Hawaiian Electric Industries, Inc. (HE)
NYSE:HE
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Hawaiian Electric
(NYSE:HE)
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Rating:51Neutral
Price Target:
$13.50
▼(-14.50% Downside)
Action:Reiterated
Date:06/16/26
HE scores in the low-50s driven primarily by a still-fragile financial profile (compressed margins, elevated leverage, and inconsistent free cash flow) despite a post-2024 recovery. Technical indicators are bearish and weigh on the score. The earnings call was mixed—meaningful legal/regulatory progress and liquidity/rating momentum, but notable near-term cost and recovery risks. Valuation is only moderate and lacks dividend-yield support in the provided data.
Positive Factors
Regulated cost-recovery model
Hawaiian Electric’s core revenues are generated under a state regulatory framework that permits cost recovery and an allowed return. This structure provides durable cash-flow stability versus merchant peers, supporting long-term investment recovery and predictable rate-driven revenue subject to regulatory outcomes.
Negative Factors
Elevated leverage
Leverage materially exceeds historical norms for the company and is elevated even for a regulated utility. Higher debt levels constrain financial flexibility, raise interest expense and limit capacity to self-fund capex or additional settlement obligations, especially while more financing is anticipated.
Read all positive and negative factors
Positive Factors
Negative Factors
Regulated cost-recovery model
Hawaiian Electric’s core revenues are generated under a state regulatory framework that permits cost recovery and an allowed return. This structure provides durable cash-flow stability versus merchant peers, supporting long-term investment recovery and predictable rate-driven revenue subject to regulatory outcomes.
Read all positive factors
Hawaiian Electric (HE) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$2.33B
Dividend YieldN/A
Average Volume (3M)1.93M
Price to Earnings (P/E)17.5
Beta (1Y)0.07
Revenue Growth-8.57%
EPS GrowthN/A
CountryUS
Employees2,587
SectorUtilities
Sector Strength65
IndustryDiversified Utilities
Share Statistics
EPS (TTM)0.74
Shares Outstanding172,635,620
10 Day Avg. Volume1,578,659
30 Day Avg. Volume1,934,249
Financial Highlights & Ratios
PEG Ratio-0.16
Price to Book (P/B)1.32
Price to Sales (P/S)0.69
P/FCF Ratio42.56
Enterprise Value/Market Cap2.05
Enterprise Value/Revenue1.54
Enterprise Value/Gross Profit21.02
Enterprise Value/Ebitda8.55
Forecast
1Y Price Target
$14.00Price Target Upside-11.34% Downside
Rating ConsensusHold
Number of Analyst Covering1
EPS Forecast (FY)0.93
Revenue Forecast (FY)$3.59B
Hawaiian Electric Business Overview & Revenue Model
Company Description
Hawaiian Electric Industries, Inc. (HE) operates as a diversified holding company primarily focused on three key areas within the state of Hawaii: electric utility services, banking, and investments in renewable and sustainable infrastructure. The...
How the Company Makes Money
Hawaiian Electric primarily makes money by providing regulated electric utility service and recovering its costs plus an allowed return through customer electricity rates approved by the Hawaiʻi Public Utilities Commission (PUC). Its main revenue ...
Hawaiian Electric Earnings Call Summary
Earnings Call Date:May 08, 2026
(Q1-2026)
| % Change Since: |
Next Earnings Date:Aug 10, 2026
Earnings Call Sentiment Neutral
The call presented a mixed but balanced picture. Material positive milestones were communicated: the Maui wildfire tort settlement was finalized and the first $479M payment was made, the Waial repowering project received PUC approval with $908M EPRM recovery, liquidity remains strong (nearly $1B), and rating agencies have responded with upgrades/positive outlooks. Offsetting these positives are meaningful near-term and ongoing cost pressures: core earnings declined (~22% consolidated core net income; utility core down ~28%), significant storm-related O&M and an expected O&M increase that will outpace inflation, exposure to rising fuel costs that will produce a maximum penalty under the FCRS and working capital strain, and an anticipated ~$247M recovery gap for Waial to be addressed in a future rate case. Management’s regulatory and financing plans (rate rebasing proposal, targeted recovery mechanisms, opportunistic financing of future settlement payments) provide clear paths to address many of the challenges, leaving the overall tone cautious but constructive.Positive Updates
Maui Wildfire Settlement Finalized and First Payment Made
Final conditions satisfied April 10, 2026; first of four annual $479 million settlement payments made on April 10 using funds set aside in a special-purpose vehicle. Settlement removes major litigation overhang and enables progress on recovery.
