# DTE ENERGY CO (DTE) Informational only - not investment advice. CIK: 0000936340 SIC: 4911 Electric Services SIC breadcrumb: [Transportation, Communications, Electric, Gas, And Sanitary Services](/division/E/) > [Electric, Gas, And Sanitary Services](/major-group/49/) > [SIC 4911 Electric Services](/industry/4911/) Latest 10-K filed: 2026-02-17 SEC page: https://www.sec.gov/edgar/browse/?CIK=936340 Filing source: https://www.sec.gov/Archives/edgar/data/936340/000093634026000054/dte-20251231.htm ## Selected Fundamentals | Metric | Value | Unit | FY | Filed | | --- | ---: | --- | ---: | --- | | Revenue | 15814000000 | USD | 2025 | 2026-02-17 | | Net income | 1462000000 | USD | 2025 | 2026-02-17 | | Assets | 54066000000 | USD | 2025 | 2026-02-17 | ## Financials Annual standardized facts from SEC companyfacts as of latest extracted filing date 2026-02-17. Source: https://data.sec.gov/api/xbrl/companyfacts/CIK0000936340.json. Derived margins are computed from the extracted annual SEC facts. | Metric | 2016 | 2017 | 2018 | 2019 | 2020 | 2021 | 2022 | 2023 | 2024 | 2025 | | --- | ---: | ---: | ---: | ---: | ---: | ---: | ---: | ---: | ---: | ---: | | Revenue | 10,630,000,000 | 12,607,000,000 | 14,212,000,000 | 12,168,000,000 | 11,423,000,000 | 14,964,000,000 | 19,228,000,000 | 12,745,000,000 | 12,457,000,000 | 15,814,000,000 | | Net income | 868,000,000 | 1,134,000,000 | 1,120,000,000 | 1,169,000,000 | 1,368,000,000 | 907,000,000 | 1,083,000,000 | 1,397,000,000 | 1,404,000,000 | 1,462,000,000 | | Operating income | 1,486,000,000 | 1,711,000,000 | 1,594,000,000 | 1,430,000,000 | 1,555,000,000 | 1,495,000,000 | 1,748,000,000 | 2,243,000,000 | 2,091,000,000 | 2,374,000,000 | | Diluted EPS | 4.83 | 6.32 | 6.17 | 6.31 | 7.08 | 4.67 | 5.52 | 6.76 | 6.77 | 7.03 | | Assets | 32,041,000,000 | 33,767,000,000 | 36,288,000,000 | 42,268,000,000 | 45,496,000,000 | 39,719,000,000 | 42,683,000,000 | 44,755,000,000 | 48,846,000,000 | 54,066,000,000 | | Stockholders' equity | 9,011,000,000 | 9,512,000,000 | 10,237,000,000 | 11,672,000,000 | 12,425,000,000 | 8,705,000,000 | 10,397,000,000 | 11,050,000,000 | 11,699,000,000 | 12,303,000,000 | | Cash and cash equivalents | 92,000,000 | 66,000,000 | 71,000,000 | 93,000,000 | 472,000,000 | 28,000,000 | 33,000,000 | 26,000,000 | 24,000,000 | 208,000,000 | | Net margin | 8.17% | 9.00% | 7.88% | 9.61% | 11.98% | 6.06% | 5.63% | 10.96% | 11.27% | 9.24% | | Operating margin | 13.98% | 13.57% | 11.22% | 11.75% | 13.61% | 9.99% | 9.09% | 17.60% | 16.79% | 15.01% | ## Macro Cross-References - [CPIAUCSL](/indicator/CPIAUCSL/): Consumer Price Index for All Urban Consumers: All Items in U.S. City Average - [UNRATE](/indicator/UNRATE/): Unemployment Rate - [FEDFUNDS](/indicator/FEDFUNDS/): Federal Funds Effective Rate - [CES0500000003](/indicator/CES0500000003/): Average Hourly Earnings of All Employees, Total Private - [DFEDTARU](/indicator/DFEDTARU/): Federal Funds Target Range - Upper Limit - [DFEDTARL](/indicator/DFEDTARL/): Federal Funds Target Range - Lower Limit - [DGS3MO](/indicator/DGS3MO/): Market Yield on U.S. Treasury Securities at 3-Month Constant Maturity - [DGS2](/indicator/DGS2/): Market Yield on U.S. Treasury Securities at 2-Year Constant Maturity - [DGS10](/indicator/DGS10/): Market Yield on U.S. Treasury Securities at 10-Year Constant Maturity - [DGS30](/indicator/DGS30/): Market Yield on U.S. Treasury Securities at 30-Year Constant Maturity - [T10Y2Y](/indicator/T10Y2Y/): 10-Year Treasury Constant Maturity Minus 2-Year Treasury Constant Maturity - [CPILFESL](/indicator/CPILFESL/): Consumer Price Index for All Urban Consumers: All Items Less Food and Energy - [CPIUFDSL](/indicator/CPIUFDSL/): Consumer Price Index for All Urban Consumers: Food - [CPIENGSL](/indicator/CPIENGSL/): Consumer Price Index for All Urban Consumers: Energy - [CUSR0000SAH1](/indicator/CUSR0000SAH1/): Consumer Price Index for All Urban Consumers: Shelter - [PCEPI](/indicator/PCEPI/): Personal Consumption Expenditures: Chain-type Price Index - [PCEPILFE](/indicator/PCEPILFE/): Personal Consumption Expenditures Excluding Food and Energy: Chain-type Price Index - [PPIACO](/indicator/PPIACO/): Producer Price Index by Commodity: All Commodities - [T10YIE](/indicator/T10YIE/): 10-Year Breakeven Inflation Rate - [U6RATE](/indicator/U6RATE/): Total Unemployed, Plus All Marginally Attached Workers Plus Total Employed Part Time for Economic Reasons - [PAYEMS](/indicator/PAYEMS/): All Employees, Total Nonfarm - [CIVPART](/indicator/CIVPART/): Labor Force Participation Rate - [EMRATIO](/indicator/EMRATIO/): Employment-Population Ratio - [UNEMPLOY](/indicator/UNEMPLOY/): Unemployed - [CE16OV](/indicator/CE16OV/): Employment Level - [ICSA](/indicator/ICSA/): Initial Claims - [JTSJOL](/indicator/JTSJOL/): Job Openings: Total Nonfarm - [JTSQUR](/indicator/JTSQUR/): Quits: Total Nonfarm - [GDPC1](/indicator/GDPC1/): Real Gross Domestic Product - [A191RL1Q225SBEA](/indicator/A191RL1Q225SBEA/): Real Gross Domestic Product: Percent Change from Preceding Period - [INDPRO](/indicator/INDPRO/): Industrial Production: Total Index - [TCU](/indicator/TCU/): Capacity Utilization: Total Index - [HOUST](/indicator/HOUST/): New Privately-Owned Housing Units Started: Total Units - [PERMIT](/indicator/PERMIT/): New Privately-Owned Housing Units Authorized in Permit-Issuing Places: Total Units - [RSAFS](/indicator/RSAFS/): Advance Retail Sales: Retail Trade - [PCE](/indicator/PCE/): Personal Consumption Expenditures - [DSPIC96](/indicator/DSPIC96/): Real Disposable Personal Income - [PSAVERT](/indicator/PSAVERT/): Personal Saving Rate - [M2SL](/indicator/M2SL/): M2 - [BOPGSTB](/indicator/BOPGSTB/): U.S. International Trade in Goods and Services: Balance ## Latest 10-K MD&A Extracted between Item 7 and the next Item 7A/8 heading after HTML sanitization. Confidence: high Item 7. Management’s Discussion and Analysis of Financial Condition and Results of Operations The following combined discussion is separately filed by DTE Energy and DTE Electric. However, DTE Electric does not make any representations as to information related solely to DTE Energy or the subsidiaries of DTE Energy other than itself. EXECUTIVE OVERVIEW DTE Energy is a diversified energy company with 2025 Operating Revenues of approximately $15.8 billion and Total Assets of approximately $54.1 billion. DTE Energy is the parent company of DTE Electric and DTE Gas, regulated electric and natural gas utilities engaged primarily in the business of providing electricity and natural gas sales, distribution, and storage services throughout Michigan. DTE Energy also operates two energy-related non-utility segments with operations throughout the United States. Management’s Discussion and Analysis of Financial Condition and Results of Operations below reflect DTE Energy’s continuing operations, unless noted otherwise. The following table summarizes DTE Energy's financial results: Years Ended December 31, 2025 2024 2023 (In millions, except per share amounts) Net Income Attributable to DTE Energy Company $ 1,462  $ 1,404  $ 1,397  Diluted Earnings per Common Share $ 7.03  $ 6.77  $ 6.76  The increase in 2025 Net Income Attributable to DTE Energy Company was primarily due to higher earnings in the Electric, Gas, and DTE Vantage segments, partially offset by lower earnings at Corporate and Other. The increase in 2024 Net Income Attributable to DTE Energy Company was primarily due to higher earnings in the Electric segment, partially offset by lower earnings in the Energy Trading, Gas, and DTE Vantage segments and Corporate and Other. STRATEGY DTE Energy's strategy is to achieve long-term earnings per share growth with a strong balance sheet and attractive dividend. DTE Energy's utilities are investing capital to support a modern, reliable grid and cleaner, affordable energy through investments in base infrastructure and new generation. Increasing intensity of windstorms and other weather events, coupled with increasing electric vehicle adoption and future data center load, will drive a continued need for substantial grid investment over the long-term. DTE Energy plans to reduce the carbon emissions of its electric utility operations by 65% in 2028, 85% in 2032, and 90% by 2040 from 2005 carbon emissions levels. DTE Energy plans to end its use of coal-fired power plants in 2032 and is committed to a net zero carbon emissions goal by 2050 for its electric and gas utility operations. Additionally, as a result of legislation passed by the state of Michigan in the fourth quarter 2023, DTE Energy will be required to meet a 100% clean energy portfolio standard by 2040. Clean energy sources include renewables, nuclear, and natural gas-fired plants equipped with a carbon capture and storage system that is at least 90% effective in reducing carbon emissions to the atmosphere. The legislation also requires 50% of an electric utility's energy to be generated from renewable sources by 2030 and 60% by 2035. DTE Energy is currently assessing the impacts of this legislation and will include updates in its next Integrated Resource Plan, currently planned for 2026, to comply with the new requirements. To achieve carbon reduction goals at the electric utility, DTE Energy will continue its transition away from coal-powered energy sources and is replacing or offsetting the generation from these facilities with renewable energy, natural gas, battery storage, and energy waste reduction initiatives. Refer to the "Capital Investments" section below for further discussion regarding DTE Energy's retirement of its aging coal-fired plants and transition to renewable energy and other sources. Over the long-term, DTE Energy is also monitoring and pursuing the advancement of emerging technologies such as long-duration storage, modular nuclear reactors, hydrogen, and carbon capture and sequestration, and how these technologies may support clean, reliable generation and customer affordability. 