Hawaiian Electric Industries, Inc. (HEI), traded on the New York Stock Exchange under the symbol HE, is a Honolulu-based holding company with roots dating to 1891. The company is one of Hawaii's most important infrastructure and financial-services businesses. Its principal operating areas are electric utilities, banking, and strategic investments in ...Hawaiian Electric Industries, Inc. (HEI), traded on the New York Stock Exchange under the symbol HE, is a Honolulu-based holding company with roots dating to 1891. The company is one of Hawaii's most important infrastructure and financial-services businesses. Its principal operating areas are electric utilities, banking, and strategic investments in renewable and sustainable infrastructure. The electric utility business is the core operating franchise and serves approximately 95% of Hawaii's population. The utility subsidiaries include Hawaiian Electric Company, which serves Oahu; Hawai'i Electric Light Company, which serves Hawaii Island; and Maui Electric Company, which serves Maui, Lanai, and Molokai.
The utility segment generates, purchases, transmits, distributes, and sells electricity to a diverse customer base. Customers include residential communities, commercial and industrial businesses, hotels and resorts, agricultural operations, and U.S. military installations. Hawaii's isolated island grids create a distinctive operating environment: the company must maintain reliability without interconnection to mainland power systems, while also managing fuel costs, storm exposure, regulatory requirements, and the transition toward lower-carbon generation. Hawaiian Electric's clean-energy portfolio and development efforts involve solar photovoltaic, wind, geothermal, hydroelectric, wave, municipal waste, and biofuel resources. The company is also involved in grid modernization, distributed energy resources, battery storage, and other measures intended to improve resilience and integrate renewable generation.
HEI's banking business operates through American Savings Bank, a community financial institution serving consumers and businesses throughout the Hawaiian Islands. Its products include checking and savings accounts, residential mortgages, commercial real estate loans, construction and development financing, multifamily lending, consumer loans, and general commercial credit. The bank maintains a broad branch network across the islands and provides an additional source of earnings diversification beyond the regulated utility business.
The company's Other segment focuses on investments in non-regulated renewable energy and sustainable infrastructure projects in Hawaii. These investments can support long-term energy-transition objectives, although they may also involve development risk, capital requirements, permitting complexity, and exposure to project economics. From a cost and bill-of-materials perspective, the utility is capital intensive: major spending can include generation equipment, transmission and distribution lines, transformers, substations, poles, meters, fuel, software, cybersecurity systems, and renewable-energy and storage equipment. Capital expenditures and depreciation are therefore important drivers of rates, cash flow, and earnings.
Based on the supplied trailing data, HEI had approximately 2,659 full-time employees and reported a market capitalization of about $2.1 billion at the cited snapshot. The data indicated trailing revenue per share of approximately $19.01, net income per share of approximately $1.31, return on equity of about 13.7%, and a price-to-earnings ratio near 9.5. Its financial profile reflects the combination of a regulated utility, a bank, and infrastructure investments, with capital intensity and regulatory oversight remaining key considerations. The company's long-term objectives include providing safe, affordable, reliable, and increasingly clean electricity, strengthening grid resilience, supporting Hawaii's communities, and delivering sustainable value to shareholders and other stakeholders.
YoYYoY means Year-over-Year. It compares the latest annual value with the previous annual value to show long-term trend strength.
QoQQoQ means Quarter-over-Quarter. It compares the latest quarter with the immediately previous quarter to show short-term momentum changes.
RevenueThe total money that came through the front door from selling things, before paying a single bill. Think of it as the grand total of every credit card swipe from customers. (YoY compares this year to last year's performance, while QoQ compares the current three months to the previous three).
$3.1B
-4.1%
+25.9%
Net IncomeThe absolute bottom line. If the company paid every single supplier, employee, banker, and tax collector, this is the actual money left in their pocket at the end of the day.
$126.3M
+108.9%
+304.6%
Gross MarginThe basic markup. If they sell a $100 pair of sneakers, this percentage tells you how much of that price tag is profit right after paying for the rubber and shoelaces, but before paying for things like store rent or TV commercials.
