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1. Company Snapshot

1.a. Company Description

DTE Energy Company engages in the utility operations.The company's Electric segment generates, purchases, distributes, and sells electricity to approximately 2.3 million residential, commercial, and industrial customers in southeastern Michigan.It generates electricity through fossil-fuel, hydroelectric pumped storage, and nuclear plants, as well as wind and other renewable assets.


This segment owns and operates approximately 698 distribution substations and 449,800 line transformers.The company's Gas segment purchases, stores, transports, distributes, and sells natural gas to approximately 1.3 million residential, commercial, and industrial customers throughout Michigan; and sells storage and transportation capacity.This segment has approximately 20,000 miles of distribution mains; 1,304,000 service pipelines; and 1,305,000 active meters, as well as owns approximately 2,000 miles of transmission pipelines.


The company's Power and Industrial Projects segment offers metallurgical coke; pulverized coal and petroleum coke to the steel, pulp and paper, and other industries; and power, steam and chilled water production, and wastewater treatment services, as well as supplies compressed air to industrial customers.Its Energy Trading segment engages in power, natural gas, and environmental marketing and trading; structured transactions; and the optimization of contracted natural gas pipeline transportation and storage positions.The company was founded in 1903 and is headquartered in Detroit, Michigan.

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1.b. Last Insights on DTE

DTE Energy Company's recent performance was driven by strong Q4 2024 earnings and a record investment in utility infrastructure, which helped customers experience a nearly 70% reduction in time spent without power. The company invested over $2.5 billion in infrastructure improvements and $1.1 billion in cleaner generation, while DTE Gas invested $740 million to upgrade its natural gas system and expand service to rural communities. Additionally, the company's systematic investment plan and renewable portfolio expansion are expected to benefit its financials, despite challenges in the energy trading business.

1.c. Company Highlights

2. DTE Energy's Q3 2025 Earnings: A Strong Performance

DTE Energy reported operating earnings of $468 million, translating to $2.25 per share, beating analyst estimates of $2.1. The company's revenue growth is expected to be around 4.8% next year, indicating a steady increase in demand. The company's third-quarter financial results showed a strong performance, driven by the timing of taxes and rate implementation at DTE Electric. The company's operating EPS growth is expected to be between 6% to 8% through 2030, driven by increased customer-focused utility investment.

Publication Date: Nov -03

📋 Highlights
  • 5-Year Plan Update:: Extended to 2030 with $6.5 billion higher capital investment driven by data center transaction and asset modernization.
  • Data Center Deal:: 1.4 GW agreement with a hyperscaler supports 25% load increase and is accretive to 6-8% EPS growth target.
  • 2026 EPS Outlook:: $7.59–$7.73/share, reflecting 6-8% growth over 2025 midpoint, with confidence in hitting upper range via 45Z tax credits.
  • Q3 2025 Results:: Operating earnings of $468M ($2.25/share), driven by DTE Electric’s rate implementation and RNG tax credits.
  • Equity Financing Plan:: $500M–$600M annual equity issuances (2026–2028) to fund capital investments while maintaining 15% FFO-to-debt ratio.

Segment-wise Performance

DTE Electric earnings were higher than the third quarter of 2024, driven by timing of taxes and rate implementation. DTE Gas earnings were unfavorable, driven by higher O&M and rate base costs. DTE Vantage operating earnings were $41 million, an $8 million increase from 2024, driven by RNG production tax credits. The company's Vantage business is expected to become a smaller portion of the company's earnings mix, with a strong BD pipeline and opportunities for good returns.

Growth Prospects and Investments

The company has a 7-gigawatt data center pipeline, with 3 to 4 gigawatts in advanced negotiations. The first 1.4-gigawatt deal is expected to be accretive to the 6% to 8% EPS growth plan. DTE is investing $6.5 billion more in its capital investment plan, driven by the data center transaction and the need to modernize utility assets. As Joi Harris stated, "the updated plan includes significant increases in utility investments for customers, aiming for 6% to 8% operating EPS growth through 2030."

Valuation and Dividend Yield

With a P/E Ratio of 28.98 and a Dividend Yield of 3.22%, the company's valuation appears reasonable. The ROE is around 8.15%, indicating a decent return on equity. The EV/EBITDA ratio is 6.8, suggesting that the company's enterprise value is reasonable compared to its EBITDA. The company's strong dividend yield and reasonable valuation metrics make it an attractive investment opportunity.

Financing Plan and Balance Sheet

DTE is targeting annual equity issuances of $500 million to $600 million in 2026 through 2028 to support its increased capital investment plan. The company's FFO to debt ratio is targeted at 15%, providing a good cushion over the thresholds. The company is confident in maintaining a strong balance sheet and delivering premium total shareholder returns.

