Hawaiian Electric Industries 2025 Q3 Earnings Net Income Surges 130%

Hawaiian Electric Industries (HE) delivered a significant turnaround in Q3 2025, reporting a 130% increase in net income and reversing a prior-year loss. The results exceeded expectations, with strategic cost controls and improved operational efficiency driving profitability. The company also outlined a multi-year capital expenditure plan and advanced its Maui wildfire litigation settlement, signaling long-term resilience.

Revenue

Hawaiian Electric Industries’ total revenue declined 5.1% year-over-year to $787.43 million in Q3 2025, driven by lower electric utility performance. The Electric Utility segment led with $787.43 million in revenue, while the 'Other' segment contributed $3.18 million, comprising non-reportable business units. This segment breakdown highlights the company’s continued focus on core utility operations.

Earnings/Net Income

The company’s financial turnaround was marked by a net income of $31.22 million in Q3 2025, a dramatic improvement from a $103.93 million loss in the prior year. Earnings per share (EPS) surged to $0.18, reversing a $0.91 loss, reflecting effective cost management and regulatory settlements. This 130% net income swing underscores strong operational resilience.

Price Action

Hawaiian Electric Industries’ stock edged up 0.17% on the latest trading day but declined 0.43% over the past week. Month-to-date, the stock has gained 4.23%, indicating mixed short-term investor sentiment.

Post-Earnings Price Action Review

The strategy of buying HE shares on the date of its revenue growth announcement and holding for 30 days yielded a cumulative return of 7.5% over the past three years, with an average annual return of approximately 2.5%. This consistent performance suggests the market responded positively to HE’s revenue announcements, capturing modest gains over time.

CEO Commentary

CEO Scott W. Seu emphasized progress on financial strength, including a successful $500 million debt issuance to enhance liquidity. He highlighted ongoing wildfire safety initiatives and the importance of resolving the Maui tort litigation settlement. “We remain focused on operational resilience and regulatory alignment,” Seu stated, noting cautious optimism amid challenges in the PUC approval process.

Guidance

The company outlined a $400 million 2025 capital expenditure plan, with projections of $550–$700 million in 2026. Funding will come from retained earnings and debt. The first Maui wildfire settlement payment is expected by Q1 2026. CFO Scott DeGhetto noted potential EPS guidance in Q4 but emphasized the need for regulatory approvals.

Additional News

1. Maui Wildfire Settlement Advancement: HEI anticipates final court approval of the $1.2 billion tort litigation settlement, with the first payment expected in early 2026.

2. CapEx Plan Expansion: The company announced a $1.8–$2.4 billion multi-year capital expenditure plan (2026–2028) to enhance grid resilience and wildfire mitigation.

3. Shareholder Litigation: Law firm Halper Sadeh LLC is investigating potential fiduciary breaches by HEI officers, urging shareholders to contact the firm for legal action.

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