HE.NYSEHawaiian Electric Industries INC

8-K: Hawaiian Electric Navigates Wildfire Costs, Boosts Renewables

Sentiment:

Statistical Supplement

📋All filings for Hawaiian Electric Industries INC
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Hawaiian Electric Industries reports a return to profitability in 2025 despite ongoing wildfire liabilities, alongside increased renewable generation and reduced fuel costs.

Capital raiseA common stock offering in 2024 raised $575 million through the issuance of 62,162 shares.Proceeds from the issuance of long-term debt totaled $510 million in 2025.Hawaiian Electric Company issued $500 million in Senior Notes 2025, 6%, due 2033.
Better than expectedThe company returned to a positive net income of $123.12 million in 2025, a substantial recovery from the $1.43 billion net loss reported in 2024.Basic earnings per common share improved significantly to $0.71 in 2025 from a loss of $11.23 in 2024.The increase in consolidated renewable generation RPS to 37% and the decrease in average fuel oil cost per barrel to $100.40 indicate operational improvements and progress towards strategic goals.

Summary

  • Hawaiian Electric Industries (HEI) returned to a net income of $123.12 million in 2025, a significant recovery from the $1.43 billion net loss in 2024, but lower than $199.24 million in 2023.
  • Basic earnings per common share improved to $0.71 in 2025 from a loss of $11.23 in 2024.
  • Total revenues decreased to $3.09 billion in 2025 from $3.22 billion in 2024.
  • Wildfire tort-related claims remain a substantial liability, totaling $1.97 billion in 2025 ($530 million current, $1.44 billion noncurrent).
  • The company completed the sale of ASB, impacting assets and liabilities from discontinued operations, which showed a $(103.49) million loss in 2025.
  • Consolidated long-term debt, net, decreased to $2.41 billion in 2025 from $2.80 billion in 2024, while common stock equity increased to $1.61 billion from $1.48 billion.
  • Hawaiian Electric Company redeemed all issued and outstanding cumulative preferred stock on October 15, 2025.
  • Consolidated renewable generation RPS increased to 37% in 2025 from 36% in 2024 and 33% in 2023.
  • Average fuel oil cost per barrel decreased to $100.40 in 2025 from $115.00 in 2024.

Sentiment

Score: 6

Explanation: StockSavvy.ai views this filing as moderately positive. While the return to profitability and progress in renewable energy are encouraging, the persistent and substantial wildfire liabilities continue to cast a shadow over the company's financial health and future outlook.

Positives

  • Returned to a positive net income of $123.12 million in 2025, recovering from a $1.43 billion loss in 2024.
  • Basic earnings per common share improved to $0.71 in 2025 from a loss of $11.23 in 2024.
  • Consolidated renewable generation RPS increased to 37% in 2025, up from 36% in 2024 and 33% in 2023, indicating progress in clean energy transition.
  • Average fuel oil cost per barrel decreased to $100.40 in 2025 from $115.00 in 2024, reducing operating expenses.
  • Short-term borrowings were eliminated by December 31, 2025.
  • Consolidated long-term debt, net, decreased to $2.41 billion in 2025 from $2.80 billion in 2024.
  • Market price to book value per common share improved to 132% in 2025 from 113% in 2024.
  • Earned rate-making return on simple average rate base improved across all Hawaiian Electric utility segments in 2025.
  • Hawaiian Electric Company redeemed all issued and outstanding cumulative preferred stock on October 15, 2025.

Negatives

  • Total revenues decreased to $3.09 billion in 2025 from $3.22 billion in 2024.
  • Net income for common stock in 2025 ($123.12 million) is lower than 2023 ($199.24 million).
  • Wildfire tort-related claims remain a significant financial burden, with total liabilities of $1.97 billion in 2025.
  • Return on average common equity decreased to 8.0% in 2025 from 8.8% in 2023.
  • Net cash provided by operating activities decreased to $391.07 million in 2025 from $487.48 million in 2024.
  • The book return on simple average common equity for Hawaiian Electric was 19.27% in 2025, significantly lower than 78.96% in 2023, with 2024 being 'Not meaningful' due to wildfire liabilities.
  • Average revenue per KWH sold decreased across all customer categories in 2025 compared to 2024.
  • Discontinued operations resulted in a $(103.49) million loss in 2025.

