Hawaiian Electric Industries (HE) has reported fourth quarter FY 2025 revenue of US$805.8 million and basic EPS of US$0.23, rounding out a trailing twelve month EPS of US$0.71 on revenue of about US$3.1 billion. The company has seen quarterly revenue move from US$799.2 million and EPS of US$0.17 in Q4 2024 to US$805.8 million and EPS of US$0.23 in Q4 2025. Over the same period, the trailing twelve month line has shifted from revenue of US$3.2 billion and EPS of a US$10.42 loss in Q4 2024 to US$3.1 billion and EPS of US$0.71 in Q4 2025, pointing to a very different margin picture for shareholders to weigh.

See our full analysis for Hawaiian Electric Industries.

With the headline numbers on the table, the next step is to set these margins and earnings trends against the key narratives investors follow around Hawaiian Electric Industries to see which stories hold up and which start to look out of date.

Four quarters of profit after deep losses

• On a trailing twelve month view, Hawaiian Electric moved from a net loss of about US$1.3b and basic EPS loss of US$10.42 in Q4 2024 to net income of US$123.1 million and basic EPS of US$0.71 in Q4 2025, while revenue stayed in a tight range around US$3.1b.
• Consensus narrative points to legislation and regulatory support helping earnings, and the recent profitability gives bulls some hard numbers to point to. However, the earlier five year period still saw reported earnings fall about 49.9% per year, which keeps the history of large losses very present for anyone weighing how durable this turnaround might be.
  • Supportive factors include the latest four quarters all showing positive net income between US$26.1 million and US$39.6 million, which is very different from the trailing twelve month loss of more than US$1.3b a year earlier.
  • On the other hand, the legacy loss in the trailing data and the scale of wildfire related costs referenced in the narratives explain why analysts, with a consensus target of US$13.75 versus the current US$15.42 share price, still treat the improvement cautiously.

P/E in line with industry, far above DCF fair value

• The stock trades on a trailing P/E of 21.6x, in line with the US electric utilities industry average of 21.6x and below the 25.3x peer average, while the provided DCF fair value is US$1.27 against a current share price of US$15.42.
• What stands out for bearish investors is the gap between the current price and the DCF fair value. This heavily supports their argument that the market price embeds more optimism than the cash flow model and that the consensus target of US$13.75 sits below today’s US$15.42 level.
  • Bears also highlight that the DCF output of US$1.27 is far below the current share price, which is a very different signal from the P/E comparison that makes the stock look closer to fairly valued against the sector.
  • This tension between a relatively ordinary P/E and a very low DCF fair value is a key reason cautious investors focus on whether cash generation will match the earnings recovery implied by the 13.1% earnings growth forecast.

On top of that valuation puzzle, skeptics often point to the wildfire liabilities and balance sheet strain when they argue the current US$15.42 price leaves limited room for disappointment, so it can be useful to see how those arguments are laid out in full in the 🐻 Hawaiian Electric Industries Bear Case.

Interest coverage risk alongside 13.1% earnings growth forecast

• The analysis flags that interest payments are not well covered by earnings over the trailing twelve months, even as earnings are forecast to grow about 13.1% per year and revenue about 3.1% per year.
• Bullish investors argue that recent profitability and supportive regulation will help earnings grow into the capital structure. Yet the weak interest coverage in the same trailing period shows why that view depends heavily on those 13.1% growth assumptions playing out.
  • The move to US$123.1 million of trailing twelve month net income and a P/E of 21.6x gives bulls some evidence that the business is back on a more normal footing.
  • At the same time, the flagged interest coverage issue means a meaningful slice of those earnings is already spoken for by financing costs, so the forecast earnings growth rate is doing a lot of work in the optimistic case.

Supporters of the optimistic view often point to grid investments and legal reforms as reasons earnings could keep improving from the current US$123.1 million base, and if you want to see how that story fits together around the recent numbers, it is worth reading the detailed bullish thesis in the 🐂 Hawaiian Electric Industries Bull Case.

Next Steps

To see how these results tie into long-term growth, risks, and valuation, check out the full range of community narratives for Hawaiian Electric Industries on Simply Wall St. Add the company to your watchlist or portfolio so you'll be alerted when the story evolves.

The mix of renewed profits, wildfire liabilities and contrasting valuation signals gives plenty for both cautious and optimistic investors to consider. Use the full data set to test the bullish and bearish cases against your own thresholds, then weigh up the company with the help of 3 key rewards and 1 important warning sign.

Explore Alternatives

Hawaiian Electric Industries carries wildfire related liabilities, weak interest coverage and a DCF fair value far below its current share price, which raises clear risk questions for shareholders.

If you want stocks where balance sheets and cash coverage look more comfortable, check out the solid balance sheet and fundamentals stocks screener (44 results) today and compare them with Hawaiian Electric Industries.

This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.