30 Table of Contents For the gas utility, DTE Energy aims to cut carbon emissions across the entire value chain. DTE Energy plans to reduce the carbon emissions from its gas utility operations by 65% by 2030 and 80% by 2040, and is committed to a goal of net zero emissions by 2050 from internal gas operations and gas suppliers. To achieve net zero, DTE Energy is working to source gas with lower methane intensity, reduce emissions through its gas main renewal and pipeline integrity programs, and if necessary, use carbon offsets to address any remaining emissions. DTE Energy also aims to help DTE Gas customers reduce their emissions by approximately 35% by 2040 by increasing energy efficiency, pursuing advanced technologies such as hydrogen and carbon capture and sequestration, and through the CleanVision Natural Gas Balance program which provides customers the option to use carbon offsets and renewable natural gas. DTE Energy expects that these initiatives at the electric and gas utilities will continue to provide significant opportunities for capital investments and result in earnings growth. DTE Energy is focused on executing its plans to achieve operational excellence and customer satisfaction with a focus on customer affordability. To support its goals for customer affordability, DTE Energy is working to implement operational efficiencies and optimize opportunities to generate tax credits relating to renewable energy, nuclear generation, energy storage, and carbon capture and sequestration. These tax credits may reduce the cost of owning related assets and reduce customer rate impacts from any future cost recoveries. DTE Energy's utilities operate in a constructive regulatory environment and have solid relationships with their regulators. DTE Energy also has significant investments in non-utility businesses and expects growth opportunities in its DTE Vantage segment. DTE Energy employs disciplined investment criteria when assessing growth opportunities that leverage its assets, skills, and expertise, and provides attractive returns and diversity in earnings and geography. Specifically, DTE Energy invests in targeted markets with attractive competitive dynamics where meaningful scale is in alignment with its risk profile. A key priority for DTE Energy is to maintain a strong balance sheet which facilitates access to capital markets and reasonably priced financing. Growth will be funded through internally generated cash flows and the issuance of debt and equity. DTE Energy has an enterprise risk management program that, among other things, is designed to monitor and manage exposure to earnings and cash flow volatility related to commodity price changes, interest rates, and counterparty credit risk. CAPITAL INVESTMENTS DTE Energy's utility businesses will require significant capital investments to maintain and improve the electric generation and electric and natural gas distribution infrastructure and to comply with environmental regulations and achieve goals for carbon emission reductions. Capital plans may be regularly updated as these requirements and goals evolve and may be subject to regulatory approval. DTE Electric's capital investments over the 2026-2030 period are estimated at $30 billion, comprised of $11 billion for distribution infrastructure, $4 billion for base infrastructure, and $15 billion for cleaner generation including renewables. DTE Electric has retired all eleven coal-fired generation units at the Trenton Channel, River Rouge, and St. Clair facilities, as well as one unit at the Belle River facility. DTE Electric has also announced plans to retire its remaining five coal-fired generating units, including the remaining unit at the Belle River facility in 2026. The four units at the Monroe facility are expected to be retired in two stages in 2028 and 2032. DTE Electric plans to repurpose the Trenton Channel facility to a battery energy storage system in 2026, and convert the Belle River facility from a base load coal plant to a natural gas peaking resource in 2026. Generation from the retired facilities will continue to be replaced or offset with a combination of renewables, energy waste reduction, demand response, battery storage, and natural gas fueled generation. DTE Gas' capital investments over the 2026-2030 period are estimated at $4.5 billion, comprised of $2.7 billion for base infrastructure and $1.8 billion for the gas renewal program, which includes main and service renewals, meter move-out, and pipeline integrity projects. DTE Electric and DTE Gas plan to seek regulatory approval for capital expenditures consistent with ratemaking treatment. DTE Energy's non-utility businesses' capital investments are primarily for expansion, growth, and ongoing maintenance in the DTE Vantage segment, including approximately $2.0 billion from 2026-2030 for custom energy solutions and renewable energy, while expanding into carbon capture and sequestration. 31 Table of Contents ENVIRONMENTAL MATTERS The Registrants are subject to extensive environmental regulations, including those addressing climate change. Additional costs may result as the effects of various substances on the environment are studied and governmental regulations are developed and implemented. Actual costs to comply could vary substantially. The Registrants expect to continue recovering environmental costs related to utility operations through rates charged to customers, as authorized by the MPSC. Increased costs for energy produced from traditional coal-based sources due to recent, pending, and future regulatory initiatives could also increase the economic viability of energy produced from renewable, natural gas fueled generation, and/or nuclear sources, energy waste reduction initiatives, and the potential development of market-based trading of carbon instruments. Refer to the "Environmental Matters" section within Items 1. and 2. Business and Properties and Note 18 to the Consolidated Financial Statements, "Commitments and Contingencies," for further discussion of Environmental Matters. OUTLOOK The next few years will be a period of rapid change for DTE Energy and for the energy industry. DTE Energy's strong utility base, combined with its integrated non-utility operations, position it well for long-term growth. Looking forward, DTE Energy will focus on several areas that are expected to improve future performance: •electric and gas customer satisfaction; •electric distribution system reliability; •new electric generation and storage; •gas distribution system renewal; •reducing carbon emissions at the electric and gas utilities; •rate competitiveness and affordability; •regulatory stability and investment recovery for the electric and gas utilities; •strategic investments in growth projects at DTE Vantage; •employee engagement and health, safety, and wellbeing; •cost structure optimization across all business segments; and •cash, capital, and liquidity to maintain or improve financial strength. DTE Energy will continue to pursue opportunities to grow its businesses in a disciplined manner if it can secure opportunities that meet its strategic, financial, and risk criteria. 32 Table of Contents RESULTS OF OPERATIONS The following sections provide a detailed discussion of the operating performance and future outlook of DTE Energy's segments. Segment information, described below, includes intercompany revenues, expenses, and other income and deductions that are eliminated in the Consolidated Financial Statements. 2025 2024 2023 (In millions) Net Income (Loss) Attributable to DTE Energy Electric segment $ 1,158  $ 1,072  $ 772  Gas segment 295  257  294  DTE Vantage segment 154  135  153  Energy Trading segment 123  125  336  Corporate and Other (268) (185) (158) Net Income Attributable to DTE Energy Company $ 1,462  $ 1,404  $ 1,397  ELECTRIC SEGMENT The Results of Operations discussion for DTE Electric is presented in a reduced disclosure format in accordance with General Instruction I(2)(a) of Form 10-K for wholly-owned subsidiaries. The Electric segment consists principally of DTE Electric. Electric results and outlook are discussed below: 2025 2024 2023 (In millions) Operating Revenues Utility operations $ 6,885  $ 6,277  $ 5,804  Non-utility operations 50  16  14  6,935  6,293  5,818  Operating Expenses Fuel and purchased power — utility 1,804  1,605  1,481  Fuel and purchased power — non-utility 13  —  —  Operation and maintenance 1,475  1,439  1,417  Depreciation and amortization 1,553  1,447  1,340  Taxes other than income 382  353  339  Asset (gains) losses and impairments, net 47  12  27  5,274  4,856  4,604  Operating Income 1,661  1,437  1,214  Other (Income) and Deductions 430  396  364  Income Tax Expense (Benefit) 73  (31) 78  Electric Segment Net Income Attributable to DTE Energy Company $ 1,158  $ 1,072  $ 772  Reconciliation of Electric Segment to DTE Electric Net Income $ (6) $ —  $ —  DTE Electric Net Income $ 1,152  $ 1,072  $ 772  See DTE Electric's Consolidated Statements of Operations in Item 8 of this Report for a complete view of its results. Differences between the Electric segment and DTE Electric's Consolidated Statements of Operations are primarily due to non-utility operations at DTE Sustainable Generation (some of which includes intra-segment activity that is eliminated in consolidation) and the classification of certain benefit costs. Refer to Note 20 to the Consolidated Financial Statements, "Retirement Benefits and Trusteed Assets" for additional information. 33 Table of Contents Operating Revenues increased $642 million in 2025 and $475 million in 2024. Revenues associated with certain mechanisms and surcharges, including recovery of fuel and purchased power, are offset by related expenses elsewhere in the Registrants' Consolidated Statements of Operations. The change in both periods was due to the following: 2025 2024 (In millions) Interconnection sales $ 231  $ 28  Implementation of new rates 194  338  Power Supply Cost Recovery(a) 95  (27) Weather 74  158  Rate mix 47  3  Non-utility revenues(b) 34  2  Regulatory mechanism — EWR 10  14  Regulatory mechanism — DTE Securitization I and II (1) 52  Regulatory mechanism — RPS (18) (95) Base sales $ (30) $ 15  Other regulatory mechanisms and other 6  (13) $ 642  $ 475  ______________________________ (a)Variance for 2025 includes MPSC disallowance of $28 million resulting from an order in DTE Electric's 2022 PSCR reconciliation case. The disallowance reduced the amount of power supply costs recoverable from customers, which had a flow-through impact of approximately $5 million higher interest expense recorded separately to Other (Income) and Deductions. (b)Increase in 2025 was primarily due to the acquisition of a non-utility business by DTE Sustainable Generation during the third quarter 2025. Refer to Note 4 to the Consolidated Financial Statements, "Acquisition," for additional information. Revenue results are impacted by changes in sales volumes, which are summarized in the table below: 2025 2024 2023 (In thousands of MWh) DTE Electric Sales Residential 15,527  15,131  14,452  Commercial 16,090  16,220  15,916  Industrial 8,269  8,555  8,551  Other 192  199  204  40,078  40,105  39,123  Interconnection sales 11,691  8,899  7,658  Total DTE Electric Sales 51,769  49,004  46,781  DTE Electric Deliveries Retail and wholesale 40,078  40,105  39,123  Electric retail access 4,514  4,315  4,381  Total DTE Electric Sales and Deliveries 44,592  44,420  43,504  DTE Electric sales and deliveries increased in 2025 primarily due to favorable weather compared to 2024. The increase in 2024 was primarily due to favorable weather compared to 2023. 