DTE Energy tops quarterly profit estimates as energy trading unit shines

U.S. Midwest utility DTE Energy beat Wall Street estimates for second-quarter profit on Tuesday, as stronger earnings from its energy trading business helped offset weaker results at its electric and gas operations.

DTE's shares rose 2% in morning trade.

DTE posted adjusted profit of $1.32 per share, topping analysts' estimate of $1.17, according to LSEG-compiled data.

In its trading unit, quarterly operating profit rose 70.8%.

However, DTE Energy's electric segment, its largest by net income, reported profit of $270 million, down 15% from a year earlier, hurt by higher rate-base costs, unfavorable weather and the timing of tax-related items. Its gas segment swung to a $4 million loss from a year-ago profit of $6 million.

The company also said it has invested more than $2.6 billion in its electric and gas utilities in the first half of 2026, with about $11 billion in distribution-system investment planned over the next five years to boost reliability and cut outages.

The U.S. utility sector is embarking on one of its biggest investment cycles in decades, driven by growing electricity consumption, grid reliability concerns and aging infrastructure. As per a report by PowerLines, utilities are expected to invest $1.4 trillion in grid infrastructure over the next five years.

DTE expects a 5- to 6-gigawatt pipeline of additional data center opportunities, including about 2 gigawatts in advanced discussions, and is targeting another agreement by the end of 2026.

"We also have another 3-4 gigawatts of pipeline opportunities that could develop over time," said CEO Joi Harris.