Negative Updates
Decline in Consolidated Core Earnings and EPS
Consolidated core net income fell to $31.0M (Q1 2026) from $39.8M (Q1 2025), a decline of ~22%; consolidated core EPS down from $0.23 to $0.18 (~-21.7%), reflecting transitional year cost pressures.
Read all updates
Q1-2026 Updates
Positive
Negative
Maui Wildfire Settlement Finalized and First Payment Made
Final conditions satisfied April 10, 2026; first of four annual $479 million settlement payments made on April 10 using funds set aside in a special-purpose vehicle. Settlement removes major litigation overhang and enables progress on recovery.
Read all positive updates
Company Guidance
The company provided detailed near‑term financial and regulatory guidance: Q1 2026 net income was $30.5 million ($0.18/share) with consolidated core net income of $31 million ($0.18 EPS) versus $39.8 million ($0.23) a year ago, utility core net income $35.7 million (down from $49.7M) and holding‑company core net loss $4.8 million (improved from $9.9M); Maui wildfire‑related expenses were < $1M (vs ~$4.5M prior). Management confirmed the March 6 rebasing request to raise consolidated base rates ~5.3% (about $170 million total: ~$145M in 2027 and ~$25M in 2028), which they say would increase the average customer bill $8–$12 in 2027 and $2–$3 in 2028, and include 200 basis points of PIMs (150 bps reward / 50 bps penalty) while delivering >$100 million of revenue‑requirement reductions by period end. They made the first of four $479 million annual Maui settlement payments on April 10 (next payments expected April 2028 and 2029) and expect to fund the 2nd with debt/convertible debt while targeting investment‑grade metrics; Moody’s upgraded the utility to Ba1 and the holding company to Ba2. CapEx guidance was raised (baseline ~$350–$400M/year), Waial EPRM recovery approved at $908M (original $847M plus inflation) with ~$157M Waial CapEx in 2026 (vs prior ~$90M) and ~$247M of incremental costs to seek in a future rate case; AFUDC accrual uses a ~7.37% WACC and Waial turbines will enter service in staged pairs (first 2029, then 2031, 2033). They warned 2026 O&M will significantly outpace inflation (higher insurance, storm response—35 days emergency response and ~ $2B storm damages—vegetation, overhauls, IT, labor), expect to realize the maximum penalty under the fuel cost risk‑sharing mechanism given recent oil price spikes, noted fuel pass‑through lag of ~1–2 months (fuel inventory ~1 month, DSO 20–25 days), and referenced historical bad‑debt peaks of ~51 bps (typical 10–20 bps).Hawaiian Electric Financial Statement Overview
Summary
Income Statement
54
Neutral
Balance Sheet
48
Neutral
Cash Flow
52
Neutral
| Breakdown | TTM | Dec 2025 | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 3.09B | 3.09B | 3.22B | 3.29B | 3.42B | 2.85B |
| Gross Profit | 226.28M | 235.32M | -1.71B | 627.05M | 628.69M | 676.91M |
| EBITDA | 556.69M | 539.42M | -1.39B | 561.31M | 553.65M | 670.62M |
| Net Income | 129.59M | 126.28M | -1.42B | 199.24M | 241.14M | 246.17M |
Balance Sheet | ||||||
| Total Assets | 8.91B | 8.92B | 8.93B | 17.24B | 16.65B | 16.07B |
| Cash, Cash Equivalents and Short-Term Investments | 452.84M | 980.75M | 1.24B | 259.12M | 206.10M | 326.76M |
| Total Debt | 2.95B | 2.96B | 3.33B | 3.24B | 3.43B | 2.60B |
| Total Liabilities | 7.28B | 7.32B | 7.42B | 14.86B | 14.42B | 13.64B |
| Stockholders Equity | 1.64B | 1.61B | 1.51B | 2.38B | 2.24B | 2.43B |
Cash Flow | ||||||
| Free Cash Flow | 44.24M | 49.87M | 136.25M | 108.74M | -1.53M | 61.15M |
| Operating Cash Flow | 402.44M | 391.07M | 465.73M | 551.47M | 327.93M | 375.67M |
| Investing Cash Flow | -345.59M | -322.18M | -317.63M | -257.40M | -324.08M | -1.18B |
| Financing Cash Flow | -236.85M | -331.00M | -72.03M | 195.57M | -19.86M | 756.40M |
Hawaiian Electric Technical Analysis
Negative
15.79
Price Trends
14.32
Negative
14.90
Negative
13.45
Negative
Market Momentum
-0.26
Negative
38.05
Neutral
44.65
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For HE, the sentiment is Negative. The current price of 15.79 is above the 20-day moving average (MA) of 13.43, above the 50-day MA of 14.32, and above the 200-day MA of 13.45, indicating a bearish trend. The MACD of -0.26 indicates Negative momentum. The RSI at 38.05 is Neutral, neither overbought nor oversold. The STOCH value of 44.65 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for HE.
