HEI (NYSE: HE) Q1 2026 earnings with wildfire settlement and Moody’s rating upgrades
Filing Impact
Filing Sentiment
Form Type
8-K
Rhea-AI Filing Summary
Hawaiian Electric Industries reported first‑quarter 2026 net income of $30 million, or $0.18 per share, up from $27 million, or $0.15 per share, a year earlier. Core net income, which excludes Maui wildfire and Pacific Current review costs, was $31 million, down from $40 million.
The company finalized a global wildfire tort litigation settlement and issued the first of four $479 million settlement payments in April. Following this, Moody’s upgraded HEI’s and Hawaiian Electric’s credit ratings to Ba2 and Ba1. Enterprise‑wide liquidity was about $1.5 billion at quarter‑end.
At the utility, Core net income fell to $36 million from $50 million as higher operations and maintenance, interest and depreciation costs more than offset higher revenues. HEI expects 2026 utility O&M, excluding pension, to significantly outpace inflation ahead of a proposed 2027 rate rebasing. Holding and other companies’ net loss improved to $5 million from $21 million. Effective June 1, Scott Seu will serve as CEO of both HEI and Hawaiian Electric, and Shelee Kimura as President of both entities.
Positive
- Global wildfire tort litigation settlement finalized and first payment made, reducing legal uncertainty and allowing the company to focus on operations and regulatory strategy.
- Moody’s upgraded HEI and Hawaiian Electric credit ratings to Ba2 and Ba1 after the settlement, alongside approximately $1.5 billion of enterprise-wide liquidity at quarter-end, supporting financial flexibility.
- Holding and other companies’ net loss narrowed to $5 million from $21 million year over year, reflecting lower interest expense and fewer one-time strategic review costs.
Negative
- Core net income declined to $31 million from $40 million despite higher reported GAAP earnings, indicating weaker underlying profitability once wildfire and strategic review items are excluded.
- Hawaiian Electric’s Core net income fell to $36 million from $50 million, driven by higher operations and maintenance, interest and depreciation expenses that more than offset higher revenues.
- 2026 utility O&M (excluding pension) is expected to significantly outpace inflation, and management anticipates the maximum penalty under the Fuel Cost Risk Sharing mechanism, pressuring near-term earnings until a proposed 2027 rate rebasing.
Insights
Litigation settlement and rating upgrades reduce risk, but utility costs and margins remain pressured.
HEI delivered Q1 2026 net income of $30 million versus $27 million a year ago, while Core earnings fell as wildfire and strategic-review adjustments rolled off. The finalized global wildfire tort litigation settlement and first of four $479 million payments remove a major legal overhang.
After the settlement, Moody’s raised HEI and Hawaiian Electric to Ba2 and Ba1, signaling improved credit views. However, utility Core net income declined to $36 million from $50 million as higher O&M, interest and depreciation outweighed revenue gains. Management highlights roughly $1.5 billion of enterprise liquidity as a support.
Looking ahead, Hawaiian Electric expects 2026 O&M (excluding pension) to significantly outpace inflation before a proposed 2027 rate rebasing, and it anticipates the maximum penalty under the Fuel Cost Risk Sharing mechanism. A simplified leadership structure, effective June 1, 2026, aligns HEI and the utility under one CEO and one President, reflecting its pure‑play utility focus.
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, and exhibit attachments filed with this report.
