• Hawaiian Electric Industries reported full-year 2025 revenue of US$3.09 billion, down slightly from US$3.22 billion in 2024, while swinging from a very large net loss to net income of US$123.12 million, or US$0.71 in basic and diluted earnings per share from continuing operations.
• The earnings rebound coincided with progress on Maui wildfire-related settlements, funded by insurance, and regulatory approval of a multi-year wildfire safety plan that supports both risk reduction and grid resilience.
• Next, we’ll examine how this return to profitability and wildfire litigation progress may influence Hawaiian Electric Industries’ investment narrative.

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Hawaiian Electric Industries Investment Narrative Recap

To own Hawaiian Electric Industries, you need to believe its core Hawaii utility can stay financially sound while managing wildfire liabilities and heavy grid investment needs. The return to profitability in 2025 supports that case, but the key near term catalyst remains how regulators and courts ultimately resolve wildfire costs, and the biggest risk is that remaining litigation, mitigation expenses, and insurance costs keep pressuring margins and cash flow despite the recent earnings rebound.

The most relevant recent development here is the Public Utilities Commission’s approval of a three year wildfire safety plan, which ties directly into that catalyst and risk. This plan formalizes how the company will invest in technology, infrastructure hardening, and community programs to reduce fire risk, and its regulatory backing may help support cost recovery even as it adds to ongoing operating and capital spending needs.

Yet investors should also recognize the possibility that higher wildfire and climate related costs could still leave HEI with structurally lower profitability than many expect, which is something investors should be aware of...

Hawaiian Electric Industries' narrative projects $3.7 billion revenue and $145.4 million earnings by 2028. This requires 6.2% yearly revenue growth and a $186.7 million earnings increase from -$41.3 million today.

Uncover how Hawaiian Electric Industries' forecasts yield a $12.00 fair value, a 25% downside to its current price.

Exploring Other Perspectives

Some of the lowest ranked analysts were already cautious, assuming only about US$3.6 billion of revenue and US$157 million of earnings by 2028, so this profit rebound could meaningfully shift how those more pessimistic views evolve over time.

Explore 6 other fair value estimates on Hawaiian Electric Industries - why the stock might be a potential multi-bagger!

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.