Hawaiian Electric Industries, Inc.

What they do

HEI's one reportable segment is Electric utility: Hawaiian Electric and its subsidiaries Hawaii Electric Light and Maui Electric operate five separate grids serving Oahu, Hawaii, Maui, Lanai and Molokai. The 'All Other' non-reportable segment holds corporate-level expenses and Pacific Current, a non-regulated clean energy and sustainable infrastructure investor whose investments were all sold in 2025 except Mahipapa, which is being sold. HEI previously also owned American Savings Bank, F.S.B., which was sold on December 31, 2024.

Revenue drivers

• Electric utility — The only reportable segment, providing regulated electric service across five Hawaiian island grids; essentially all consolidated revenue. Second quarter 2026 revenue was $939.7 million.
• All Other (Pacific Current and corporate) — Non-regulated clean energy/infrastructure investments plus HEI corporate expenses; Pacific Current's investments were all sold in 2025 except Mahipapa, which is in the process of being sold, so this segment is shrinking.
• Rate mechanisms (ARA and cost recovery) — Utility revenue is shaped by the annual revenue adjustment mechanism, energy cost recovery clause and other PUC-approved recovery mechanisms; management cited the ARA as a driver of $8 million of higher second quarter 2026 revenues.

Recent performance

Second quarter 2026 net income was $123.2 million, or $0.71 per diluted share, versus $26.1 million, or $0.15 per share, a year earlier. The increase included a $153.9 million pre-tax non-cash gain from remeasuring the remaining wildfire settlement liability from $1.44 billion to $1.30 billion after the settlement agreement was finalized in April 2026. Core net income, which excludes Maui wildfire-related items and Pacific Current strategic review expenses, was $22 million, or $0.13 per share, versus $35 million, or $0.20 per share in 2025. Hawaiian Electric's second quarter 2026 net income was $138 million versus $39 million a year earlier. Six-month 2026 revenue was $1,686.2 million with net income for common stock of $153.7 million.

Strategy

Management submitted an Integrated Grid Plan Request for Proposals to the PUC on July 17, 2026, seeking nearly 1,650 GWh of variable renewable energy, 465 MW of grid-forming resources and 111 MW of firm generating capacity. The PUC fully approved Wildfire Mitigation Plan costs, which HEI plans to securitize to prioritize customer affordability. HEI has suspended new Pacific Current investments and is selling the remaining operating subsidiary, Mahipapa. Management emphasizes competitive procurement to attract the lowest customer pricing and cites recent credit rating upgrades as reducing borrowing costs.

Risks

• Maui wildfire settlement obligations — HEI and Hawaiian Electric must contribute $1.99 billion of the approximately $4.04 billion total defendant settlement, including $75 million already contributed to the One Ohana Initiative, and the Class Settlement Agreement still requires final court approval.
• Wildfire liability and related losses — The August 8, 2023 West Maui and Upcountry fires caused 102 confirmed fatalities and widespread property damage, and the 10-K states these losses did and may continue to materially and adversely affect financial condition, liquidity, cash flows and results of operations.
• Holding company structural subordination — HEI's funds come primarily from dividends from utility subsidiaries, and subsidiary dividend capacity is subject to contractual and regulatory restrictions; HEI creditors and shareholders are subordinate to subsidiary creditors.
• Regulatory dependence — Utility revenue and cost recovery, including the annual revenue adjustment mechanism and the Wildfire Mitigation Plan securitization, depend on PUC approvals that are outside the company's control.

Outlook

Management is focused on executing the Wildfire Mitigation Plan and procuring new renewable and firm generation through the July 2026 IGP Request for Proposals to meet growing energy needs at lower cost. The PUC's full approval of Wildfire Mitigation Plan costs, together with planned securitization and recent credit rating upgrades, is presented as supporting affordability and lowering borrowing costs. No specific numerical earnings or capital guidance is provided in the excerpts.