• Hawaiian Electric Industries recently agreed to a US$47.75 million settlement with shareholders over past wildfire-prevention disclosures, while denying wrongdoing, and is facing heightened attention on past Hawaii Supreme Court oral arguments about wildfire liabilities held on January 27, 2026.
• These legal developments underscore how wildfire-related litigation and settlements remain central to Hawaiian Electric’s risk profile, governance practices, and future capital allocation decisions.
• We’ll now examine how the shareholder settlement and wildfire-related court proceedings could reshape Hawaiian Electric Industries’ broader investment narrative.

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Hawaiian Electric Industries Investment Narrative Recap

To own Hawaiian Electric Industries today, you need to be comfortable with a regulated utility whose investment case is still dominated by wildfire liabilities and the cost of hardening its grid. The US$47.75 million shareholder settlement and upcoming Hawaii Supreme Court proceedings appear more like incremental steps in a long legal process than game‑changing events, but they keep litigation outcomes as the key short term catalyst and the principal risk to cash flow and balance sheet flexibility.

Against this backdrop, the recent return to profitability and more stable quarterly earnings in 2025 stand out as especially relevant, because they frame how much financial capacity Hawaiian Electric has to absorb ongoing wildfire related costs while funding infrastructure resilience. If courts, legislators and regulators ultimately provide clearer guardrails on wildfire exposure, those earnings could support a gradual rebuild of financial strength and reinvestment in the core utility business.

Yet, while the legal headlines may seem abstract, the possibility that wildfire related liabilities continue to pressure net margins and constrain free cash flow 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 $10.75 fair value, a 25% downside to its current price.

Exploring Other Perspectives

Six fair value estimates from the Simply Wall St Community span from about US$4.56 to over US$31,758.73 per share, showing just how wide opinions can be. Set against ongoing wildfire related litigation that could influence cash flow, financing costs and future capital allocation, this spread underlines why you should compare several viewpoints before deciding how Hawaiian Electric might fit into your portfolio.

Explore 6 other fair value estimates on Hawaiian Electric Industries - why the stock might be worth less than half the current price!

Build Your Own Hawaiian Electric Industries Narrative

Disagree with existing narratives? Create your own in under 3 minutes - extraordinary investment returns rarely come from following the herd.

• A great starting point for your Hawaiian Electric Industries research is our analysis highlighting 2 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.