Key Figures
Total revenues: $746.4M
Net income: $30.5M
Diluted EPS: $0.18 per share
+5 more
8 metrics
Total revenues
$746.4M
HEI consolidated, three months ended March 31, 2026
Net income
$30.5M
HEI consolidated net income, Q1 2026 vs $27.1M in Q1 2025
Diluted EPS
$0.18 per share
Q1 2026 diluted earnings per common share vs $0.15 in Q1 2025
Utility net income
$35.3M
Hawaiian Electric Q1 2026 net income vs $48.3M in Q1 2025
Enterprise liquidity
$1.5B
Approximate enterprise-wide liquidity as of Q1 2026 quarter-end
Settlement payments
$479M each (four payments)
First of four $479 million global wildfire tort litigation settlement payments issued in April
Maui wildfire-related expenses
$0.7M
HEI net Maui windstorm and wildfires related expenses after insurance and deferral, Q1 2026
Holding company net loss
$5.0M
Holding and other companies GAAP net loss Q1 2026 vs $21.1M loss in Q1 2025
Key Terms
global tort litigation settlement, non-GAAP, rate rebasing, Fuel Cost Risk Sharing mechanism, +2 more
6 terms
global tort litigation settlement financial
"Pivotal Milestone Achieved As Global Wildfire Tort Litigation Settlement Finalized"
non-GAAP financial
"Measures described as “Core” are non-GAAP measures which exclude Maui wildfire-related costs"
Non-GAAP refers to financial measures that companies use to show their earnings or performance without including certain expenses or income that are often added back to give a different picture. It matters because it can make a company's results look better or more favorable, but it may also hide important costs, so investors need to look at both GAAP (official rules) and non-GAAP numbers to get a full understanding.
rate rebasing financial
"a transitional year ahead of a 2027 rate rebasing"
Rate rebasing is the process of resetting the baseline used to calculate future prices, interest, or fees so that charges better reflect current costs, market rates, or regulatory standards. For investors, it matters because a rebased rate can change a company’s future revenues and customer bills — like re-tagging all prices in a store after wholesale costs rise — and therefore affect profit margins, cash flow forecasts, and valuation.
Fuel Cost Risk Sharing mechanism financial
"the maximum penalty is expected under the Fuel Cost Risk Sharing mechanism"
A fuel cost risk sharing mechanism is a contract feature that splits changes in fuel expenses between an energy producer or supplier and its customers or regulators, rather than leaving one side to absorb all swings. For investors, it matters because it reduces a company’s exposure to volatile fuel prices—like two people sharing a grocery bill so one bad shopping trip doesn’t wipe out one person’s budget—making future earnings and cash flow more predictable.
Allowance for equity funds used during construction financial
"Allowance for equity funds used during construction | 3,764"
An allowance for equity funds used during construction is an accounting estimate of the owners’ or investors’ cash contributions that will be applied to pay construction costs before a project begins producing revenue. Think of it as the earmarked portion of a renovation budget that investors expect to front so the asset can be built; it matters to investors because it affects how much additional capital will be needed later, the timing of returns, and potential dilution of ownership.
Return on average common equity financial
"Return on average common equity (%) (twelve months ended)"
Return on average common equity measures how much profit a company generates for regular shareholders compared with the typical amount of their invested capital over a period. Think of it as the crop yield from an average-sized field: higher values mean the company is using shareholders’ money more efficiently to produce earnings, which helps investors compare profitability and management performance across firms and time.
Earnings Snapshot
Revenue: $746.4M
Q1 2026
Revenue
$746.4M
Net income
$30.5M
Diluted EPS
$0.18
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: May 8, 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 May 8, 2026, HEI issued a news release, “HEI Reports First 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 May 8, 2026, “HEI Reports First 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: May 8, 2026 | Date: May 8, 2026 | |||||||
2
HEI Exhibit 99
| NEWS RELEASE | ||||||||
May 8, 2026 | ||||||||
| Contact: | Mateo Garcia | Telephone: (808) 543-7300 | ||||||
| Director, Investor Relations | E-mail: ir@hei.com | |||||||
HEI REPORTS FIRST QUARTER 2026 RESULTS
•Pivotal Milestone Achieved As Global Wildfire Tort Litigation Settlement Finalized; HEI and Hawaiian Electric Issued First of Four $479 Million Settlement Payments in April
◦Following Finalization of Global Settlement, Moody’s Upgraded HEI and Hawaiian Electric’s Credit Ratings to Ba2 and Ba1, Respectively
•Core Operations Performing Well, as Utility Continues to Make Critical Investments in Our Communities
◦Quarter’s Results Reflect Higher Operations and Maintenance Expenses Driven by Storm Response and Previously-deferred Insurance Costs
•Maintaining Strong Liquidity and Capital Position, With Enterprise-wide Liquidity of Approximately $1.5 Billion as of Quarter-end
•HEI and Hawaiian Electric Align Leadership to Strengthen Focus on Utility and Customers
HONOLULU - Hawaiian Electric Industries, Inc. (NYSE - HE) (HEI) today reported net income for the first quarter of 2026 of $30 million, or $0.18 per share, compared to net income of $27 million, or $0.15 per share in the first quarter of 2025. Excluding Maui wildfire-related expenses and expenses taken in connection with the review of strategic options for Pacific Current, Core1 net income was $31 million, or $0.18 per share, compared to $40 million, or $0.23 per share in 2025.
