The company exhibits persistent negative free cash flow, evidenced by a CAPEX-to-OCF ratio of 135.4% in 2026Q1, which necessitates continuous external capital market access.
| Metric | TTM | Dec'25 | Dec'24 | Dec'23 | Dec'22 | Dec'21 | Dec'20 | Dec'19 | Dec'18 | Dec'17 | Dec'16 | Dec'15 | Dec'14 | Dec'13 | Dec'12 | Dec'11 | Dec'10 | Dec'09 | Dec'08 | Dec'07 | Dec'06 | Dec'05 | Dec'04 | Dec'03 | Dec'02 | Dec'01 | Dec'00 | Dec'99 | Dec'98 | Dec'97 | Dec'96 |
|---|
| Cash from Operations | 3.31B | 3.43B | 3.64B | 3.22B | 1.98B | 3.07B | 3.7B | 2.65B | 2.68B | 2.12B | 2.08B | 1.92B | 1.84B | 2.15B | 2.21B | 2.01B | 1.82B | 1.82B | 1.56B | 1.13B | 1.46B | 1B | 995M | 950M | 996M | 811M | 1.02B | 1.1B | 868M | 1.01B | 1.08B |
| Operating CF Growth % | -35.65% | -5.93% | 13.14% | 62.87% | -35.54% | -17.04% | 39.56% | -1.16% | 26.59% | 1.58% | 8.77% | 4.19% | -14.62% | -2.49% | 10.01% | 10.03% | 0.33% | 16.68% | 38.58% | -22.73% | 45.45% | 0.6% | 4.74% | -4.62% | 22.81% | -20.33% | -7.2% | 26.38% | -13.72% | -6.73% | 18.15% |
| Operating CF / Revenue % | 20.3% | 21.67% | 29.24% | 25.26% | 10.28% | 20.5% | 32.36% | 21.77% | 18.86% | 16.79% | 19.6% | 18.54% | 14.95% | 22.3% | 25.13% | 22.57% | 21.33% | 22.7% | 16.71% | 13.23% | 16.14% | 11.1% | 14.08% | 13.49% | 14.76% | 10.33% | 18.19% | 23.2% | 20.56% | 26.73% | 29.59% |
| Net Income | 1.26B | 1.46B | 1.4B | 1.4B | 1.08B | 907M | 1.37B | 1.17B | 1.12B | 1.11B | 834M | 720M | 911M | 668M | 618M | 720M | 639M | 535M | 526M | 971M | 433M | 537M | 431M | 521M | 632M | 332M | 468M | 483M | 443M | 417M | 309.3M |
| Depreciation & Amortization | 1.94B | 1.91B | 1.33B | 1.25B | 1.47B | 1.46B | 1.44B | 1.26B | 1.12B | 1.03B | 976M | 852M | 1.15B | 1.09B | 1.02B | 0 | 1.03B | 1.02B | 0 | 0 | 1.01B | 0 | 744M | 0 | 759M | 0 | 0 | 0 | 0 | 0 | 0 |
| Deferred Taxes | 324M | 358M | 194M | 181M | 44M | -32M | 407M | 329M | 114M | 196M | 265M | 237M | 356M | 164M | 47M | 220M | 457M | 205M | 348M | 144M | 28M | 147M | 129M | -220M | -208M | 0 | 0 | 0 | 0 | 0 | 1.9M |
| Other Non-Cash Items | -88M | -79M | 385M | 323M | 133M | 335M | -32M | 99M | -57M | 40M | 45M | 130M | 24M | 17M | 300K | 974M | -5M | -10M | 772M | -186M | -27M | 428M | -318M | 576M | 9M | 875M | 511M | 645M | 536M | 631M | 741.7M |
| Working Capital Changes | -123M | -219M | 328M | 65M | -751M | 398M | 508M | -214M | 381M | -261M | -36M | -23M | -597M | 211M | 442M | 94M | -293M | 69M | -87M | 196M | 8M | -111M | 9M | 73M | -196M | -396M | 39M | -31M | -111M | -42M | 25.7M |
| Capital Expenditures | -4.79B | -4.43B | -4.47B | -3.93B | -3.38B | -3.77B | -3.86B | -5.73B | -2.71B | -2.25B | -3.39B | -2.02B | -2.05B | -1.88B | -1.82B | -1.48B | -1.1B | -1.03B | -1.37B | -1.3B | -1.4B | -1.06B | -904M | -751M | -984M | -2.29B | -587M | -739M | -1.04B | -667M | -530.5M |
| CapEx / Revenue % | 48.09% | 28.01% | 35.86% | 30.87% | 17.57% | 25.21% | 33.77% | 47.11% | 19.09% | 17.85% | 31.87% | 19.54% | 16.66% | 19.42% | 20.7% | 16.68% | 12.84% | 12.91% | 14.72% | 15.27% | 15.55% | 11.8% | 12.79% | 10.67% | 14.58% | 29.12% | 10.49% | 15.63% | 24.57% | 17.72% | 14.55% |
