Q3 FY2026
Filed Nov 6, 2026HEI Q3 2026 GAAP net income rose to $35 million ($0.20 diluted) on ASB gains, while Core net income fell to $23 million ($0.13 diluted) on storm costs and higher interest expense.
GAAP net income rose from $31,218 thousand to $35,450 thousand, but the company's non-GAAP Core net income fell from $32,808 thousand to $22,960 thousand. The GAAP increase depends on a $64,146 thousand gain on the ASB investment, which the company excludes from Core. Utility operating income and utility net income both declined in the quarter.
Key metrics
shortened, hover for the filing’s print| Metric | Value | q/q | y/y |
|---|---|---|---|
| Total revenues, Q3 2026 (three months ended September 30)GAAP | $1.01B | – | – |
| Electric utility revenues, Q3 2026GAAP | $1.01B | – | – |
| Other revenues, Q3 2026GAAP | $1.61M | – | – |
| Total expenses, Q3 2026GAAP | $967.5M | – | – |
| Electric utility expenses, Q3 2026GAAP | $958.9M | – | – |
| Other expenses, Q3 2026GAAP | $8.56M | – | – |
| Total operating income, Q3 2026GAAP | $41.22M | – | – |
| Electric utility operating income, Q3 2026GAAP | $48.17M | – | – |
| Other operating loss, Q3 2026GAAP | −$6.96M | – | – |
| Interest expense, net, Q3 2026GAAP | −$47.73M | – | – |
| Gain on sale of investment and net unrealized gain on investment measured at fair value, Q3 2026GAAP | $64.15M | – | – |
| Gain (loss) on sale of subsidiaries and impairment losses on subsidiary assets sold and assets formerly classified as held for sale, Q3 2026GAAP | −$50.74M | – | – |
| Income before income taxes, Q3 2026GAAP | $19.47M | – | – |
| Income taxes, Q3 2026GAAP | −$15.98M | – | – |
| Net income, Q3 2026GAAP | $35.45M | – | – |
| Net income for common stock, Q3 2026GAAP | $35.45M | – | – |
| Basic earnings per common share, Q3 2026GAAP | $0.21 | – | – |
| Diluted earnings per common share, Q3 2026GAAP | $0.20 | – | – |
| Core (non-GAAP) net income, Q3 2026non-GAAP | $22.96M | – | – |
| Core (non-GAAP) diluted earnings per share, Q3 2026non-GAAP | $0.13 | – | – |
| Comprehensive income attributable to HEI, Q3 2026GAAP | $35.43M | – | – |
| Total revenues, nine months ended September 30, 2026GAAP | $2.69B | – | – |
| Electric utility revenues, nine months ended September 30, 2026GAAP | $2.69B | – | – |
| Total expenses, nine months ended September 30, 2026GAAP | $2.40B | – | – |
| Electric utility operating income, nine months ended September 30, 2026GAAP | $329.3M | – | – |
| Total operating income, nine months ended September 30, 2026GAAP | $298.8M | – | – |
| Interest expense, net, nine months ended September 30, 2026GAAP | −$127.2M | – | – |
| Income taxes, nine months ended September 30, 2026GAAP | $33.63M | – | – |
| Net income, nine months ended September 30, 2026GAAP | $189.1M | – | – |
| Diluted earnings per common share, nine months ended September 30, 2026GAAP | $1.09 | – | – |
| Core (non-GAAP) net income, nine months ended September 30, 2026non-GAAP | $76.37M | – | – |
| Core (non-GAAP) diluted earnings per share, nine months ended September 30, 2026non-GAAP | $0.44 | – | – |
| Hawaiian Electric fuel oil expense, Q3 2026GAAP | $398.7M | – | – |
| Hawaiian Electric purchased power expense, Q3 2026GAAP | $218.5M | – | – |
| Hawaiian Electric other operation and maintenance expense, Q3 2026GAAP | $181.6M | – | – |
| Hawaiian Electric depreciation expense, Q3 2026GAAP | $66.42M | – | – |
| Hawaiian Electric taxes, other than income taxes, Q3 2026GAAP | $93.78M | – | – |
| Hawaiian Electric net income for common stock, Q3 2026GAAP | $13.49M | – | – |
| Hawaiian Electric Core (non-GAAP) net income, Q3 2026non-GAAP | $27.60M | – | – |
| Hawaiian Electric Core (non-GAAP) net income, nine months ended September 30, 2026non-GAAP | $95.88M | – | – |
| Holding and Other Companies Core (non-GAAP) net loss, Q3 2026non-GAAP | −$4.64M | – | – |
| Holding and Other Companies net income for common stock, Q3 2026GAAP | $21.96M | – | – |
| Return on average common equity, twelve months ended September 30, 2026 (HEI, as printed)other | 13.6% | – | – |
| Return on average equity, GAAP, twelve months ended September 30, 2026 (Hawaiian Electric)GAAP | 13.4% | – | – |
| Return on average equity, Core (non-GAAP), twelve months ended September 30, 2026 (Hawaiian Electric)non-GAAP | 5.2% | – | – |
| Total kilowatthour sales, Q3 2026other | 2,257 million kWh | – | – |
| Total kilowatthour sales, nine months ended September 30, 2026other | 6,244 million kWh | – | – |
| Average fuel oil cost per barrel, Q3 2026other | $154.87 | – | – |
| Average fuel oil cost per barrel, nine months ended September 30, 2026other | $132.00 | – | – |
Segments
| Segment | Revenue | q/q | y/y |
|---|---|---|---|
| Electric utility (Hawaiian Electric)Electric utility operating income was $48,173 thousand compared with $62,793 thousand. Hawaiian Electric net income for common stock was $13,488 thousand compared with $36,988 thousand. The company attributes the decrease primarily to $20 million of higher O&M expense, including $14 million of incremental storm costs in August and September and approximately $6 million of expenses transferred from the holding company to the utility following integration (not included in customer rates), and to $23 million of higher interest expense, which includes $18 million of non-cash accretion expense. The company says these were partially offset by $8 million of higher revenues net of fuel and purchased power, mainly from the annual revenue adjustment mechanism, and $3 million of higher AFUDC. | $1,007,104 thousand (Q3 2026) | – | – |