“On April 10, the final legal hurdle to the global tort litigation settlement agreement was cleared when the last of the subrogation insurers withdrew their appeals, enabling us to make
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 costs 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
our first of four $479 million annual settlement payments. This marks a critical milestone for those who were impacted by the Maui wildfires, and our hearts continue to be with them as they continue on their path of collective healing,” said Scott Seu, HEI president and CEO.
“Utility core operations performed well despite elevated expenses related to multiple severe storms and historic flooding impacting the state in the first quarter. As we pivot from finalization of the settlement and navigate a transitional year ahead of our rate rebasing in 2027, we are expecting higher operations and maintenance expenses for the full year 2026. Our rate rebasing request is intended to address many of these higher costs, such as the increased insurance premiums we experienced over the last few years.
“Our utility continues to focus on reducing wildfire risk to our communities, and last month we submitted our updated Wildfire Mitigation Plan (WMP) covering 2026 and 2027. Moving forward, we’ll continue to focus on making the investments outlined in our WMP, while operating efficiently and maintaining financial strength. We’ll also continue to offer our customers support given affordability impacts from higher fuel prices due to geopolitical conflict,” said Seu.
HAWAIIAN ELECTRIC COMPANY (HAWAIIAN ELECTRIC) EARNINGS
Hawaiian Electric’s net income for the first quarter of 2026 was $35 million compared to net income of $48 million in the first quarter of 2025, with the decrease primarily driven by the following pre-tax items (among others):
•$19 million in higher O&M, driven by $7 million in higher storm response expenses, $6 million in higher insurance costs, $4 million in higher power supply costs and $3 million in higher transmission and distribution related expenses;
•$5 million in higher interest expense; and
•$2 million in higher depreciation expense.
These items were partially offset by (among others):
•$10 million in higher revenues, primarily from the annual revenue adjustment mechanism; and
•$2 million in higher interest income.
Hawaiian Electric’s Core net income for the first quarter was $36 million compared to $50 million in 2025.
2
UTILITY OUTLOOK
Hawaiian Electric is expecting 2026 O&M expense, excluding pension, to significantly outpace inflation as we progress through a transitional year ahead of a 2027 rate rebasing. This is due to the following factors: higher insurance premiums, primarily reflecting the deferral treatment of wildfire insurance premiums prior to 2026; storm response expenses related to severe weather in February and March; higher vegetation management expenses as the utility prioritizes safety following record rainfall in the first quarter; higher overhauls and station maintenance expenses as the utility prioritizes reliability; higher IT related costs to improve cyber defenses; and higher labor and benefits costs. In addition, the maximum penalty is expected under the Fuel Cost Risk Sharing mechanism, which is recorded as a reduction of fuel revenue. Hawaiian Electric’s proposed rate rebasing is intended to address many of the higher O&M costs, such as increased insurance premiums.
HOLDING AND OTHER COMPANIES
The holding and other companies’ net loss was $5 million in the first quarter of 2026 compared to $21 million in the first quarter of 2025. The lower net loss for the quarter was primarily due to higher expenses in 2025 related to the strategic review of Pacific Current, and lower net interest expense following the retirement of holding company debt with ASB sale proceeds in April of 2025. Core net loss for the quarter was $5 million compared to $10 million in the same quarter of 2025, primarily due to lower net interest expense.
