Q3 FY2026
Filed Nov 6, 2026Filed under $DTEDTE Gas Q3 2026: revenue up to $211 million and operating loss narrowed to $(5) million; nine-month net income $176 million vs $175 million
Quarterly revenue and operating result improved year over year, and nine-month operating income rose, but Q3 remained a net loss, nine-month operating cash flow declined slightly, capital expenditures rose sharply, and the regulator approved a smaller rate increase and lower ROE than requested.
Key metrics
shortened, hover for the filing’s print| Metric | Value | q/q | y/y |
|---|---|---|---|
| Operating revenues, three months ended Sept 30, 2026GAAP | $211M | – | – |
| Cost of gas, three months ended Sept 30, 2026GAAP | −$9M | – | – |
| Operation and maintenance, three months ended Sept 30, 2026GAAP | $139M | – | – |
| Depreciation and amortization, three months ended Sept 30, 2026GAAP | $58M | – | – |
| Taxes other than income, three months ended Sept 30, 2026GAAP | $28M | – | – |
| Total operating expenses, three months ended Sept 30, 2026GAAP | $216M | – | – |
| Operating income (loss), three months ended Sept 30, 2026GAAP | −$5M | – | – |
| Interest expense, three months ended Sept 30, 2026GAAP | $35M | – | – |
| Income (loss) before income taxes, three months ended Sept 30, 2026GAAP | −$38M | – | – |
| Income tax expense (benefit), three months ended Sept 30, 2026GAAP | −$9M | – | – |
| Net income (loss), three months ended Sept 30, 2026GAAP | −$29M | – | – |
| Effective income tax rate, three months ended Sept 30, 2026GAAP | 23.6% | – | – |
| Gas sales revenue, three months ended Sept 30, 2026GAAP | $136M | – | – |
| End User Transportation revenue, three months ended Sept 30, 2026GAAP | $48M | – | – |
| Intermediate Transportation revenue, three months ended Sept 30, 2026GAAP | $16M | – | – |
| Other revenue (regulatory mechanisms incl. GCR), three months ended Sept 30, 2026GAAP | $11M | – | – |
| Operating revenues, nine months ended Sept 30, 2026GAAP | $1.45B | – | – |
| Cost of gas, nine months ended Sept 30, 2026GAAP | $400M | – | – |
| Operation and maintenance, nine months ended Sept 30, 2026GAAP | $446M | – | – |
| Depreciation and amortization, nine months ended Sept 30, 2026GAAP | $174M | – | – |
| Taxes other than income, nine months ended Sept 30, 2026GAAP | $102M | – | – |
| Total operating expenses, nine months ended Sept 30, 2026GAAP | $1.12B | – | – |
| Operating income, nine months ended Sept 30, 2026GAAP | $323M | – | – |
| Interest expense, nine months ended Sept 30, 2026GAAP | $105M | – | – |
| Income before income taxes, nine months ended Sept 30, 2026GAAP | $229M | – | – |
| Income tax expense, nine months ended Sept 30, 2026GAAP | $53M | – | – |
| Net income, nine months ended Sept 30, 2026GAAP | $176M | – | – |
| Effective income tax rate, nine months ended Sept 30, 2026GAAP | 23.1% | – | – |
| Gas sales revenue, nine months ended Sept 30, 2026GAAP | $1.04B | – | – |
| End User Transportation revenue, nine months ended Sept 30, 2026GAAP | $192M | – | – |
| Intermediate Transportation revenue, nine months ended Sept 30, 2026GAAP | $71M | – | – |
| Other revenue (regulatory mechanisms incl. GCR), nine months ended Sept 30, 2026GAAP | $140M | – | – |
| Net cash from operating activities, nine months ended Sept 30, 2026GAAP | $508M | – | – |
| Plant and equipment expenditures (investing), nine months ended Sept 30, 2026GAAP | −$580M | – | – |
Segments
| Segment | Revenue | q/q | y/y |
|---|---|---|---|
| Gas sales (three months ended Sept 30, 2026)The filing prints the revenue split by type and gives no explanation for the change from $110 million. | $136M | – | – |
| End User Transportation (three months ended Sept 30, 2026)The filing prints the revenue split by type and gives no explanation for the change from $44 million. | $48M | – | – |
| Intermediate Transportation (three months ended Sept 30, 2026)The filing prints the revenue split by type and gives no explanation; the prior-year figure is also $16 million. | $16M | – | – |
| Other (three months ended Sept 30, 2026)Footnote (a) states that Other includes revenue adjustments related to various regulatory mechanisms, including the GCR, which may vary based on changes in the cost of gas. The filing does not explain the change from $37 million. | $11M | – | – |
| Gas sales (nine months ended Sept 30, 2026)The filing prints the revenue split by type and gives no explanation for the change from $1,018 million. | $1.04B | – | – |
| End User Transportation (nine months ended Sept 30, 2026)The filing prints the revenue split by type and gives no explanation for the change from $186 million. | $192M | – | – |
| Intermediate Transportation (nine months ended Sept 30, 2026)The filing prints the revenue split by type and gives no explanation for the change from $63 million. | $71M | – | – |
| Other (nine months ended Sept 30, 2026)Footnote (a) states that Other includes revenue adjustments related to various regulatory mechanisms, including the GCR, which may vary based on changes in the cost of gas. The filing does not explain the change from $121 million. | $140M | – | – |
Capital returns
- Dividends declared on common stock: $(57) million in the quarter ended Sept 30, 2026, vs $(56) million in the quarter ended Sept 30, 2025 (Statement of Changes in Shareholder's Equity).
