Hawaiian Electric Q3 Net Income Rises to $35M on ASB Gains

Hawaiian Electric Industries, Inc. (NYSE: HE) reported third-quarter 2026 net income of $35 million, or $0.20 per diluted share, on 6 November 2026, compared with $31 million, or $0.18 per share, in the same quarter of 2025. Core net income, which strips out Maui wildfire items, the company's American Savings Bank stake and Pacific Current review costs, fell to $23 million, or $0.13 per share, from $33 million, or $0.19 per share. Both figures absorbed $14 million of incremental pre-tax storm costs.

Context — Why Hawaiian Electric's Q3 Earnings Matter Now

The quarter captures two opposing forces inside one utility holding company. On the operating side, Hawaiian Electric spent more to restore power after severe August and September weather across its service territory. On the holding-company side, the initial public offering of American Savings Bank generated a $64 million pre-tax gain, split between $18 million realized on share sales and $46 million of unrealized mark-to-market gains on the retained stake.

The company said its Wildfire Mitigation Plan is on schedule and has significantly reduced wildfire risk across its service territories since 2023. CEO Scott Seu credited those resilience investments for helping crews restore power quickly during the storms.

That framing matters because Hawaiian Electric is still working through the financial architecture of the Maui wildfire settlement. The company prepaid $80 million of its second settlement payment, which cut the $479 million amount due by $82 million after an early-payment discount.

The comparable the report itself supplies is the prior-year quarter. Hawaiian Electric's utility net income dropped to $13 million from $37 million, while the holding and other segment swung to $22 million of income from a $6 million loss.

Data — What the Numbers Show

The utility segment's decline traces to two pre-tax variances. Operating and maintenance expense rose $20 million, driven by the $14 million of storm costs plus roughly $6 million of expenses moved from the holding company to the utility after integration, which are not included in customer rates. Interest expense rose $23 million, including $18 million of non-cash accretion tied to the wildfire settlement liability.

Metric	Q3 2026	Q3 2025
Consolidated GAAP net income	$35M	$31M
Core net income	$23M	$33M
Diluted EPS	$0.20	$0.18
Hawaiian Electric net income	$13M	$37M
Holding/other net income	$22M	-$6M

Partially offsetting the utility drag were $8 million of higher revenues net of fuel and purchased power, mostly from the annual revenue adjustment mechanism, and $3 million of higher allowance for funds used during construction. Kilowatthour sales rose to 2,257 million from 2,234 million.

Average fuel oil cost per barrel climbed to $154.87 from $98.20. That is the single largest input swing in the release and explains much of the $1,007 million of quarterly electric utility revenue against $787 million a year earlier.

Analysis — What It Means for Utility Investors

The headline GAAP improvement is not an operating improvement. Strip the ASB gains and the Pacific Current impairment, and the utility's core profitability fell year over year. The $51 million pre-tax impairment at Pacific Current relates to exiting the Mahipapa biomass plant on Kauai, the last remaining asset in that business.

Accretion expense is the structural item to watch. The $18 million quarterly non-cash charge reflects the wildfire settlement liability being remeasured to present value as scheduled payment dates approach. That charge recurs and grows as payments near, and it is excluded from Core results.

Storm cost recovery is the acknowledged uncertainty. The utility will request recovery once final incremental costs are known, but the report gives no timeline or assurance of approval. A denial would push the $14 million directly onto shareholders.

The rate case is the counterweight. The company's pending rebasing request proposes a 5.3% base rate increase phased over two years, and it recently sought approval for up to $500 million in wildfire safety and resilience investments through a structure passed by the state legislature last year.

Positioning is split. Income investors hold HE for the regulated utility and its dividend, while the ASB stake and Pacific Current exit keep event-driven flow in the name. The report does not disclose the size of any position.

Outlook — What to Watch Next

The regulatory calendar is the primary catalyst. The Hawaii Public Utilities Commission will weigh the 5.3% base rate increase request and the up to $500 million resilience investment application. The company did not disclose decision dates for either.

Storm cost recovery filing is the second trigger. Management said the utility will request recovery once final incremental costs are known, which means the final number could differ from the $14 million estimate.

On the balance sheet, further early payments against the wildfire settlement liability are possible. The company said it will continue to evaluate prepayments, and the first $80 million produced an $82 million reduction after discount.

The report names no price levels or moving averages, so there are no technical thresholds to track from this release alone. Watch the ASB share price, since the retained 6.4% stake is marked to market each quarter.

Frequently Asked Questions

Why did Hawaiian Electric's net income rise but Core income fall?

The GAAP increase came almost entirely from the American Savings Bank IPO, which produced $64 million of pre-tax gains. Core results exclude that stake, along with Maui wildfire items and Pacific Current review costs. Once removed, the utility's higher storm costs, integration expenses and $18 million of non-cash settlement accretion pushed Core net income down to $23 million from $33 million.

What does the Pacific Current impairment mean for HEI shareholders?

HEI recorded a $51 million pre-tax non-cash impairment tied to exiting Pacific Current's last asset, the Mahipapa biomass plant on Kauai. The company said it is in the final stages of its strategic exit from that business. The charge is non-cash and excluded from Core results, so it affects reported book value rather than cash flow or the utility's rate base.

How much wildfire settlement liability does HEI still owe?

After prepaying $80 million toward the second settlement payment, the amount due fell by $82 million after an early-payment discount, leaving a stated balance of $479 million before that reduction. The company said it will keep evaluating early payments. Each quarter also carries non-cash accretion expense as the liability is remeasured to present value ahead of scheduled payment dates.

Bottom Line

Hawaiian Electric's GAAP beat came from its bank stake, not its utility, which saw Core profit fall to $23 million.