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Stock-Based Compensation
 12 Months Ended
Dec. 31, 2025
Share-Based Payment Arrangement, Noncash Expense [Abstract]  
Stock-Based Compensation STOCK-BASED COMPENSATION
In May 2025, DTE Energy's shareholders approved the replacement of the Long-Term Incentive Plan, as amended and restated effective May 20, 2021 ("Prior Plan") with the 2025 Long Term Incentive Plan ("2025 Plan"). No new awards will be granted under the Prior Plan. At December 31, outstanding stock-based incentives were in the form of restricted stock and performance stock units. The 2025 Plan permits the grant of options, stock appreciation rights, restricted stock, restricted stock units, performance stock units, and other stock-based awards. With the exception of incentive stock options, awards may be granted to employees, the Board of Directors, and consultants. As a result of a stock award, a settlement of an award of performance stock units, or by exercise of a participant's stock option, DTE Energy may deliver common stock from its authorized but unissued common stock and/or from outstanding common stock acquired by or on behalf of DTE Energy in the name of the participant. Key provisions of the stock incentive program are:
•Authorized limit is 4,663,434 shares of common stock; and
•Prohibits the grant of a stock option with an exercise price that is less than the fair market value of DTE Energy’s stock on the date of the grant.
DTE Energy records compensation expense at fair value over the vesting period for all awards it grants.
The following table summarizes the components of stock-based compensation for DTE Energy:
Year Ended December 31,
202520242023
(In millions)
Stock-based compensation expense$60 $54 $48 
Tax benefit$10 $10 $9 
Restricted Stock Awards
Stock awards granted under the plan are restricted for varying periods, generally for three years. Participants have all rights of a shareholder with respect to a stock award, including the right to receive dividends and vote the shares. Prior to vesting in stock awards, the participant: (i) may not sell, transfer, pledge, exchange, or otherwise dispose of shares and (ii) shall not retain custody of the share certificates.
The stock awards are recorded at cost that approximates fair value on the date of grant. The cost is amortized to compensation expense over the vesting period.
The fair value of awards vested were not material for the years ended December 31, 2025, 2024, and 2023. Compensation cost charged against income was $17 million for the year ended December 31, 2025 and $14 million for the years ended December 31, 2024 and 2023.
Performance Stock Units
Performance stock units awarded under the plan are for a specified number of shares of DTE Energy common stock that entitle the holder to receive a cash payment, shares of DTE Energy common stock, or a combination thereof. The final value of the award is determined by the achievement of certain performance objectives and market conditions. The awards vest at the end of a specified period, usually three years. Awards granted in 2025, 2024, and 2023 were primarily deemed to be equity awards. The DTE Energy stock price and number of probable shares attributable to market conditions for such equity awards are fair valued only at the grant date. DTE Energy accounts for performance stock unit awards by accruing compensation expense over the vesting period based on: (i) the number of shares expected to be paid which is based on the probable achievement of performance objectives; and (ii) the closing stock price market value. The settlement of the award is based on the closing price at the settlement date.
DTE Energy recorded activity relating to performance stock unit awards as follows:
Year Ended December 31,
202520242023
(In millions, except per share amounts)
Weighted average grant date fair value of awards granted (per share)$123.02 $106.04 $112.73 
Awards settled in cash(a)
$— $— $9 
Awards settled in stock(a)
$39 $63 $59 
Compensation expense$43 $40 $34 
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(a)Sum of awards settled in cash and stock approximates the intrinsic value of the awards.
During the vesting period, the recipient of a performance stock unit award has no shareholder rights. During the period beginning on the date the performance shares are awarded and ending on the certification date of the performance objectives, the number of performance stock units awarded will be increased, assuming full dividend reinvestment at the fair market value on the dividend payment date. The cumulative number of performance stock units will be adjusted to determine the final payment based on the performance objectives achieved. Performance stock unit awards are nontransferable and are subject to risk of forfeiture.
The following table summarizes DTE Energy’s performance stock unit activity for the period ended December 31, 2025:
Performance Stock UnitsWeighted Average
Grant Date
Fair Value
Balance at December 31, 2024976,843 $122.25 
Grants391,290 $123.02 
Forfeitures(58,011)$118.07 
Payouts(301,030)$120.34 
Balance at December 31, 20251,009,092 $123.36 
Unrecognized Compensation Costs
As of December 31, 2025, DTE Energy's total unrecognized compensation cost related to non-vested stock incentive plan arrangements and the weighted average recognition period was as follows:
Unrecognized
Compensation
Cost		Weighted Average
to be Recognized
(In millions)(In years)
Stock awards$23 1.97
Performance stock units44 1.68
$67 1.78
Allocated Stock-Based Compensation
DTE Electric received an allocation of costs from DTE Energy associated with stock-based compensation. DTE Electric's allocation for 2025, 2024, and 2023 for stock-based compensation expense was $41 million, $37 million, and $31 million, respectively.