Hawaiian Electric Q3 earnings fall to $13.5M
Hawaiian Electric will request recovery of storm costs once final incremental costs are known; the release reports $14 million of incremental pre-tax costs.
Sentiment and the balance of points
Rhea-AI Sentiment reads the wording of the document, how positive or negative its language is on a 1 to 5 scale. The balance of points shown with the takes weighs what the document actually discloses, so the two can disagree, for example when a trial that missed its main goal is described in upbeat language.
Form Type
8-K
Rhea-AI Filing Summary
Hawaiian Electric Company, Inc. (HAWEL) reported third-quarter 2026 electric-utility revenue of $1,007.104 million, compared with $787.428 million a year earlier. Net income for common stock was $13.488 million, versus $36.988 million; non-GAAP Core net income was $28 million, compared with $40 million. Hawaiian Electric attributed the Core decline primarily to higher operations and maintenance costs, including storm and integration expenses.
Hawaiian Electric recorded $14 million of incremental pre-tax storm costs in August and September and said it would request recovery once final incremental costs are known. Separately, parent HEI reported consolidated GAAP net income of $35.450 million, compared with $31.218 million, including a pre-tax $18 million gain on ASB share sales and $46 million in unrealized gains on remaining shares, partly offset by a $51 million pre-tax Pacific Current asset impairment. HEI said $80 million of the second settlement payment had been prepaid to date, reducing the $479 million amount due by $82 million after the early-payment discount.
2 points · 0 major0 major · 1 point
How this balance works
Rhea-AI gives every point it takes from this document a weight. Minor counts 1, Moderate 3 and Major 9, so one Major point outweighs several Minor ones. The bar adds up the weights on each side, and when neither side holds more than 65% of the total the balance reads Mixed.
It reads the document as published, with the same rules for every company, and it does not look at what the market expected or at how the stock traded, so a point can be objectively good on a day the stock falls.
Rhea-AI Sentiment measures something else, the tone of the wording.
Positive
- Moderate pointElectric-utility revenue: $1,007.104 million in Q3 2026, versus $787.428 million a year earlier.
- Moderate pointParent HEI consolidated GAAP net income: $35.450 million in Q3 2026, versus $31.218 million.
Negative
- Moderate pointHawaiian Electric Q3 earnings: common-stock income $13.488 million versus $36.988 million; Core income was $28 million versus $40 million.
Filing Explained
HEI reported third-quarter consolidated GAAP net income of
8-K Event Classification
2 items: 2.02, 9.01
2 items
Item 2.02
Results of Operations and Financial Condition
Financial
Disclosure of earnings results, typically an earnings press release or preliminary financials.
Item 9.01
Financial Statements and Exhibits
Exhibits
Financial statements, pro forma financial information, or exhibit attachments filed with this report.
Key Figures
Electric-utility revenue: $1,007.104 million
Net income for common stock: $13.488 million
Core net income: $28 million
+4 more
7 metrics
Electric-utility revenue
$1,007.104 million
Three months ended September 30, 2026; $787.428 million in the same 2025 period
Net income for common stock
$13.488 million
Hawaiian Electric, third quarter 2026; $36.988 million in third quarter 2025
Core net income
$28 million
Hawaiian Electric, third quarter 2026; $40 million in third quarter 2025; non-GAAP measure
Incremental pre-tax storm costs
$14 million
Costs in August and September 2026
Consolidated GAAP net income
$35.450 million
Parent HEI, third quarter 2026; $31.218 million in third quarter 2025
Prepaid second settlement payment
$80 million
HEI reported this amount prepaid to date
Settlement amount due
$479 million
HEI said the amount due was reduced by $82 million after the early-payment discount
Key Terms
Core, allowance for funds used during construction (AFUDC), Accretion expense, marked-to-market, +1 more
5 terms
Core financial
"Measures described as “Core” are non-GAAP measures"
allowance for funds used during construction (AFUDC) financial
"higher allowance for funds used during construction (AFUDC)"
Allowance for funds used during construction (AFUDC) is an accounting method that adds the cost of financing a long-term project—typically interest and related carrying costs—into the value of the asset while it is being built, rather than treating those costs as immediate expenses. For investors, AFUDC matters because it boosts reported asset value and can raise reported earnings during construction, affecting profitability comparisons and future return expectations much like rolling mortgage interest into the purchase price of a house changes both the asset’s book value and the apparent cost of owning it.
Accretion expense financial
"Represents accretion expense related to remeasuring the remaining settlement liability"
Accretion expense is the periodic accounting charge that reflects the increase in the recorded value of a future obligation as its payment date approaches, similar to how a snowball grows as you roll it downhill. For investors it matters because it lowers reported earnings without using cash, and signals that a company is recognizing the rising cost of an obligation (such as a discounted bond or a future cleanup liability) over time, affecting profit comparability and balance-sheet measures.
marked-to-market financial
"remaining stake in ASB was marked-to-market"
Marking-to-market is the practice of valuing an asset or liability at its current market price instead of its original purchase cost. For investors this matters because it makes a firm's reported profits, losses and capital more responsive to real-time market swings—think of it like reappraising a house or car every day so your net worth reflects today’s offer price, which can reveal volatility and trigger margin calls or funding needs.
regulatory asset financial
"Applicable amounts were deferred to a regulatory asset"
Earnings Snapshot
Hawaiian Electric electric-utility revenue: $1,007.104 million
Third quarter 2026
Hawaiian Electric electric-utility revenue
$1,007.104 million
Compared with $787.428 million in third quarter 2025
Hawaiian Electric net income for common stock
$13.488 million
Compared with $36.988 million in third quarter 2025
Hawaiian Electric Core net income (non-GAAP)
$28 million
Compared with $40 million in third quarter 2025
Parent HEI consolidated GAAP net income
$35.450 million
Compared with $31.218 million in third quarter 2025
FAQ
AI-generated questions and answers. How Rhea-AI works. Not financial advice.
