GET DAILY SIGNALSHawaiian Electric Industries (HE) Reports Mixed Q3 Results as Recovery Efforts Continue
Key Takeaways
- Hawaiian Electric Industries reported GAAP net income of $35.5 million, or $0.20 per share, up from $30.7 million, or $0.18 per share, a year earlier.
- Core earnings per share (EPS), which excludes one-time items, came in at $0.13, down from $0.19 in the third quarter of 2025, as storm-related costs and higher operating expenses weighed on the utility.
- Total revenue rose 28% to approximately $1.01 billion, driven in part by the utility's cost-recovery mechanisms.
- About $64 million in pre-tax gains tied to the American Savings Bank (ASB) initial public offering (IPO) lifted headline results.
- The utility's GAAP net income fell to $13.5 million from $37 million a year ago, while a $50.7 million pre-tax impairment at the Pacific Current subsidiary partly offset the ASB gains.
Why These Results Matter
Hawaiian Electric Industries' third-quarter results provide a useful checkpoint on how the company is managing its recovery from the 2023 Maui wildfires. The firm continues to work through a major settlement, higher financing needs, and evolving regulations, all while investing heavily in grid improvements. The quarter also highlights steps to simplify the business, such as reducing its stake in American Savings Bank. With core utility earnings pressured by storm costs and rising operating and maintenance expenses, I am watching closely to see whether underlying profitability can stabilize as regulators consider rate and cost-recovery requests.
Breaking Down the Reported Numbers
For the three months ended September 30, 2026, Hawaiian Electric Industries reported GAAP net income of $35.5 million, or $0.20 per diluted share, compared with $30.7 million, or $0.18 per share, in the prior-year quarter. Total revenue increased 28% to roughly $1.01 billion. I also checked this using Tickeron’s AI Screener to see how the stock compares to others in the industry.
One-time items shaped the headline numbers. American Savings Bank completed its IPO in September, and HE sold 35% of its 9.9% stake, generating net proceeds of about $33.9 million and a pre-tax gain of $18.3 million. The company also recorded a non-cash unrealized gain of $45.9 million on its remaining stake, bringing total realized and unrealized ASB gains to roughly $64 million before taxes.
Those gains were partly offset by a $50.7 million pre-tax impairment at Pacific Current tied to its Mahipapa Biomass Generating Facility, which filed for Chapter 7 liquidation on November 3. Excluding ASB gains, the impairment, and Maui wildfire-related items, core net income was $23 million, or $0.13 per share, down from $32.8 million, or $0.19 per share, a year ago. Utility GAAP net income fell to $13.5 million from $37 million, reflecting roughly $13.7 million in incremental storm costs from August and September hurricanes.
Market Reaction and Sentiment
Investor attention has focused on the gap between stronger headline profits and weaker core results. While the ASB stake sale supported reported earnings, the drop in core EPS and the decline in utility net income underscored ongoing cost pressures from storms and higher operating expenses. The Pacific Current impairment also highlighted remaining challenges in the non-utility portfolio.
Sentiment around HE reflects the still-unresolved regulatory timeline. The company has asked the Public Utilities Commission (PUC) for a decision on deferring storm-related expenses by December 15, 2026, and the outcome will influence how those costs appear in future quarters. Until there is more clarity on cost recovery and rate adjustments, investors are likely to stay cautious about near-term profitability.
Key Items to Watch Going Forward
Several factors will influence results in the coming quarters. First, the PUC's decision on the request to defer storm-related expenses is an important near-term catalyst. If approved and the accounting criteria are met, the company indicated it would reverse qualifying expenses in fourth-quarter results, with a separate recovery filing expected in 2027.
Second, rate and cost-recovery proceedings remain central. Management is pursuing a rate rebasing process, and the outcome will affect whether the utility can earn its authorized return on equity while funding a substantial capital program aimed at wildfire risk reduction, reliability, and grid resilience.
Finally, investors should monitor liquidity and financing plans. Consolidated liquidity stood at roughly $1.3 billion at quarter-end, but interest expense has increased, including non-cash accretion on the wildfire settlement liability. How the company funds remaining settlement payments and its elevated capital spending will be an important factor in the outlook.
Exploring Tickeron’s AI Tools for Deeper Analysis
In my research on utility names like HE, I often turn to Tickeron’s AI-powered tools to scan for technical patterns and compare performance across the sector. These resources help surface relevant signals without replacing fundamental review, and I have found them useful for tracking how similar companies respond to regulatory and cost pressures.