LEADERSHIP STRUCTURE UPDATE
HEI announced leadership structure changes to reflect its pure-play utility focus following divestment of substantially all of its non-utility businesses. Effective June 1, Scott Seu, who has served as HEI President and CEO since 2022, will be CEO of both HEI and Hawaiian Electric. Shelee Kimura, who has served as Hawaiian Electric President and CEO since 2022, will be President of both companies. A recent decision by the Hawaii Public Utilities Commission enabled the simplified leadership structure.
“For 135 years, Hawaiian Electric has delivered electricity and innovations to improve daily life for families and communities throughout the islands we serve,” Seu said. “Now, with our unified enterprise dedicated to that mission, we’ll be more efficient as we continue our focus on empowering our customers, communities and state with safe, reliable, resilient and affordable power for generations to come.”
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EARNINGS RELEASE, WEBCAST AND CONFERENCE CALL TO DISCUSS EARNINGS
HEI will conduct a webcast and conference call to review its first quarter 2026 consolidated financial results today at 10:30 a.m. Hawaii time (4:30 p.m. Eastern).
To listen to the conference call, dial 1-888-660-6377 (U.S.) or 1-929-203-0797 (international) and enter passcode 2393042. 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 May 15, 2026. To access the audio replay, dial 1-800-770-2030 (U.S.) or 1-647-362-9199 (international) and enter passcode 2393042.
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.
NON-GAAP MEASURES
Measures described as “Core” are non-GAAP measures which exclude Maui wildfire-related costs, and expenses taken in connection with HEI’s ongoing review of strategic options for Pacific Current. See “Explanation of HEI’s Use of Certain Unaudited Non-GAAP Measures” and the related GAAP reconciliations at the end of this release.
4
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.
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.
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Hawaiian Electric Industries, Inc. (HEI) and Subsidiaries
CONSOLIDATED STATEMENTS OF INCOME DATA
(Unaudited)
| Three months ended March 31 | ||||||||||||||
| (in thousands, except per share amounts) | 2026 | 2025 | ||||||||||||
| Revenues | ||||||||||||||
| Electric utility | $ | 744,040 | $ | 738,366 | ||||||||||
| Other | 2,407 | 5,704 | ||||||||||||
| Total revenues | 746,447 | 744,070 | ||||||||||||
| Expenses | ||||||||||||||
| Electric utility | 681,507 | 662,429 | ||||||||||||
| Other | 11,563 | 19,221 | ||||||||||||
| Total expenses | 693,070 | 681,650 | ||||||||||||
| Operating income (loss) | ||||||||||||||
| Electric utility | 62,533 | 75,937 | ||||||||||||
| Other | (9,156) | (13,517) | ||||||||||||
| Total operating income | 53,377 | 62,420 | ||||||||||||
| Retirement defined benefits credit—other than service costs | 879 | 917 | ||||||||||||
| Interest expense, net | (31,128) | (34,212) | ||||||||||||
| Allowance for borrowed funds used during construction | 1,705 | 1,417 | ||||||||||||
| Allowance for equity funds used during construction | 3,764 | 3,585 | ||||||||||||
| Interest and dividend income | 9,995 | 12,623 | ||||||||||||
| Loss on sale of a subsidiary | — | (13,211) | ||||||||||||
| Income before income taxes | 38,592 | 33,539 | ||||||||||||
| Income tax expense | 8,142 | 6,395 | ||||||||||||
| Net income | 30,450 | 27,144 | ||||||||||||
| Preferred stock dividends of subsidiaries | — | 473 | ||||||||||||
| Net income for common stock | $ | 30,450 | $ | 26,671 | ||||||||||
| Basic earnings per common share | $ | 0.18 | $ | 0.15 | ||||||||||
| Diluted earnings per common share | $ | 0.18 | $ | 0.15 | ||||||||||
| Weighted-average number of common shares outstanding | 172,626 | 172,478 | ||||||||||||
| Weighted-average shares assuming dilution | 173,326 | 172,812 | ||||||||||||
| Income (loss) for common stock by segment | ||||||||||||||
| Electric utility | $ | 35,343 | $ | 47,816 | ||||||||||
| Other | (4,893) | (21,145) | ||||||||||||
| Income for common stock | $ | 30,450 | $ | 26,671 | ||||||||||
| Comprehensive income attributable to HEI | $ | 30,376 | $ | 26,211 | ||||||||||
Return on average common equity (%) (twelve months ended)1 | 8.1 | NM | ||||||||||||
1 Simple average based on income from continuing operations.
NM Not meaningful.