What revenue did Hawaiian Electric (HAWEL) report for Q3 2026?
Hawaiian Electric reported electric-utility revenue of $1,007.104 million for the three months ended September 30, 2026, compared with $787.428 million in the same 2025 period.
How much did Hawaiian Electric earn in Q3 2026?
Hawaiian Electric reported $13.488 million in net income for common stock for Q3 2026, compared with $36.988 million a year earlier. Its non-GAAP Core net income was $28 million, compared with $40 million.
What storm costs did Hawaiian Electric report, and will it seek recovery?
Hawaiian Electric reported $14 million of incremental pre-tax storm costs in August and September. The utility said it would request recovery of storm costs once final incremental costs are known.
How much of HEI's second settlement payment had been prepaid?
HEI said $80 million of the second settlement payment had been prepaid to date, reducing the $479 million amount due by $82 million after the early-payment discount.
AI-generated analysis. How Rhea-AI works. Not financial advice.
UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM 8-K
CURRENT REPORT
Pursuant to Section 13 or 15(d) of the
Securities Exchange Act of 1934
Date of Report: November 6, 2026
| Exact Name of Registrant | Commission | I.R.S. Employer | ||||||
| as Specified in Its Charter | File Number | Identification No. | ||||||
State of Hawaii
(State or other jurisdiction of incorporation)
(Address of principal executive offices and zip code)
Registrant’s telephone number, including area code:
(808 ) 543-5662 - HEI
(808 ) 543-7771 - Hawaiian Electric
Not applicable
(Former name or former address, if changed since last report.)
Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions:
Securities registered pursuant to 12(b) of the Act:
| Registrant | Title of each class | Trading Symbol(s) | Name of each exchange on which registered | ||||||||
| Hawaiian Electric Industries, Inc. | |||||||||||
Indicate by check mark whether the registrant is an emerging growth company as defined in Rule 405 of the Securities Act of 1933 (§230.405 of this chapter) or Rule12b-2 of the Securities Act of 1934 (§240.12b-2 of this chapter).
Emerging growth company
| Hawaiian Electric Industries, Inc. | Hawaiian Electric Company, Inc. | ||||||||||
If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act.
| Hawaiian Electric Industries, Inc. | ☐ | Hawaiian Electric Company, Inc. | ☐ | ||||||||
Item 2.02 Results of Operations and Financial Condition.
On November 6, 2026, HEI issued a news release, “HEI Reports Third Quarter 2026 Results.” This news release is furnished as HEI Exhibit 99.
Item 9.01 Financial Statements and Exhibits.
(d) Exhibits | |||||
HEI Exhibit 99 | News release, dated November 6, 2026, “HEI Reports Third Quarter 2026 Results” | ||||
| 104 | Cover Page Interactive Data File (embedded within the Inline XBRL document) | ||||
The information furnished in connection with Item 2.02 of this current report on Form 8-K including HEI Exhibit 99 shall not be deemed “filed” for purposes of Section 18 of the Securities Exchange Act of 1934, as amended (the Exchange Act), or incorporated by reference in any filing under the Securities Act of 1933, as amended, or the Exchange Act, except as shall be expressly set forth by specific reference in such a filing.
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SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934, the Registrants have duly caused this report to be signed on their behalf by the undersigned thereunto duly authorized. The signature of the undersigned companies shall be deemed to relate only to matters having reference to such companies and any subsidiaries thereof.
| HAWAIIAN ELECTRIC INDUSTRIES, INC. | HAWAIIAN ELECTRIC COMPANY, INC. | |||||||
| (Registrant) | (Registrant) | |||||||
| /s/ Paul K. Ito | /s/ Paul K. Ito | |||||||
| Paul K. Ito | Paul K. Ito | |||||||
Senior Vice President and | Senior Vice President, | |||||||
Chief Financial Officer | Chief Financial Officer and Treasurer | |||||||
Date: November 6, 2026 | Date: November 6, 2026 | |||||||
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HEI Exhibit 99
| NEWS RELEASE | ||||||||
November 6, 2026 | ||||||||
| Contact: | Mateo Garcia | Telephone: (808) 543-7300 | ||||||
| Director, Investor Relations | E-mail: ir@hei.com | |||||||
HEI REPORTS THIRD QUARTER 2026 RESULTS
•Strong and Effective Response to Elevated Storm Activity During the Quarter
◦Power Restored to Customers Quickly and Safely Following Storms
◦Grid Resilience investments Continuing to Reduce Wildfire Risk While Delivering Value for Customers In Face of Severe Weather
•Consolidated GAAP Net Income for the Quarter of $35 Million Compared to $31 Million in 2025
◦Core1 Net Income for the Quarter Was $23 Million Compared to $33 Million in 2025
◦Consolidated GAAP Net Income Includes Gains from American Savings Bank’s Initial Public Offering, Partially Offset by Non-Cash Impacts Related to HEI’s Strategic Business Simplification and Non-Cash Impacts Related to Maui Wildfire Settlement Liability Accounting Adjustments
◦GAAP and Core Results Also Reflect $14 Million of Incremental Pre-Tax Storm-Related Costs; Utility Will Be Requesting Recovery of Storm Costs Once Final Incremental Costs Are Known.
•$80 Million of Second Settlement Payment Prepaid To Date, Reducing the $479 Million Amount Due by $82 Million (After Early-Payment Discount). Company Will Continue to Evaluate Early Payments of Wildfire Settlement Liability
HONOLULU - Hawaiian Electric Industries, Inc. (NYSE - HE) (HEI) today reported net income for the third quarter of 2026 of $35 million, or $0.20 per share, compared to net income of $31 million, or $0.18 per share in the third quarter of 2025. The quarter’s results include $64
Note: Throughout this release, per share values are calculated based on diluted shares.
