HE earnings analysis
What we found in HE's 10-Q: the parts that mattered, the offsets in the same document, and what the company said about what comes next.
Our reading of the filing · Free to read, no account needed
HEI delivered a strong reported Q2 2026 result, with revenue of $939.703 million and GAAP EPS of $0.71 versus $0.17 consensus. However, the result was heavily supported by a $101 million after-tax non-cash wildfire settlement remeasurement gain, while core net income declined to $22 million from $35 million. Management maintained its outlook for 2026 adjusted O&M excluding pension to significantly outpace inflation, leaving underlying earnings trends and cost control as key concerns.
The parts that mattered.
Pulled out of the filing itself, with the figures the company reported.
- GAAP EPS Beat Consensus
- Q2 2026 GAAP EPS was $0.71, substantially above the $0.17 consensus estimate and up from $0.15 in Q2 2025 and $0.18 in Q1 2026.
- Revenue Rose 26% Year Over Year
- Revenue was $939.703 million, up approximately 25.9% from $746 million in Q2 2025 and from $746 million in Q1 2026.
- Wildfire Gain Lifted Reported Earnings
- Results included a $101 million after-tax non-cash wildfire settlement remeasurement gain, which materially inflated reported GAAP earnings.
- Underlying Earnings Declined
- Core net income declined to $22 million from $35 million, reflecting higher interest expense and operating and maintenance costs despite higher revenue and recoveries.
- O&M Cost Pressure Continues
- Management expects 2026 adjusted O&M excluding pension to significantly outpace inflation, while the company remains positioned for a 2027 rate rebasing.
And the other side of it.
The offsets in the same document — the things a summary that only listed the good news would have left out.
- Noncash Gain Distorts Earnings
- The $101 million after-tax non-cash wildfire settlement remeasurement gain is not an operating earnings driver, creating a significant risk that future GAAP EPS will normalize sharply from the reported $0.71.
- Underlying Profitability Weakened
- Core net income fell to $22 million from $35 million, indicating that higher interest expense and O&M are pressuring underlying profitability despite revenue of $939.703 million.
- Operating Costs Outpace Inflation
- Management expects 2026 adjusted O&M excluding pension to significantly outpace inflation ahead of 2027 rate rebasing, signaling continued cost pressure before anticipated regulatory recovery.
What they reported.
What the company itself reported, taken out of the document.
- Earnings per share
- $0.71
What they said about what is next.
No numeric EPS or revenue guidance was provided. Management maintained its expectation that 2026 adjusted O&M, excluding pension, will significantly outpace inflation ahead of 2027 rate rebasing.
The filing reads about the same as the one before it.
What came before.
- 10-Q · May 8, 2026
- Hawaiian Electric Industries (HEI) reported a slight increase in revenue for Q1 2026 at $746 million, compared to $744 million in the previous year, with earnings per share at $0.18. The operating income dropped to $53…
This is our reading of a public filing, not the filing. Read the original on SEC.gov · Educational only. Nothing here is investment advice.
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