HEI also unveiled a streamlined leadership structure placing Scott Seu atop both the holding company and its utility subsidiary, even as adjusted earnings slipped on storm-related costs.

May 11, 2026

Hawaiian Electric Industries reported first-quarter 2026 net income of $30 million, or 18 cents per share — up from $27 million, or 15 cents per share, a year earlier. The Honolulu-based parent of Hawaiian Electric credited the improvement to lower wildfire-related expenses and the absence of a 2025 loss tied to the sale of its banking subsidiary.

The headline number masked weaker underlying performance. On a Core basis — excluding Maui wildfire costs and expenses linked to the strategic review of Pacific Current — earnings declined to $31 million, or 18 cents per share, from $40 million, or 23 cents, in the prior-year quarter.

Wildfire Settlement Reaches Payment Phase

The quarter’s defining development came in April. On the 10th, the final subrogation insurer withdrew its appeal, removing the last barrier to implementation of the global tort litigation settlement tied to the August 2023 Maui wildfires. HEI then issued the first of four scheduled annual installments of $479 million.

Moody’s responded by lifting credit ratings for both entities, placing HEI at Ba2 and Hawaiian Electric at Ba1. Enterprise-wide liquidity stood at roughly $1.5 billion at quarter-end.

President and Chief Executive Scott Seu described the milestone as a pivotal moment for those affected by the disaster, adding that the company remains focused on supporting recovery across the communities it serves.

Utility Earnings Pressured by Storm Costs

Hawaiian Electric Company, the operating utility, posted net income of $35 million for the quarter, down from $48 million a year earlier. The decline reflected $19 million in higher operations and maintenance expenses, driven by:

• $7 million in storm response costs
• $6 million in higher insurance expenses
• $4 million in higher power supply costs
• $3 million in transmission and distribution expenses

Higher interest expense and depreciation added further pressure. Those headwinds were partially offset by $10 million in additional revenue from the annual revenue adjustment mechanism and $2 million in higher interest income.

Severe winter storms and historic flooding across the islands drove the elevated cost base during the first quarter. Management expects full-year 2026 operations and maintenance expenses to significantly outpace inflation, citing additional drivers including deferred wildfire insurance premiums, expanded vegetation management following record rainfall, station maintenance and overhauls, cybersecurity investments and higher labor costs. The utility is heading into 2027 with a rate-rebasing case intended to recover many of those expenses.

Hawaiian Electric submitted an updated Wildfire Mitigation Plan covering 2026 and 2027 last month.

Holding Company Loss Narrows

The holding and other companies segment narrowed its net loss to $5 million from $21 million a year earlier. The improvement primarily reflected the prior-year impact of the Pacific Current strategic review and lower interest expense following the retirement of holding-company debt after the April 2025 sale of American Savings Bank.

Leadership Consolidation

HEI also disclosed a streamlined leadership structure intended to reflect its transition into a pure-play utility company. Effective June 1, Seu, who has led HEI since 2022, will assume the chief executive role at both HEI and Hawaiian Electric. Shelee Kimura, who has led Hawaiian Electric since 2022, will serve as president of both entities. A recent decision by the Hawaii Public Utilities Commission cleared the way for the consolidated leadership configuration.

Seu said the unified structure positions the 135-year-old company to operate more efficiently as it continues to deliver power across the islands, where Hawaiian Electric supplies roughly 95 percent of the state’s population.