1 Measures described as “Core” for the periods in this news release are non-GAAP measures which exclude Maui wildfire-related items, impacts related to HEI’s ownership stake in American Savings Bank and expenses taken in connection with the strategic review of Pacific Current. See the “Explanation of HEI’s Use of Certain Unaudited Non-GAAP Measures” and the related GAAP reconciliation at the end of this release.
1
million of realized and unrealized pre-tax gains related to HEI’s investment in American Savings Bank (ASB) and a non-cash $51 million pre-tax asset impairment recorded at Pacific Current. (See “Holding Company and Other Segment” section of this release for further detail on ASB and Pacific Current-related impacts.) Excluding these impacts, and excluding Maui wildfire-related items, Core net income for the quarter was $23 million, or $0.13 per share, compared to $33 million, or $0.19 per share in the third quarter of 2025. Both GAAP and Core net income include $14 million of estimated incremental pre-tax costs related to storm activity in August and September.
“Our company continued to execute well on strategic priorities during the third quarter, working to deliver safe, affordable, reliable and resilient power to our customers. Our resilience investments under the Wildfire Mitigation Plan proved beneficial during the severe weather in August and September, which caused damage statewide. Our crews restored power quickly and safely to affected customers,” said Scott Seu, HEI CEO.
“Reducing wildfire risk to our communities remains a top priority and is central to our grid investments. Our Wildfire Mitigation Plan is on schedule, and has significantly reduced wildfire risk across our service territories since 2023. We’ve implemented industry-wide best practices, adopting proven measures used by wildfire-affected utilities on the mainland, and tailored to our very different risk profile.
“Maintaining the financial capacity to deliver a safe, reliable and resilient grid is essential. We also recognize customers’ significant cost pressures, especially for low-income customers, and are focused on financing and phasing investments to manage bill impacts. Our pending rate rebasing request proposes a 5.3% base rate increase, phased in over two years and aligned with inflation, to support continued grid investment. We also recently sought approval for up to $500 million in wildfire safety and resilience investments through a structure passed by our legislature last year to lower customer costs while advancing public safety.”
HAWAIIAN ELECTRIC COMPANY (HAWAIIAN ELECTRIC) EARNINGS
Hawaiian Electric’s net income for the third quarter of 2026 was $13 million compared to net income of $37 million in the third quarter of 2025, with the decrease primarily driven by the following pre-tax variances (among others):
•$20 million in higher O&M expense, driven by $14 million of incremental storm costs in August and September and approximately $6 million of expenses transferred from the
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holding company to the utility following integration (but not included in customer rates)2. These were partially offset by lower transmission and distribution costs and lower wildfire mitigation program expenses (as certain Wildfire Mitigation Program expenses were deferred starting in the fourth quarter of 2025); and
•$23 million in higher interest expense, which includes $18 million of non-cash accretion expense, reflecting the increase in the recorded value of the wildfire settlement liability as scheduled payment dates approach.
These items were partially offset by (among others):
•$8 million in higher revenues (net of fuel and purchased power), primarily from the annual revenue adjustment mechanism; and
•$3 million in higher allowance for funds used during construction (AFUDC).
Hawaiian Electric’s Core net income, which excludes wildfire-related expenses (primarily the non-cash accretion expense), was $28 million for the quarter compared to $40 million in the third quarter of 2025, with the decrease primarily driven by higher O&M expense due to the aforementioned storm costs and HEI integration costs.
HOLDING AND OTHER COMPANIES
The holding and other companies’ net income was $22 million in the third quarter of 2026 compared to a net loss of $6 million in the third quarter of 2025. The holding company’s net income for the quarter primarily reflects the pre-tax $18 million gain on sale of ASB shares, and the pre-tax $46 million unrealized gains on the remaining ASB shares owned. As previously disclosed, HEI sold 35% of its 9.9% stake in ASB’s initial public offering. HEI’s remaining stake in ASB is approximately 6.4% of ASB’s total shares outstanding, and this remaining stake was marked-to-market based on ASB’s closing share price at the end of the third quarter. Benefits from HEI’s stake in ASB were partially offset by a pre-tax $51 million asset impairment recorded at Pacific Current related to exiting Pacific Current’s last remaining asset, the Mahipapa biomass plant on Kauai. HEI is in the final stages of its strategic exit from the Pacific Current business.
The Company’s effective tax rate was lower for the first nine months of 2026 compared to 2025, primarily due to discrete tax benefits recognized in 2026 from the valuation allowance release related to the gains on the ASB investment and research and development tax credit claims recognized, partially offset by the substantially higher pretax income related to the
2 Following integration of holding company and utility employees at the beginning of the third quarter, certain costs previously recorded at the holding company are now recorded at the utility. These costs are not included in customer rates.
3
remeasurement of the wildfire tort-related settlement liability to present value (net of accretion) and investment in ASB to fair market value, net of the impairment of Pacific Current assets.
Core net loss for the quarter was $5 million compared to $7 million in the same quarter of 2025. The quarter’s lower Core net loss was partially due to approximately $6 million of pre-tax expenses previously recorded at the holding company but now recorded at the utility (following integration of holding company and utility employees at the beginning of the third quarter).
EARNINGS RELEASE, WEBCAST AND CONFERENCE CALL TO DISCUSS EARNINGS
HEI will conduct a webcast and conference call to review its third quarter 2026 consolidated financial results today at 11:30 a.m. Hawaii time (4:30 p.m. Eastern).
To listen to the conference call, dial 1-833-461-5787 (U.S.) or 1-585-542-9983 (international) and enter passcode 578443699. Parties may also access presentation materials (which include reconciliation of non-GAAP measures) and/or listen to the conference call by visiting the conference call link on HEI’s website at www.hei.com under “Investor Relations,” sub-heading “News and Events — Events and Presentations.”
A replay will be available online and via phone. The online replay will be available on HEI’s website about two hours after the event. The audio replay will also be available about two hours after the event through November 13, 2026. To access the audio replay, dial 1-833-309-1852 (U.S.) or 1-929-828-5978 (international) and enter passcode 578443699.