34 Table of Contents Fuel and purchased power — utility expense increased $199 million in 2025 and $124 million in 2024. The change in both periods was due to the following: 2025 (In millions) Gas - higher prices $ 118  Higher transmission expenses 27  Coal - higher consumption, partially offset by lower prices 21  Nuclear fuel - higher amortization due to refueling outage in 2024 12  Fuel additives - higher due to increased coal consumption 11  Purchased power - higher prices, partially offset by lower volumes due to higher generation 3  Other 7  $ 199  2024 (In millions) Coal - higher consumption and higher prices $ 52  Higher transmission expenses 39  Purchased power - MISO refund in 2023 and higher volumes in 2024 primarily due to higher demand 34  Nuclear fuel - lower amortization due to refueling outage in 2024 (4) Other 3  $ 124  Fuel and purchased power — non-utility expense increased $13 million in 2025. The increase in 2025 was primarily due to the Electric segment acquisition of non-utility assets, see Note 4 to the Consolidated Financial Statements, "Acquisition." Operation and maintenance expense increased $36 million in 2025 and $22 million in 2024. The increase in 2025 was primarily due to higher benefits and other compensation expense of $28 million, higher plant generation expense of $20 million, higher corporate support costs of $13 million, higher EWR expense of $12 million, higher legal expense of $6 million, higher DTE Sustainable Generation expense of $5 million related to the Electric segment acquisition discussed in Note 4 to the Consolidated Financial Statements, "Acquisition," and higher RPS expense of $3 million, partially offset by one-time costs in 2024 of $32 million resulting from the voluntary separation incentive program and lower distribution operations expense of $20 million (primarily due to lower storm restoration costs). The increase in 2024 was primarily due to one-time costs of $32 million resulting from the voluntary separation incentive program noted above, higher RPS expense of $25 million, higher EWR expense of $17 million, higher uncollectible expense of $12 million, higher corporate support costs of $12 million, higher sales and marketing expense of $10 million, higher legal expense of $9 million, higher planning and development expense of $7 million, and higher plant generation expense of $3 million, partially offset by lower distribution operations expense of $106 million (primarily due to lower storm restoration costs). Depreciation and amortization expense increased $106 million in 2025 and $107 million in 2024. The increase in 2025 was primarily due to a $113 million increase from a higher depreciable base, including the 15-year amortization of the undepreciated Monroe plant balance which began in February 2025, partially offset by a decrease of $7 million associated with the TRM. The increase in 2024 was primarily due to a $103 million increase from a higher depreciable base. Taxes other than income increased $29 million in 2025 and $14 million in 2024. The increase in both periods was primarily due to higher property taxes. Asset (gains) losses and impairments, net increased $35 million in 2025 and decreased $15 million in 2024. The increase in 2025 was primarily due to an accrual of $47 million resulting from management's revisions to the timing and estimate of cash flows related to the decommissioning of Fermi 1, refer to Note 8 to the Consolidated Financial Statements, "Asset Retirement Obligations," for additional information, partially offset by MPSC disallowances of previously recorded capital expenditures of $12 million from the January 2025 rate order written off in 2024. The decrease in 2024 was primarily due to MPSC disallowances of previously recorded capital expenditures of $25 million from the December 2023 rate order written off in 2023 that did not repeat, partially offset by the $12 million noted above from the January 2025 rate order written off in 2024. 35 Table of Contents Other (Income) and Deductions increased $34 million in 2025 and $32 million in 2024. The increase in 2025 was primarily due to higher net interest expense of $53 million, partially offset by higher AFUDC equity of $19 million. The increase in 2024 was primarily due to higher net interest expense of $79 million, partially offset by higher AFUDC equity of $44 million and lower non-operating retirement benefits of $7 million. Income Tax Expense (Benefit) changed $104 million in 2025 and $109 million in 2024. The change in 2025 was primarily due to a decrease in tax credits and higher earnings. The change in 2024 was primarily due to an increase in tax credits, partially offset by higher earnings. Outlook — DTE Electric will continue to move forward in its efforts to achieve operational excellence, sustain strong cash flows, and earn its authorized return on equity. DTE Electric expects that planned significant capital investments will result in earnings growth. DTE Electric will maintain a strong focus on customers by increasing reliability and satisfaction while working to keep customer rate increases affordable. Looking forward, additional factors may impact earnings such as weather, the outcome of regulatory proceedings, uncertainty of legislative or regulatory actions regarding environmental compliance, and effects of energy waste reduction programs. DTE Electric filed a rate case with the MPSC on April 24, 2025 requesting an increase in base rates of $574 million based on a projected twelve-month period ending December 31, 2026, and an increase in return on equity from 9.9% to 10.75%. The requested increase in base rates was primarily due to capital investments required to support continued reliability improvements and the ongoing transition to cleaner energy. A final MPSC order in this case is expected in February 2026. In October 2025, DTE Electric entered into a 1.4 gigawatt data center agreement. Capital investments required to support this agreement are included in DTE Electric's 5-year capital investment plan in the "Capital Investments" section above. DTE Electric secured MPSC approval in the fourth quarter of 2025. GAS SEGMENT The Gas segment consists principally of DTE Gas. Gas results and outlook are discussed below: 2025 2024 2023 (In millions) Operating Revenues — Utility operations $ 2,052  $ 1,798  $ 1,748  Operating Expenses Cost of gas — utility 596  484  469  Operation and maintenance 606  535  488  Depreciation and amortization 225  221  209  Taxes other than income 128  118  108  Asset (gains) losses and impairments, net —  6  —  1,555  1,364  1,274  Operating Income 497  434  474  Other (Income) and Deductions 114  100  87  Income Tax Expense 88  77  93  Net Income Attributable to DTE Energy Company $ 295  $ 257  $ 294  36 Table of Contents Operating Revenues — Utility operations increased $254 million in 2025 and $50 million in 2024. Revenues associated with certain mechanisms and surcharges, including recovery of the cost of gas, are offset by related expenses elsewhere in DTE Energy's Consolidated Statements of Operations. The change in both periods was due to the following: 2025 2024 (In millions) Weather $ 119  $ (14) Gas Cost Recovery 112  15  Implementation of new rates 86  19  Regulatory mechanism — RDM 13  (4) Midstream storage and transportation revenues 12  10  Home Protection Program 8  5  Base sales (27) (10) Infrastructure recovery mechanism (64) 25  Other (5) 4  $ 254  $ 50  Revenue results are impacted by changes in sales volumes, which are summarized in the table below: 2025 2024 2023 (In Bcf) Gas Markets Gas sales 145  125  129  End-user transportation 164  167  174  309  292  303  Intermediate transportation 566  517  541  Total 875  809  844  The change in sales in 2025 was primarily due to favorable weather. The change in sales in 2024 was primarily due to unfavorable weather. Intermediate transportation volumes fluctuate period to period based on available market opportunities. Cost of gas — utility expense increased $112 million in 2025 and $15 million in 2024. The increase in 2025 was primarily due to higher sales volumes of $102 million and higher cost of gas of $10 million. The increase in 2024 was primarily due to a higher cost of gas of $40 million, partially offset by lower sales volumes of $25 million. Operation and maintenance expense increased $71 million in 2025 and $47 million in 2024. The increase in 2025 was primarily due to higher gas operations expense of $54 million, higher corporate asset usage expense of $7 million, higher corporate support costs of $7 million, higher legal expense of $6 million, higher benefits and other compensation expense of $2 million, and higher uncollectible expense of $2 million, partially offset by one-time costs in 2024 of $8 million resulting from the voluntary separation incentive program. The increase in 2024 was primarily due to higher gas operations expense of $24 million, one-time costs of $8 million resulting from the voluntary separation incentive program noted above, higher uncollectible expense of $6 million, higher benefits and other compensation expense of $3 million, higher EWR expense of $3 million, and higher corporate support costs of $3 million. Depreciation and amortization expense increased $4 million in 2025 and $12 million in 2024. The increase in both periods was primarily due to a higher depreciable base. Taxes other than income increased $10 million in both 2025 and 2024. The increase in both periods was primarily due to higher property taxes. Asset (gains) losses and impairments, net decreased $6 million in 2025 and increased $6 million in 2024. The change in both periods was primarily due to the write-off of capital expenditures in 2024, of which $3 million was disallowed by the MPSC in the November 2024 rate order. Other (Income) and Deductions increased $14 million in 2025 and $13 million in 2024. The increase in both periods was primarily due to higher net interest expense. 