DT Midstream (NYSE:DTM) Announces Earnings Results

Key Points

• DT Midstream reported second-quarter EPS of $1.09, up from $1.04 a year earlier but $0.08 below the $1.17 analyst consensus. Adjusted EBITDA reached $305 million, with a 36.28% net margin.
• The company set fiscal 2026 EPS guidance at $4.42–$4.82 and expects third-quarter results to decline from the second quarter due to maintenance and temporarily lower Northeast volumes, while reaffirming its broader outlook.
• DT Midstream approved roughly $300 million in organic growth projects, commercialized 60% of its $3.4 billion backlog, and declared a quarterly dividend of $0.88 per share, representing a 2.6% annualized yield.

DT Midstream (NYSE:DTM - Get Free Report) announced its earnings results on Thursday. The company reported $1.09 earnings per share (EPS) for the quarter, missing the consensus estimate of $1.17 by ($0.08), Briefing.com reports. DT Midstream had a return on equity of 9.53% and a net margin of 36.28%.During the same period in the previous year, the firm earned $1.04 earnings per share. DT Midstream updated its FY 2026 guidance to 4.420-4.820 EPS.

Here are the key takeaways from DT Midstream's conference call:

• DT Midstream reaffirmed its 2026 Adjusted EBITDA guidance and 2027 early outlook, supported by a healthy balance sheet and improved leverage thresholds from Moody’s and Fitch.
• The company reached final investment decisions on approximately $300 million of organic growth projects, including a 200 MMcf/d LEAP expansion, Viking modernization, a 100 MMcf/d Appalachia expansion, and a 380 MMcf/d NEXUS interconnect serving a data center power plant.
• DT Midstream has now commercialized 60% of its $3.4 billion organic project backlog, with more than 80% tied to pipeline projects and supported by long-term contracts.
• Haynesville gathering volumes reached a quarterly record of 2.2 Bcf/d, while management said additional LEAP expansions remain possible as LNG and domestic demand continue to grow.
• Management expects third-quarter results to be below the strong second quarter because of gathering-network maintenance and temporarily lower Northeast volumes, although the full-year outlook remains unchanged.

DT Midstream Price Performance

DT Midstream stock traded up $0.64 during midday trading on Thursday, reaching $136.59. 1,641,464 shares of the stock traded hands, compared to its average volume of 655,113. The stock's fifty day moving average is $144.30 and its 200-day moving average is $137.67. DT Midstream has a 12 month low of $99.81 and a 12 month high of $152.88. The stock has a market cap of $13.93 billion, a P/E ratio of 30.08, a PEG ratio of 2.95 and a beta of 0.71. The company has a quick ratio of 1.26, a current ratio of 1.26 and a debt-to-equity ratio of 0.68.

DT Midstream Dividend Announcement

The company also recently announced a quarterly dividend, which will be paid on Thursday, October 15th. Investors of record on Monday, September 21st will be given a $0.88 dividend. This represents a $3.52 dividend on an annualized basis and a dividend yield of 2.6%. The ex-dividend date is Monday, September 21st. DT Midstream's payout ratio is currently 77.88%.

DT Midstream News Summary

Here are the key news stories impacting DT Midstream this week:

• Positive Sentiment: DT Midstream reported second-quarter net income and operating earnings of $112 million, or $1.09 per diluted share, up from $1.04 per share a year earlier. Adjusted EBITDA reached $305 million, highlighting continued cash-flow strength. DT Midstream Reports Strong Second Quarter 2026 Results
• Positive Sentiment: The company declared a quarterly dividend of $0.88 per share, payable October 15 to shareholders of record September 21. The dividend equates to approximately $3.52 annually and a 2.6% yield, reinforcing DT Midstream’s income appeal.
• Positive Sentiment: US Capital Advisors modestly raised its DT Midstream EPS forecasts to $5.24 for fiscal 2027 and $5.55 for fiscal 2028, suggesting improved longer-term earnings expectations.
• Neutral Sentiment: Despite year-over-year EPS growth, second-quarter earnings of $1.09 missed analysts’ $1.17 consensus estimate. The company’s net margin was 36.28% and return on equity was 9.53%.
• Negative Sentiment: DT Midstream issued fiscal 2026 EPS guidance of $4.42-$4.82. The midpoint of $4.62 is below the roughly $4.78-$4.77 analyst consensus, potentially signaling softer-than-expected near-term earnings.
• Negative Sentiment: A valuation-focused earnings preview cited an estimated 13% downside to the stock’s GF Value, adding a potential valuation concern after the recent share-price strength. Earnings To Watch: DT Midstream Inc. Q2 2026

Institutional Trading of DT Midstream

A number of large investors have recently added to or reduced their stakes in the company. Man Group plc bought a new stake in DT Midstream in the third quarter worth $6,102,000. Vanguard Personalized Indexing Management LLC lifted its position in DT Midstream by 3.0% during the fourth quarter. Vanguard Personalized Indexing Management LLC now owns 25,908 shares of the company's stock valued at $3,101,000 after purchasing an additional 751 shares during the last quarter. Credit Agricole S A bought a new position in DT Midstream during the third quarter valued at $2,256,000. Quantinno Capital Management LP lifted its position in DT Midstream by 37.6% during the second quarter. Quantinno Capital Management LP now owns 15,431 shares of the company's stock valued at $1,696,000 after purchasing an additional 4,216 shares during the last quarter. Finally, Metis Global Partners LLC grew its stake in shares of DT Midstream by 14.6% in the 4th quarter. Metis Global Partners LLC now owns 10,092 shares of the company's stock worth $1,208,000 after buying an additional 1,285 shares in the last quarter. Institutional investors own 81.53% of the company's stock.

Analysts Set New Price Targets

DTM has been the subject of a number of recent analyst reports. Weiss Ratings upgraded shares of DT Midstream from a "buy (a-)" rating to a "buy (a)" rating in a research report on Friday, July 24th. Jefferies Financial Group lifted their target price on shares of DT Midstream from $164.00 to $170.00 and gave the company a "buy" rating in a research note on Thursday, July 16th. Scotiabank began coverage on shares of DT Midstream in a report on Tuesday, May 26th. They issued an "outperform" rating and a $176.00 target price for the company. JPMorgan Chase & Co. raised their price target on DT Midstream from $146.00 to $154.00 and gave the company a "neutral" rating in a report on Wednesday, July 8th. Finally, Mizuho upped their price objective on DT Midstream from $129.00 to $153.00 and gave the stock a "neutral" rating in a research note on Tuesday, May 5th. One analyst has rated the stock with a Strong Buy rating, seven have given a Buy rating, five have issued a Hold rating and one has assigned a Sell rating to the company's stock. According to MarketBeat, DT Midstream has a consensus rating of "Moderate Buy" and an average target price of $155.69.

About DT Midstream

DT Midstream Inc NYSE: DTM is a midstream energy company that owns and operates infrastructure for gathering, processing and treating hydrocarbons and produced water. Its core business activities encompass natural gas gathering, cryogenic processing, natural gas liquids (NGL) fractionation, and produced-water handling services. These integrated operations enable the company to capture and transport multiple hydrocarbon streams from wellhead to market and to provide essential water management solutions.

The company’s asset footprint is concentrated in the Delaware Basin in West Texas and southeastern New Mexico, where it serves a diverse range of exploration and production customers.

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