| Other (Holding and Other Companies)Net income for common stock was $21,962 thousand compared with a loss of $6,241 thousand. The company says the holding company result primarily reflects a pre-tax $18 million gain on sale of ASB shares and a pre-tax $46 million unrealized gain on the remaining ASB shares, partly offset by a pre-tax $51 million asset impairment at Pacific Current related to exiting its last remaining asset, the Mahipapa biomass plant on Kauai. Core net loss was $(4,637) thousand compared with $(6,832) thousand. The company says approximately $6 million of pre-tax expenses previously recorded at the holding company are now recorded at the utility. | $1,606 thousand (Q3 2026) | – | – |
Capital returns
- No common dividend, share repurchase or dividends-paid figures are printed in the filing.
- Preferred stock dividends of subsidiaries were nil in Q3 2026, compared with $471 thousand in Q3 2025 on the HEI statement.
- The company reports that $80 million of the second wildfire settlement payment has been prepaid to date, reducing the $479 million amount due by $82 million after the early-payment discount. The company says it will continue to evaluate early payments of the wildfire settlement liability.
- The company states it recently sought approval for up to $500 million in wildfire safety and resilience investments through a structure passed by the legislature last year.
What drove it
- The company attributes the lower Hawaiian Electric net income primarily to higher O&M expense, including $14 million of incremental storm costs from August and September storm activity.
- The company attributes higher utility interest expense mainly to $18 million of non-cash accretion on the wildfire settlement liability.
- Holding company GAAP results include $64,146 thousand of gains from the ASB investment, which the company excludes from Core results.
- Holding company GAAP results include a $(50,736) thousand loss on sale of subsidiaries and impairment losses, which the company ties to the $51 million Pacific Current asset impairment.
- Hawaiian Electric average fuel oil cost per barrel was $154.87 in Q3 2026 compared with $98.20 in Q3 2025, and fuel oil expense rose to $398,693 thousand from $240,547 thousand.
- The company states that the effective tax rate for the nine months was lower than in 2025, primarily due to discrete tax benefits from the valuation allowance release and R&D tax credits.
Concerns
- Core net income fell 30% in dollar terms from $32,808 thousand to $22,960 thousand, and Core diluted EPS fell from $0.19 to $0.13.
- Hawaiian Electric Core net income fell from $39,640 thousand to $27,597 thousand, and Core ROE on a twelve-month basis fell from 7.0% to 5.2%.
- Interest expense, net rose from $(26,211) thousand to $(47,726) thousand in Q3 2026.
- Electric utility operating income fell from $62,793 thousand to $48,173 thousand.
- The company reports $14 million of incremental pre-tax storm costs in both GAAP and Core results, and says it will request recovery of storm costs once final incremental costs are known.
- The company states that Pacific Current is in the final stages of its strategic exit, and that the impairment and related expenses are part of the strategic review.
What to watch
- Final incremental storm costs and the timing of the utility's request for recovery, as the company describes them.
- The pending rate rebasing request, which proposes a 5.3% base rate increase phased in over two years and aligned with inflation, according to the company.
- The pending request for approval of up to $500 million in wildfire safety and resilience investments.
- Further early payments of the wildfire settlement liability, given that the company says it will continue to evaluate them.
- The effect of the transfer of approximately $6 million of holding company expenses to the utility following integration, which the company says are not included in customer rates.
- The completion of the Pacific Current exit, as described by the company as its final stages.
Balance sheet and cash flow
- The filing does not print cash, debt, total assets, total equity, operating cash flow or free cash flow figures.
- Interest expense, net rose to $(47,726) thousand in Q3 2026 from $(26,211) thousand, and the company identifies $18 million of non-cash accretion expense in Hawaiian Electric's interest expense, reflecting the increase in the recorded value of the wildfire settlement liability as scheduled payment dates approach.
- Nine-month income taxes were affected by a discrete tax benefit from a valuation allowance release related to the ASB gains and R&D tax credit claims, per the company's explanation.