37 Table of Contents Income Tax Expense increased $11 million in 2025 and decreased $16 million in 2024. The increase in 2025 was primarily due to higher earnings. The decrease in 2024 was primarily due to lower earnings. Outlook — DTE Gas will continue to move forward in its efforts to achieve operational excellence, sustain strong cash flows, and earn its authorized return on equity. DTE Gas expects that planned significant infrastructure capital investments will result in earnings growth. Looking forward, additional factors may impact earnings such as weather and the outcome of regulatory proceedings. DTE Gas expects to continue its efforts to improve productivity and decrease costs while improving customer satisfaction with consideration of customer rate affordability. DTE Gas filed a rate case with the MPSC on November 13, 2025 requesting a net increase in base rates of $163 million based on a projected twelve-month period ending September 30, 2027, and an increase in return on equity from 9.8% to 10.25%. The net increase is based on a total revenue deficiency of $238 million, net of the IRM roll-in of $75 million. The requested net increase in base rates was primarily due to continued infrastructure investment and increasing operations and maintenance costs needed to ensure the continued safe and reliable delivery of natural gas to customers. A final MPSC order in this case is expected in September 2026. DTE VANTAGE SEGMENT The DTE Vantage segment is comprised primarily of renewable energy projects that sell electricity and pipeline-quality gas and projects that deliver custom energy solutions to industrial, commercial, and institutional customers. DTE Vantage results and outlook are discussed below: 2025 2024 2023 (In millions) Operating Revenues — Non-utility operations $ 696  $ 753  $ 809  Operating Expenses Fuel, purchased power, and gas — non-utility 341  378  421  Operation and maintenance 265  261  232  Depreciation and amortization 59  59  53  Taxes other than income 14  11  9  Asset (gains) losses and impairments, net 2  10  (10) 681  719  705  Operating Income 15  34  104  Other (Income) and Deductions (78) (64) (27) Income Taxes Expense 23  34  38  Tax Credits (84) (71) (60) (61) (37) (22) Net Income Attributable to DTE Energy Company $ 154  $ 135  $ 153  Operating Revenues — Non-utility operations decreased $57 million in 2025 and $56 million in 2024. The changes were due to the following: 2025 (In millions) Lower demand and prices in the Steel business $ (100) New project in the On-site business 7  Higher prices in the On-site business 8  Higher sales in the Renewables business 28  $ (57) 38 Table of Contents 2024 (In millions) Lower demand and prices in the Steel business $ (44) Lower sales in the Renewables business (21) Sale of project in the On-site business (3) New project in the On-site business 13  Other (1) $ (56) Fuel, purchased power, and gas — non-utility expense decreased $37 million in 2025 and $43 million in 2024. The change in both periods was due to the following: 2025 (In millions) Lower demand and prices in the Steel business $ (76) New project in the On-site business 1  Higher prices in the On-site business 8  Higher costs in the Renewables business 30  $ (37) 2024 (In millions) Lower demand and prices in the Steel business $ (34) Lower costs in the Renewables business (7) Sale of project in the On-site business (2) $ (43) Operation and maintenance expense increased $4 million in 2025 and $29 million in 2024. The increase in 2025 was primarily due to estimated litigation penalties in the Steel business of $13 million, including $8 million related to EES Coke, partially offset by lower costs in the Renewables business of $10 million. The increase in 2024 was primarily due to a new project in the On-site business of $7 million and higher costs in the On-site business of $11 million, Renewables business of $6 million, and Steel business of $6 million. Depreciation and amortization expense had no change in 2025 and increased $6 million in 2024. The increase in 2024 was primarily due to new projects in the Renewables business. Asset (gains) losses and impairments, net decreased $8 million in 2025 and changed $20 million in 2024. The decrease in 2025 was primarily due to a write-off of $10 million in 2024, partially offset by storm related property loss in the Renewables business of $3 million. The change in 2024 was primarily due to the write-off noted above of carbon capture and sequestration assets of $10 million in 2024 and net gains of $10 million from 2023 that did not repeat in 2024. Other (Income) and Deductions increased $14 million in 2025 and $37 million in 2024. The increase in 2025 was primarily due to higher interest income of $10 million associated with new projects in the On-site business and higher equity earnings of $5 million. The increase in 2024 was primarily due to higher interest income of $41 million associated with a new project in the On-site business and a gain in the Renewable business of $25 million attributed to the sale of a partnership interest, partially offset by a write-off of an equity investment in the Renewables business due to impairment of $23 million and higher net interest expense of $9 million. Income Taxes — Expense decreased $11 million in 2025 and $4 million in 2024. The decrease in 2025 was primarily due to a $7 million lower deferred tax expense related to the reduction in tax basis on property that generated ITCs. The decrease in 2024 was primarily due to lower pre-tax income. 39 Table of Contents Income Taxes — Tax Credits increased $13 million in 2025 and $11 million in 2024. The increase in 2025 was primarily due to production tax credits generated in the Renewables business of $82 million, partially offset by a new project in the On-site business in 2024 of $60 million that did not repeat in 2025. The increase in 2024 was primarily due to a new project in the On-site business of $60 million noted above, partially offset by 2023 tax credits of $48 million from new projects in 2023 that did not repeat. Outlook — DTE Vantage will continue to leverage its extensive energy-related operating experience and project management capability to develop additional renewable natural gas projects and other projects that provide customer specific energy solutions. DTE Vantage is also developing decarbonization opportunities relating to carbon capture and sequestration projects. ENERGY TRADING SEGMENT Energy Trading focuses on physical and financial power, natural gas and environmental marketing and trading, structured transactions, enhancement of returns from its asset portfolio, and optimization of contracted natural gas pipeline transportation and storage positions. Energy Trading also provides natural gas, power, environmental, and related services, which may include the management of associated storage and transportation contracts on the customers' behalf and the supply or purchase of environmental attributes to various customers. Energy Trading results and outlook are discussed below: 2025 2024 2023 (In millions) Operating Revenues — Non-utility operations $ 6,477  $ 3,843  $ 4,612  Operating Expenses Purchased power, gas, and other — non-utility 6,174  3,562  4,068  Operation and maintenance 88  83  78  Depreciation and amortization 4  5  4  Taxes other than income 5  4  5  6,271  3,654  4,155  Operating Income 206  189  457  Other (Income) and Deductions 42  22  9  Income Tax Expense 41  42  112  Net Income Attributable to DTE Energy Company $ 123  $ 125  $ 336  Operating Revenues — Non-utility operations increased $2,634 million in 2025 and decreased $769 million in 2024. The following tables detail changes relative to the comparable prior periods: 2025 (In millions) Realized gas structured and gas transportation strategies - primarily higher gas prices $2,005, and settled financial hedges $12 $ 2,017  Unrealized MTM - gains of $182 compared to losses of ($210) in the prior period 392  Other realized gain (loss) 225  $ 2,634  2024 (In millions) Realized gas structured and gas transportation strategies - primarily lower gas prices ($380), and settled financial hedges ($56) $ (436) Unrealized MTM - losses of ($210) compared to gains of $171 in the prior period (381) Other realized gain (loss) 48  $ (769) 40 Table of Contents Purchased power, gas, and other — non-utility expense increased $2,612 million in 2025 and decreased $506 million in 2024. The following tables detail changes relative to the comparable prior periods: 2025 (In millions) Realized gas structured and gas transportation strategies - primarily higher gas prices $ 2,027  Unrealized MTM - losses of $160 compared to gains of ($233) in the prior period 393  Other realized (gain) loss 192  $ 2,612  2024 (In millions) Realized gas structured and gas transportation strategies - primarily lower gas prices $ (436) Unrealized MTM - gains of ($233) compared to gains of ($122) in the prior period (111) Other realized (gain) loss 41  $ (506) Operation and maintenance expense increased $5 million in both 2025 and 2024. The increase in 2025 was primarily due to higher compensation and software costs. The increase in 2024 was primarily due to higher compensation costs. Natural gas structured transactions typically involve a physical purchase or sale of natural gas in the future and/or natural gas basis financial instruments which are derivatives and a related non-derivative pipeline transportation contract. These gas structured transactions can result in significant earnings volatility as the derivative components are marked-to-market without revaluing the related non-derivative contracts. Operating Income increased $17 million in 2025, which includes a $70 million unfavorable change in timing-related gains primarily related to gas strategies subject to reversal in future periods as the underlying contracts settle. The increase also includes a $48 million favorable change in timing-related gains and losses primarily related to gas strategies that were recognized in previous periods and subsequently reversed as the underlying contracts settled. Operating Income decreased $268 million in 2024, which includes a $167 million unfavorable change in timing-related gains