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
6
Hawaiian Electric Company, Inc. (Hawaiian Electric) and Subsidiaries
CONSOLIDATED STATEMENTS OF INCOME DATA
(Unaudited)
| Three months ended March 31 | ||||||||||||||
| ($ in thousands, except per barrel amounts) | 2026 | 2025 | ||||||||||||
| Revenues | $ | 744,040 | $ | 738,366 | ||||||||||
| Expenses | ||||||||||||||
| Fuel oil | 236,913 | 238,721 | ||||||||||||
| Purchased power | 145,274 | 146,717 | ||||||||||||
| Other operation and maintenance | 162,217 | 143,108 | ||||||||||||
| Depreciation | 66,446 | 64,019 | ||||||||||||
| Taxes, other than income taxes | 70,657 | 69,864 | ||||||||||||
| Total expenses | 681,507 | 662,429 | ||||||||||||
| Operating income | 62,533 | 75,937 | ||||||||||||
| Allowance for equity funds used during construction | 3,764 | 3,585 | ||||||||||||
| Retirement defined benefits credit—other than service costs | 1,050 | 1,051 | ||||||||||||
| Interest expense and other charges, net | (27,876) | (22,452) | ||||||||||||
| Allowance for borrowed funds used during construction | 1,705 | 1,417 | ||||||||||||
| Interest income | 3,868 | 1,981 | ||||||||||||
| Income before income taxes | 45,044 | 61,519 | ||||||||||||
| Income tax expense | 9,701 | 13,204 | ||||||||||||
| Net income | 35,343 | 48,315 | ||||||||||||
| Preferred stock dividends of subsidiaries | — | 229 | ||||||||||||
| Net income attributable to Hawaiian Electric | 35,343 | 48,086 | ||||||||||||
| Preferred stock dividends of Hawaiian Electric | — | 270 | ||||||||||||
| Net income for common stock | $ | 35,343 | $ | 47,816 | ||||||||||
| Comprehensive income attributable to Hawaiian Electric | $ | 35,296 | $ | 47,769 | ||||||||||
| OTHER ELECTRIC UTILITY INFORMATION | ||||||||||||||
| Kilowatthour sales (millions) | ||||||||||||||
| Hawaiian Electric | 1,457 | 1,453 | ||||||||||||
| Hawaii Electric Light | 258 | 255 | ||||||||||||
| Maui Electric | 257 | 257 | ||||||||||||
| 1,972 | 1,965 | |||||||||||||
| Average fuel oil cost per barrel | $ | 95.53 | $ | 104.55 | ||||||||||
Return on average common equity (%) (twelve months ended)1 | 10.0 | NM | ||||||||||||
1 Simple average.
NM Not meaningful.
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
7
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. 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 costs related to the Maui wildfires 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 March 31 | ||||||||||||||
| (in thousands) | 2026 | 2025 | ||||||||||||
| Maui windstorm and wildfires related costs | ||||||||||||||
| Pretax expenses: | ||||||||||||||
| Legal expenses | $ | 1,907 | $ | 8,850 | ||||||||||
| Outside services expense | — | 124 | ||||||||||||
| Other expense | 108 | 5,928 | ||||||||||||
| Interest expense | — | 2,031 | ||||||||||||
| Pretax expenses | 2,015 | 16,933 | ||||||||||||
| Insurance recoveries | (1,332) | (6,722) | ||||||||||||
| Deferral of cost | — | (5,683) | ||||||||||||
| Total Maui windstorm and wildfires related expenses, net of insurance recoveries and approved deferral treatment | 683 | 4,528 | ||||||||||||
| Pretax loss on sale of a subsidiary | — | 13,211 | ||||||||||||
Income tax benefits2 | (176) | (4,568) | ||||||||||||
| After-tax adjustments | $ | 507 | $ | 13,171 | ||||||||||
1 Accounting principles generally accepted in the United States of America.
2 Current year composite statutory tax rate of 25.75%.
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.