- Dividends paid on common stock: $(169) million for the nine months ended Sept 30, 2026, vs $(166) million for the nine months ended Sept 30, 2025 (Cash Flow Statement).
- Capital contribution by parent company: nil in the nine months ended Sept 30, 2026, vs $50 million in the nine months ended Sept 30, 2025.
- The Company anticipates transferring up to $25 million from its non-represented qualified pension plan to DTE Electric Company during Q4 2026 in exchange for cash consideration.
What drove it
- Operating revenues rose to $211 million from $207 million in Q3, with gas sales up to $136 million from $110 million and Other revenue down to $11 million from $37 million. The filing states that Other includes regulatory revenue adjustments, including the GCR, which may vary with the cost of gas, but does not state the cause of the change in Other.
- Operation and maintenance expense fell to $139 million from $142 million in Q3 and rose to $446 million from $444 million for the nine months. The filing does not explain either movement.
- On Sept 10, 2026 the MPSC approved an annual revenue increase of $149 million for services rendered on or after Oct 1, 2026, with a 9.8% return on equity. The Company had requested a net increase of $163 million and a return on equity of 10.25% (filed Nov 13, 2025). The filing describes the requested increase as primarily due to continued infrastructure investment and increasing operations and maintenance costs.
- Uncollectible expense was $5 million in Q3 2026 vs $1 million in Q3 2025 and $33 million for the nine months vs $24 million. The filing attributes the uncollectible expense to the current period provision for allowance for doubtful accounts.
Concerns
- Q3 2026 operating loss of $(5) million, against $(23) million in Q3 2025, and a Q3 net loss of $(29) million. The filing prints the figures without explaining the quarter's result.
- Net cash from operating activities was $508 million for the nine months vs $513 million a year earlier, while plant and equipment expenditures rose to $(580) million from $(437) million.
- The approved return on equity of 9.8% is below the 10.25% requested, and the approved annual revenue increase of $149 million is below the $163 million requested.
- Cash and cash equivalents were nil at Sept 30, 2026, down from $31 million at Dec 31, 2025, after $80 million of short-term borrowings were repaid.
- Uncollectible expense rose to $33 million for the nine months from $24 million, and the Company recorded a current period provision of $33 million against the allowance.
- Interest expense rose to $35 million in Q3 from $33 million, and to $105 million for the nine months from $97 million.
What to watch
- Effect of the $149 million rate increase, effective for services on or after Oct 1, 2026, on Q4 2026 and later revenue and operating income.
- Whether the $580 million of nine-month plant and equipment expenditures tracks toward the approximately $900 million of 2026 capital expenditure commitments.
- Timing and size of any draws on the $1.6 billion Energy Dominance Financing loan, for which no draws had been made at Sept 30, 2026.
- Trend in Other revenue (regulatory mechanisms, including GCR) after the decline to $11 million in Q3 from $37 million.
- Trend in uncollectible expense and receivables, which rose in the nine-month period.
- Funded debt to capitalization ratio of 0.52 to 1 against the 0.65 to 1 covenant maximum, as debt issuance continues.
Balance sheet and cash flow
- Cash and cash equivalents: nil at Sept 30, 2026, vs $31 million at Dec 31, 2025.
- Total assets: $9,187 million at Sept 30, 2026, vs $8,905 million at Dec 31, 2025.
- Total shareholder's equity: $3,123 million at Sept 30, 2026, vs $3,116 million at Dec 31, 2025.
- Long-term debt, net of current portion: $3,302 million at Sept 30, 2026, vs $3,043 million at Dec 31, 2025. Current portion of long-term debt: $40 million at Sept 30, 2026, vs nil at Dec 31, 2025.
- Short-term borrowings, other: nil at Sept 30, 2026, vs $80 million at Dec 31, 2025.
- Plant and equipment expenditures in accounts payable (non-cash): $118 million at Sept 30, 2026, vs $78 million at Sept 30, 2025 (nine-month supplemental disclosure).
- Issuance of long-term debt, net of issuance costs: $298 million in the nine months ended Sept 30, 2026, vs $258 million in the nine months ended Sept 30, 2025.
- Net cash used for investing activities: $(589) million in the nine months ended Sept 30, 2026, vs $(631) million in the nine months ended Sept 30, 2025.