HEI and Hawaiian Electric Company, Inc. (Hawaiian Electric) intend to continue to use HEI’s website, www.hei.com, as a means of disclosing additional information; such disclosures will be included in the Investor Relations section of the website. Accordingly, investors should routinely monitor the Investor Relations section of HEI’s website, in addition to following HEI’s and Hawaiian Electric’s press releases, HEI’s and Hawaiian Electric’s Securities and Exchange Commission (SEC) filings and HEI’s public conference calls and webcasts. Investors may sign up to receive e-mail alerts via the “Investor Relations” section of the website. The information on HEI’s website is not incorporated by reference into this document or into HEI’s and Hawaiian Electric’s SEC filings unless, and except to the extent, specifically incorporated by reference.
Investors may also wish to refer to the Public Utilities Commission of the State of Hawaii (PUC) website at https://hpuc.my.site.com/cdms/s/ to review documents filed with, and issued by, the PUC. No information on the PUC website is incorporated by reference into this document or into HEI’s and Hawaiian Electric’s SEC filings.
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NON-GAAP MEASURES
Measures described as “Core” are non-GAAP measures which exclude Maui wildfire-related items, impacts related to HEI’s ownership stake in American Savings Bank and expenses taken in connection with HEI’s ongoing review of strategic options for Pacific Current. “Adjusted O&M excluding pension” is a non-GAAP measure which excludes pension nonservice retirement benefits and net income neutral items (consisting of O&M covered by surcharges or covered by third parties). See “Explanation of HEI’s Use of Certain Unaudited Non-GAAP Measures” and the related GAAP reconciliations at the end of this release.
FORWARD-LOOKING STATEMENTS
This release may contain “forward-looking statements,” which include statements that are predictive in nature, depend upon or refer to future events or conditions, and usually include words such as “will,” “expects,” “anticipates,” “intends,” “plans,” “believes,” “predicts,” “estimates” or similar expressions. In addition, any statements concerning future financial performance, ongoing business strategies or prospects or possible future actions are also forward-looking statements. Forward-looking statements are based on current expectations and projections about future events and are subject to risks, uncertainties and the accuracy of assumptions concerning HEI and its subsidiaries, the performance of the industries in which they do business and economic, political and market factors, among other things. These forward-looking statements are not guarantees of future performance.
Forward-looking statements in this release should be read in conjunction with the “Cautionary Note Regarding Forward-Looking Statements” and “Risk Factors” discussions (which are incorporated by reference herein) set forth in HEI’s Annual Report on Form 10-K for the year ended December 31, 2025 and HEI’s other SEC periodic and current reports and other filings that discuss important factors that could cause HEI’s results to differ materially from those anticipated in such statements. These forward-looking statements speak only as of the date of the report, presentation or filing in which they are made. Except to the extent required by the federal securities laws, HEI, Hawaiian Electric, and their subsidiaries undertake no obligation to publicly update or revise any forward-looking statements, whether as a result of new information, future events or otherwise.
5
ABOUT HEI
HEI’s electric utility, Hawaiian Electric, supplies power to approximately 95% of Hawaii’s population and is undertaking an ambitious effort to decarbonize its operations and the broader state economy, and modernize and harden the grid to ensure public safety, reliability and resilience. For more information, visit www.hei.com.
6
Hawaiian Electric Industries, Inc. (HEI) and Subsidiaries
CONSOLIDATED STATEMENTS OF INCOME DATA
(Unaudited)
| Three months ended September 30 | Nine months ended September 30 | |||||||||||||||||||||||||
| (in thousands, except per share amounts) | 2026 | 2025 | 2026 | 2025 | ||||||||||||||||||||||
| Revenues | ||||||||||||||||||||||||||
| Electric utility | $ | 1,007,104 | $ | 787,428 | $ | 2,688,008 | $ | 2,268,276 | ||||||||||||||||||
| Other | 1,606 | 3,182 | 6,852 | 12,796 | ||||||||||||||||||||||
| Total revenues | 1,008,710 | 790,610 | 2,694,860 | 2,281,072 | ||||||||||||||||||||||
| Expenses | ||||||||||||||||||||||||||
Electric utility (includes $154 million benefit for the tort settlement remeasurement recorded in nine months ended September 30, 2026) | 958,931 | 724,635 | 2,358,738 | 2,065,002 | ||||||||||||||||||||||
| Other | 8,562 | 13,929 | 37,314 | 47,857 | ||||||||||||||||||||||
| Total expenses | 967,493 | 738,564 | 2,396,052 | 2,112,859 | ||||||||||||||||||||||
| Operating income (loss) | ||||||||||||||||||||||||||
| Electric utility | 48,173 | 62,793 | 329,270 | 203,274 | ||||||||||||||||||||||
| Other | (6,956) | (10,747) | (30,462) | (35,061) | ||||||||||||||||||||||
| Total operating income | 41,217 | 52,046 | 298,808 | 168,213 | ||||||||||||||||||||||
| Retirement defined benefits credit—other than service costs | 711 | 817 | 2,469 | 2,653 | ||||||||||||||||||||||
| Interest expense, net | (47,726) | (26,211) | (127,237) | (87,679) | ||||||||||||||||||||||
| Allowance for borrowed funds used during construction | 2,493 | 1,500 | 6,195 | 4,379 | ||||||||||||||||||||||