8
Reconciliation of GAAP to non-GAAP Measures (continued)
Hawaiian Electric Industries, Inc. (HEI) and Subsidiaries
Unaudited
| Three months ended March 31 | ||||||||||||||
| (in thousands) | 2026 | 2025 | ||||||||||||
| HEI Consolidated | ||||||||||||||
GAAP1 income (as reported) | $ | 30,450 | $ | 26,671 | ||||||||||
Excluding special items related to the Maui windstorm and wildfires (after tax)2: | ||||||||||||||
| Legal expenses | 1,416 | 6,571 | ||||||||||||
| Outside services expense | — | 92 | ||||||||||||
| Other expense | 80 | 4,402 | ||||||||||||
| Interest expense | — | 1,508 | ||||||||||||
| After tax expenses | 1,496 | 12,573 | ||||||||||||
| Insurance recoveries | (989) | (4,991) | ||||||||||||
| Deferral of cost | — | (4,220) | ||||||||||||
| Total Maui windstorm and wildfires related expenses, net of insurance recoveries and approved deferral treatment (after tax) | 507 | 3,362 | ||||||||||||
Loss on sale of a subsidiary (after tax)2 | — | 9,809 | ||||||||||||
| Non-GAAP (Core) income | $ | 30,957 | $ | 39,842 | ||||||||||
| GAAP Diluted earnings per share (as reported) | $ | 0.18 | $ | 0.15 | ||||||||||
| Non-GAAP (Core) Diluted earnings per share | $ | 0.18 | $ | 0.23 | ||||||||||
1 Accounting principles generally accepted in the United States of America.
2 Current year composite statutory tax rate of 25.75%.
9
Reconciliation of GAAP to non-GAAP Measures (continued)
Hawaiian Electric Company, Inc. and Subsidiaries
Unaudited
| Three months ended March 31 | ||||||||||||||
| (in thousands) | 2026 | 2025 | ||||||||||||
| Maui windstorm and wildfires related costs | ||||||||||||||
| Pretax expenses: | ||||||||||||||
| Legal expenses | $ | 1,455 | $ | 3,849 | ||||||||||
| Other expense | — | 5,695 | ||||||||||||
| Interest expense | — | 1,752 | ||||||||||||
| Pretax expenses | 1,455 | 11,296 | ||||||||||||
| Insurance recoveries | (961) | (3,064) | ||||||||||||
| Deferral of cost | — | (5,683) | ||||||||||||
| Total Maui windstorm and wildfires related expenses, net of insurance recoveries and approved deferral treatment | 494 | 2,549 | ||||||||||||
Income tax benefits1 | (127) | (656) | ||||||||||||
| After-tax adjustments | $ | 367 | $ | 1,893 | ||||||||||
| Hawaiian Electric consolidated net income | ||||||||||||||
GAAP2 net income (as reported) | $ | 35,343 | $ | 47,816 | ||||||||||
Excluding special items related to the Maui windstorm and wildfires (after tax)1: | ||||||||||||||
| Legal expenses | 1,080 | 2,858 | ||||||||||||
| Other expense | — | 4,229 | ||||||||||||
| Interest expense | — | 1,301 | ||||||||||||
| After tax expenses | 1,080 | 8,388 | ||||||||||||
| Insurance recoveries | (713) | (2,275) | ||||||||||||
| Deferral of cost | — | (4,220) | ||||||||||||
| Total Maui windstorm and wildfires related expenses, net of insurance recoveries and approved deferral treatment (after tax) | 367 | 1,893 | ||||||||||||
| Non-GAAP (Core) net income | $ | 35,710 | $ | 49,709 | ||||||||||
| Three months ended March 31 | 2026 | 2025 | ||||||||||||
| Ratios (%) | ||||||||||||||
Based on GAAP - Return on average equity3 | 10.0 | NM | ||||||||||||
Based on Non-GAAP (core) - Return on average equity3,4 | 6.1 | 7.4 | ||||||||||||
1 Current year composite statutory tax rate of 25.75%.
2 Accounting principles generally accepted in the United States of America.
3 Simple average.
4 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 31, 2026.
