Hawaiian Electric Q2 core profit falls on higher utility costs
HE•Result drivers
- WILDFIRE SETTLEMENT LIABILITY - Net income was significantly boosted by a non-cash gain from remeasuring the remaining wildfire settlement liability to present value
- HIGHER OPERATING AND INTEREST EXPENSES - Core net income declined mainly due to higher interest expense and increased operation and maintenance costs
- ANNUAL REVENUE ADJUSTMENT - Revenue growth was primarily driven by the annual revenue adjustment mechanism
Outlook and cost pressures
- Company expects 2026 adjusted O&M excluding pension to significantly outpace inflation
- Company cites higher insurance premiums, storm response, and maintenance as drivers of elevated costs
- Company is reprioritizing work and managing expenses to mitigate cost headwinds
Quarterly profit and revenue
- US electric utility's Q2 revenue rose yr/yr, while core earnings declined
- Core EPS for Q2 declined yr/yr
- Quarterly net income boosted by non-cash gain from wildfire settlement liability remeasurement