| Allowance for equity funds used during construction | 5,564 | 3,821 | 13,715 | 11,108 | ||||||||||||||||||||||
| Interest and dividend income | 3,804 | 6,960 | 19,083 | 27,162 | ||||||||||||||||||||||
| Gain on sale of investment and net unrealized gain on investment measured at fair value | 64,146 | — | 64,146 | — | ||||||||||||||||||||||
Gain (loss) on sale of subsidiaries and impairment losses on subsidiary assets sold and assets formerly classified as held for sale | (50,736) | 1,013 | (54,452) | (12,376) | ||||||||||||||||||||||
| Income before income taxes | 19,473 | 39,946 | 222,727 | 113,460 | ||||||||||||||||||||||
| Income taxes | (15,977) | 8,728 | 33,627 | 28,540 | ||||||||||||||||||||||
| Net income | 35,450 | 31,218 | 189,100 | 84,920 | ||||||||||||||||||||||
| Preferred stock dividends of subsidiaries | — | 471 | — | 1,417 | ||||||||||||||||||||||
| Net income for common stock | $ | 35,450 | $ | 30,747 | $ | 189,100 | $ | 83,503 | ||||||||||||||||||
| Basic earnings per common share | $ | 0.21 | $ | 0.18 | $ | 1.10 | $ | 0.48 | ||||||||||||||||||
| Diluted earnings per common share | $ | 0.20 | $ | 0.18 | $ | 1.09 | $ | 0.48 | ||||||||||||||||||
| Weighted-average number of common shares outstanding | 172,728 | 172,617 | 172,664 | 172,531 | ||||||||||||||||||||||
| Weighted-average shares assuming dilution | 173,508 | 172,916 | 173,578 | 172,939 | ||||||||||||||||||||||
| Income (loss) for common stock by segment | ||||||||||||||||||||||||||
| Electric utility | $ | 13,488 | $ | 36,988 | $ | 186,689 | $ | 123,954 | ||||||||||||||||||
| Other | 21,962 | (6,241) | 2,411 | (40,451) | ||||||||||||||||||||||
| Income for common stock | $ | 35,450 | $ | 30,747 | $ | 189,100 | $ | 83,503 | ||||||||||||||||||
| Comprehensive income attributable to HEI | $ | 35,430 | $ | 30,013 | $ | 188,931 | $ | 82,003 | ||||||||||||||||||
Return on average common equity (%) (twelve months ended)1 | 13.6 | 7.2 | ||||||||||||||||||||||||
1 Simple average based on income from continuing operations.
This information should be read in conjunction with the consolidated financial statements and the notes thereto in HEI filings with the SEC. Results of operations for interim periods are not necessarily indicative of results to be expected for future interim periods or the full year.
7
Hawaiian Electric Company, Inc. (Hawaiian Electric) and Subsidiaries
CONSOLIDATED STATEMENTS OF INCOME DATA
(Unaudited)
| Three months ended September 30 | Nine months ended September 30 | |||||||||||||||||||||||||
| ($ in thousands, except per barrel amounts) | 2026 | 2025 | 2026 | 2025 | ||||||||||||||||||||||
| Revenues | $ | 1,007,104 | $ | 787,428 | $ | 2,688,008 | $ | 2,268,276 | ||||||||||||||||||
| Expenses | ||||||||||||||||||||||||||
| Fuel oil | 398,693 | 240,547 | 972,221 | 689,855 | ||||||||||||||||||||||
| Purchased power | 218,477 | 183,813 | 587,310 | 505,493 | ||||||||||||||||||||||
| Other operation and maintenance | 181,563 | 161,819 | 510,523 | 463,144 | ||||||||||||||||||||||
| Wildfire tort-related claims | — | — | (162,383) | — | ||||||||||||||||||||||
| Depreciation | 66,421 | 64,022 | 199,314 | 192,015 | ||||||||||||||||||||||
| Taxes, other than income taxes | 93,777 | 74,434 | 251,753 | 214,495 | ||||||||||||||||||||||
| Total expenses | 958,931 | 724,635 | 2,358,738 | 2,065,002 | ||||||||||||||||||||||
| Operating income | 48,173 | 62,793 | 329,270 | 203,274 | ||||||||||||||||||||||
| Allowance for equity funds used during construction | 5,564 | 3,821 | 13,715 | 11,108 | ||||||||||||||||||||||
| Retirement defined benefits credit—other than service costs | 797 | 998 | 2,896 | 3,101 | ||||||||||||||||||||||
| Interest expense and other charges, net | (44,753) | (22,114) | (117,980) | (66,272) | ||||||||||||||||||||||
| Allowance for borrowed funds used during construction | 2,493 | 1,500 | 6,195 | 4,379 | ||||||||||||||||||||||
| Interest income | 1,615 | 1,461 | 8,196 | 4,657 | ||||||||||||||||||||||
| Income before income taxes | 13,889 | 48,459 | 242,292 | 160,247 | ||||||||||||||||||||||
| Income taxes | 401 | 10,973 | 55,603 | 34,797 | ||||||||||||||||||||||
| Net income | 13,488 | 37,486 | 186,689 | 125,450 | ||||||||||||||||||||||
| Preferred stock dividends of subsidiaries | — | 228 | — | 686 | ||||||||||||||||||||||
| Net income attributable to Hawaiian Electric | 13,488 | 37,258 | 186,689 | 124,764 | ||||||||||||||||||||||
| Preferred stock dividends of Hawaiian Electric | — | 270 | — | 810 | ||||||||||||||||||||||
| Net income for common stock | $ | 13,488 | $ | 36,988 | $ | 186,689 | $ | 123,954 | ||||||||||||||||||
| Comprehensive income attributable to Hawaiian Electric | $ | 13,508 | $ | 36,964 | $ | 186,615 | $ | 123,836 | ||||||||||||||||||
| OTHER ELECTRIC UTILITY INFORMATION | ||||||||||||||||||||||||||
| Kilowatthour sales (millions) | ||||||||||||||||||||||||||
| Hawaiian Electric | 1,685 | 1,664 | 4,638 | 4,626 | ||||||||||||||||||||||
| Hawaii Electric Light | 282 | 276 | 800 | 788 | ||||||||||||||||||||||
| Maui Electric | 290 | 294 | 806 | 817 | ||||||||||||||||||||||
| 2,257 | 2,234 | 6,244 | 6,231 | |||||||||||||||||||||||
| Average fuel oil cost per barrel | $ | 154.87 | $ | 98.20 | $ | 132.00 | $ | 101.00 | ||||||||||||||||||
Return on average common equity (%) (twelve months ended)1 | 13.4 | 12.8 | ||||||||||||||||||||||||
1 Simple average.
This information should be read in conjunction with the consolidated financial statements and the notes thereto in Hawaiian Electric filings with the SEC. Results of operations for interim periods are not necessarily indicative of results to be expected for future interim periods or the full year.