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.
10
Reconciliation of GAAP to non-GAAP Measures (continued)
Holding and Other Companies
Unaudited
| Three months ended March 31 | ||||||||||||||
| (in thousands) | 2026 | 2025 | ||||||||||||
| Maui windstorm and wildfires related costs | ||||||||||||||
| Pretax expenses: | ||||||||||||||
| Legal expenses | $ | 452 | $ | 5,001 | ||||||||||
| Outside services expense | — | 124 | ||||||||||||
| Other expense | 108 | 233 | ||||||||||||
| Interest expense | — | 279 | ||||||||||||
| Pretax expenses | 560 | 5,637 | ||||||||||||
| Insurance recoveries | (371) | (3,658) | ||||||||||||
| Total Maui windstorm and wildfires related expenses, net of insurance recoveries | 189 | 1,979 | ||||||||||||
| Pretax loss on sale of a subsidiary | — | 13,211 | ||||||||||||
Income tax benefits1 | (49) | (3,912) | ||||||||||||
| After-tax adjustments | $ | 140 | $ | 11,278 | ||||||||||
| Holding and Other Companies net loss | ||||||||||||||
GAAP2 net loss (as reported) | $ | (4,893) | $ | (21,145) | ||||||||||
Excluding special items related to the Maui windstorm and wildfires (after tax)1: | ||||||||||||||
| Legal expenses | 335 | 3,713 | ||||||||||||
| Outside services expense | — | 92 | ||||||||||||
| Other expense | 80 | 173 | ||||||||||||
| Interest expense | — | 207 | ||||||||||||
| Maui windstorm and wildfires related expenses (after tax) | 415 | 4,185 | ||||||||||||
| Insurance recoveries | (275) | (2,716) | ||||||||||||
| Total Maui windstorm and wildfires related expenses, net of insurance recoveries (after tax) | 140 | 1,469 | ||||||||||||
| Loss on sale of a subsidiary | — | 9,809 | ||||||||||||
| Non-GAAP (Core) net loss | $ | (4,753) | $ | (9,867) | ||||||||||
1 Current year composite statutory tax rate of 25.75%.
2 Accounting principles generally accepted in the United States of America.
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.
11
FAQ
How did Hawaiian Electric Industries (HE) perform financially in Q1 2026?
Hawaiian Electric Industries reported Q1 2026 net income of $30 million, or $0.18 per share, compared with $27 million, or $0.15 per share, in Q1 2025. Core net income, excluding wildfire and strategic review costs, was $31 million versus $40 million a year earlier.
What was Hawaiian Electric’s utility segment profit in the first quarter of 2026?
The utility segment generated net income of $35.3 million in Q1 2026, down from $48.3 million in Q1 2025. Core net income was $36 million versus $50 million, reflecting higher storm response, insurance, power supply, transmission and distribution, and other O&M expenses.
How did the wildfire settlement affect HEI’s credit ratings and liquidity?
Following settlement finalization, Moody’s upgraded HEI’s credit rating to Ba2 and Hawaiian Electric’s to Ba1. The company also reported approximately $1.5 billion of enterprise-wide liquidity at quarter-end, supporting its ability to fund operations, investments, and settlement obligations.
What is HEI’s outlook for utility operating and maintenance expenses in 2026?
Hawaiian Electric expects 2026 O&M expenses, excluding pension, to significantly outpace inflation. Drivers include higher wildfire-related insurance premiums, storm response, vegetation management, maintenance, IT and cyber costs, and labor, ahead of a proposed 2027 rate rebasing intended to address many of these pressures.
What leadership changes did Hawaiian Electric Industries announce?
Effective June 1, Scott Seu will serve as CEO of both HEI and Hawaiian Electric, while Shelee Kimura will become President of both companies. This simplified leadership structure reflects HEI’s pure-play utility focus following divestment of substantially all non-utility businesses.