• Hawaiian Electric Industries has released its first-quarter 2026 results, reporting sales of US$744.04 million, revenue of US$746.45 million, and net income of US$30.45 million, with basic and diluted earnings per share from continuing operations at US$0.18, all modestly higher than the same period a year earlier.
• The year-on-year improvement in earnings per share, alongside revenue and net income growth, suggests that recent operational adjustments and cost discipline may be starting to strengthen the company’s underlying profitability.
• With first-quarter 2026 earnings per share improving to US$0.18, we’ll examine how this performance affects Hawaiian Electric’s existing investment narrative.

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Hawaiian Electric Industries Investment Narrative Recap

To own Hawaiian Electric Industries today, you need to believe that its core regulated utility can steadily earn through wildfire-related costs and legal overhangs while using new legislation, credit upgrades, and focused capital spending to keep earnings and cash flow on a firmer footing. The Q1 2026 uptick in revenue and EPS is positive, but it does little to change the central near term catalyst in front of the stock or the continuing wildfire and litigation risk.

The most relevant recent development alongside these results is the March 2026 Derivative Settlement Agreement, which provides for a US$100 million insurer funded resolution of certain stockholder actions, including about US$47.75 million earmarked for a California securities class action. Together with Q1’s modest earnings improvement, this highlights how legal outcomes and balance sheet management remain tightly linked to the investment story and to how much earnings investors are willing to pay for.

Yet investors should be aware that the wildfire related liabilities and higher mitigation costs could still have a much larger impact on future margins and cash flows...

Hawaiian Electric Industries' narrative projects $3.4 billion revenue and $223.0 million earnings by 2029. This requires 3.3% yearly revenue growth and a $99.9 million earnings increase from $123.1 million today.

Uncover how Hawaiian Electric Industries' forecasts yield a $13.75 fair value, a 11% downside to its current price.

Exploring Other Perspectives

These Q1 numbers arrive as the most pessimistic analysts were assuming revenue of about US$3.4 billion and earnings of roughly US$221 million by 2029, and they worry that ongoing wildfire settlement obligations could still weigh on free cash flow and keep the earnings multiple under pressure, so it is worth comparing that view with the more optimistic narrative before deciding where you stand.

Explore 5 other fair value estimates on Hawaiian Electric Industries - why the stock might be worth less than half the current price!

Form Your Own Verdict

Disagree with existing narratives? Extraordinary investment returns rarely come from following the herd, so go with your instincts.

• A great starting point for your Hawaiian Electric Industries research is our analysis highlighting 3 key rewards and 1 important warning sign that could impact your investment decision.
• Our free Hawaiian Electric Industries research report provides a comprehensive fundamental analysis summarized in a single visual - the Snowflake - making it easy to evaluate Hawaiian Electric Industries' overall financial health at a glance.

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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.