DT Midstream (DTM) Q2 2025 Earnings Call July 31, 2025 09:00 AM ET Company ParticipantsTodd Lohrmann - Director of Investor RelationsDavid Slater - President & CEOJeff Jewell - EVP & CFOMichael Blum - Managing DirectorManav Gupta - Executive DirectorJean Ann Salisbury - Managing DirectorJohn Mackay - VP - Equity ResearchKeith Stanley - DirectorSpiro Dounis - DirectorRobert Mosca - VP- Midstream & Natural Gas Utilities Equity ResearchZack Van Everen - Director - Infrastructure ResearchConference Call Partici ...

Group 1 - São Paulo experienced a large-scale power outage affecting businesses in the city center, particularly in the Tringulo Histórico area, leading to significant sales losses and food spoilage [1] - Dozens of businesses, including chain perfume stores, clothing brands, and small restaurants, reported severe impacts, with some experiencing multiple outages without resolution [1] - A restaurant owner indicated that losses on a single day could exceed 40% of normal daily revenue, highlighting the financial strain on local businesses [1] Group 2 - The Brazilian energy regulatory agency (ANEEL) noted that issues such as aging power networks, delayed underground cable upgrades, and concentrated urban loads are worsening the situation [1] - There is a pressing need for modernization of public service systems, as inadequate long-term investment and slow urban renewal are straining São Paulo's infrastructure [2] - Chinese companies have been actively investing in São Paulo and other regions in Brazil, focusing on power grid upgrades, highway concessions, clean energy, and port facilities, which may help alleviate infrastructure bottlenecks and improve the business environment [2]

Core Viewpoint - The company reported a revenue of $155.7 billion, a 10% year-over-year increase, and an operating profit of $18.4 billion, reflecting a 20% growth, indicating strong business performance and customer engagement [1][14]. Group 1: Retail Business Performance - The retail business has seen strong consumer resonance due to ongoing efforts in product selection, value, and delivery speed, with new brand partnerships enhancing the shopping experience [1][2]. - The company hosted promotional events globally, saving customers over $500 million during various seasonal sales, indicating a focus on customer value [2]. - The company achieved record delivery speeds for Prime members, with the highest number of same-day or next-day deliveries ever recorded [3]. Group 2: Supply Chain and Fulfillment - The company has made significant progress in enhancing the efficiency and cost-effectiveness of its fulfillment network by regionalizing fulfillment centers, allowing for faster delivery and reduced costs [2][3]. - A new inbound architecture has been launched to increase the share of products allocated to fulfillment centers, improving delivery speed and lowering service costs [2]. Group 3: Advertising and AWS Growth - Advertising revenue reached $13.9 billion, a 19% year-over-year increase, showcasing strong growth across the advertising product portfolio [6][17]. - AWS achieved a 17% year-over-year growth, with an annualized revenue run rate exceeding $117 billion, indicating robust demand for cloud services [7][17]. Group 4: AI and Technological Advancements - The company is heavily investing in AI, with numerous applications being developed internally and a focus on providing cost-effective AI capabilities for businesses [8][9]. - New AI models and services, such as Amazon Bedrock and Trainium 2, are being deployed to enhance AI capabilities and reduce costs for customers [10][11]. Group 5: Financial Overview and Future Guidance - The company expects second-quarter net sales to range between $159 billion and $164 billion, with operating profit projected between $13 billion and $17.5 billion, reflecting cautious optimism amid macroeconomic uncertainties [19][20]. - The first quarter's net profit was $17.1 billion, including a $3.3 billion pre-tax gain related to an investment, indicating strong financial health [18].