Disclaimer
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Contributor
Sergey Savastiouk, Ph.D. has a degree in Applied Mathematics from Moscow University and has extensive experience as an entrepreneur, investor, manager, and mathematician. His professional expertise is in applied mathematics, mathematical modeling, system and pattern analysis, and software and hardware system integration. He has served as the CEO of several hi-tech start-up companies and nonprofit organizations, which has given him proven capabilities in business strategy for high-tech start-up companies, market assessment, company formation, team building, product development, marketing, and sales. He has published numerous articles in journals and magazines on related fields. As a retail investor, he spent 15 years developing his proprietary trading and quantitative algorithms (now Tickeron’s A.I.), which brought him significant returns in trading the stock market. His current work and goal in founding Tickeron is to bring professional, sophisticated stock market analysis capabilities to retail investors via an easy-to-use interface.
HE in upward trend: price expected to rise as it breaks its lower Bollinger Band on October 26, 2026
HE may jump back above the lower band and head toward the middle band. Traders may consider buying the stock or exploring call options. In 35 of 47 cases where HE's price broke its lower Bollinger Band, its price rose further in the following month. The odds of a continued upward trend are 74%.
Technical Analysis (Indicators)
Bullish Trend Analysis
The RSI Indicator points to a transition from a downward trend to an upward trend -- in cases where HE's RSI Indicator exited the oversold zone, 31 of 42 resulted in an increase in price. Tickeron's analysis proposes that the odds of a continued upward trend are 74%.
The Stochastic Oscillator suggests the stock price trend may be in a reversal from a downward trend to an upward trend. 37 of 58 cases where HE's Stochastic Oscillator exited the oversold zone resulted in an increase in price. Tickeron's analysis proposes that the odds of a continued upward trend are 64%.
The Moving Average Convergence Divergence (MACD) for HE just turned positive on October 06, 2026. Looking at past instances where HE's MACD turned positive, the stock continued to rise in 22 of 39 cases over the following month. The odds of a continued upward trend are 56%.
Following a +2.46% 3-day Advance, the price is estimated to grow further. Considering data from situations where HE advanced for three days, in 165 of 266 cases, the price rose further within the following month. The odds of a continued upward trend are 62%.
Bearish Trend Analysis
The Momentum Indicator moved below the 0 level on November 03, 2026. You may want to consider selling the stock, shorting the stock, or exploring put options on HE as a result. In 63 of 97 cases where the Momentum Indicator fell below 0, the stock fell further within the subsequent month. The odds of a continued downward trend are 65%.
Following a 3-day decline, the stock is projected to fall further. Considering past instances where HE declined for three days, the price rose further in 50 of 62 cases within the following month. The odds of a continued downward trend are 69%.
The Aroon Indicator for HE entered a downward trend on November 04, 2026. This could indicate a strong downward move is ahead for the stock. Traders may want to consider selling the stock or buying put options.
Fundamental Analysis (Ratings)
The Tickeron Valuation Rating of 34 (best 1 - 100 worst) indicates that the company is fair valued in the industry. This rating compares market capitalization estimated by our proprietary formula with the current market capitalization. This rating is based on the following metrics, as compared to industry averages: P/B Ratio (0.828) is normal, around the industry mean (1.992). P/E Ratio (6.543) is within average values for comparable stocks, (15.052). HE's Projected Growth (PEG Ratio) (5.379) is very high in comparison to the industry average of (1.785). HE has a moderately high Dividend Yield (0.171) as compared to the industry average of (0.054). P/S Ratio (0.540) is also within normal values, averaging (187.392).
The Tickeron Seasonality Score of 50 (best 1 - 100 worst) indicates that the company is fair valued in the industry. The Tickeron Seasonality score describes the variance of predictable price changes around the same period every calendar year. These changes can be tied to a specific month, quarter, holiday or vacation period, as well as a meteorological or growing season.
The Tickeron SMR rating for this company is 59 (best 1 - 100 worst), indicating strong sales and a profitable business model. SMR (Sales, Margin, Return on Equity) rating is based on comparative analysis of weighted Sales, Income Margin and Return on Equity values compared against S&P 500 index constituents. The weighted SMR value is a proprietary formula developed by Tickeron and represents an overall profitability measure for a stock.
The Tickeron Price Growth Rating for this company is 76 (best 1 - 100 worst), indicating slightly worse than average price growth. HE’s price grows at a lower rate over the last 12 months as compared to S&P 500 index constituents.
The Tickeron PE Growth Rating for this company is 87 (best 1 - 100 worst), pointing to worse than average earnings growth. The PE Growth rating is based on a comparative analysis of stock PE ratio increase over the last 12 months compared against S&P 500 index constituents.
The Tickeron Profit vs. Risk Rating rating for this company is 100 (best 1 - 100 worst), indicating that the returns do not compensate for the risks. HE’s unstable profits reported over time resulted in significant Drawdowns within these last five years. A stable profit reduces stock drawdown and volatility. The average Profit vs. Risk Rating rating for the industry is 49, placing this stock worse than average.
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General Information
a holding company, which engages in the electric utility and banking services
Industry ElectricUtilities
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