- September 2026 mortgage bond issuances totaled $300 million: $150 million at 5.34% due 2031, $100 million at 5.68% due 2036 and $50 million at 6.26% due 2056. The filing states the proceeds were used for repayment of short-term borrowings, for capital expenditures, and for other corporate purposes.
- In June 2026 the U.S. Department of Energy's Office granted a $1.6 billion loan to DTE Gas under the Energy Dominance Financing program. There have been no draws on this loan as of Sept 30, 2026.
- The $300 million unsecured revolving credit agreement had no commercial paper or revolver borrowings outstanding at Sept 30, 2026. The facility expires in October 2030.
- Covenant: the total funded debt to total capitalization ratio was 0.52 to 1 at Sept 30, 2026, against a maximum of 0.65 to 1 under the revolving credit agreement. The filing states the Company was in compliance.
- Commitments made for 2026 annual capital expenditures are expected to be approximately $900 million (Note 10).
- Accumulated depreciation and amortization: $(2,166) million at Sept 30, 2026, vs $(2,072) million at Dec 31, 2025. Property, plant and equipment, gross: $9,740 million vs $9,212 million at Dec 31, 2025.
Analysis
DTE Gas reported a Q3 2026 operating loss of $(5) million, improved from $(23) million a year earlier, on operating revenues of $211 million vs $207 million. Total operating expenses fell to $216 million from $230 million, driven by lower operation and maintenance expense ($139 million vs $142 million) and by the cost of gas line, which printed $(9) million against $3 million. Net loss narrowed to $(29) million from $(36) million. The filing does not state the causes of these quarterly movements.
For the nine months ended Sept 30, 2026, operating revenues rose to $1,445 million from $1,388 million and operating income rose to $323 million from $309 million. Net income was $176 million vs $175 million, with interest expense up to $105 million from $97 million and depreciation and amortization up to $174 million from $166 million. Revenue detail shows gas sales of $1,042 million (vs $1,018 million), End User Transportation of $192 million (vs $186 million), Intermediate Transportation of $71 million (vs $63 million) and Other of $140 million (vs $121 million). Footnote (a) states that Other includes regulatory revenue adjustments, including the GCR, which may vary with changes in the cost of gas. Within the quarter, Other fell to $11 million from $37 million while gas sales rose to $136 million from $110 million.
Cash generation was steady but not stronger. Net cash from operating activities was $508 million for the nine months vs $513 million. Plant and equipment expenditures were $(580) million vs $(437) million, and the Company issued $298 million of long-term debt, including $300 million of September mortgage bonds. Cash and cash equivalents fell to nil from $31 million at year end after $80 million of other short-term borrowings were repaid. Dividends paid were $(169) million for the nine months vs $(166) million. The Company reported a total funded debt to capitalization ratio of 0.52 to 1 against a 0.65 to 1 covenant maximum.
The regulatory outcome is the main item of change. On Sept 10, 2026 the MPSC approved a $149 million annual revenue increase effective for services on or after Oct 1, 2026, with a 9.8% return on equity. The Company had requested $163 million and a 10.25% return on equity. The filing does not provide guidance, outlook or prior-period targets, so the read on the forward period rests on this order and the stated $900 million of 2026 capital expenditure commitments. Figures that deserve attention are the Q3 operating loss, the decline in net operating cash flow, the sharp rise in capital expenditures, the increase in uncollectible expense and the reduced rate outcome.
Not in the filing
stated, not guessed- No earnings press release or CFO commentary was included in the filing text; the document is the unaudited financial statements of DTE Gas Company (Exhibit 99.1).
- The scraped header lists the filer as DTE ENERGY CO with ticker DTB; the financial statements in the exhibit are those of DTE Gas Company, a subsidiary. The DTE Energy consolidated results are not in the filing.
- No previous-period outlook was provided, so no guidance comparison is possible.
- No forward guidance for revenue, operating expenses, margin or tax rate was given.
- No year-over-year or quarter-over-quarter percentage changes are printed for any line item.
- No prior-quarter (Q2 2026) figures are printed for the income statement; the quarterly comparison is only to Q3 2025.
- No earnings per share data, which does not apply to this wholly-owned subsidiary.
- No non-GAAP measures are reported.
- No segment operating income or segment assets are reported; revenue is disaggregated only by type.
- No management commentary, quotes or explanation of the Q3 2026 operating result or the change in gas sales.
- No share price reaction, analyst consensus or expectations were provided, and none have been included.
- Balance sheet comparisons are to Dec 31, 2025, not to a prior-year period, so they are listed separately rather than in the prior-year fields.
- The 2026 capital expenditure figure of approximately $900 million is a commitment amount, not guidance for the full year's spending.
Written by an AI language model from the company’s SEC earnings filing (Form 8-K Item 2.02, or Form 6-K for a foreign private issuer). Every figure is checked against the filing text, and a metric the filing does not print, or whose value, prior period and change do not add up, is dropped from the metrics. The model can still misread a table, in the metrics or in the text, so check a number in the filing before you rely on it. Consensus estimates, price targets and share-price reactions are not shown because they are not in the filing. AI-generated research, not investment advice.