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SEC filingHEI reported Q1 2026 net income of $30M ($0.18 per share), with core net income of $31M, as the Maui wildfire settlement was finalized and the utility faced higher O&M expenses.
Hawaiian Electric Industries reported first quarter 2026 net income of $30.5 million ($0.18 per diluted share), compared to $27.1 million ($0.15 per share) in the prior year. On a core basis, excluding Maui wildfire-related costs and Pacific Current strategic review expenses, net income was $31 million ($0.18 per share) versus $40 million ($0.23 per share) in 2025. The decline in core earnings was driven by higher utility operating expenses, partially offset by revenue growth.
The electric utility segment reported net income of $35.3 million, down from $48.1 million a year ago. The decrease was primarily due to a $19 million increase in operation and maintenance expenses, including $7 million in storm response costs from severe weather and historic flooding, $6 million in higher insurance costs (reflecting deferred wildfire insurance premiums), $4 million in higher power supply costs, and $3 million in transmission and distribution expenses. Higher interest expense ($5 million) and depreciation ($2 million) also weighed on results. These were partially offset by $10 million in higher revenues from the annual revenue adjustment mechanism and $2 million in higher interest income.
Management highlighted that the global wildfire tort litigation settlement was finalized on April 10, 2026, with the first of four $479 million annual payments made in April. Following the settlement, Moody's upgraded HEI and Hawaiian Electric's credit ratings to Ba2 and Ba1, respectively. The company maintained strong liquidity of approximately $1.5 billion at quarter-end.
Looking ahead, Hawaiian Electric expects 2026 O&M expense (excluding pension) to significantly outpace inflation due to higher insurance premiums, storm response, vegetation management, reliability investments, cyber defenses, and labor costs. The utility plans to address these costs through a rate rebasing request in 2027. Additionally, the maximum penalty under the Fuel Cost Risk Sharing mechanism is expected, reducing fuel revenue.
In a leadership update, Scott Seu will become CEO of both HEI and Hawaiian Electric, and Shelee Kimura will become President of both companies, effective June 1, 2026, reflecting the company's pure-play utility focus after divesting non-utility businesses.