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…
Earnings analysis · 10-Q
HE earnings analysis
Filed August 7, 2026 · Our reading of the company's report
The latest report
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…
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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.
Reported figures
- Earnings per share
- $0.71
What stood out
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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.
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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.
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Wildfire Gain Lifted Reported Earnings
Results included a $101 million after-tax non-cash wildfire settlement remeasurement gain, which materially inflated reported GAAP earnings.
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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.
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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.
What to watch
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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.
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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.
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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.
Management's outlook
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.
Earlier filings 1
This is our reading of a public filing, not the filing itself. Analysis can contain errors; check the source document for full context.