to be a source of volatility with regard to working capital requirements for the foreseeable future. DTE Energy continues its efforts to identify opportunities to improve cash flows through working capital initiatives and maintaining flexibility in the timing and extent of long-term capital projects.
In December 2025, DTE Energy filed a prospectus supplement and executed an Equity Distribution Agreement, pursuant to which DTE Energy may sell, from time to time, up to an aggregate $1.5 billion of its common stock through an ATM program, including an equity forward sales component. As of June 30, 2026, DTE Energy has not issued any shares under the ATM program. During the first quarter of 2026, DTE Energy entered into various forward sale agreements under the ATM for 2.5 million shares at a weighted average forward price of $144.41, which includes expected sales commissions. During the second quarter of 2026, DTE Energy entered into various sale agreements under the ATM program for 1.2 million shares at a weighted average forward price of $141.96, which includes expected sales commissions. For further discussion of the ATM program, see Note 9 to the Consolidated Financial Statements, "Long-Term Financings".
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At the discretion of management and depending upon economic and financial market conditions, DTE Energy expects to issue $500 million to $600 million of equity in 2026. DTE Energy anticipates these discretionary equity issuances to be made through the at-the-market equity issuance program and/or contributions to the dividend reinvestment plan and/or employee incentive and benefit plans.
Over the long-term, additional equity issuances of $500 million to $600 million will be needed in 2027 and 2028 to support long-term growth. DTE Energy will continue to evaluate equity needs on an annual basis. DTE Energy currently expects its primary source of long-term financing to be the issuance of debt and is monitoring changes in interest rates and impacts on the cost of borrowing.
Uses of Cash
DTE Energy has $1.7 billion in long-term debt, including securitization bonds and finance leases, maturing within twelve months. Repayment of the debt is expected to be made through internally generated funds, the issuance of short-term and/or long-term debt.
DTE Energy has paid quarterly cash dividends for more than 100 consecutive years and expects to continue paying regular cash dividends in the future, including approximately $1.0 billion in 2026. Any payment of future dividends is subject to approval by the Board of Directors and may depend on DTE Energy's future earnings, capital requirements, and financial condition. Over the long-term, DTE Energy expects continued dividend growth and is targeting a payout ratio consistent with pure-play utility companies.
Various subsidiaries and equity investees of DTE Energy have entered into derivative and non-derivative contracts which contain ratings triggers and are guaranteed by DTE Energy. These contracts contain provisions which allow the counterparties to require that DTE Energy post cash or letters of credit as collateral in the event that DTE Energy's credit rating is downgraded below investment grade. Certain of these provisions (known as "hard triggers") state specific circumstances under which DTE Energy can be required to post collateral upon the occurrence of a credit downgrade, while other provisions (known as "soft triggers") are not as specific. For contracts with soft triggers, it is difficult to estimate the amount of collateral which may be requested by counterparties and/or which DTE Energy may ultimately be required to post. The amount of such collateral which could be requested fluctuates based on commodity prices (primarily natural gas, power, and environmental) and the provisions and maturities of the underlying transactions. As of June 30, 2026, DTE Energy's contractual obligation to post collateral in the form of cash or letters of credit in the event of a downgrade to below investment grade, under both hard trigger and soft trigger provisions, was $358 million.
Other obligations are further described in the following Combined Notes to the Consolidated Financial Statements:
Note Title
1 Organization and Basis of Presentation
2 Significant Accounting Policies
8 Financial and Other Derivative Instruments
9 Long-Term Financings
10 Short-Term Credit Arrangements and Borrowings
12 Commitments and Contingencies
13 Retirement Benefits and Trusteed Assets
Also refer to the "Capital Investments" section above regarding DTE Energy's capital strategy and estimated spend over the next five years. For additional information regarding DTE Energy's future cash obligations, including scheduled debt maturities and interest payments, minimum lease payments, and future purchase commitments, refer to DTE Energy's Annual Report on Form 10-K for the year ended December 31, 2025.
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Liquidity
DTE Energy has approximately $3.0 billion of available liquidity at June 30, 2026, consisting primarily of cash and cash equivalents and amounts available under unsecured revolving credit agreements.
DTE Energy believes it will have sufficient operating flexibility, cash resources, and funding sources to maintain adequate amounts of liquidity and to meet future operating cash and capital expenditure needs. However, virtually all of DTE Energy's businesses are capital intensive, or require access to capital, and the inability to access adequate capital could adversely impact earnings and cash flows.
NEW ACCOUNTING PRONOUNCEMENTS
See Note 3 to the Consolidated Financial Statements, "New Accounting Pronouncements."
FAIR VALUE
Derivatives are generally recorded at fair value and shown as Derivative assets or liabilities. Contracts DTE Energy typically classifies as derivative instruments include power, natural gas, some environmental contracts, and certain forwards, futures, options and swaps, and foreign currency exchange contracts. Items DTE Energy does not generally account for as derivatives include natural gas and environmental inventory, pipeline transportation contracts, storage assets, and some environmental contracts. See Notes 7 and 8 to the Consolidated Financial Statements, "Fair Value" and "Financial and Other Derivative Instruments," respectively.
The tables below do not include the expected earnings impact of non-derivative natural gas storage, transportation, certain power contracts, and some environmental contracts which are subject to accrual accounting. Consequently, gains and losses from these positions may not match with the related physical and financial hedging instruments in some reporting periods, resulting in volatility in the Registrants' reported period-by-period earnings; however, the financial impact of the timing differences will reverse at the time of physical delivery and/or settlement.
The Registrants manage their MTM risk on a portfolio basis based upon the delivery period of their contracts and the individual components of the risks within each contract. Accordingly, the Registrants record and manage the energy purchase and sale obligations under their contracts in separate components based on the commodity (e.g. electricity or natural gas), the product (e.g. electricity for delivery during peak or off-peak hours), the delivery location (e.g. by region), the risk profile (e.g. forward or option), and the delivery period (e.g. by month and year).
The Registrants have established a fair value hierarchy that prioritizes the inputs to valuation techniques used to measure fair value in three broad levels. The fair value hierarchy gives the highest priority to quoted prices (unadjusted) in active markets for identical assets or liabilities (Level 1) and the lowest priority to unobservable inputs (Level 3). For further discussion of the fair value hierarchy, see Note 7 to the Consolidated Financial Statements, "Fair Value."
The following table provides details on changes in DTE Energy's MTM net asset (or liability) position:
DTE Energy
(In millions)
MTM at December 31, 2025 $ 80
Reclassified to realized upon settlement (133)
Changes in fair value recorded to income 52
Amounts recorded to unrealized income (81)
Changes in fair value recorded in Regulatory liabilities 21
Amounts recorded in other comprehensive income, pre-tax 12
Change in collateral 37
Other (2)
MTM at June 30, 2026 $ 67
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The table below shows the maturity of DTE Energy's MTM positions. The positions from 2029 and beyond principally represent longer tenor gas structured transactions:
Source of Fair Value 2026 2027 2028 2029 and Beyond Total Fair Value
(In millions)
Level 1 $ 5 $ (4) $ (7) $ (9) $ (15)
Level 2 93 56 20 8 177
Level 3 (62) (47) (14) 21 (102)
MTM before collateral adjustments $ 36 $ 5 $ (1) $ 20 60
Collateral adjustments 7
MTM at June 30, 2026 $ 67