+7.6%
+114.4%
+203.9%
Operating MarginThe 'day job' efficiency score. Out of every dollar a customer spends, this shows how many cents the company keeps after making the product AND paying for all the everyday corporate overhead (like salaries, marketing, and keeping the lights on).
+7.6%
+114.4%
+203.9%
Net MarginThe final take-home percentage. When you strip away every conceivable cost, tax, and interest payment, this is the exact number of cents the company truly gets to keep from every dollar in sales.
+4.1%
+109.2%
+221.4%
Free Cash FlowThe holy grail of corporate cash. It's the spendable, physical money left over after the business pays for its daily operations AND buys the big, expensive upgrades (like new factories or servers) it needs to survive. This is the 'free' money they can use to pay dividends or buy back stock.
$49.9M
-63.4%
-1193.9%
FCF MarginThe ultimate cash conversion rate. It shows how good the company is at turning regular sales directly into cold, hard, spendable cash. A high percentage means the business is an absolute cash-printing machine.
+1.6%
-61.8%
-927.8%
Debt / EquityThe financial risk gauge. It compares how much of the company's empire was built using borrowed money (loans) versus the owners' own money (shareholders). A high number means they are heavily leveraged and playing a riskier game; a low number means they are playing it safe.
184.2%
-16.3%
-11.2%
Current RatioThe 12-month survival check. It simply compares the cash they have right now (plus things they can quickly turn into cash) against the immediate bills they absolutely must pay this year. A score above 1 means they have enough in the wallet to cover the upcoming bills without panicking.
1.32x
-18.1%
-26.3%
Total AssetsThe absolute size of the company's empire. It bundles together absolutely everything of value they own—from the cash in the register and the inventory in the warehouse, to the software patents in the vault and the factories on the ground.
Operator: Thank you for standing by, and welcome to the HEI second quarter 2026 earnings conference call. All lines have been placed on mute to prevent any background noise. After the speaker's remarks, there will be a question and answer session. If you would like to ask a question during that time, simply press star, then the number 1 on your telephone keypad. I would now like to turn the call over to Mateo Garcia, Director of Investor Relations. Sir, please go ahead.
Mateo Garcia: Thank you. Welcome everyone to HEI's second quarter 2026 earnings call. Joining me today are our CEO, Scott Seu, our President, Shelee Kimura, our Senior Vice President and CFO, Paul Ito, and other members of senior management. Our earnings release and our presentation for this call are available in the investor relations section of our website. As a reminder, forward-looking statements will be made on today's call. Factors that could cause actual results to differ materially from expectations can be found in our presentation, our SEC filings, and in the investor relations section of our website. Today's presentation also includes references to non-GAAP financial measures, including those referred to as core items. You should refer to the information contained in the slides accompanying today's presentation for definitional information and reconciliations of historical non-GAAP measures to the closest GAAP financial measure. We will take questions from institutional investors at the end of this call. Individual investors and others can reach out to investor relations. Scott Seu will begin with his remarks.
Scott Seu: Aloha kakou. Welcome everyone. For today's call, I'll start with updates on key strategic priorities and regulatory processes. Paul Ito will walk through our financial results and then open it up for questions. As you'll recall, in December of last year, the PUC approved the utility's three-year Wildfire Mitigation Plan or WMP, concluding that our proposed strategy can be expected to reduce wildfire risk. In June, the PUC granted our request to recover approximately $350 million of WMP spending through the Exceptional Project Recovery Mechanism, or EPRM. This includes roughly $270 million of capital and $80 million of O&M. In addition, the PUC approved recovery of up to $11.5 million of WMP related O&M already spent in 2025, and $3.9 million of annual ongoing WMP related O&M spending in 2028 and beyond. Act 258, which authorizes securitization for recovery of infrastructure resilience costs, was signed into law after we had submitted our request for recovery of WMP costs. We plan to request recovery of WMP costs through securitization rather than the EPRM, and we're currently working on an application requesting the Commission's issuance of a financing order. Affordability remains a core focus of ours, and securitization will allow us to implement these critical investments at the least possible cost to customers. We expect that EPRM recovery would …