3. NewsRoom

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DTE Energy Pushes Ahead With Significant Clean Energy Investments

Dec -04

Source: zacks.com

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DTE Energy sets 2026 annual meeting date

Dec -03

Source: prnewswire.com

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American Century Companies Inc. Grows Holdings in DTE Energy Company $DTE

Dec -03

Source: defenseworld.net

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DTE Energy Board of Directors declares quarterly dividend

Dec -02

Source: prnewswire.com

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Roundhill ETF Trust – Roundhill NDX 0DTE Covered Call Strategy ETF (NYSEARCA:QDTE) Shares Up 0.5% – Here’s What Happened

Nov -06

Source: defenseworld.net

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New Preferred Stock And Baby Bond IPOs, October 2025

Nov -03

Source: seekingalpha.com

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DTE Energy (DTE) Q3 Earnings: Taking a Look at Key Metrics Versus Estimates

Oct -30

Source: zacks.com

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DTE Energy Company (DTE) Q3 2025 Earnings Call Transcript

Oct -30

Source: seekingalpha.com

4. Business Breakdown

4.a. Revenues by Country

4.b. Revenues by Segment

5. Expected revenues mid-term growth (3.02%)

6. Segments

Electric

Expected Growth: 2.5%

DTE Energy's 2.5% growth in Electric segment is driven by increasing demand for electricity in Michigan, fueled by industrial and commercial customer growth. Additionally, investments in grid modernization and renewable energy sources, such as wind and solar, contribute to the growth. Furthermore, rate base growth and cost recovery mechanisms also support the segment's expansion.

Energy Trading

Expected Growth: 4.0%

DTE Energy's 4.0% growth in Energy Trading is driven by increasing demand for renewable energy sources, strategic hedging and risk management practices, and expansion into new markets. Additionally, the company's ability to optimize energy supply and demand through advanced analytics and technology has contributed to its growth.

Gas

Expected Growth: 2.0%

DTE Energy's Gas segment growth is driven by increasing demand for natural gas, infrastructure investments, and rate base growth. Additionally, the company's focus on pipeline replacement and expansion projects, as well as its efforts to improve operational efficiency, contribute to the 2.0% growth rate.

DTE Vantage

Expected Growth: 3.5%

DTE Vantage's 3.5% growth is driven by increasing demand for renewable energy, strategic investments in grid modernization, and a growing customer base. Additionally, DTE Energy's focus on energy efficiency programs, electric vehicle infrastructure development, and favorable regulatory policies contribute to the segment's growth.

7. Detailed Products

Electricity

DTE Energy provides electricity to residential, commercial, and industrial customers in Southeast Michigan.

Natural Gas

DTE Energy supplies natural gas to customers in Michigan, providing a clean and efficient source of energy.

Renewable Energy

DTE Energy offers renewable energy solutions, including wind and solar power, to customers seeking sustainable energy options.

Energy Efficiency

DTE Energy provides energy efficiency programs and services to help customers reduce energy consumption and lower their energy bills.

Energy Storage

DTE Energy offers energy storage solutions, including battery storage systems, to help customers manage energy usage and reduce peak demand.

Energy Management

DTE Energy provides energy management services, including energy audits and consulting, to help customers optimize their energy usage.

8. DTE Energy Company's Porter Forces

Forces Ranking

Threat Of Substitutes

DTE Energy Company operates in a regulated industry, which limits the threat of substitutes. However, the increasing adoption of renewable energy sources and energy storage technologies poses a moderate threat to the company's traditional business model.

Bargaining Power Of Customers

DTE Energy Company serves a diverse customer base, including residential, commercial, and industrial customers. While large industrial customers may have some bargaining power, the company's diversified customer base limits the overall bargaining power of customers.

Bargaining Power Of Suppliers

DTE Energy Company relies on a diverse range of suppliers for fuel, equipment, and services. While some suppliers may have bargaining power due to their size or specialized products, the company's diversified supply chain limits the overall bargaining power of suppliers.

Threat Of New Entrants

The energy industry is heavily regulated, and new entrants face significant barriers to entry, including high capital costs and regulatory hurdles. This limits the threat of new entrants to DTE Energy Company's business.

Intensity Of Rivalry

DTE Energy Company operates in a highly competitive industry, with several large players competing for market share. The company faces intense competition in terms of pricing, customer service, and innovation, which increases the intensity of rivalry.

9. SWOT Analysis

Strength

Weaknesses

Opportunities

Threats

10. Capital Structure

10.a. Balance Sheet

10.b. Weighted Average Cost of capital

Value
Debt Weight 65.49%
Debt Cost 4.23%
Equity Weight 34.51%
Equity Cost 7.15%
WACC 5.24%
Leverage 189.77%

11. Quality Control: DTE Energy Company passed 0 out of 9 key points

12.a Historical Valuation

12.b Price/Earnings Ratio

12.c Margin Valuation

12.d Peers Valuation

Peers Group Analysis

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Peers Metrics

12.e Scoring Insights

12.f DCF BETA

Parameters

Short Term Growth

Short term Time

Long-Term Growth

WACC

Target Price

131.23$

Current Price

131.23$

Potential

-0.00%

Expected Cash-Flows