| CapEx / D&A | 4.05x | 2.32x | 3.35x | 3.14x | 2.30x | 2.59x | 2.67x | 4.54x | 2.41x | 2.18x | 3.47x | 2.37x | 1.79x | 1.71x | 1.79x | - | 1.07x | 1.01x | - | - | 1.38x | - | 1.22x | - | 1.30x | - | - | - | - | - | - |
| CapEx Coverage (OCF/CapEx) | 0.42x | 0.77x | 0.82x | 0.82x | 0.59x | 0.81x | 0.96x | 0.46x | 0.99x | 0.94x | 0.62x | 0.95x | 0.90x | 1.15x | 1.21x | 1.35x | 1.66x | 1.76x | 1.14x | 0.87x | 1.04x | 0.94x | 1.10x | 1.26x | 1.01x | 0.35x | 1.73x | 1.48x | 0.84x | 1.51x | 2.03x |
| Cash from Investing | -5.67B | -5.32B | -4.95B | -4.09B | -3.43B | -3.86B | -4.07B | -5.73B | -3.35B | -2.56B | -3.39B | -2.2B | -2.06B | -1.91B | -1.77B | -1.56B | -1.23B | -1.06B | -1.52B | 330M | -1.19B | -802M | -681M | 10M | -1.11B | -2.29B | -587M | -768M | -1.04B | -741M | -616.8M |
| Acquisitions | -384M | -178M | -27M | -27M | -13M | -8M | -163M | -2.62B | -637M | -299M | -1.39B | -202M | 0 | 0 | 57M | 0 | 19M | 0 | -50M | 1.59B | -42M | 10M | 0 | 0 | 0 | -1.21B | 0 | 0 | 0 | 0 | 0 |
| Purchase of Investments | -1.39B | -720M | -1.61B | -678M | -878M | -1.05B | -2.35B | -794M | -1.19B | -1.52B | -1.46B | -898M | -1.16B | -1.13B | 0 | -100M | -459M | -330M | 0 | 0 | 0 | -66M | 0 | 0 | 0 | 22M | 0 | 0 | 0 | 0 | -8.2M |
| Sale of Investments | 1.38B | 717M | 1.6B | 681M | 879M | 1.05B | 2.35B | 788M | 1.2B | 1.24B | 1.46B | 885M | 1.15B | 1.12B | 97M | 80M | 377M | 295M | 0 | 0 | 0 | 459M | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Other Investing | 2.57B | -712M | -453M | -137M | -41M | -76M | -50M | -110M | -12M | 272M | 49M | 31M | -1M | -14M | -103M | -56M | -64M | 6M | -100M | 35M | 251M | -140M | 223M | 761M | -131M | 0 | 0 | -29M | -482M | -74M | -78.1M |
| Cash from Financing | 2.54B | 2.06B | 1.34B | 883M | 1.46B | 315M | 796M | 3.1B | 654M | 421M | 1.36B | 277M | 217M | -261M | -443M | -445M | -586M | -789M | -84M | -1.47B | -203M | -167M | -312M | -1.04B | 6M | 1.68B | -411M | -426M | 254M | -219M | -473.7M |
| Dividends Paid | -887M | -871M | -810M | -752M | -685M | -791M | -760M | -692M | -620M | -592M | -531M | -501M | -470M | -445M | -407M | -389M | -360M | -348M | -344M | -364M | -365M | -360M | -354M | -346M | -338M | -325M | -319M | -299M | -299M | -299M | -298.9M |
| Dividend Payout Ratio % | - | 59.58% | 55.39% | 53.83% | 63.25% | 87.21% | 55.56% | 59.2% | 55.36% | 52.2% | 61.18% | 68.91% | 51.93% | 67.32% | 66.72% | 54.71% | 57.14% | 65.41% | 63% | 37.49% | 84.3% | 67.04% | 81.57% | 66.41% | 53.48% | 97.89% | 68.16% | 61.9% | 67.49% | 71.7% | 96.64% |
| Debt Issuance (Net) | 4M | 1000K | 1000K | 1000K | 1000K | 1000K | 1000K | 1000K | 1000K | 1000K | 1000K | 1000K | 1000K | 1000K | -1000K | -1000K | -1000K | -1000K | 1000K | -1000K | 1000K | 1000K | 1000K | -1000K | 1000K | 1000K | -1000K | -1000K | 1000K | 1000K | 1000K |