Risks

  • Ongoing and substantial wildfire tort-related claims, with total liabilities of $1.97 billion as of December 31, 2025, posing a significant financial and operational risk.
  • The impact of wildfire liabilities renders certain key financial ratios, such as the utility's actual and allowed rates of return, 'not meaningful' for 2024.
  • Potential for further expenses related to discontinued operations, as evidenced by a $(103.49) million loss from discontinued operations in 2025.
  • Reliance on the Public Utilities Commission (PUC) for approved deferral treatment of wildfire expenses and rate-making decisions.

Future Outlook

The filing primarily provides historical financial and operational data through 2025. It indicates that Hawaiian Electric Industries and Hawaiian Electric Company intend to continue using HEI's website as a means of disclosing additional information, including in the Investor Relations section.

Industry Context

StockSavvy.ai notes that Hawaiian Electric Industries operates in a unique island utility market, facing significant challenges related to climate change impacts (wildfires) and the imperative for renewable energy transition. The increase in renewable generation RPS to 37% and the operationalization of Kapolei Energy Storage reflect broader industry trends towards decarbonization and grid modernization. The decrease in fuel oil costs is a positive for utilities reliant on fossil fuels, but the long-term trend is towards reducing this reliance. The substantial wildfire liabilities highlight the increasing financial risks faced by utilities in high-risk areas, a trend observed across the U.S. West Coast.

Comparison to Industry Standards

  • StockSavvy.ai notes that direct comparisons are challenging due to the unique operating environment in Hawaii and the specific impact of the 2024 wildfires. However, the 37% renewable generation RPS for 2025 is a positive step towards Hawaii's ambitious 100% renewable energy goal by 2045, positioning it ahead of many mainland U.S. utilities but still behind leaders in renewable integration like some European utilities or specific projects in California (e.g., PG&E's 85% clean energy by 2030 target).
  • The significant wildfire liabilities are comparable in scale and impact to those faced by California utilities like PG&E and Southern California Edison in recent years, underscoring a shared industry challenge in managing climate-related risks.

Legal Proceedings

  • The company faces significant wildfire tort-related claims, with a provision of $1.875 billion recorded in 2024 for electric utility expenses.
  • Total wildfire tort-related claims liabilities amounted to $1.97 billion as of December 31, 2025.

Stakeholder Impact

  • Shareholders experienced a return to positive earnings per share in 2025 after a significant loss in 2024, and an increase in common stock equity. However, the dividend payout ratio is 59.4%, and return on average common equity is slightly down from 2023.
  • Customers may benefit from decreasing average revenue per KWH sold and the ongoing transition to renewable energy, potentially leading to more stable and environmentally friendly power supply.
  • Creditors saw a decrease in long-term debt and elimination of short-term borrowings, which could be viewed positively, but the substantial wildfire liabilities represent a significant contingent risk.
  • Employees of Hawaiian Electric and its subsidiaries saw an increase in full-time employees in 2025.

Next Steps

  • HEI will post the 2025 Statistical Supplement on its website, www.hei.com, under Investor Relations, SEC Filings, and Statistical Supplement.
  • HEI and Hawaiian Electric intend to continue using HEI's website for disclosing additional information in the Investor Relations section.
  • Investors should monitor HEI's website, press releases, SEC filings, and public conference calls/webcasts.
  • Investors may refer to the Public Utilities Commission of the State of Hawaii (PUC) website at dms.puc.hawaii.gov/dms to review documents.