8
Explanation of HEI’s Use of Certain Unaudited Non-GAAP Measures
HEI management uses certain non-GAAP measures to evaluate the performance of HEI. Management believes these non-GAAP measures provide useful information and are a better indicator of the companies’ core operating activities. Core earnings and other financial measures as presented here may not be comparable to similarly titled measures used by other companies, and they should be considered in addition to, and not as a substitute for, results prepared in accordance with GAAP. The accompanying tables provide a reconciliation of reported GAAP1 earnings to non-GAAP Core earnings.
The reconciling adjustments from GAAP earnings to Core earnings are limited to the items related to the Maui wildfires, HEI’s ownership stake in American Savings Bank and costs related to HEI’s ongoing review of strategic options for Pacific Current. Management does not consider these items to be representative of the company’s fundamental Core earnings.
Reconciliation of GAAP1 to non-GAAP Measures
Hawaiian Electric Industries, Inc. (HEI) and Subsidiaries
Unaudited
| Three months ended September 30 | Nine months ended September 30 | ||||||||||||||||||||||
| (in thousands) | 2026 | 2025 | 2026 | 2025 | |||||||||||||||||||
| Maui windstorm and wildfires related items | |||||||||||||||||||||||
| Pretax expenses: | |||||||||||||||||||||||
| Legal expenses | $ | 1,002 | $ | 5,794 | $ | 6,234 | $ | 20,532 | |||||||||||||||
| Outside services expense | — | — | — | 135 | |||||||||||||||||||
| Wildfire securities-related claims | — | 47,750 | — | 47,750 | |||||||||||||||||||
| Other expense | 31 | 5,892 | 1,409 | 17,679 | |||||||||||||||||||
| Interest expense | — | 398 | — | 3,299 | |||||||||||||||||||
| Pretax expenses | 1,033 | 59,834 | 7,643 | 89,395 | |||||||||||||||||||
Insurance recoveries2 | (207) | (49,070) | (9,381) | (53,374) | |||||||||||||||||||
Settlement remeasurement3 | — | — | (153,870) | — | |||||||||||||||||||
Accretion expense4 | 18,010 | — | 35,724 | — | |||||||||||||||||||
| Deferral of cost | — | (6,237) | — | (21,809) | |||||||||||||||||||
| Total Maui windstorm and wildfires related items, net | 18,836 | 4,527 | (119,884) | 14,212 | |||||||||||||||||||
| Pretax gain on sale of investment and net unrealized gain on investment measured at fair value | (64,146) | — | (64,146) | — | |||||||||||||||||||
| Pretax loss (gain) on sale of subsidiaries and impairment losses on subsidiary assets sold and assets formerly classified as held for sale | 50,736 | (1,013) | 54,452 | 12,376 | |||||||||||||||||||
Income taxes5 | (17,916) | (1,453) | 16,848 | (2,085) | |||||||||||||||||||
| After-tax adjustments | $ | (12,490) | $ | 2,061 | $ | (112,730) | $ | 24,503 | |||||||||||||||
1 Accounting principles generally accepted in the United States of America.
2 Includes $8.5 million recognized as an adjustment to the Wildfire tort-related claims for the nine months ended September 30, 2026. Includes insurance recovery related to the settlement of the securities class action of $47.8 million for the three and nine months ended September 30, 2025. Also, for the three and nine months ended September 30, 2025, includes adjustments related to costs that are no longer probable of recovery under the insurance policies of $1.0 million and $7.6 million, respectively, of which, $0.5 million and $4.5 million were deferred to a regulatory asset, respectively, and are reported on line “Deferral of cost”.
3 Represents an adjustment related to remeasuring the remaining settlement liability at present value in accordance with Accounting Standards Codification Topic 835-30 Imputation of Interest.
4 Represents accretion expense related to remeasuring the remaining settlement liability.
5 Current year composite statutory tax rate of 25.75%, excluding capital gains, which are taxed at capital gains composite tax rate of 23.9%, net of valuation allowance release.
Note: Other segment (Holding and Other Companies) wildfire-related expenses (legal, outside services and other) and insurance recoveries are included in “Expenses-Other” and interest expense is included in “Interest expense, net” on the HEI and subsidiaries’ Consolidated Statements of Income Data. See Electric Utilities’ and Holding and Other Companies’ tables below for more detail.
