Hawaiian Electric Industries (HE) Q2 2026 earnings summary

Executive summary

• Q2 2026 results were shaped by significant wildfire-related items, including a $154 million reduction in wildfire settlement liability expense and a $101 million after-tax non-cash gain from remeasurement, driving GAAP net income to $123.2 million.

• Core net income, excluding wildfire and non-core items, was $22.5 million ($0.13/share), down from $35.4 million year-over-year, mainly due to higher O&M and interest expenses.

• PUC approved $350 million in Wildfire Mitigation Plan (WMP) recovery, with securitization planned to minimize customer impact.

• Major renewable energy procurements and grid modernization initiatives advanced, including a historic RFP for 1,650 GWh of renewables and 465 MW of grid-forming resources.

• Legislative actions in 2025 supported wildfire settlement funding, limited customer bill impacts, and protected clean energy procurement.

Financial highlights

• Q2 2026 GAAP net income was $123.2 million ($0.71/share), with core net income at $22.5 million ($0.13/share), reflecting a $103.5 million Maui wildfire benefit and $2.8 million Pacific Current asset impairment.

• Revenues for Q2 2026 rose 26% year-over-year to $939.7 million, with operating income up to $204.2 million from $53.7 million.

• Utility core net income fell to $32.6 million from $42.5 million year-over-year, mainly due to higher interest and O&M expenses.

• Total liquidity at quarter-end was approximately $1.3 billion, with $52 million and $186 million in unrestricted cash at the holding company and utility, respectively.

• S&P and Moody’s upgraded credit ratings by one notch in 2026, citing wildfire risk reduction and improved business risk profile.

Outlook and guidance

• Capital expenditures forecasted at $700–$750 million in 2026, rising to $750–$850 million by 2028, focused on wildfire mitigation, grid modernization, and resilience.

• Expect higher O&M for the full year, driven by storm response, vegetation management, insurance, and IT costs.

• Rate rebasing request aims to address structurally higher costs, with new rates expected January 2027.

• Ongoing efforts to align cost recovery with actual expense growth through regulatory changes and internal efficiency measures.

• Management expects short-term liquidity to be sufficient, but long-term liquidity will be impacted by remaining wildfire settlement payments and higher working capital needs.