primarily related to gas strategies subject to reversal in future periods as the underlying contracts settle. The decrease also includes a $107 million unfavorable change in timing-related gains and losses primarily related to gas strategies that were recognized in previous periods and subsequently reversed as the underlying contracts settled. Other (Income) and Deductions increased $20 million in 2025 and $13 million in 2024. The increase in 2025 was primarily due to $17 million higher contributions to not-for-profit organizations and lower net interest income of $3 million. The increase in 2024 was primarily due to $22 million of higher contributions to not-for-profit organizations, partially offset by higher net interest income of $9 million. Outlook — In the near-term, Energy Trading expects market conditions to remain challenging. The profitability of this segment may be impacted by the volatility in commodity prices and the uncertainty of impacts associated with regulatory changes, and changes in operating rules of RTOs. Significant portions of the Energy Trading portfolio are economically hedged. Most financial instruments, physical power and natural gas contracts, and certain environmental contracts are deemed derivatives; whereas, natural gas and environmental inventory, contracts for pipeline transportation, storage assets, and some environmental contracts are not derivatives. As a result, Energy Trading will experience earnings volatility as derivatives are marked-to-market without revaluing the underlying non-derivative contracts and assets. Energy Trading's strategy is to economically manage the price risk of these underlying non-derivative contracts and assets with futures, forwards, swaps, and options. This results in gains and losses that are recognized in different interim and annual accounting periods. See also the "Fair Value" section herein and Notes 12 and 13 to the Consolidated Financial Statements, "Fair Value" and "Financial and Other Derivative Instruments," respectively. 41 Table of Contents CORPORATE AND OTHER Corporate and Other includes various holding company activities, holds certain non-utility debt, and holds certain investments, including investments supporting regional development and economic growth. The 2025 net loss of $268 million represents an increase of $83 million from the 2024 net loss of $185 million. This increase was primarily due to higher net interest expense and higher federal and state income taxes, including the $16 million impact from the One Big Beautiful Bill impact to the charitable contribution valuation allowance, as well as the $14 million impact from the Illinois state tax law change, partially offset by a gain on the sale of an equity investment of $27 million. The 2024 net loss of $185 million represents an increase of $27 million from the 2023 net loss of $158 million. This increase was primarily due to higher net interest expense and higher state income taxes, partially offset by lower equity investment losses. Outlook — Corporate and Other will continue to support DTE Energy's goals to achieve long-term earnings growth by managing corporate costs such as interest and tax expense. Corporate and Other will also continue to support DTE Energy in achieving a strong balance sheet, access to capital markets, and implementation of a financing plan that includes interest rate management in order to manage interest costs. CAPITAL RESOURCES AND LIQUIDITY Cash Requirements DTE Energy uses cash to maintain and invest in the electric and natural gas utilities, to grow the non-utility businesses, to retire and pay interest on long-term debt, and to pay dividends. DTE Energy believes it will have sufficient internal and external capital resources to fund anticipated capital and operating requirements. DTE Energy expects that cash from operations in 2026 will be approximately $3.9 billion. DTE Energy anticipates base level utility capital investments, including environmental, renewable, and expenditures for non-utility businesses of approximately $6.8 billion in 2026. DTE Energy plans to seek regulatory approval to include utility capital expenditures in regulatory rate base consistent with prior treatment. Capital spending for growth of existing or new non-utility businesses will depend on the existence of opportunities that meet strict risk-return and value creation criteria. Refer below for analysis of cash flows relating to operating, investing, and financing activities, which reflect DTE Energy's change in financial condition. Any significant non-cash items are included in the Supplemental disclosure of non-cash investing and financing activities within the Consolidated Statements of Cash Flows. 2025 2024 2023 (In millions) Cash, Cash Equivalents, and Restricted Cash at Beginning of Period $ 88  $ 51  $ 43  Net cash from operating activities 3,409  3,643  3,220  Net cash used for investing activities (5,304) (4,951) (4,095) Net cash from financing activities 2,057  1,345  883  Net Increase in Cash, Cash Equivalents, and Restricted Cash 162  37  8  Cash, Cash Equivalents, and Restricted Cash at End of Period $ 250  $ 88  $ 51  Cash from Operating Activities A majority of DTE Energy's operating cash flows are provided by the electric and natural gas utilities, which are significantly influenced by factors such as weather, electric retail access, regulatory deferrals, regulatory outcomes, economic conditions, changes in working capital, and operating costs. Net cash from operations decreased $234 million in 2025. The reduction was primarily due to lower cash from working capital items, partially offset by an increase in Depreciation and amortization and an increase in Deferred income taxes. The change in working capital items in 2025 was primarily due to decreases in cash related to Accounts receivable, net, Regulatory assets and liabilities, and Other current and noncurrent assets and liabilities, partially offset by increases in cash related to Accounts payable, Accrued pension liability, and Accrued postretirement liability. 42 Table of Contents Net cash from operations increased $423 million in 2024. The increase was primarily due to higher cash from working capital items and an increase in Depreciation and amortization, partially offset by a decrease in cash related to Allowance for equity funds used during construction. The change in working capital items in 2024 was primarily due to an increase in cash related to Accounts payable, Derivative assets and liabilities, and Other current and noncurrent assets and liabilities, partially offset by a decrease in cash related to Accounts receivable net, Inventories, Accrued pension liability, and Accrued postretirement liability. Cash used for Investing Activities Cash inflows associated with investing activities are primarily generated from the sale of assets, while cash outflows are the result of plant and equipment expenditures and acquisitions. In any given year, DTE Energy looks to realize cash from under-performing or non-strategic assets or matured, fully valued assets. Capital spending within the utility businesses is primarily to maintain and improve electric generation and the electric and natural gas distribution infrastructure, and to comply with environmental regulations and renewable energy goals. Capital spending within the non-utility businesses is primarily for ongoing maintenance, expansion, and growth. DTE Energy looks to make growth investments that meet strict criteria in terms of strategy, management skills, risks, and returns. All new investments are analyzed for their rates of return and cash payback on a risk adjusted basis. DTE Energy has been disciplined in how it deploys capital and will not make investments unless they meet the criteria. For new business lines, DTE Energy initially invests based on research and analysis. DTE Energy starts with a limited investment, evaluates the results, and either expands or exits the business based on those results. In any given year, the amount of growth capital will be determined by the underlying cash flows of DTE Energy, with a clear understanding of any potential impact on its credit ratings. Net cash used for investing activities increased $353 million in 2025 primarily due to the Acquisition, net of cash acquired and an increase in cash used related to Investment in notes receivable. Net cash used for investing activities increased $856 million in 2024 primarily due to increases in utility plant and equipment expenditures and an increase in cash used related to Investment in notes receivable. Cash from Financing Activities DTE Energy relies on both short-term borrowing and long-term financing as a source of funding for capital requirements not satisfied by its operations. DTE Energy's strategy is to have a targeted debt portfolio blend of fixed and variable interest rates and maturity. DTE Energy targets balance sheet financial metrics to ensure it is consistent with the objective of a strong investment grade debt rating. Net cash from financing activities increased $712 million in 2025. The increase was primarily due to an increase in cash related to less Redemption of long-term debt, partially offset by a decrease in Issuance of long-term debt, net of issuance costs. Net cash from financing activities increased $462 million in 2024. The increase was primarily due an increase in Issuance of long-term debt, net of issuance costs, partially offset by decreases in cash related to Redemption of long-term debt and Short-term borrowings, net. Outlook Sources of Cash DTE Energy expects cash flows from operations to increase over the long-term, primarily as a result of growth from the utility and non-utility businesses. Growth in the utilities is expected to be driven primarily by capital spending which will increase the base from which rates are determined. Further, the current tax laws allow for extended tax benefits for renewable technologies, including PTCs and ITCs. DTE Electric expects to continue to monetize these tax credits to generate cash flows in the near-term. DTE Energy expects long-term growth in sales related to vehicle electrification, but no significant impacts in the near-term. Non-utility growth is expected from additional investments in the DTE Vantage segment, primarily related to renewable energy and custom energy solutions, while expanding into carbon capture and sequestration. DTE Vantage also expects enhanced growth opportunities in decarbonization, including tax credits for renewable natural gas and carbon capture projects. 