Key Highlights

  • Third-quarter GAAP Net Income was $35 million, or $0.20 per share, compared with $31 million in 2025.
  • Core net income was $23 million, or $0.13 per share, down from $33 million a year earlier.
  • Storm-related costs of $14 million were included in both GAAP and core results.
  • $80 million of the second settlement payment has been prepaid, reducing the amount due by $82 million.

Hawaiian Electric Industries, Inc. (NYSE:HE), known as HEI, reported third-quarter 2026 results that included gains from its Investment in American Savings Bank and charges tied to its Holding Company businesses. The company is a Hawaii-based holding company whose principal Subsidiary is an electric Utility serving customers across the state.

Quarterly Earnings Detail

HEI reported GAAP net income of $35 million, or $0.20 per share, for the third quarter, compared with $31 million, or $0.18 per share, in the third quarter of 2025. The quarter included $64 million of realized and unrealized pre-tax gains related to HEI's investment in American Savings Bank, along with a non-cash pre-tax asset Impairment of $51 million at Pacific Current.

Excluding those items and Maui wildfire-related adjustments, core net income was $23 million, or $0.13 per share, compared with $33 million, or $0.19 per share, a year earlier. Both GAAP and core results include $14 million of estimated incremental pre-tax costs related to storm activity in August and September.

Storm Response and Wildfire Mitigation

The company said severe weather in August and September caused damage across the state, and that its resilience investments under the Wildfire Mitigation Plan helped crews restore power quickly and safely. The utility will request recovery of storm costs once the final incremental amount is known. HEI described its Wildfire Mitigation Plan as on schedule and said it has reduced wildfire risk across its service territories since 2023.

The company said it has adopted industry best practices as part of its grid investments.

Wildfire Settlement Liability

HEI said that $80 million of the second settlement payment had been prepaid to date. That prepayment reduces the $479 million amount due by $82 million after an early-payment discount. The company said it will continue to evaluate further early payments on the wildfire settlement liability.

The company also described a strategic Business simplification, which produced non-cash impacts in the quarter.

The $14 million figure is an estimate of incremental pre-tax costs, and the final amount will be known later. Once the final cost is established, the utility will request recovery of those costs, a process that will determine how much of the expense is passed through over time.

The American Savings Bank gains and the Pacific Current impairment relate to holding company investments rather than utility operations. The company's core results are designed to focus on the performance of its businesses without those items.

The timing of the wildfire settlement payments affects the company's reported results. Because the Liability is recorded at its present value and rises as scheduled payment dates approach, the company's accounting can change from one quarter to the next even when cash payments are unchanged.

HEI's utility can seek recovery of storm-related costs from customers, subject to regulatory approval. The company said it will request recovery once the final incremental cost is known, which means the $14 million estimate may change before any recovery is sought.

The wildfire settlement obligation is one of the largest liabilities on the company's books. The second settlement payment carries an amount due of $479 million, and the $80 million prepaid to date reduces that amount by $82 million after the early-payment discount, a benefit the company gains by paying ahead of schedule.

The American Savings Bank investment produced $64 million of pre-tax gains in the quarter, which the company reported separately from utility operations. A $51 million impairment at Pacific Current offset part of that benefit, so the $35 million GAAP result sits above the $23 million core result rather than below it.

Final Word

HEI's third quarter shows GAAP net income rising from a year earlier, while core earnings declined on higher storm-related costs and other items. The company's investment in American Savings Bank contributed gains, offset by a non-cash impairment at Pacific Current. The pace of wildfire settlement prepayments and the eventual storm-cost recovery will be among the items to follow in future company reports.