| Stock Issued | 0 | 0 | 0 | 0 | 1.3B | 0 | 2M | 2.29B | 0 | 0 | 654M | 9M | 0 | 39M | 39M | 0 | 36M | 35M | 0 | 0 | 17M | 172M | 41M | 44M | 445M | 0 | 0 | 0 | 0 | 0 | 0 |
| Share Repurchases | 0 | 0 | 0 | 0 | -55M | -66M | 0 | 0 | 0 | -51M | -33M | 1.06B | -52M | 0 | 0 | -18M | 0 | 0 | -16M | -708M | -61M | -13M | 0 | -3M | -189M | -438M | 0 | 0 | -150M | 0 | -185M |
| Other Financing | -33M | -25M | -23M | -37M | 1.21B | -483M | -466M | -400M | -41M | -71M | 100M | 7M | -27M | -19M | -16M | -31M | -36M | 0 | -10M | -6M | -10M | -6M | -9M | 0 | 22M | 0 | 0 | 0 | 6M | -6M | -11M |
| Net Change in Cash | 188M | 162M | 37M | 8M | 8M | -481M | 423M | 17M | -13M | -24M | 76M | -11M | -4M | -13M | -3M | 3M | 13M | -34M | -48M | -13M | 59M | 32M | 2M | -79M | -135M | 204M | 20M | -97M | 85M | 46M | -11.9M |
| Exchange Rate Effect | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Cash at Beginning | 250M | 88M | 51M | 43M | 35M | 516M | 93M | 76M | 89M | 113M | 37M | 48M | 52M | 65M | 68M | 65M | 52M | 86M | 123M | 136M | 88M | 56M | 54M | 133M | 268M | 64M | 4M | 130M | 45M | 53M | 64.9M |
| Cash at End | 278M | 250M | 88M | 51M | 43M | 35M | 516M | 93M | 76M | 89M | 113M | 37M | 48M | 52M | 65M | 68M | 65M | 52M | 86M | 123M | 147M | 88M | 56M | 54M | 133M | 268M | 24M | 33M | 130M | 99M | 53M |
| Free Cash Flow | -1.47B | -1B | -824M | -714M | -1.4B | -705M | -160M | -3.08B | -33M | -133M | -1.3B | -104M | -210M | 278M | 389M | 524M | 726M | 784M | 186M | -174M | 53M | -64M | 91M | 199M | -10M | -1.48B | 431M | 358M | -169M | 339M | 548.1M |
| FCF Growth % | 4.1% | -21.6% | -15.41% | 49.04% | -98.72% | -340.63% | 94.81% | -9242.42% | 75.19% | 89.8% | -1153.85% | 50.48% | -175.54% | -28.53% | -25.76% | -27.82% | -7.4% | 321.51% | 206.9% | -428.3% | 182.81% | -170.33% | -54.27% | 2090% | 99.32% | -442.23% | 20.39% | 311.83% | -149.85% | -38.15% | 19.39% |
| FCF Margin % | -9.02% | -6.34% | -6.61% | -5.6% | -7.29% | -4.71% | -1.4% | -25.34% | -0.23% | -1.05% | -12.27% | -1.01% | -1.71% | 2.88% | 4.42% | 5.89% | 8.48% | 9.78% | 1.99% | -2.05% | 0.59% | -0.71% | 1.29% | 2.83% | -0.15% | -18.79% | 7.7% | 7.57% | -4% | 9.01% | 15.04% |
| FCF / Net Income % | -116.36% | -68.54% | -58.82% | -51.11% | -129.36% | -77.73% | -11.7% | -263.73% | -2.95% | -11.73% | -150.23% | -14.31% | -23.2% | 42.06% | 63.77% | 73.7% | 115.24% | 147.37% | 34.07% | -17.92% | 12.24% | -11.92% | 20.97% | 38.2% | -1.58% | -444.28% | 92.09% | 74.12% | -38.15% | 81.29% | 177.21% |
Regulatory recovery and financing
As evidenced by the quarterly cash flow data, DTE consistently records negative free cash flow, with CAPEX-to-OCF ratios frequently exceeding 130%, such as the 135.4% observed in 2026Q1, highlighting the company's reliance on external funding to sustain its massive grid modernization and decarbonization infrastructure investments.