9
Reconciliation of GAAP to non-GAAP Measures (continued)
Hawaiian Electric Industries, Inc. (HEI) and Subsidiaries
Unaudited
| Three months ended September 30 | Nine months ended September 30 | ||||||||||||||||||||||
| (in thousands) | 2026 | 2025 | 2026 | 2025 | |||||||||||||||||||
| HEI Consolidated | |||||||||||||||||||||||
GAAP1 net income (as reported) | $ | 35,450 | $ | 30,747 | $ | 189,100 | $ | 83,503 | |||||||||||||||
Excluding special items related to the Maui windstorm and wildfires (after tax)2: | |||||||||||||||||||||||
| Legal expenses | 744 | 4,302 | 4,629 | 15,245 | |||||||||||||||||||
| Outside services expense | — | — | — | 100 | |||||||||||||||||||
| Wildfire securities-related claims | — | 35,454 | — | 35,454 | |||||||||||||||||||
| Other expense | 23 | 4,375 | 1,046 | 13,127 | |||||||||||||||||||
| Interest expense | — | 295 | — | 2,449 | |||||||||||||||||||
| After tax expenses | 767 | 44,426 | 5,675 | 66,375 | |||||||||||||||||||
Insurance recoveries3 | (154) | (36,434) | (6,966) | (39,630) | |||||||||||||||||||
Settlement remeasurement4 | — | — | (114,248) | — | |||||||||||||||||||
Accretion expense5 | 13,372 | — | 26,525 | — | |||||||||||||||||||
| Deferral of cost | — | (4,631) | — | (16,193) | |||||||||||||||||||
| Total Maui windstorm and wildfires related items, net (after tax) | 13,985 | 3,361 | (89,014) | 10,552 | |||||||||||||||||||
Gain on sale of investment and net unrealized gain on investment measured at fair value (after tax)6 | (64,146) | — | (64,146) | — | |||||||||||||||||||
Loss (gain) on sale of subsidiaries and impairment losses on subsidiary assets sold and assets formerly classified as held for sale (after tax)2 | 37,671 | (1,300) | 40,430 | 13,951 | |||||||||||||||||||
| Non-GAAP adjustments | (12,490) | 2,061 | (112,730) | 24,503 | |||||||||||||||||||
| Non-GAAP (Core) net income | $ | 22,960 | $ | 32,808 | $ | 76,370 | $ | 108,006 | |||||||||||||||
| GAAP Diluted earnings per share (as reported) | $ | 0.20 | $ | 0.18 | $ | 1.09 | $ | 0.48 | |||||||||||||||
| Non-GAAP (Core) Diluted earnings per share | $ | 0.13 | $ | 0.19 | $ | 0.44 | $ | 0.62 | |||||||||||||||
1 Accounting principles generally accepted in the United States of America.
2 Current year composite statutory tax rate of 25.75%.
3 Includes $6.3 million recognized as an adjustment to the Wildfire tort-related claims for the nine months ended September 30, 2026. Includes insurance recovery related to the settlement of the securities class action of $35.5 million for the three and nine months ended September 30, 2025. Also, for the three and nine months ended September 30, 2025, includes adjustments related to costs that are no longer probable of recovery under the insurance policies.
4 Represents an adjustment related to remeasuring the remaining settlement liability at present value in accordance with Accounting Standards Codification Topic 835-30 Imputation of Interest.
5 Represents accretion expense related to remeasuring the remaining settlement liability.
6 Capital gains composite tax rate of 23.9%, net of valuation allowance release.
10
Reconciliation of GAAP to non-GAAP Measures (continued)
Hawaiian Electric Company, Inc. and Subsidiaries
Unaudited
| Three months ended September 30 | Nine months ended September 30 | ||||||||||||||||||||||
| (in thousands) | 2026 | 2025 | 2026 | 2025 | |||||||||||||||||||
| Maui windstorm and wildfires related items | |||||||||||||||||||||||
| Pretax expenses: | |||||||||||||||||||||||
| Legal expenses | $ | 1,028 | $ | 4,316 | $ | 3,592 | $ | 12,469 | |||||||||||||||
| Other expense | — | 5,791 | 1,116 | 17,278 | |||||||||||||||||||
| Interest expense | — | 131 | — | 2,543 | |||||||||||||||||||
| Pretax expenses | 1,028 | 10,238 | 4,708 | 32,290 | |||||||||||||||||||
Insurance recoveries1,2 | (35) | (430) | (8,866) | 126 | |||||||||||||||||||
Settlement remeasurement3 | — | — | (153,870) | — | |||||||||||||||||||
Accretion expense4 | 18,010 | — | 35,724 | — | |||||||||||||||||||
Deferral of cost5 | — | (6,237) | — | (21,809) | |||||||||||||||||||
| Total Maui windstorm and wildfires related items, net | 19,003 | 3,571 | (122,304) | 10,607 | |||||||||||||||||||
Income taxes6 | (4,894) | (919) | 31,493 | (2,731) | |||||||||||||||||||
| After-tax adjustments | $ | 14,109 | $ | 2,652 | $ | (90,811) | $ | 7,876 | |||||||||||||||
| Hawaiian Electric consolidated net income | |||||||||||||||||||||||
GAAP7 net income (as reported) | $ | 13,488 | $ | 36,988 | $ | 186,689 | $ | 123,954 | |||||||||||||||
Excluding special items related to the Maui windstorm and wildfires (after tax)6: | |||||||||||||||||||||||
| Legal expenses | 763 | 3,205 | 2,667 | 9,258 | |||||||||||||||||||
| Other expense | — | 4,300 | 828 | 12,829 | |||||||||||||||||||
| Interest expense | — | 97 | — | 1,888 | |||||||||||||||||||
| After tax expenses | 763 | 7,602 | 3,495 | 23,975 | |||||||||||||||||||
Insurance recoveries1,2 | (26) | (319) | (6,583) | 94 | |||||||||||||||||||
Settlement remeasurement3 | — | — | (114,248) | — | |||||||||||||||||||
Accretion expense4 | 13,372 | — | 26,525 | — | |||||||||||||||||||
Deferral of cost5 | — | (4,631) | — | (16,193) | |||||||||||||||||||
| Total Maui windstorm and wildfires related items, net (after tax) | 14,109 | 2,652 | (90,811) | 7,876 | |||||||||||||||||||
| Non-GAAP (Core) net income | $ | 27,597 | $ | 39,640 | $ | 95,878 | $ | 131,830 | |||||||||||||||
| Twelve months ended September 30 | 2026 | 2025 | ||||||||||||
| Ratios (%) | ||||||||||||||
Based on GAAP - Return on average equity8 | 13.4 | 12.8 | ||||||||||||
Based on Non-GAAP (core) - Return on average equity8,9 | 5.2 | 7.0 | ||||||||||||
11
1 Includes $8.5 million recognized as an adjustment to the Wildfire tort-related claims for the nine months ended September 30, 2026.
