[Management View]
DTE Energy announced a structured CEO transition, with Jerry Norcia becoming Executive Chairman and Joi Harris assuming the CEO role effective September 8, 2025. Management emphasized strong operating earnings growth, robust infrastructure investments, and strategic flexibility driven by data center load opportunities and renewable energy progress. Key metrics include a reaffirmed five-year $30 billion capital investment plan, with over 90% allocated to utility modernization and cleaner generation.

[Outlook]
The company guided full-year 2025 operating EPS to a range of $7.09 to $7.23, targeting the higher end. Long-term EPS growth remains at 6%-8% through 2029, supported by RNG tax credits extended through 2029. DTE plans to update its five-year plan in Q3 2025, incorporating incremental data center and storage projects. Management aims to sign at least one gigawatt of hyperscale data center load by year-end 2025.

[Financial Performance]
Second-quarter operating earnings were $283 million ($1.36 per share), driven by strong performance across segments:
- DTE Electric: $318 million (+$39 million YoY), supported by rate implementation and tax timing.
- DTE Gas: $6 million (-$6 million YoY), impacted by higher O&M costs.
- DTE Vantage: $31 million (+$17 million YoY), benefiting from RNG production tax credits.
- Energy Trading: $24 million, driven by contracted and hedged physical power portfolio performance.

[Q&A Highlights]
Question 1: What is the current capacity to absorb three gigawatts of data center load, and when would new generation CapEx be required?
Answer: DTE has excess capacity to serve near-term data center load ramps, with storage assets construction beginning in 2026. Existing capacity will meet up to one gigawatt, with storage bridging marginal shortfalls. Larger dispatchable resources will be incorporated into the 2026 IRP.

Question 2: How does the extension of RNG tax credits impact renewable plans?
Answer: RNG tax credits extended through 2029 provide flexibility and affordability for customers. Battery storage projects qualify for investment tax credits through 2036, supporting data center load growth. Safe harboring of assets insulates DTE from executive order risks.

Question 3: What is the confidence level for signing data center agreements?
Answer: DTE aims to finalize at least one gigawatt of hyperscale data center load by year-end 2025. Active negotiations are progressing well, with contractual terms being exchanged.

Question 4: How does data center growth impact revenue and customer affordability?
Answer: Data center additions increase load by approximately 40% over five years, providing headroom for rate growth and cost savings for existing customers. Storage costs will be borne by data centers.

Question 5: What is the status of the electric rate case?
Answer: Audit and discovery are ongoing, with staff and intervener testimony expected on August 22. The case seeks $1 billion in electric distribution spend recovery by 2029, supported by the Liberty audit.

Question 6: What are the early priorities for the incoming CEO?
Answer: Joi Harris emphasized expanding the electric IRM to enhance reliability and reduce regulatory proceedings, leveraging the Liberty audit findings.

Question 7: Could data center growth lead to rebasing EPS growth beyond 6%-8%?
Answer: Management intends to maintain the 6%-8% EPS growth rate through the current five-year plan. Future updates will reflect incremental opportunities.

[Sentiment Analysis]
Analysts expressed optimism about DTE’s strategic initiatives, particularly data center growth and renewable investments. Management maintained a confident and collaborative tone, emphasizing operational excellence and flexibility.

[Quarterly Comparison]
| Metric | Q2 2025 | Q2 2024 | YoY Change |
|-------------------------|---------------|---------------|------------------|
| Operating Earnings | $283M | N/A | N/A |
| DTE Electric Earnings | $318M | $279M | +$39M |
| DTE Gas Earnings | $6M | $12M | -$6M |
| DTE Vantage Earnings | $31M | $14M | +$17M |
| Energy Trading Earnings | $24M | N/A | N/A |

[Risks and Concerns]
- Regulatory uncertainties surrounding safe harbor provisions for tax credits.
- Potential delays in data center agreements and load ramp timing.
- Higher O&M costs impacting segment earnings.
- Long-term capital requirements for new generation capacity.

[Final Takeaway]
DTE Energy demonstrated strong operational and financial performance in Q2 2025, supported by strategic investments in grid modernization, renewable energy, and data center growth. The CEO transition is expected to sustain momentum, with Joi Harris focusing on reliability improvements and expanding the electric IRM. While risks remain, the extension of RNG tax credits and advanced data center discussions provide upside potential to the five-year plan. Investors should monitor updates on data center agreements and regulatory developments in the coming quarters.