The persistent gap between operating cash flow and capital requirements suggests that DTE is in a heavy investment phase where the rate base is expanding faster than the current cash generation can support. Investors should monitor whether this capital intensity leads to a commensurate increase in the allowed rate base or if regulatory lag continues to suppress the cash-on-cash return for these projects.
According to the provided financial statements, DTE maintains a recurring need for external financing to bridge its free cash flow deficits, which reached a peak deficit of $1.1 billion in 2024Q2, necessitating consistent reliance on debt markets to fund ongoing utility operations and infrastructure growth.
The company's reliance on debt issuance to cover operational and capital shortfalls implies that its cost of capital is highly sensitive to interest rate fluctuations. Given the tight interest coverage ratios noted in prior analysis, any disruption in the debt markets or a shift in credit spreads could materially impact the company's ability to execute its long-term capital plan.
Based on reported figures, DTE maintains dividend coverage ratios that have fluctuated between 2.9x and 5.3x over the last ten quarters, suggesting that despite significant negative free cash flow, the dividend remains a priority supported by the underlying stability of regulated operating cash flows.
While the coverage ratios appear healthy on an OCF basis, the disconnect between dividend payments and negative free cash flow warrants caution. The sustainability of this payout depends entirely on the MPSC's willingness to allow timely recovery of the massive capital expenditures currently being funneled into the grid.
As indicated by the discrepancy between net income and operating cash flow, DTE utilizes significant regulatory accounting mechanisms, which may mask the true cash impact of environmental compliance and grid reliability costs that are currently being deferred rather than expensed in the current period.
The reliance on regulatory assets to smooth earnings suggests that future cash flows may be burdened by the eventual amortization of these deferred costs. Analysts should investigate whether the current rate case environment provides sufficient headroom to recover these deferred liabilities without triggering further political or regulatory pushback.
Quick answers to the most common questions about buying DTW stock.
DTE Energy Company JR SUB DB 2017 E (DTW) generated $3.43B in net cash from operating activities in 2025. This reflects the cash generated directly from core business operations.
DTE Energy Company JR SUB DB 2017 E (DTW) reported negative free cash flow of $1.00B in 2025, indicating capital requirements exceeded cash from operations.
DTE Energy Company JR SUB DB 2017 E (DTW) spent $4.43B on capital expenditures in 2025. CapEx represents the cash invested in physical assets like property, plant, and equipment to maintain or grow the business.
In 2025, DTE Energy Company JR SUB DB 2017 E (DTW) returned $871.0M to shareholders via cash dividends. This shows the company's commitment to returning capital to its equity investors.