Hawaiian Electric Industries 2025 Q3 Earnings Record Net Income Surges 130%

Hawaiian Electric Industries (HE) delivered a dramatic turnaround in Q3 2025, reporting net income of $31.22 million ($0.18 EPS) compared to a $103.93 million loss in the prior-year period. The results exceeded expectations, driven by operational improvements and reduced wildfire-related liabilities. Management outlined a $1.8B–$2.4B capital expenditure plan through 2028 to bolster grid resilience and advance decarbonization initiatives, while liquidity was strengthened via a $500 million debt issuance and credit facility expansion.

Revenue

The Electric utility segment led with $787.43 million in revenue, contributing the vast majority of the company’s total reported revenue of $790.61 million. The "Other" segment, which includes non-reportable operations, added $3.18 million. The year-over-year decline in total revenue to $790.61 million from $829.62 million was primarily attributed to lower electric utility revenues amid ongoing operational challenges.

Earnings/Net Income

The company’s profitability rebounded sharply, with net income surging 130% to $31.22 million in Q3 2025, reversing a $103.93 million loss in the prior-year period. Earnings per share (EPS) improved to $0.18 from a $0.91 loss, reflecting a 119.8% positive swing. This turnaround underscores the company’s ability to mitigate wildfire liabilities and optimize cost structures. The sustained profitability over 20+ years highlights operational resilience.

Price Action

Hawaiian Electric’s stock edged up 0.17% in the latest trading day but declined 0.43% over the prior week. Month-to-date, shares climbed 4.23%, aligning with a broader recovery trend post-earnings. The strategy of buying shares on revenue announcements and holding for 30 days has historically delivered a 15.23% cumulative return over three years, averaging 4.81% annually.

Post-Earnings Price Action Review

A long-term investment strategy centered on purchasing Hawaiian Electric shares following earnings announcements has demonstrated consistent performance, capturing steady growth amid market fluctuations. Over the past three years, this approach yielded a 15.23% cumulative return, translating to an average annual return of 4.81%. The effectiveness of the strategy suggests that upward trends post-earnings are reliably harnessed, even as the stock navigates broader market dynamics.

CEO Commentary

Scott W. Seu, HEI President and CEO, emphasized progress on financial resilience and operational safety. He highlighted the successful implementation of wildfire mitigation measures, including AI-assisted surveillance and in-house meteorological support, as well as advancements in the Maui tort litigation settlement. Seu noted that liquidity improvements—via a $500 million debt offering and expanded credit facilities—position the company to fund critical investments in grid reliability and safety while navigating regulatory processes.

Guidance

The company provided multi-year capital expenditure (CapEx) guidance, projecting $400 million in 2025, $550–$700 million in 2026, and $1.8–$2.4 billion across 2026–2028. Funding will rely on retained earnings, debt issuance, and securitization. The rate rebasing proposal is due January 2026, with a potential rate case filing if the process falters. Management declined to provide explicit earnings guidance pending final settlement approval, prioritizing caution to avoid revising projections.

Additional News

1. Maui Wildfire Litigation: The $479 million litigation settlement is on track for final court approval by January 2026, with the first payment expected no earlier than Q1 2026.

2. Strategic Asset Sales: HEI plans to monetize its 9.9% stake in American Savings Bank within six months, aiming to streamline operations and focus on core utility services.

3. Regulatory Developments: The Public Utilities Commission (PUC) is finalizing a wildfire recovery fund study, expected to influence future legislation and liability frameworks.