Hawaiian Electric Industries (HE) Earnings Date & Reports

Key Takeaways

• Hawaiian Electric Industries reported GAAP (Generally Accepted Accounting Principles) 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.
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Earnings Context and Why It Matters

Hawaiian Electric Industries' third-quarter results matter because they test how well the company is navigating a complex recovery following the 2023 Maui wildfires. The company has been working through a costly settlement, elevated financing needs, and a shifting regulatory landscape, all while funding a large capital program to harden its grid. The quarter also reflects management's effort to simplify the business, including selling down its remaining stake in American Savings Bank. With core utility earnings under pressure from storm costs and higher operating and maintenance (O&M) expenses, investors are watching closely whether the company can stabilize underlying profitability while regulators weigh key rate and cost-recovery requests.

Reported Results

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.

The headline gain was heavily influenced by one-time items. American Savings Bank completed its IPO in September, and HEI 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.

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Market Reaction and Investor Sentiment

Investor focus has centered on the contrast between a headline profit increase and softer core results. While the ASB stake sale boosted reported earnings, the decline in core EPS and the sharp drop in utility net income highlighted ongoing cost pressures from storms and higher operating expenses. The Pacific Current impairment also underscored lingering challenges in the company's non-utility portfolio.

Sentiment around HE continues to reflect the 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 shape how those costs flow through future quarters. Until there is greater clarity on cost recovery and rate adjustments, investors are likely to remain cautious about the sustainability of near-term profitability.

Forward Outlook and Key Factors to Monitor

Several items will shape the next few quarters. First, the PUC's decision on the company's request to defer storm-related expenses is a key near-term catalyst. If approved and the applicable accounting criteria are met, the company said it would reverse the 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 influence whether the utility can earn its authorized return on equity while funding a substantial capital program focused on wildfire risk reduction, reliability, and grid resilience.

Finally, investors should watch the company's liquidity and financing plans. Consolidated liquidity stood at roughly $1.3 billion at quarter-end, but interest expense has risen, 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.

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