Hawaiian Electric Q2 core profit falls on higher utility costs

Hawaiian Electric Industries

07/08/2026 21:16

Overview
US electric utility's Q2 revenue rose yr/yr, while core earnings declined
Core EPS for Q2 declined yr/yr
Quarterly net income boosted by non-cash gain from wildfire settlement liability remeasurement

Outlook
Company expects 2026 adjusted O&M excluding pension to significantly outpace inflation
Company cites higher insurance premiums, storm response, and maintenance as drivers of elevated costs
Company is reprioritizing work and managing expenses to mitigate cost headwinds

Result Drivers
WILDFIRE SETTLEMENT LIABILITY - Net income was significantly boosted by a non-cash gain from remeasuring the remaining wildfire settlement liability to present value
HIGHER OPERATING AND INTEREST EXPENSES - Core net income declined mainly due to higher interest expense and increased operation and maintenance costs
ANNUAL REVENUE ADJUSTMENT - Revenue growth was primarily driven by the annual revenue adjustment mechanism

Company press release: ID:nBwbYdWwa

Key Details
Metric
Beat/Miss
Actual
Consensus Estimate
Q2 Revenue
 
$939.70 mln
 
Q2 Core EPS
Miss
$0.13
$0.17 (1 Analyst)
Q2 EPS
 
$0.71
 
Q2 Net Income
 
$123.20 mln
 

Analyst Coverage
The current average analyst rating on the shares is "sell" and the breakdown of recommendations is no "strong buy" or "buy", 1 "hold" and 1 "sell" or "strong sell"
The average consensus recommendation for the electric utilities peer group is "hold."
Wall Street's median 12-month price target for Hawaiian Electric Industries, Inc. is $12.38, about 0.9% below its August 6 closing price of $12.49
The stock recently traded at 12 times the next 12-month earnings vs. a P/E of 14 three months ago

Reuters Recommended Reads
Aug 4 - Southern California Edison tower sparked devastating LA County's Eaton fire, report finds 
Aug 7 - Canada's Algonquin Power Q2 income falls on wildfire cost
Aug 6 - Sempra raises full-year earnings forecast, beats quarterly estimates on utility rate gains

For questions concerning the data in this report, contact Estimates.Support@lseg.com. For any other questions or feedback, contact reuters.support@thomsonreuters.com.

(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)