DTE Energy Co. - 5.25% DB REDEEM 01/12/2077 USD 25

Earnings + 2026 outlook: strong execution; on track for high end - Q2 2026 operating earnings: $274M ($1.32/share), with utilities (DTE Electric $270M) offset by mixed weather/tax timing items and strength at non-utility segments. - YoY utility drivers: Electric earnings down $48M YoY mainly from tax timing, higher rate base costs, and colder weather, partly offset by rate implementation. - Non-utilities helped: Vantage $45M (up $14M YoY) and Energy Trading $41M (up $17M YoY) from portfolio timing. - Management stance: Confident to hit the high end of full-year operating EPS guidance; long-term target remains 6%–8% operating EPS growth through 2030.

Major operational challenge (and what it means): July storm revealed both resilience gains and remaining gaps - Unexpected severe fast-moving storm in early July hit ~400,000 customers, including >600 broken poles and widespread tree damage outside utility right-of-way. - Restoration delays vs targets due to severity/warnings; crews mobilized across states (Oklahoma/Texas). - Positive despite the storm: Areas with prior reliability investments performed better, reinforcing the investment thesis. - Measured reliability improvements: Outage duration improved ~90% from 2023–2025 and achieved best all-weather SAIDI in nearly 2 decades; prior 5 storms averaged 97% restored within 24 hours.

Reliability capex plan remains disciplined: ~$11B over 5 years - Strategy is built on 4 pillars: 1) Automation/technology: 700+ automated devices installed in 2025 (~20% over plan); >500 more in 2026 to move toward full distribution automation by decade end. 2) Hardening: 200+ miles hardening in 2025 + ~1,000 miles pole-top maintenance; ramp to ~1,700 miles maintenance in 2026. 3) Modernization/conversion: 70+ miles of 4.8kV circuits converted in 2025; 20+ miles subtransmission rebuilt; 2026 expected highest conversion activity. 4) Tree trimming: surge completed; now shifting to sustainment and enhancements (clearing practices/program options). - Affordability constraint emphasized: investment continues but with focus on delivering reliability benefits without bill shock.