Hawaiian Electric Risk Analysis
Hawaiian Electric disclosed 31 risk factors in its most recent earnings report. Hawaiian Electric reported the most risks in the "Finance & Corporate" category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 0 New Risks
Hawaiian Electric Peers Comparison
UnderperformOutperform
Sector (66)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
68 Neutral | $3.74B | 12.96 | 15.21% | 2.54% | -0.54% | -5.27% | |
67 Neutral | $2.90B | 19.41 | 10.94% | 2.36% | 8.91% | 10.48% | |
66 Neutral | $17.65B | 18.10 | 5.60% | 3.62% | 6.62% | 11.55% | |
65 Neutral | $925.99M | 16.40 | 9.41% | 3.73% | 19.55% | 6.74% | |
64 Neutral | $3.39B | 15.75 | 7.65% | 5.10% | -1.47% | 7.23% | |
60 Neutral | $4.34B | 25.39 | 5.80% | 4.09% | 9.06% | -29.09% | |
51 Neutral | $2.33B | 17.46 | 8.09% | ― | -8.57% | ― |
* Utilities Sector Average
HE
Hawaiian Electric
13.11
2.77
26.79%
AVA
Avista
39.40
3.26
9.02%
MGEE
MGE Energy
75.73
-11.13
-12.82%
NWE
Northwestern
69.24
20.21
41.21%
OTTR
Otter Tail
86.73
12.35
16.60%
UTL
Unitil
51.23
1.16
2.32%
Hawaiian Electric Corporate Events
Executive/Board ChangesShareholder Meetings
Hawaiian Electric Shareholders Back Board, Pay and Auditor
Positive
Jun 15, 2026
At its June 11, 2026 annual meeting, Hawaiian Electric Industries shareholders elected all nominated directors to the board, approved on an advisory basis the compensation of named executive officers, and ratified Deloitte Touche as the independe...
Business Operations and StrategyLegal Proceedings
Hawaiian Electric Begins Payments Under Maui Wildfire Settlement
Positive
Apr 10, 2026
On April 10, 2026, Hawaiian Electric Industries and Hawaiian Electric triggered payment under settlement agreements dated November 1, 2024, resolving tort-related claims from the 2023 Maui windstorm and wildfires. This followed a December 30, 2025...
Business Operations and StrategyFinancial DisclosuresRegulatory Filings and Compliance
Hawaiian Electric Releases 2025 Unaudited Statistical Supplement
Neutral
Mar 27, 2026
Hawaiian Electric Industries is furnishing its unaudited 2025 Statistical Supplement, providing selected financial information for consolidated HEI, Hawaiian Electric and other related data, and will make the document available on its website in t...
Legal Proceedings
Hawaiian Electric Gains Preliminary Approval for Wildfire Settlements
Positive
Mar 16, 2026
On December 31, 2025, Hawaiian Electric Industries and Hawaiian Electric Company agreed to a $100 million derivative settlement funded entirely by insurers, resolving multiple stockholder derivative suits tied to alleged governance and wildfire ri...
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.