43 Table of Contents DTE Energy's utilities may be impacted by the timing of collection or refund of various recovery and tracking mechanisms as a result of timing of MPSC orders. Energy prices are likely to be a source of volatility with regard to working capital requirements for the foreseeable future. DTE Energy continues its efforts to identify opportunities to improve cash flows through working capital initiatives and maintaining flexibility in the timing and extent of long-term capital projects. In December 2025, DTE Energy filed a prospectus supplement and executed an Equity Distribution Agreement, pursuant to which DTE Energy may sell, from time to time, up to an aggregate $1.5 billion of its common stock through an at-the-market program, including an equity forward sales component. As of December 31, 2025, DTE Energy did not enter into any sales under the ATM Program. At the discretion of management and depending upon economic and financial market conditions, DTE Energy expects to issue $500 million to $600 million of equity in 2026. DTE Energy anticipates these discretionary equity issuances would be made through the at-the-market equity issuance program and/or contributions to the dividend reinvestment plan and/or employee incentive and benefit plans. Over the long-term, additional equity issuances of $500 million to $600 million will be needed in 2027 and 2028 to support long-term growth. DTE Energy will continue to evaluate equity needs on an annual basis. DTE Energy currently expects its primary source of long-term financing to be the issuance of debt and is monitoring changes in interest rates and impacts on the cost of borrowing. Uses of Cash DTE Energy has $1.4 billion in long-term debt, including securitization bonds and finance leases, maturing in the next twelve months. Repayment of the debt is expected to be made through internally generated funds and the issuance of short-term and/or long-term debt. DTE Energy has paid quarterly cash dividends for more than 100 consecutive years and expects to continue paying regular cash dividends in the future, including approximately $1.0 billion in 2026. Any payment of future dividends is subject to approval by the Board of Directors and may depend on DTE Energy's future earnings, capital requirements, and financial condition. Over the long-term, DTE Energy expects continued dividend growth and is targeting a payout ratio consistent with pure-play utility companies. Dividends are subject to certain restrictions as discussed in Note 16 to the Consolidated Financial Statements, "Short-Term Credit Arrangements and Borrowings." However, these restrictions are not expected to impact DTE Energy's planned dividend payments. Various subsidiaries and equity investees of DTE Energy have entered into derivative and non-derivative contracts which contain ratings triggers and are guaranteed by DTE Energy. These contracts contain provisions which allow the counterparties to require that DTE Energy post cash or letters of credit as collateral in the event that DTE Energy's credit rating is downgraded below investment grade. Certain of these provisions (known as "hard triggers") state specific circumstances under which DTE Energy can be required to post collateral upon the occurrence of a credit downgrade, while other provisions (known as "soft triggers") are not as specific. For contracts with soft triggers, it is difficult to estimate the amount of collateral which may be requested by counterparties and/or which DTE Energy may ultimately be required to post. The amount of such collateral which could be requested fluctuates based on commodity prices (primarily natural gas, power, and environmental) and the provisions and maturities of the underlying transactions. As of December 31, 2025, DTE Energy's contractual obligation to post collateral in the form of cash or letters of credit in the event of a downgrade to below investment grade, under both hard trigger and soft trigger provisions, was $483 million. For cash obligations related to leases and future purchase commitments, refer to Note 17 and Note 18 to the Consolidated Financial Statements, "Leases." and "Commitments and Contingencies," respectively. Purchase commitments include capital expenditures that are contractually obligated. Also refer to the "Capital Investments" section above for additional information on DTE Energy's capital strategy and estimated spend over the next five years. 44 Table of Contents Other obligations are further described in the following Combined Notes to the Consolidated Financial Statements: Note Title 1 Organization and Basis of Presentation 8 Asset Retirement Obligations 9 Regulatory Matters 10 Income Taxes 13 Financial and Other Derivative Instruments 14 Long-Term Financings 16 Short-Term Credit Arrangements and Borrowings 18 Commitments and Contingencies 20 Retirement Benefits and Trusteed Assets 21 Stock-Based Compensation Liquidity DTE Energy has approximately $2.4 billion of available liquidity at December 31, 2025, consisting primarily of cash and cash equivalents and amounts available under unsecured revolving credit agreements. DTE Energy believes it will have sufficient operating flexibility, cash resources and funding sources to maintain adequate liquidity and to meet future operating cash and capital expenditure needs. However, virtually all DTE Energy's businesses are capital intensive, or require access to capital, and the inability to access adequate capital could adversely impact earnings and cash flows. Credit Ratings Credit ratings are intended to provide banks and capital market participants with a framework for comparing the credit quality of securities and are not a recommendation to buy, sell, or hold securities. DTE Energy, DTE Electric, and DTE Gas' credit ratings affect their costs of capital and other terms of financing, as well as their ability to access the credit and commercial paper markets. DTE Energy, DTE Electric, and DTE Gas' management believes that the current credit ratings provide sufficient access to capital markets. However, disruptions in the banking and capital markets not specifically related to DTE Energy, DTE Electric, and DTE Gas may affect their ability to access these funding sources or cause an increase in the return required by investors. As part of the normal course of business, DTE Electric, DTE Gas, and various non-utility subsidiaries of DTE Energy routinely enter into physical or financially settled contracts for the purchase and sale of electricity, natural gas, coal, capacity, storage, and other energy-related products and services. Certain of these contracts contain provisions which allow the counterparties to request that DTE Energy posts cash or letters of credit in the event that the senior unsecured debt rating of DTE Energy is downgraded below investment grade. The amount of such collateral which could be requested fluctuates based upon commodity prices and the provisions and maturities of the underlying transactions and could be substantial. Also, upon a downgrade below investment grade, DTE Energy, DTE Electric, and DTE Gas could have restricted access to the commercial paper market, and if DTE Energy is downgraded below investment grade, the non-utility businesses could be required to restrict operations due to a lack of available liquidity. A downgrade below investment grade could potentially increase the borrowing costs of DTE Energy, DTE Electric, and DTE Gas and their subsidiaries and may limit access to the capital markets. The impact of a downgrade will not affect DTE Energy, DTE Electric, and DTE Gas' ability to comply with existing debt covenants. While DTE Energy, DTE Electric, and DTE Gas currently do not anticipate such a downgrade, they cannot predict the outcome of current or future credit rating agency reviews. 45 Table of Contents CRITICAL ACCOUNTING ESTIMATES The preparation of the Registrants' Consolidated Financial Statements in conformity with generally accepted accounting principles requires that management apply accounting policies and make estimates and assumptions that affect the results of operations and the amounts of assets and liabilities reported in the Consolidated Financial Statements. The Registrants' management believes that the areas described below require significant judgment in the application of accounting policy or in making estimates and assumptions in matters that are inherently uncertain and that may change in subsequent periods. Additional discussion of these accounting policies can be found in the Combined Notes to Consolidated Financial Statements in Item 8 of this Report. Regulation A significant portion of the Registrants' businesses are subject to regulation. This results in differences in the application of generally accepted accounting principles between regulated and non-regulated businesses. DTE Electric and DTE Gas are required to record regulatory assets and liabilities for certain transactions that would have been treated as revenue or expense in non-regulated businesses. Future regulatory changes or changes in the competitive environment could result in the discontinuance of this accounting treatment for regulatory assets and liabilities for some or all of the Registrants' businesses. The Registrants' management believes that currently available facts support the continued use of regulatory assets and liabilities and that all regulatory assets and liabilities are recoverable or refundable in the current rate environment. See Note 9 to the Consolidated Financial Statements, "Regulatory Matters." Derivatives Derivatives are generally recorded at fair value and shown as Derivative assets or liabilities. Changes in the fair value of the derivative instruments are recognized in earnings in the period of change. The normal purchases and normal sales exception requires, among other things, physical delivery in quantities expected to be used or sold over a reasonable period in the normal course of business. Contracts that are designated as normal purchases and normal sales are not recorded at fair value. Substantially all of the commodity contracts entered into by DTE Electric and DTE Gas meet the criteria specified for this exception. Fair value is defined as the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date in a principal or most