DTM achieved structural margin expansion with gross margins reaching 74.7% in 2026Q1, up from 51.6% in 2023Q4, reflecting improved operational efficiency as throughput scales.
| Sales/Revenue | 1.28B | 1.24B | 981M | 922M | 920M | 840M | 754M | 504M | 485M |
| Revenue Growth % | 22.22% | 26.71% | 6.4% | 0.22% | 9.52% | 11.41% | 49.6% | 3.92% | - |
| Cost of Goods Sold | 466M | 329M | 453M | 427M | 437M | 397M | 327M | 104M | 122M |
| COGS % of Revenue | - | 26.47% | 46.18% | 46.31% | 47.5% | 47.26% | 43.37% | 20.63% | 25.15% |
| Gross Profit | 810M | 914M | 528M | 495M | 483M | 443M | 427M | 400M | 363M |
| Gross Margin % | 63.48% | 73.53% | 53.82% | 53.69% | 52.5% | 52.74% | 56.63% | 79.37% | 74.85% |
| Gross Profit Growth % | - | 73.11% | 6.67% | 2.48% | 9.03% | 3.75% | 6.75% | 10.19% | - |
| Operating Expenses | 178M | 300M | 39M | 28M | 28M | 24M | 15M | 242M | 212M |
| OpEx % of Revenue | - | 24.14% | 3.98% | 3.04% | 3.04% | 2.86% | 1.99% | 48.02% | 43.71% |
| Selling, General & Admin | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 19M | 0 |
| SG&A % of Revenue | - | - | - | - | - | - | - | 3.77% | - |
| Research & Development | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| R&D % of Revenue | - | - | - | - | - | - | - | - | - |
| Other Operating Expenses | 4M | 300M | 39M | 28M | 28M | 24M | 15M | 223M | 90M |
| Operating Income | 632M | 614M | 489M | 467M | 455M | 419M | 412M | 368M | 273M |
| Operating Margin % | 49.53% | 49.4% | 49.85% | 50.65% | 49.46% | 49.88% | 54.64% | 73.02% | 56.29% |
| Operating Income Growth % | - | 25.56% | 4.71% | 2.64% | 8.59% | 1.7% | 11.96% | 34.8% | - |
| EBITDA | 905M | 889M | 716M | 667M | 644M | 603M | 581M | 478M | 354M |
| EBITDA Margin % | 70.92% | 71.52% | 72.99% | 72.34% | 70% | 71.79% | 77.06% | 94.84% | 72.99% |
| EBITDA Growth % | 20.19% | 24.16% | 7.35% | 3.57% | 6.8% | 3.79% | 21.55% | 35.03% | - |
| D&A (Non-Cash Add-back) | 273M | 275M | 227M | 200M | 189M | 184M | 169M | 110M | 81M |
| EBIT | 573M | 759M | 657M | 650M | 619M | 534M | 553M | 367M | 400M |
| Net Interest Income | -120M | -159M | -146M | -149M | -134M | -108M | -104M | -67M | -60M |
| Interest Income | 0 | 2M | 7M | 1M | 3M | 4M | 9M | 8M | 9M |
| Interest Expense | 161M | 161M | 153M | 150M | 137M | 112M | 113M | 75M | 69M |
| Other Income/Expense | -10M | -16M | 15M | 33M | 27M | 3M | 28M | -76M | 58M |
| Pretax Income | 622M | 598M | 504M | 500M | 482M | 422M | 440M | 292M | 331M |
| Pretax Margin % | 48.75% | 48.11% | 51.38% | 54.23% | 52.39% | 50.24% | 58.36% | 57.94% | 68.25% |
| Income Tax | 145M | 144M | 137M | 104M | 100M | 104M | 116M | 72M | 72M |
| Effective Tax Rate % | 23.31% | 24.08% | 27.18% | 20.8% | 20.75% | 24.64% | 26.36% | 24.66% | 21.75% |
| Net Income | 467M | 441M | 354M | 384M | 370M | 307M | 312M | 204M | 231M |
| Net Margin % | 36.6% | 35.48% | 36.09% | 41.65% | 40.22% | 36.55% | 41.38% | 40.48% | 47.63% |
| Net Income Growth % | 27.95% | 24.58% | -7.81% | 3.78% | 20.52% | -1.6% | 52.94% | -11.69% | - |
| Net Income (Continuing) | 477M | 454M | 367M | 396M | 382M | 318M | 324M | 220M | 259M |
| Discontinued Operations | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Minority Interest | 142M | 142M | 139M | 141M | 147M | 149M | 155M | 155M | 457M |
| EPS (Diluted) | 4.55 | 4.43 | 3.60 | 3.94 | 3.81 | 3.17 | 3.22 | 2.11 | 2.38 |
| EPS Growth % | 24.04% | 23.06% | -8.63% | 3.41% | 20.19% | -1.55% | 52.61% | -11.34% | - |
| EPS (Basic) | - | 4.47 | 3.63 | 3.96 | 3.83 | 3.17 | 3.22 | 2.11 | 2.38 |
| Diluted Shares Outstanding | 102.7M | 102.5M | 98.4M | 97.5M | 97.2M | 96.73M | 96.86M | 96.86M | 96.86M |
| Basic Shares Outstanding | 101.8M | 101.6M | 97.6M | 96.9M | 96.7M | 96.73M | 96.86M | 96.7M | 96.86M |
| Dividend Payout Ratio | - | 73.47% | 79.1% | 68.49% | 65.95% | 182.08% | - | - | - |
Basin-specific volume concentration
