Hawaiian Electric Industries Inc

Latest Results (18.05.2026):

Hawaiian Electric Industries Inc. — first quarter of 2026 — reported consolidated net income of $30 million, or $0.18 diluted EPS, versus $27 million, or $0.15, in Q1 2025. On a Core (non‑GAAP) basis — excluding Maui wildfire‑related costs and expenses tied to the Pacific Current strategic review — HEI’s Core net income was $31 million, or $0.18 per share, versus $40 million, or $0.23, in Q1 2025.

Wildfire settlement milestone

HEI and Hawaiian Electric finalized the global wildfire tort litigation settlement and made the first of four annual $479 million settlement payments in April — a pivotal step for Maui wildfire remediation and a material corporate development for 2026.

Credit rating upgrade

Following settlement finalization, Moody’s upgraded HEI and Hawaiian Electric’s ratings to Ba2 and Ba1, respectively, reflecting improved credit outlook after resolution of the litigation appeals.

Utility operating results and drivers

Hawaiian Electric (the utility) reported Q1 2026 GAAP net income of $35 million versus $48 million in Q1 2025; Core net income was $36 million versus $50 million in 2025. The decline was driven by $19 million of higher O&M (including $7M storm response, $6M insurance, $4M power supply and $3M transmission & distribution), $5M higher interest expense and $2M higher depreciation, partially offset by about $10M higher revenues (mainly the annual revenue adjustment mechanism).

Consolidated revenue and expenses

Consolidated revenues were about $746.4 million (Q1 2026) versus $744.1 million a year earlier. Consolidated total expenses increased to $693.1 million from $681.7 million, pressuring operating income (total operating income fell to $53.4M from $62.4M year‑over‑year).

Liquidity and balance sheet position

HEI maintained strong liquidity with enterprise‑wide liquidity of approximately $1.5 billion as of quarter‑end, supporting payment of settlement obligations and ongoing utility investments.

2026 outlook and rate rebasing

The company expects 2026 O&M (excluding pension) to significantly outpace inflation as a transitional year ahead of a planned 2027 rate rebasing. Management cites higher insurance premiums (including prior deferrals), storm response, elevated vegetation management, station overhauls, IT/cyber costs and higher labor/benefits as primary cost drivers; the rate filing is intended to address many of these increases.

Leadership alignment

Effective June 1, Scott Seu will serve as CEO of both HEI and Hawaiian Electric and Shelee Kimura will be President of both companies, reflecting HEI’s transition to a pure‑play utility enterprise after divestitures.

Non‑GAAP (Core) note

HEI’s Core measures exclude Maui wildfire‑related costs and expenses from the Pacific Current review; reconciliations to GAAP are included in the release. Core diluted EPS for HEI was $0.18 in Q1 2026 versus $0.23 in Q1 2025 on a non‑GAAP basis.