HEI Posts $123M Profit, Pivoting from Wildfire Crisis to Resilience

HONOLULU, HI – February 27, 2026 – Hawaiian Electric Industries (HEI) today announced a dramatic financial turnaround, reporting a full-year net income of $123 million for 2025. The result marks a stark reversal from the staggering $1.426 billion net loss recorded in 2024, a figure dominated by the financial fallout from the devastating Maui wildfires.

The swing back to profitability is primarily attributed to the absence of the massive, one-time $1.875 billion pre-tax accrual for wildfire-related liabilities that decimated the company's 2024 balance sheet. While the utility still faces ongoing costs related to the disaster, the 2025 results signal a pivotal shift from immediate crisis management toward a long-term strategy focused on recovery, resilience, and rebuilding trust.

“Over the past year, we continued to take actions to ensure that we’re best positioned to serve the communities in which we operate for the long term,” said Scott Seu, HEI president and CEO, in a statement accompanying the results. He highlighted “critical progress” on advancing wildfire tort settlements, pursuing supportive legislative measures, and implementing significant safety improvements across the grid.

Excluding wildfire-related expenses, the company's core income from continuing operations was $149 million, or $0.86 per share, an increase from $124 million in 2024. This underlying performance, coupled with strategic advancements on multiple fronts, paints a picture of a utility navigating one of the most challenging periods in its history.

Navigating the Wildfire Aftermath

A significant portion of HEI's recovery effort has been concentrated on resolving the complex web of legal claims stemming from the Maui wildfires. The company has made substantial headway, achieving key milestones that bring financial certainty closer. Class settlement agreements have already received court approvals, and a recent Hawaii Supreme Court decision has helped pave the way for final court approval.

Individual settlement agreements are now considered final, and lawsuits from shareholders have also been resolved and fully funded by insurance proceeds. HEI's total pre-tax contribution to the comprehensive tort settlement stands at $1.99 billion. To meet this obligation, the company has already secured $479 million in a restricted cash account, earmarked for the first settlement payment, which is anticipated in the second half of 2026.

The timing of that first payment remains contingent on the resolution of appeals filed by subrogation insurers whose own claims were dismissed. Future payments are expected to be funded through a combination of debt and equity, a strategy that will depend heavily on market conditions at the time.

This legal progress is crucial for HEI to move forward, as it helps quantify the financial impact of the disaster and allows management to focus resources on operational improvements and future investments.

Fortifying the Grid for a New Reality

Beyond the courtroom, HEI is undertaking a fundamental overhaul of its infrastructure and safety protocols. In a landmark move, the Hawaii Public Utilities Commission (PUC) approved the utility's comprehensive three-year wildfire safety strategy in December 2025. The plan mandates nearly $400 million in capital investment between 2025 and 2027, with the explicit goal of achieving a “substantial reduction in risk of ignition from utility equipment.”

Approximately $120 million of this was already invested in 2025. The spending is heavily weighted toward grid hardening, which accounts for 76% of the planned expenditures. These efforts include reinforcing poles and power lines and clearing vegetation more aggressively. The strategy also incorporates significant technological upgrades to enhance situational awareness. To date, the utility has deployed 101 new weather stations and 135 high-definition video camera stations, many equipped with AI-assisted monitoring to provide real-time intelligence on environmental conditions and potential threats.

These investments are not just a response to past events but a forward-looking effort to adapt to the increasing risks posed by climate change. The PUC, while approving the plan, has also instructed Hawaiian Electric to continue refining its strategies to improve effectiveness and transparency for future mitigation plans.

Balancing Recovery with a Green Future

While grappling with the legacy of the wildfires, HEI is simultaneously advancing its commitment to Hawaii's ambitious clean energy goals. The company reported achieving a 37% Renewable Portfolio Standard (RPS) in 2025, keeping it on track to meet the state-mandated 40% RPS by 2030 and the ultimate goal of 100% clean energy by 2045.

This dual focus presents a formidable challenge: funding massive safety and resilience upgrades while also investing in the large-scale renewable generation and grid modernization necessary to decarbonize the state's economy. Striking this balance is critical for the company's long-term social license to operate.

Despite these immense cost pressures, HEI emphasized that typical residential electricity bills remained stable in 2025 compared to the prior year. The company also highlighted its community support efforts, providing over $1 million in payment assistance to working families. This focus on affordability is a key component of its strategy to maintain public support during a difficult transition period. Looking ahead, the company plans to request securitization—a financing method that spreads costs over a long period—to fund its wildfire safety investments with a stated goal of minimizing the impact on customer bills.

The Long-Term Financial and Regulatory Horizon

The return to profitability provides HEI with critical breathing room, but its long-term financial health will be shaped by the evolving regulatory landscape in Hawaii. The PUC is actively working to establish a liability cap for electric utilities and is exploring the creation of a statewide wildfire recovery fund. Such a fund, which a PUC-commissioned study deemed warranted, would be a credit-positive development for utilities, providing a mechanism to address future liabilities without threatening financial solvency.

This regulatory backstop is essential for HEI to attract the capital needed for its ambitious investment plans. The company has guided for capital expenditures between $550 million and $700 million in 2026 alone, with further increases projected for 2027 and 2028. To support this, HEI has shored up its liquidity, ending the year with a combined $502 million in unrestricted cash at the holding company and utility levels, bolstered by a recent $500 million debt issuance and an expanded credit line.

In a sign of stabilizing internal operations, the company also announced an executive transition. Paul Ito, the current CFO of the Hawaiian Electric utility, will resume his prior role as HEI's enterprise-wide CFO in April 2026. This leadership continuity comes at a time when the company must meticulously execute its complex financial and operational strategy, navigating the dual imperatives of recovering from the past while building a more resilient and sustainable energy future for Hawaii.