**Hawaiian Electric Industries Navigates Challenges Amid Strategic Shift and Maui Wildfire Aftermath**
Hawaiian Electric Industries (HEI) reported a mixed financial performance, marked by strategic divestitures and the ongoing impact of the Maui windstorm and wildfires. The company's consolidated revenues decreased by 4% to $3.09 billion in 2025, compared to $3.22 billion in 2024, while net income for common stock increased to $123 million, a significant turnaround from a net loss of $1.43 billion in the previous year. This shift was primarily attributed to a $1.39 billion lower net loss at the Utilities, driven by a $1.88 billion reduction in wildfire tort-related claim provisions compared to 2024. The company's effective tax rate was 24% in 2025, compared to a 26% tax benefit in 2024, reflecting the impact of the substantial pre-tax loss in 2024.
HEI is undergoing a strategic transformation, divesting non-utility assets to focus on its core electric utility business. In December 2024, the company sold 90.1% of its American Savings Bank (ASB) subsidiary, using the proceeds to repay $384 million of senior notes in April 2025. Further divestitures in 2025 included the sale of Hamakua Holdings, LLC, and its solar and Battery Energy Storage System (BESS) assets. These strategic moves are aimed at streamlining operations and mitigating risks associated with non-regulated ventures. The company is also seeking regulatory approval to terminate or suspend affiliate transaction requirements (ATRs) to facilitate corporate integration.
Key operational developments for Hawaiian Electric include a 2.5% increase in kilowatt-hour (kWh) sales volume in 2025, driven by warmer weather and economic recovery on Maui. The company's renewable portfolio standard (RPS) reached 36.8% in 2025, reflecting its commitment to clean energy. However, challenges remain in achieving its carbon emission reduction goals due to delays in renewable energy projects and supply chain disruptions. The company is also focused on wildfire mitigation, implementing safety measures and seeking cost recovery for related expenses.
Looking ahead, HEI faces significant challenges in financing its settlement obligations related to the Maui wildfires. The company is exploring various options, including debt, equity, and asset sales, but there is no guarantee that these efforts will be successful. The company's credit ratings remain below investment grade, limiting access to lower-cost capital. HEI does not expect to pay dividends on its common stock in the foreseeable future, prioritizing debt reduction and investment in its core utility business. The company's future performance will depend on its ability to navigate these challenges and execute its strategic plan.
About HAWAIIAN ELECTRIC CO INC
Hawaiian Electric Industries, Inc. is a holding company primarily engaged in electric utility operations in Hawaii. Its subsidiaries provide electricity to most of the state's population through regulated utilities on multiple islands. The company focuses on renewable energy, grid modernization, and sustainability, serving residential, commercial, and industrial customers. It emphasizes safety, employee development, and environmental compliance within its integrated energy and infrastructure business model.
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