2 Pretax insurance recoveries includes adjustments related to costs that are no longer probable of recovery under the insurance policies. For the three and nine months ended September 30, 2025, adjustments amount to $1.0 million and $7.6 million, respectively, of which, $0.5 million and $4.5 million were deferred to a regulatory asset, respectively, and are reported on line “Deferral of cost”.
3 Represents an adjustment related to remeasuring the remaining settlement liability at present value in accordance with Accounting Standards Codification Topic 835-30 Imputation of Interest.
4 Represents accretion expense related to remeasuring the remaining settlement liability.
5 Pursuant to the PUC order received on February 12, 2025, deferral accounting treatment limited to insurance premiums and outside services and legal costs associated with the asset-based lending facility credit agreement incurred in 2025 was granted. Applicable amounts were deferred to a regulatory asset.
6 Current year composite statutory tax rate of 25.75%.
7 Accounting principles generally accepted in the United States of America.
8 Simple average.
9 Calculated as non‑GAAP adjusted net income divided by average non-GAAP adjusted common equity. Non-GAAP adjusted common equity excludes cumulative impact of Maui windstorm and wildfires related expenses, net of insurance recoveries and approved deferral treatment (after tax) and the Utilities’ assigned equity interests of GLST1, effective March 31, 2025, which totals $287.3 million and remains unchanged through March 2026. The equity interests were adjusted down to nil in April 2026 as first installment payment of settlement liability was made.
Note: Legal, outside services and other are included in “Other operation and maintenance” and interest expense is included in “Interest expense and other charges, net” on the Hawaiian Electric and subsidiaries’ Consolidated Statements of Income Data.
12
Reconciliation of GAAP to non-GAAP Measures (continued)
Holding and Other Companies
Unaudited
| Three months ended September 30 | Nine months ended September 30 | ||||||||||||||||||||||
| (in thousands) | 2026 | 2025 | 2026 | 2025 | |||||||||||||||||||
| Maui windstorm and wildfires related costs | |||||||||||||||||||||||
| Pretax expenses: | |||||||||||||||||||||||
| Legal expenses | $ | (26) | $ | 1,478 | $ | 2,642 | $ | 8,063 | |||||||||||||||
| Outside services expense | — | — | — | 135 | |||||||||||||||||||
| Wildfire securities-related claims | — | 47,750 | — | 47,750 | |||||||||||||||||||
| Other expense | 31 | 101 | 293 | 401 | |||||||||||||||||||
| Interest expense | — | 267 | — | 756 | |||||||||||||||||||
| Pretax expenses | 5 | 49,596 | 2,935 | 57,105 | |||||||||||||||||||
Insurance recoveries1 | (172) | (48,640) | (515) | (53,500) | |||||||||||||||||||
| Total Maui windstorm and wildfires related expenses, net of insurance recoveries | (167) | 956 | 2,420 | 3,605 | |||||||||||||||||||
| Pretax gain on sale of investment and net unrealized gain on investment measured at fair value | (64,146) | — | (64,146) | — | |||||||||||||||||||
| Pretax loss (gain) on sale of subsidiaries and impairment losses on subsidiary assets sold and assets formerly classified as held for sale | 50,736 | (1,013) | 54,452 | 12,376 | |||||||||||||||||||
Income taxes2 | (13,022) | (534) | (14,645) | 646 | |||||||||||||||||||
| After-tax adjustments | $ | (26,599) | $ | (591) | $ | (21,919) | $ | 16,627 | |||||||||||||||
| Holding and Other Companies net income (loss) | |||||||||||||||||||||||
GAAP3 net income (loss) (as reported) | $ | 21,962 | $ | (6,241) | $ | 2,411 | $ | (40,451) | |||||||||||||||
Excluding special items related to the Maui windstorm and wildfires (after tax)2: | |||||||||||||||||||||||
| Legal expenses | (19) | 1,097 | 1,962 | 5,987 | |||||||||||||||||||
| Outside services expense | — | — | — | 100 | |||||||||||||||||||
| Wildfire securities-related claims | — | 35,454 | — | 35,454 | |||||||||||||||||||
| Other expense | 22 | 75 | 217 | 298 | |||||||||||||||||||
| Interest expense | — | 198 | — | 561 | |||||||||||||||||||
| Maui windstorm and wildfires related expenses (after tax) | 3 | 36,824 | 2,179 | 42,400 | |||||||||||||||||||
Insurance recoveries (after tax)1,2 | (127) | (36,115) | (382) | (39,724) | |||||||||||||||||||
| Total Maui windstorm and wildfires related expenses, net of insurance recoveries (after tax) | (124) | 709 | 1,797 | 2,676 | |||||||||||||||||||
Gain on sale of investment and net unrealized gain on investment measured at fair value (after tax)4 | (64,146) | — | (64,146) | — | |||||||||||||||||||
Loss (gain) on sale of subsidiaries and impairment losses on subsidiary assets sold and assets formerly classified as held for sale (after tax)2 | 37,671 | (1,300) | 40,430 | 13,951 | |||||||||||||||||||
| Non-GAAP adjustments | (26,599) | (591) | (21,919) | 16,627 | |||||||||||||||||||
| Non-GAAP (Core) net loss | $ | (4,637) | $ | (6,832) | $ | (19,508) | $ | (23,824) | |||||||||||||||
1 Includes insurance recovery related to the proposed settlement of the securities class action of $47.8 million (pre-tax) for the three and nine months ended September 30, 2025.
2 Current year composite statutory tax rate of 25.75%, excluding capital gains, which are taxed at capital gains composite tax rate of 23.9%, net of valuation allowance release.
3 Accounting principles generally accepted in the United States of America.
4 Capital gains composite tax rate of 23.9%, net of valuation allowance release.
Note: Holding and Other Companies wildfire-related expenses (legal, outside services and other) and insurance recoveries are included in “Expenses-Other” and interest expense is included in “Interest expense, net” on the HEI and subsidiaries’ Consolidated Statements of Income Data.
13