Hawaiian Electric Industries Inc
Q1 2026 Earnings
Market Reaction
S&P 500 over the same 30 days: −0.21%.
Did HE Beat Earnings? Q1 2026 Results
Hawaiian Electric Industries delivered a disappointing first quarter for 2026, posting earnings per share of $0.18 against a consensus estimate of $0.28, a miss of 35.48%, as a surge in operating costs at the utility overwhelmed modest revenue growth of just 0.3% year over year to $746.45 million. The primary culprit was a $19.00 million jump in operations and maintenance expenses at Hawaiian Electric, driven by $7.00 million in storm response costs from severe Kona-low weather events, $6.00 million in higher insurance premiums tied to previously deferred wildfire costs, and additional pressures from power supply and transmission expenses. On a core non-GAAP basis, earnings fell to $0.18 per share from $0.23 a year ago, underscoring the underlying utility pressure. A credit upgrade from Moody's following the finalization of the Maui wildfire settlement offered a constructive backdrop, though management cautioned that 2026 remains a transitional year, with operating costs expected to significantly exceed inflation ahead of a planned 2027 rate rebasing, leaving investors weighing near-term headwinds against a gradually stabilizing liability picture.
- Higher revenues from annual revenue adjustment mechanism (+$10 million)
- Lower Maui wildfire-related expenses ($0.5 million after-tax vs. $3.4 million in Q1 2025)
- Absence of $13.2 million loss on sale of ASB subsidiary recorded in Q1 2025
- Lower holding company net interest expense following debt retirement with ASB sale proceeds
“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 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.”
Hawaiian Electric CEO, on the earnings call
Forward Guidance & Outlook
Hawaiian Electric expects 2026 O&M expense (excluding pension) to significantly outpace inflation during this transitional year ahead of the 2027 rate rebasing. Key cost drivers include higher insurance premiums reflecting previously deferred wildfire insurance costs, storm response expenses from severe weather in February and March, higher vegetation management costs following record Q1 rainfall, increased overhaul and station maintenance expenses prioritizing reliability, higher IT costs for cyber defenses, and higher labor and benefits costs. The maximum penalty under the Fuel Cost Risk Sharing mechanism is expected. The proposed rate rebasing is intended to address many of these higher O&M costs.
HE YoY Financials
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Figures from SEC filings and company reports. Not investment advice.