advantageous market. Fair value is a market-based measurement that is determined based on inputs, which refer broadly to assumptions that market participants use in pricing assets or liabilities. These inputs can be readily observable, market corroborated, or generally unobservable inputs. The Registrants make certain assumptions they believe that market participants would use in pricing assets or liabilities, including assumptions about risk, and the risks inherent in the inputs to valuation techniques. Credit risk of the Registrants and their counterparties is incorporated in the valuation of assets and liabilities through the use of credit reserves, the impact of which was immaterial at December 31, 2025 and 2024. The Registrants believe they use valuation techniques that maximize the use of observable market-based inputs and minimize the use of unobservable inputs. The fair values the Registrants calculate for their derivatives may change significantly as inputs and assumptions are updated for new information. Actual cash returns realized on derivatives may be different from the results the Registrants estimate using models. As fair value calculations are estimates based largely on commodity prices, the Registrants perform sensitivity analyses on the fair values of forward contracts. See the sensitivity analysis in Item 7A. of this report, "Quantitative and Qualitative Disclosures About Market Risk." See also the "Fair Value" section herein. See Notes 12 and 13 to the Consolidated Financial Statements, "Fair Value" and "Financial and Other Derivative Instruments," respectively. Goodwill DTE Energy's reporting units have goodwill or allocated goodwill resulting from business combinations. DTE Energy performs an impairment test for each of the reporting units annually or whenever events or circumstances indicate that the value of goodwill may be impaired. In performing the impairment test, DTE Energy compares the fair value of the reporting unit to its carrying value including goodwill. If the carrying value including goodwill were to exceed the fair value of a reporting unit, an impairment loss would be recognized. A goodwill impairment loss is measured as the amount by which a reporting unit's carrying value exceeds fair value, not to exceed the carrying amount of goodwill. 46 Table of Contents DTE Energy estimates the reporting unit's fair value using standard valuation techniques, including techniques which use estimates of projected future results and cash flows to be generated by the reporting unit. For all reporting units except Energy Trading, the fair values were calculated using a weighted combination of the income approach, which estimates fair value based on discounted cash flows, and the market approach, which estimates fair value based on market comparables within the utility and energy industries. For the Energy Trading reporting unit, only the income approach was used due to the lack of comparable market information. Discounted cash flows used in the income approach are based on DTE Energy's internal business plan for the next five years plus a terminal value. DTE Energy capitalizes the terminal value for each reporting unit using a weighted average cost of capital (WACC) less an assumed long-term growth rate. The income approach cash flow valuations involve a number of estimates that require broad assumptions and significant judgment by management regarding future performance. One of the most significant assumptions utilized in determining the fair value of reporting units under the market approach is implied market multiples for certain peer companies. Management selects comparable peers based on each peer’s primary business mix, operations, and market capitalization compared to the applicable reporting unit and calculates implied market multiples based on available projected earnings guidance and peer company market values as of the test date. DTE Energy performs an annual impairment test each October. In between annual tests, DTE Energy monitors its estimates and assumptions regarding estimated future cash flows, including the impact of movements in market indicators in future quarters, and will update the impairment analyses if a triggering event occurs. While DTE Energy believes the assumptions are reasonable, actual results may differ from projections. To the extent projected results or cash flows are revised downward, the reporting unit may be required to write down all or a portion of its goodwill, which would adversely impact DTE Energy's earnings. DTE Energy performed its annual impairment test as of October 1, 2025. In estimating fair value for the income approach, DTE Energy used discounted rates ranging from 6.1% to 8.9%. Based on the weighting of the estimated fair value using an income and market approach, DTE Energy determined that the estimated fair value of each reporting unit substantially exceeded its carrying value, and no impairment existed. Long-Lived Assets The Registrants evaluate the carrying value of long-lived assets, excluding goodwill, when circumstances indicate that the carrying value of those assets may not be recoverable. Conditions that could have an adverse impact on the cash flows and fair value of the long-lived assets are deteriorating business climate, condition of the asset, or plans to dispose of the asset before the end of its useful life. The review of long-lived assets for impairment requires significant assumptions about operating strategies and estimates of future cash flows, which require assessments of current and projected market conditions. An impairment evaluation is based on an undiscounted cash flow analysis at the lowest level for which independent cash flows of long-lived assets can be identified from other groups of assets and liabilities. Impairment may occur when the carrying value of the asset exceeds the future undiscounted cash flows. When the undiscounted cash flow analysis indicates a long-lived asset is not recoverable, the amount of the impairment loss is determined by measuring the excess of the long-lived asset over its fair value. An impairment would require the Registrants to reduce both the long-lived asset and current period earnings by the amount of the impairment, which would adversely impact their earnings. Pension and Other Postretirement Costs DTE Energy sponsors both funded and unfunded defined benefit pension plans and other postretirement benefit plans for eligible employees of the Registrants. The measurement of the plan obligations and cost of providing benefits under these plans involve various factors, including numerous assumptions and accounting elections. When determining the various assumptions that are required, DTE Energy considers historical information as well as future expectations. The benefit costs are affected by, among other things, the actual rate of return on plan assets, the long-term expected return on plan assets, the discount rate applied to benefit obligations, the incidence of mortality, the expected remaining service period of plan participants, level of compensation and rate of compensation increases, employee age, length of service, the anticipated rate of increase of health care costs, benefit plan design changes, and the level of benefits provided to employees and retirees. Pension and other postretirement benefit costs attributed to the segments are included with labor costs and ultimately allocated to projects within the segments, some of which are capitalized. 47 Table of Contents DTE Energy had pension expense of $60 million in 2025. DTE Energy had pension credits of $18 million, and $69 million in 2024, and 2023 respectively. Other postretirement benefit credits were $39 million in 2025, $44 million in 2024, and $38 million in 2023. Pension expense and other postretirement benefit credits for 2025 were calculated based upon several actuarial assumptions, including an expected long-term rate of return on plan assets of 7.80% for the pension plans and 7.50% for the other postretirement benefit plans. In developing the expected long-term rate of return assumptions, DTE Energy evaluated asset class risk and return expectations, as well as inflation assumptions. Projected returns are based on broad equity, bond, and other markets. DTE Energy's 2026 expected long-term rate of return on pension plan assets is based on an asset allocation assumption utilizing active and passive investment management of 15% in equity markets, 57% in fixed income markets - including long duration bonds, and 28% invested in other assets. DTE Energy's 2026 expected long-term rate of return on other postretirement plan assets is based on an asset allocation assumption utilizing active and passive investment management of 7% in equity markets, 62% in fixed income markets - including long duration bonds, and 31% invested in other assets. Because of market volatility, DTE Energy periodically reviews the asset allocation and rebalances the portfolio when considered appropriate. DTE Energy is maintaining its long-term rate of return assumption for the pension plans of 7.80% and decreasing the other postretirement plans to 7.40% for 2026. DTE Energy believes these rates are reasonable assumptions for the long-term rates of return on the plans' assets for 2026 given their respective asset allocations and DTE Energy's capital market expectations. DTE Energy will continue to evaluate the actuarial assumptions, including its expected rate of return, at least annually. DTE Energy calculates the expected return on pension and other postretirement benefit plan assets by multiplying the expected return on plan assets by the market-related value (MRV) of plan assets at the beginning of the year, taking into consideration anticipated contributions and benefit payments that are to be made during the year. Current accounting rules provide that the MRV of plan assets can be either fair value or a calculated value that recognizes changes in fair value in a systematic and rational manner over not more than five years. For the pension plans, DTE Energy uses a calculated value when determining the MRV of the pension plan assets and recognizes changes in fair value over a three-year period. Accordingly, the future value of assets will be impacted as previously deferred gains or losses are recognized. As of December 31, 2025, DTE Energy had $32 million of cumulative losses related to investment performance in prior years