As reported in recent financial statements, DTM achieved a 10.9% year-over-year revenue increase in 2026Q1, building upon a consistent growth trend that saw quarterly revenue climb from $240 million in 2024Q1 to $336 million, suggesting successful execution of infrastructure projects like the LEAP pipeline expansion.
The acceleration in top-line growth appears to be driven by the transition of capital-intensive projects into operational, revenue-generating assets. Investors should monitor whether this growth trajectory remains sustainable as the company reaches higher utilization levels on its existing interstate transmission corridors.
Based on the provided income statement data, DTM's gross margin reached 74.7% in 2026Q1, a significant improvement from the 51.6% observed in 2023Q4, which indicates the company is successfully leveraging its fixed-cost infrastructure to capture higher incremental profitability as throughput volumes scale across its network.
The expansion in gross margins suggests that the company's toll-road business model is benefiting from operating leverage, where incremental volumes require minimal additional expenditure. This trend warrants further investigation to determine if these margin levels are sustainable or if they reflect temporary fluctuations in maintenance-related costs.
According to the latest quarterly filings, DTM maintained an operating margin of 49.4% in 2026Q1, demonstrating consistent efficiency in managing its cost structure while scaling revenue, which suggests that the company is effectively controlling its overhead relative to the growth in its core pipeline and gathering operations.
The stability of the operating margin despite significant revenue growth implies that the company's cost base is largely fixed and well-managed. This operational discipline appears to be a key driver of the company's ability to convert top-line gains into meaningful bottom-line performance.
As indicated by the reported figures, DTM's net income reached $134 million in 2026Q1, reflecting a net margin of 39.9%, which suggests that the company's earnings are primarily derived from core operations rather than non-recurring items or significant accounting anomalies that often distort midstream financial reporting.
The consistency in net income growth, coupled with relatively predictable stock-based compensation expenses, points to a high quality of earnings. Investors should continue to monitor the impact of joint-venture accounting and potential non-cash items that may influence the reported net income in future periods.
While the company shows strong growth, the heavy reliance on the Haynesville and Appalachia basins, as noted in operational disclosures, presents a potential vulnerability where any localized regulatory or geological disruption could disproportionately impact the company's throughput and long-term revenue stability compared to more diversified peers.
The lack of geographic diversification may limit the company's flexibility if regional production trends shift or if regulatory hurdles increase for gas infrastructure in these specific corridors. This concentration risk warrants a cautious assessment of the company's long-term growth durability in the face of evolving energy policies.
Quick answers to the most common questions about buying DTM stock.
For fiscal year 2025, DT Midstream, Inc. (DTM) reported total revenue of $1.24B. This represents a 156.3% increase compared to $485.0M in 2018.
DT Midstream, Inc. (DTM) is profitable, generating $441.0M in net income for the fiscal year ending 2025 with a net profit margin of 35.5%.
DT Midstream, Inc. (DTM) reported an operating income of $614.0M, resulting in an operating profit margin of 49.4%. This margin reflects the operational efficiency of the business before interest and taxes.
DT Midstream, Inc. (DTM) generated $914.0M in gross profit for the year, representing a gross profit margin of 73.5%. This demonstrates the company's core pricing power and production efficiency.