DTE Energy Drives Forward With Major Clean Energy Investments

DTE Energy Company DTE continues to strengthen and expand its infrastructure through long-term capital investments aimed at improving service efficiency for its customers. At the same time, the company is ramping up its investments in renewable energy projects to foster sustainable growth.

However, this Zacks Rank #3 (Hold) company is exposed to risks like a poor solvency position and challenges in the energy trading business.

DTE’s Key Growth Drivers

DTE Energy is reinforcing the reliability of its electric and natural gas utility systems through a robust capital investment strategy. The company aims to invest $30 billion over the next five years, supporting its long-term operating earnings growth target of 6-8%. DTE Energy is expanding its non-utility segment to strengthen earnings diversification. Through its DTE Vantage business, the company intends to invest $1.5-$2 billion between 2025 and 2029 in renewable and customized energy solutions, reinforcing its long-term commitment to sustainability.

DTE Energy is ramping up its energy storage initiatives, aiming to exceed 2,900 megawatts (MW) of capacity by 2042. Over the next decade, the company plans to invest $10 billion in its clean energy transition, adding an average of 900 MW of new renewable capacity each year over the next five years.

DTE Energy plans to produce enough electricity from Michigan-based wind and solar resources to power about 5.5 million homes by 2042, supported by its MIGreenPower program. These clean energy initiatives are expected to play a vital role in helping the company achieve its carbon emission reduction goals.

Obstacles to DTE’s Growth

As of June 30, 2025, DTE Energy reported cash and cash equivalents of $0.08 billion, while its long-term debt stood at $22.94 billion, substantially exceeding its cash reserves. Its current debt of $0.85 billion also surpassed its cash holdings, indicating a relatively weak solvency position for the company.

DTE Energy anticipates continued challenges in its Energy Trading segment due to prevailing market conditions. The company acknowledges that fluctuations in commodity prices, along with potential regulatory changes and modifications to Regional Transmission Organization operating guidelines, could adversely affect the segment’s profitability.

DTE Stock Price Movement

In the past month, DTE shares have rallied 2.7% compared with the industry’s growth of 1.3%.

Stocks to Consider

Some better-ranked stocks from the same industry are Dominion Energy, Inc. D, Exelon Corporation EXC and IDACORP Inc. IDA, each carrying a Zacks Rank #2 (Buy) at present. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

D’s long-term (three to five years) earnings growth rate is 13.6%. The Zacks Consensus Estimate for its 2025 earnings per share (EPS) stands at $3.39, which calls for a year-over-year jump of 22.4%.

EXC’s long-term earnings growth rate is 6%. The Zacks Consensus Estimate for its 2025 EPS stands at $2.69, which indicates a year-over-year rally of 7.6%.

IDA’s long-term earnings growth rate is 8%. The Zacks Consensus Estimate for its 2025 EPS is pegged at $5.84, which implies a year-over-year rise of 6.2%.

Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report

This article originally published on Zacks Investment Research (zacks.com).

Zacks Investment Research