that were not yet recognized in the calculation of the MRV of pension assets. For other postretirement benefit plans, DTE Energy uses fair value when determining the MRV of plan assets; therefore, all investment gains and losses have been recognized in the calculation of MRV for these plans. The discount rate that DTE Energy utilizes for determining future pension and other postretirement benefit obligations is based on a yield curve approach and a review of bonds that receive one of the two highest ratings given by a recognized rating agency. The yield curve approach matches projected pension plan and other postretirement benefit payment streams with bond portfolios reflecting actual liability duration unique to the plans. The discount rate determined on this basis was 5.43% for both the pension plans and other postretirement plans at December 31, 2025 compared to 5.65% for the pension plans and 5.66% for other postretirement plans at December 31, 2024. DTE Energy last changed the mortality assumptions as of December 31,2024 to reflect recent plan experience. The mortality assumptions used at December 31, 2025 are the PRI-2012 mortality table projected using Scale MP-2021, with generational projection. The base mortality tables vary by type of plan, employee's union status and employment status, with additional adjustments to reflect the actual experience and credibility of each population. DTE Energy estimates a total pension cost of approximately $70 million for 2026, compared to the cost of $60 million in 2025. The expected change is primarily related to lower discount rates, partially offset by higher than expected asset returns. The 2026 other postretirement benefit credit is estimated at approximately $40 million, comparable to the credit of $39 million in 2025. The health care trend rates for DTE Energy assume 8.25% for pre-65 participants and 8.75% for post-65 participants for 2026, trending down to 4.50% for both pre-65 and post-65 participants in 2036. Future actual pension and other postretirement benefit costs or credits will depend on future investment performance, changes in future discount rates, and various other factors related to plan design. 48 Table of Contents Lowering the expected long-term rate of return on the plan assets by one percentage point would have increased the 2025 pension expense by approximately $37 million. Lowering the discount rate and the salary increase assumptions by one percentage point would have increased the 2025 pension expense by approximately $19 million. Lowering the expected long-term rate of return on plan assets by one percentage point would have decreased the 2025 other postretirement credit by approximately $16 million. Lowering the discount rate and the salary increase assumptions by one percentage point would have decreased the 2025 other postretirement credit by approximately $6 million. The value of the qualified pension and other postretirement benefit plan assets was $5.4 billion at December 31, 2025 and $5.3 billion at December 31, 2024. At December 31, 2025, DTE Energy's qualified pension plans were underfunded by $127 million and its other postretirement benefit plans were over-funded by $513 million. In 2025, the funded status of the pension plans decreased slightly due to a combination of negative plan experience and lower discount rates offset partially by higher than expected asset returns, and the funded status of the other postretirement benefit plans improved due to a combination of lower assumed future health care costs and higher than expected asset returns. Pension and other postretirement costs and pension cash funding requirements may increase in future years without typical returns in the financial markets. Any required pension funding will be made by contributing amounts consistent with the provisions of the Pension Protection Act of 2006. DTE Energy made nominal contributions to its qualified pension plans in 2025 and 2024 and does not anticipate making any material contributions in 2026. DTE Gas transferred $25 million of qualified pension plan funds to DTE Electric in 2025 in exchange for cash consideration. At the discretion of management and depending on financial market conditions, DTE Gas anticipates transferring up to $25 million of qualified pension plan funds to DTE Electric annually for the next five years in exchange for cash consideration. DTE Energy did not make other postretirement benefit plan contributions in 2025 or 2024 and does not anticipate making any contributions to the other postretirement plans over the next five years. All planned contributions will be at the discretion of management and subject to any changes in financial market conditions. See Note 20 to the Consolidated Financial Statements, "Retirement Benefits and Trusteed Assets." Legal Reserves The Registrants are involved in various legal proceedings, claims, and litigation arising in the ordinary course of business. The Registrants regularly assess their liabilities and contingencies in connection with asserted or potential matters and establish reserves when appropriate. Legal reserves are based upon the Registrants' management’s assessment of pending and threatened legal proceedings and claims against the Registrants. Accounting for Tax Obligations The Registrants are required to make judgments regarding the potential tax effects of various financial transactions and results of operations in order to estimate their obligations to taxing authorities. The Registrants account for uncertain income tax positions using a benefit recognition model with a two-step approach, a more-likely-than-not recognition criterion, and a measurement attribute that measures the position as the largest amount of tax benefit that is greater than 50% likely of being realized upon ultimate settlement. If the benefit does not meet the more likely than not criteria for being sustained on its technical merits, no benefit will be recorded. Uncertain tax positions that relate only to timing of when an item is included on a tax return are considered to have met the recognition threshold. The Registrants also have non-income tax obligations related to property, sales and use, and employment-related taxes, and ongoing appeals related to these tax matters. Accounting for tax obligations requires judgments, including assessing whether tax benefits are more likely than not to be sustained, and estimating reserves for potential adverse outcomes regarding tax positions that have been taken. The Registrants also assess their ability to utilize tax attributes, including those in the form of carry-forwards, for which the benefits have already been reflected in the Consolidated Financial Statements. The Registrants believe the resulting tax reserve balances as of December 31, 2025 and 2024 are appropriate. The ultimate outcome of such matters could result in favorable or unfavorable adjustments to the Registrants' Consolidated Financial Statements, and such adjustments could be material. See Note 10 to the Consolidated Financial Statements, "Income Taxes." 49 Table of Contents NEW ACCOUNTING PRONOUNCEMENTS See Note 3 to the Consolidated Financial Statements, "New Accounting Pronouncements." FAIR VALUE Derivatives are generally recorded at fair value and shown as Derivative assets or liabilities. Contracts DTE Energy typically classifies as derivative instruments include power, natural gas, some environmental contracts, and certain forwards, futures, options and swaps, and foreign currency exchange contracts. Items DTE Energy does not generally account for as derivatives include natural gas and environmental inventory, pipeline transportation contracts, storage assets, and some environmental contracts. See Notes 12 and 13 to the Consolidated Financial Statements, "Fair Value" and "Financial and Other Derivative Instruments," respectively. The tables below do not include the expected earnings impact of non-derivative natural gas storage, transportation, certain power contracts, and some environmental contracts which are subject to accrual accounting. Consequently, gains and losses from these positions may not match with the related physical and financial hedging instruments in some reporting periods, resulting in volatility in the Registrants' reported period-by-period earnings; however, the financial impact of the timing differences will reverse at the time of physical delivery and/or settlement. The Registrants manage their MTM risk on a portfolio basis based upon the delivery period of their contracts and the individual components of the risks within each contract. Accordingly, the Registrants record and manage the energy purchase and sale obligations under their contracts in separate components based on the commodity (e.g. electricity or natural gas), the product (e.g. electricity for delivery during peak or off-peak hours), the delivery location (e.g. by region), the risk profile (e.g. forward or option), and the delivery period (e.g. by month and year). The Registrants have established a fair value hierarchy that prioritizes the inputs to valuation techniques used to measure fair value in three broad levels. The fair value hierarchy gives the highest priority to quoted prices (unadjusted) in active markets for identical assets or liabilities (Level 1) and the lowest priority to unobservable inputs (Level 3). For further discussion of the fair value hierarchy, see Note 12 to the Consolidated Financial Statements, "Fair Value." The following table provides details on changes in DTE Energy's MTM net asset (or liability) position: Total (In millions) MTM at December 31, 2024 $ 72  Reclassified to realized upon settlement (369) Changes in fair value recorded to income 373  Amounts recorded to unrealized income 4  Changes in fair value recorded in Regulatory liabilities 19  Amounts recorded in other comprehensive income, pretax (17) Change in collateral (13) Purchases 15  MTM at December 31, 2025 $ 80  50 Table of Contents The table below shows the maturity of DTE Energy's MTM positions. The positions from 2029 and beyond principally represent longer tenor gas structured transactions: Source of Fair Value 2026 2027 2028 2029 and Beyond Total Fair Value (In millions) Level 1 $ 10  $ 10  $ (6) $ (1) $ 13  Level 2 25  38  10  5  78  Level 3 34  (29) (3) 17  19  MTM before collateral adjustments $ 69  $ 19  $ 1  $ 21  110  Collateral adjustments (30) MTM at December 31, 2025 $ 80