Hawaiian Electric Industries (HE) Q1 2025 earnings summary

Executive summary

• Entered into $1.99 billion Maui wildfire settlement agreements, with the first $479 million payment due in early 2026, supported by favorable Hawaii Supreme Court decision and new state legislation; no admission of liability.

• Corporate simplification underway, including the sale of American Savings Bank and Pacific Current assets, to focus on regulated utility operations; proceeds used for significant debt reduction.

• Enhanced wildfire safety strategy and robust CapEx cycle planned, with nearly $400 million in capital investment for 2025–2027 and grid modernization initiatives.

• Legislative session resulted in passage of bills supporting wildfire liability caps, securitization for utility CapEx, and financial backstops for clean energy procurement.

• $557.7 million raised from equity issuance to fund the first settlement payment, with additional capital raising plans underway.

Financial highlights

• Q1 2025 net income was $26.7 million ($0.15/share), with core net income from continuing operations at $39.8 million ($0.23/share), excluding wildfire-related expenses and asset sale losses.

• Q1 2025 revenues were $744.1 million, down from $792.0 million in Q1 2024, mainly due to lower fuel prices and the bank segment sale.

• Utility segment core net income rose to $49.7 million from $44.2 million year-over-year, driven by improved performance and lower bad debt, offset by higher wildfire and insurance costs.

• Holding company core net loss improved to $9.9 million from $15.8 million, aided by higher interest income.

• Operating income margin improved to 8.4% from 6.4% year-over-year.

Outlook and guidance

• First Maui wildfire settlement payment of $479 million expected in early 2026, with subsequent payments to follow; financing strategy will combine debt and equity, but long-term funding for the remaining $1.44 billion is not assured.

• Utility dividend reinstated, with a $10 million quarterly dividend approved for Q1 2025.

• Ongoing focus on clean energy goals, 100% RPS, and net zero by 2045, with robust capital spend cycle over the next 3–5 years.

• Target revenue rebasing for the next PBR period to be filed later in 2025, using a 2026 test year.

• Utilities plan to seek cost recovery for wildfire-related regulatory assets, subject to PUC approval.