DTE Energy Co. - Units

Strong operating/earnings performance; guidance positioning - Q2 2026 operating earnings: $274M ($1.32/share), with utilities the largest contributor (DTE Electric: $270M). - YOY drivers: DTE Electric earnings were $48M lower vs Q2’25, mainly due to tax timing, higher rate base costs, and colder weather; partially offset by rate implementation. - DTE Gas: $10M lower vs Q2’25 driven by higher rate base & O&M and warmer weather; partially offset by IRM revenue. - Non-utility strength: Vantage $45M (+$14M) and Energy Trading $41M (+$17M), with Energy Trading confidence for high end of full-year guidance. - Outlook: Company reiterates it is on track to hit the high end of 2026 operating EPS guidance and maintains the long-term operating EPS growth target of 6%–8% through 2030.

Major reliability headline: storm impact + evidence that investment is working - Surprise negative event: A fast-moving storm in early July impacted ~400,000 customers, with >600 broken poles and substantial damage (including tree damage outside utility right-of-way). - Bad/operationally challenging: Restoration times ran longer than typical targets because weather models did not anticipate severity and it developed rapidly. - Good/positive validation: Areas with completed reliability upgrades performed significantly better; from 2023–2025, outage duration improved by 90%, and they achieved their best all-weather SAIDI in nearly 2 decades. - Forward plan: Reliability strategy in 4 pillars with ~$11B planned over 5 years (automation, hardening, modernization/circuit conversions, and tree trimming). 2026 ramp includes ~1,700 miles of maintenance work and continued conversions/hardening.

Data center momentum is real—and becoming a potential earnings/upside lever - Executed growth supports affordability: Two large customer agreements totaling ~2.4 GW with contract structuring aimed at protecting existing customers. - Oracle (1.4 GW): fully approved, under construction. - Google (1.0 GW): submitted to the MPSC, advancing through approval, expected September timing. - Additional opportunity pipeline: Management sees 5–6 GW of additional opportunities (roughly 2 GW in advanced discussions targeting another agreement by end of 2026, plus 3–4 GW further out). - Why investors should care: Management highlighted that these loads create large, steady demand that absorbs fixed costs—expecting about $300M annual affordability benefits from Oracle and ~$1.7B of benefits over the life of the Google contract.