- The electric utility nine-month expense line includes a $154 million benefit for the tort settlement remeasurement, and the Hawaiian Electric statement prints a wildfire tort-related claims credit of $(162,383) thousand for the nine months.
Analysis
HEI reported Q3 2026 GAAP net income of $35,450 thousand, or $0.20 diluted, against $31,218 thousand, or $0.18, a year earlier. Core net income, the company's non-GAAP measure that excludes Maui wildfire items, ASB stake impacts and Pacific Current strategic review costs, was $22,960 thousand, or $0.13, against $32,808 thousand, or $0.19. The difference is mainly the $64,146 thousand ASB gain and the $(50,736) thousand loss on sale of subsidiaries and impairments, which the company excludes from Core. Total revenues rose to $1,008,710 thousand from $790,610 thousand, while total expenses rose to $967,493 thousand from $738,564 thousand, and total operating income fell to $41,217 thousand from $52,046 thousand.
The electric utility is the core of the quarter's story. Electric utility operating income fell to $48,173 thousand from $62,793 thousand. Hawaiian Electric's fuel oil expense rose to $398,693 thousand from $240,547 thousand, with the average fuel oil cost per barrel at $154.87 against $98.20. Kilowatthour sales were 2,257 million kWh against 2,234 million kWh, a small increase. The company states that the utility's net income decline was primarily driven by $14 million of storm costs and about $6 million of transferred holding company expenses within higher O&M, and by $23 million of higher interest expense, which includes $18 million of non-cash accretion on the wildfire settlement liability. Hawaiian Electric's Core net income fell to $27,597 thousand from $39,640 thousand.
The nine-month figures present a different picture. Total revenues rose to $2,694,860 thousand from $2,281,072 thousand, and net income rose to $189,100 thousand from $84,920 thousand. Core net income for the nine months was $76,370 thousand, or $0.44, against $108,006 thousand, or $0.62. The company attributes the nine-month GAAP increase partly to the tort settlement remeasurement benefit of $154 million recorded in the electric utility, the settlement-related credit in the Hawaiian Electric statement, and discrete tax benefits. Holding and Other Companies Core net loss narrowed to $(4,637) thousand from $(6,832) thousand, which the company partly attributes to approximately $6 million of expenses now recorded at the utility.
On capital allocation, the filing reports no dividend or buyback figures. The company's stated priorities are wildfire mitigation, grid investment and customer bill management. It reports that $80 million of the second settlement payment has been prepaid, reducing the $479 million amount due by $82 million after the early-payment discount, and that it will continue to evaluate early payments. It also cites a pending rate request for a 5.3% base rate increase phased over two years and a request for up to $500 million in wildfire safety investments. The filing contains no guidance, so no comparison against prior outlook is possible. Cash, debt and cash flow are not printed in this release, so the balance sheet cannot be assessed from it. The key figures for the reader are the gap between GAAP and Core results, the utility's lower operating income and the rising interest expense.
Management, verbatim
Our resilience investments under the Wildfire Mitigation Plan proved beneficial during the severe weather in August and September, which caused damage statewide. Our crews restored power quickly and safely to affected customers,
Scott Seu, HEI CEO
Maintaining the financial capacity to deliver a safe, reliable and resilient grid is essential. We also recognize customers' significant cost pressures, especially for low-income customers, and are focused on financing and phasing investments to manage bill impacts.
Scott Seu, HEI CEO
Not in the filing
stated, not guessed- No company guidance or outlook is printed in this filing, and no previous outlook was supplied, so guidance and vs_prior_guidance are empty.
- Prior-quarter (Q2 2026) figures are not printed, so all prior_quarter and qoq_change fields are null.
- Percentage changes versus the prior year are not printed for any line, so all yoy_change fields are null.
- Prior-year value for the Q3 2026 gain on sale of investment and net unrealized gain line is printed as a dash in the 2025 column, so prior_year is null.
- No cash, debt, total assets, total equity, operating cash flow, investing cash flow or free cash flow figures are printed.
- No common dividend or share repurchase figures are printed.
- No consensus estimates, analyst expectations or share price reaction are included in the filing.
- Segment-level revenue for Hawaiian Electric's electric utility and Other is printed only as a total for the electric utility line; no separate Q3 2025 or Q2 2026 segment change percentages are printed.
- The HEI return on average common equity line (13.6% and 7.2%) is printed without a basis label, so it is classified as other.
- The Q3 2026 storm cost and settlement remeasurement amounts for Hawaiian Electric's utility-level tax line are reported in tables but are not separately labelled as a Q3 figure in all cases, so they are not repeated here.
Written by an AI language model from the company’s SEC earnings filing (Form 8-K Item 2.02, or Form 6-K for a foreign private issuer). Every figure is checked against the filing text, and a metric the filing does not print, or whose value, prior period and change do not add up, is dropped from the metrics. The model can still misread a table, in the metrics or in the text, so check a number in the filing before you rely on it. Consensus estimates, price targets and share-price reactions are not shown because they are not in the filing. AI-generated research, not investment advice.