DT Midstream (NYSE:DTM) Announces Quarterly Earnings Results

Key Points

• DT Midstream beat quarterly earnings expectations: EPS was $1.16 versus the $1.13 consensus, while revenue of $336 million fell slightly short of estimates.
• Management raised its 2026 outlook to adjusted EBITDA of $1.185 billion–$1.225 billion and distributable cash flow of $860 million–$890 million, while sanctioning roughly $400 million in new pipeline projects.
• The company maintained its $0.88 quarterly dividend, equal to a 2.8% annualized yield, though management expects sequential fourth-quarter pressure from outages, higher expenses and weaker Northeast gathering volumes.

DT Midstream (NYSE:DTM - Get Free Report) released its earnings results on Thursday. The company reported $1.16 earnings per share for the quarter, beating the consensus estimate of $1.13 by $0.03, Zacks reports. The company had revenue of $336.00 million for the quarter, compared to analysts' expectations of $337.63 million. DT Midstream had a return on equity of 9.58% and a net margin of 35.72%. During the same quarter in the previous year, the business posted $1.13 EPS.

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

• DT Midstream raised its 2026 outlook, narrowing adjusted EBITDA guidance to $1.185 billion-$1.225 billion and increasing distributable cash flow guidance to $860 million-$890 million.
• The company reached final investment decision on approximately $400 million of new pipeline projects, including the MIST Southbound expansion and a power-plant lateral, increasing total committed capital to about $2.4 billion.
• Management cited durable long-term demand from LNG exports, power generation, data centers and coal-to-gas switching, while its 2027 adjusted EBITDA outlook was reaffirmed and the quarterly dividend remained $0.88 per share.
• Fourth-quarter results are expected to decline sequentially because of offline capacity and higher Stonewall expenses, as well as lower Northeast gathering volumes from producer curtailments and downstream outages.
• Capital efficiency reduced the 2026 growth-capital range by more than 10% at the midpoint, supporting expected year-end leverage of approximately 2.8 times on balance sheet and 3.4 times on a proportionate basis.

DT Midstream Stock Up 2.0%

NYSE DTM traded up $2.44 during trading on Thursday, reaching $127.24. The company's stock had a trading volume of 1,537,600 shares, compared to its average volume of 952,754. The company has a current ratio of 1.37, a quick ratio of 1.37 and a debt-to-equity ratio of 0.68. The stock has a market capitalization of $12.98 billion, a PE ratio of 27.31, a PEG ratio of 1.74 and a beta of 0.72. DT Midstream has a 1-year low of $106.00 and a 1-year high of $152.88. The business has a 50-day moving average price of $125.89 and a 200-day moving average price of $134.54.

DT Midstream Announces Dividend

The firm also recently announced a quarterly dividend, which will be paid on Friday, January 15th. Shareholders of record on Tuesday, December 15th will be paid a $0.88 dividend. The ex-dividend date is Tuesday, December 15th. This represents a $3.52 dividend on an annualized basis and a yield of 2.8%. DT Midstream's payout ratio is 77.02%.

Analysts Set New Price Targets

A number of research analysts recently commented on DTM shares. Weiss Ratings downgraded shares of DT Midstream from a "buy (b+)" rating to a "buy (b)" rating in a research report on Friday, August 21st. Barclays cut their target price on shares of DT Midstream from $143.00 to $142.00 and set an "equal weight" rating for the company in a research report on Tuesday, October 6th. Morgan Stanley decreased their target price on shares of DT Midstream from $170.00 to $164.00 and set an "overweight" rating for the company in a research note on Wednesday, October 21st. Wolfe Research raised shares of DT Midstream from a "peer perform" rating to an "outperform" rating and set a $145.00 target price for the company in a research note on Wednesday, August 26th. Finally, Wall Street Zen cut shares of DT Midstream from a "hold" rating to a "sell" rating in a report on Saturday, August 1st. Ten research analysts have rated the stock with a Buy rating, four have assigned a Hold rating and one has given a Sell rating to the stock. Based on data from MarketBeat, DT Midstream presently has a consensus rating of "Moderate Buy" and a consensus price target of $151.36.

Key Stories Impacting DT Midstream

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

• Positive Sentiment: Third-quarter earnings beat expectations: DTM reported operating earnings of $1.16 per diluted share, above the $1.13 analyst consensus, while adjusted EBITDA reached $301 million. Earnings also improved from $1.13 per share in the year-earlier quarter. DT Midstream Reports Strong Third Quarter 2026 Results; Raises Adjusted EBITDA Guidance
• Positive Sentiment: Guidance was raised: Management increased its 2026 adjusted EBITDA outlook to $1.185 billion-$1.225 billion and sanctioned approximately $400 million of new projects. The higher outlook signals confidence in operating performance and future expansion. DT Midstream raises 2026 adjusted EBITDA guidance
• Positive Sentiment: Dividend maintained: DTM declared a quarterly dividend of $0.88 per share, or $3.52 annualized, representing an indicated yield of approximately 2.8%. The dividend is payable January 15 to shareholders of record December 15.
• Neutral Sentiment: Revenue was slightly below estimates: Third-quarter revenue totaled $336 million versus the $337.63 million consensus, partially offsetting the earnings beat. DT Midstream Reports Q3 Operating Earnings
• Negative Sentiment: Analyst revisions were mixed: US Capital Advisors raised its first-quarter 2027 EPS estimate slightly to $1.32 but cut its 2028 forecast to $5.55 from $5.62, indicating some longer-term caution.

DT Midstream Company Profile

DT Midstream, Inc NYSE: DTM is an independent North American energy company focused on the transportation, storage and gathering of natural gas. The company owns and operates interstate and intrastate pipeline systems, natural gas storage facilities, and gathering and processing infrastructure that connect producers with utilities, power generators, industrial customers and other energy markets.

DT Midstream's operations are concentrated in the United States, including the Midwest, Northeast and Gulf Coast regions.

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