DT Midstream Announces Record Performance and Dividend Hike

DT Midstream raises dividend for 4th straight year and grows EBITDA 17% in 2025, despite a slight Q4 EPS miss. The company sets ambitious 2026-27 targets backed by a 50% larger project pipeline.

DT Midstream has reported a highly successful fiscal 2025, marking its fourth consecutive year of dividend increases. The company's core earnings demonstrated robust double-digit growth, although its final quarter earnings per share narrowly missed analyst targets. This mixed outcome raises questions about whether the underlying operational strength is sufficient to maintain long-term investor confidence.

Dividend Increase and Project Pipeline Expansion

In conjunction with its annual results, the company's Board of Directors declared an approximately 7% raise in its quarterly dividend, bringing it to $0.88 per share. This payment will be distributed on April 15, 2026, to shareholders of record as of the market close on March 16, 2026.

A significant highlight from the report is the substantial expansion of the company's growth portfolio. The organic project backlog for the coming five years has been boosted by roughly 50%, reaching $3.4 billion. Pipeline initiatives constitute about 75% of this total. The firm has given final investment approval for two major endeavors: an expansion of the Viking pipeline and a modernization project for a pipeline in the Chicago-Nashville corridor. Completion for these projects is targeted for the first half of 2028.

Strong EBITDA Growth and Forward Guidance

For the full year 2025, DT Midstream posted adjusted EBITDA of $1.138 billion, representing a 17% increase over the prior year. This performance was primarily fueled by a 27% year-over-year surge in the pipeline segment. During the fourth quarter, adjusted EBITDA came in at $293 million, with net income reported at $111 million. However, earnings per share (EPS) of $1.08 fell short of analyst consensus estimates by approximately $0.03.

Looking ahead, management has provided an adjusted EBITDA forecast for 2026 in the range of $1.155 billion to $1.225 billion. At the midpoint, this guidance implies further growth of about 6%. The outlook for 2027 remains confident, with an anticipated EBITDA between $1.225 billion and $1.295 billion.

Market Response and Analyst Perspective

Following the earnings release, the company's shares experienced a modest decline of 1.8%, closing at $132.07. Market observers attributed this reaction largely to the slight quarterly EPS miss, which contrasted with the stronger overall EBITDA growth.

Despite the near-term stock movement, analysts generally maintain a favorable view of the company's long-term positioning within the infrastructure sector. The current median price target stands at $128.50, with individual estimates spanning from $119 to $139. The successful execution of the newly announced pipeline projects is seen as a critical factor for achieving the ambitious EBITDA targets set for 2026 and 2027.