Hawaiian Electric Industries (HE) Q1 2025 earnings summary

Executive summary

• Entered into $1.99 billion settlement agreements to resolve Maui wildfire tort claims, with the first $479 million installment due in early 2026 and no admission of liability; Hawaii Supreme Court decision and new state legislation support execution and future risk mitigation.

• Corporate simplification underway, including the sale of American Savings Bank and Pacific Current assets, focusing 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 bills supporting wildfire liability caps, securitization for mitigation investments, and clean energy procurement, providing funding for settlement and limiting customer bill impacts.

• Core operations performed well, with utility advancing resilience measures and maintaining strong liquidity.

Financial highlights

• Q1 2025 net income was $26.7 million ($0.15 per share), including a $13.2 million pre-tax loss on asset sale and wildfire-related expenses; Core net income was $39.8 million ($0.23 per share).

• Q1 2025 revenues were $744.1 million, down 6% year-over-year, 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.

• Holding company core net loss narrowed to $9.9 million from $15.8 million year-over-year.

• Operating income rose 23% to $62.4 million, driven by higher ARA revenue and lower O&M expenses.

Outlook and guidance

• First Maui wildfire settlement payment of $479 million expected in early 2026, with subsequent payments to follow; payments structured in four annual installments.

• Financing for future settlement payments will combine debt and equity, with details to be determined closer to payment dates; long-term funding for the remaining $1.44 billion settlement is not assured.

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

• Focus remains on advancing clean energy goals and achieving 100% RPS and net zero by 2045, with robust capital spend planned for reliability, safety, and decarbonization.

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