Key Dates

DateDescription
December 31, 2023Kapolei Energy Storage reached commercial operations.
December 31, 2024ASB was no longer a subsidiary of HEI as a result of the ASB sale transaction.
October 15, 2025Hawaiian Electric Company and its subsidiaries redeemed all of their issued and outstanding cumulative preferred stock.
December 31, 2025End of the fiscal year for which the statistical supplement provides data.
March 27, 2026Date of the 8-K report filing.
2026Maturity for Hawaiian Electric Refunding series 2017A (3.10%), Hawaii Electric Light Refunding series 2017A (3.10%), and Maui Electric Refunding series 2017A (3.10%).
2027Maturity for Hawaiian Electric Series 2013B (4.84%), Hawaii Electric Light Series 2013C (4.84%), and Maui Electric Series 2013A (4.84%).
2028Maturity for HEI 4.72% senior notes, HEI 2.82% senior notes, HEI 2.48% senior notes, HEI 6.04% senior notes, Hawaiian Electric Series 2018A (4.38%), Hawaii Electric Light Series 2018A (4.38%), and Maui Electric Series 2018A (4.38%).
2029Maturity for Hawaiian Electric Series 2012D (4.72%).
2030Maturity for HEI 2.98% senior notes, HEI revolving credit facility SOFR + 2.50%, Hawaiian Electric Series 2020A (3.31%) and Series 2023A (6.11%), and Maui Electric Series 2020A (3.31%).
2031Maturity for HEI 3.15% senior notes and HEI 2.78% senior notes.
2032Maturity for HEI 2.98% senior notes, HEI 5.43% senior notes, Hawaiian Electric Series 2012F (4.53%) and Series 2022A (3.70%), Hawaii Electric Light Series 2022A (3.70%), and Maui Electric Series 2022A (3.70%).
2033Maturity for HEI 6.10% senior notes, Hawaiian Electric Series 2018B (4.53%), Series 2023B (6.25%) and Senior Notes 2025 (6%), Hawaii Electric Light Series 2018B (4.53%) and Series 2023A (6.25%), and Maui Electric Series 2018B (4.53%) and Series 2023A (6.25%).
2034Maturity for HEI 5.43% senior notes, Hawaiian Electric Series 2019A (4.21%), Hawaii Electric Light Series 2019A (4.21%), and Maui Electric Series 2019A (4.21%).
2037Maturity for Hawaiian Electric Refunding series 2017B (4.00%), Hawaii Electric Light Refunding series 2017B (4.00%), and Maui Electric Refunding series 2017B (4.00%).
2039Maturity for Hawaiian Electric Refunding series 2019 (3.20%) and Hawaii Electric Light Refunding series 2019 (3.20%).
2040Maturity for Hawaiian Electric Series 2020D (3.28%) and Hawaii Electric Light Series 2020B (3.28%).
2042Maturity for Hawaiian Electric Series 2012E (5.39%).
2043Maturity for Hawaiian Electric Series 2013C (5.65%) and Maui Electric Series 2013B (5.65%).
2045Maturity for Hawaiian Electric Series 2015A (5.23%), Hawaii Electric Light Series 2015A (5.23%), and Maui Electric Series 2015A (5.23%).
2046Maturity for Hawaiian Electric Series 2016A (4.54%).
2047Maturity for Hawaiian Electric Series 2017A (4.31%) and Maui Electric Series 2017A (4.31%).
2048Maturity for Hawaiian Electric Series 2018C (4.72%), Hawaii Electric Light Series 2018C (4.72%), and Maui Electric Series 2018C (4.72%).
2049Maturity for Hawaiian Electric Series 2019 (3.50%), Hawaii Electric Light Series 2019 (3.50%), and Maui Electric Series 2019 (3.50%).
2050Maturity for Hawaiian Electric Series 2020C (3.96%) and Series 2020E (3.51%), Hawaii Electric Light Series 2020A (3.96%) and Series 2020C (3.51%), and Maui Electric Series 2020B (3.96%) and Series 2020C (3.51%).
2051Maturity for HEI 3.74% senior notes.
2052Maturity for HEI 3.94% senior notes.
2053Maturity for Hawaiian Electric Series 2023C (6.70%).

Recommendation

hold

While the return to profitability and progress in renewable energy are positive indicators, the company still faces substantial and ongoing wildfire tort-related claims totaling nearly $2 billion. This significant liability, coupled with a decrease in overall revenues and a lower return on average common equity compared to 2023, suggests continued financial uncertainty. The stock may have recovered from its 2024 lows, but the long-term financial impact of the wildfires and the capital required for grid modernization and renewable transition warrant a cautious 'hold' position until there is greater clarity on the resolution of these liabilities and sustained financial performance.

Keywords

Hawaiian Electric Industries, HEI, Hawaiian Electric, utility, SEC filing, 8-K, financial results, 2025, statistical supplement, net income, revenue, wildfire claims, renewable energy, capital structure, debt, equity, earnings per share, Hawaii

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