Hawaiian Electric Industries (NYSE:HE) Releases Earnings Results

Key Points

• Hawaiian Electric Industries reported quarterly earnings of $0.18 per share, missing analyst expectations of $0.27, while revenue came in at $746.45 million versus the $805.26 million forecast.
• The company said it has finalized the Maui wildfire tort settlement, making its first payment and reducing a major legal uncertainty; Moody’s also upgraded both the utility and holding company after the settlement.
• Management flagged higher costs and pressure on earnings from rising oil prices, storm response, insurance, vegetation management and labor, along with a Fuel Cost Risk Sharing penalty that will reduce revenue.

Hawaiian Electric Industries (NYSE:HE - Get Free Report) announced its quarterly earnings data on Friday. The utilities provider reported $0.18 EPS for the quarter, missing analysts' consensus estimates of $0.27 by ($0.09), FiscalAI reports. Hawaiian Electric Industries had a net margin of 4.09% and a return on equity of 9.82%. The firm had revenue of $746.45 million during the quarter, compared to analysts' expectations of $805.26 million.

Here are the key takeaways from Hawaiian Electric Industries' conference call:

• The company finalized the Maui Wildfire tort settlement (final conditions satisfied April 10) and made the first of four $479 million annual payments from a special-purpose vehicle, reducing litigation uncertainty while planning to fund future payments with debt/convertible debt and/or equity targeting investment‑grade metrics.
• HEI reports strong liquidity and improving credit momentum — the utility and holding company have roughly ~$1 billion of combined liquidity (cash plus available credit/ATM/ABL facilities) and Moody’s upgraded the utility to Ba1 and the holding company to Ba2 after the settlement.
• Rising global oil prices are increasing customer bills and working capital needs; management expects higher O&M (driven by severe storm response, insurance, vegetation management, IT and labor) and will realize a penalty under the Fuel Cost Risk Sharing (FCRS), which reduces revenue and contributed to lower core earnings year‑over‑year.
• HEI and Ulupono submitted a joint rate rebasing proposal seeking ~5.3% consolidated base‑rate increase phased across 2027–28 (avg. bill +$8–$12 in 2027, +$2–$3 in 2028) with proposed PBR incentives (200 bps total); the PUC review process and final outcomes remain uncertain.
• The PUC approved the Waiau Generating Station repowering with $908 million recoverable through EPRM, HEI expects higher total project costs and plans to seek an additional ~$247 million in a future rate proceeding, and Waiau CapEx for 2026 was increased to ~$157 million.

Hawaiian Electric Industries Stock Performance

Shares of HE stock traded down $0.59 during trading hours on Friday, hitting $14.83. The stock had a trading volume of 3,263,313 shares, compared to its average volume of 1,626,839. The company has a debt-to-equity ratio of 1.74, a current ratio of 1.32 and a quick ratio of 1.32. The firm has a market capitalization of $2.56 billion, a PE ratio of 20.88 and a beta of 0.54. The stock's 50 day moving average is $15.18 and its 200 day moving average is $13.88. Hawaiian Electric Industries has a twelve month low of $10.14 and a twelve month high of $17.38.

Analyst Upgrades and Downgrades

HE has been the topic of a number of recent analyst reports. Barclays increased their price objective on shares of Hawaiian Electric Industries from $13.00 to $14.00 and gave the company an "equal weight" rating in a research report on Monday, March 2nd. Wall Street Zen downgraded shares of Hawaiian Electric Industries from a "buy" rating to a "hold" rating in a research report on Saturday, April 11th. Zacks Research downgraded shares of Hawaiian Electric Industries from a "strong-buy" rating to a "hold" rating in a research report on Wednesday. Weiss Ratings raised shares of Hawaiian Electric Industries from a "sell (d+)" rating to a "hold (c-)" rating in a research report on Monday, March 2nd. Finally, Jefferies Financial Group downgraded shares of Hawaiian Electric Industries from a "hold" rating to an "underperform" rating and dropped their target price for the company from $13.50 to $12.50 in a research report on Tuesday, January 20th. Three equities research analysts have rated the stock with a Hold rating and one has issued a Sell rating to the company. According to MarketBeat.com, the stock presently has an average rating of "Reduce" and a consensus target price of $13.25.

Institutional Trading of Hawaiian Electric Industries

Several institutional investors and hedge funds have recently bought and sold shares of HE. State Street Corp raised its position in Hawaiian Electric Industries by 56.9% in the 4th quarter. State Street Corp now owns 7,005,768 shares of the utilities provider's stock valued at $86,171,000 after purchasing an additional 2,540,134 shares during the last quarter. Public Sector Pension Investment Board purchased a new position in Hawaiian Electric Industries during the 4th quarter worth $7,348,000. Quantinno Capital Management LP grew its position in Hawaiian Electric Industries by 56.0% during the 2nd quarter. Quantinno Capital Management LP now owns 1,324,999 shares of the utilities provider's stock worth $14,085,000 after purchasing an additional 475,443 shares during the last quarter. Invesco Ltd. grew its position in Hawaiian Electric Industries by 160.8% during the 4th quarter. Invesco Ltd. now owns 682,036 shares of the utilities provider's stock worth $8,389,000 after purchasing an additional 420,560 shares during the last quarter. Finally, Yaupon Capital Management LP purchased a new position in Hawaiian Electric Industries during the 4th quarter worth $5,086,000. Hedge funds and other institutional investors own 59.91% of the company's stock.

Hawaiian Electric Industries Company Profile

Hawaiian Electric Industries, Inc is a diversified holding company operating in the energy and financial services sectors in the state of Hawaii. Its principal subsidiary, Hawaiian Electric Company, provides generation, transmission, distribution and customer service to the island of Oahu, while its Maui Electric and Hawaii Electric Light Company subsidiaries serve Maui, Molokai, Lanai and Hawaii Island. The roots of the electric utility business trace back to 1891 when service first commenced in Honolulu.

Through its subsidiary Hawaii Gas, HEI extends its energy portfolio to include the distribution of natural gas and propane, supporting residential, commercial and industrial customers across the islands.

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