Executive Summary

Hawaiian Electric’s Q2 2025 delivered net income of $39.4M at the utility level, reversing the prior-year wildfire accrual-driven loss; HEI consolidated net income for common stock was $26.1M, or $0.15 diluted EPS, and Core diluted EPS was $0.20 as wildfire-related items and Pacific Current divestiture impacts were excluded .
Utility revenues rose by $7M YoY, supported by the annual revenue adjustment mechanism and $1M of demand response revenues, while improved heat rate performance contributed ~$4M; higher O&M (+$11M) weighed on results, driven by wildfire mitigation expenses, legal/consulting, insurance, and demand response costs .
Legislative actions signed by Governor Green created a forward framework: PUC-directed liability cap for future wildfires, authorization of $500M securitization for resilience investments, and appropriations for the State’s settlement contribution—potentially de-risking the utility’s trajectory and customer affordability .
The quarter included a $5M earnings impact from the sale of Pacific Current’s solar and battery storage assets (asset impairment and tax credit recapture), with management reiterating plans to divest the remaining stake in American Savings Bank over the next year—progress toward a simpler, utility-focused portfolio .

What Went Well and What Went Wrong

What Went Well

Utility profitability normalization: Hawaiian Electric posted Q2 2025 net income of $39.4M vs. a $1.229B loss in Q2 2024, primarily due to the absence of the prior-year $1.712B wildfire claims accrual and moderate revenue uplift .
Operational execution: Better heat rate performance provided a ~$4M pre-tax tailwind, indicating efficiency improvements in generation operations .
Strategic repositioning: Sale of Pacific Current’s solar and battery assets and planned ASB divestiture underscore focus on core utility operations; “move forward as a simpler, more focused company best positioned to serve our communities for the long term,” per CEO Scott Seu .

What Went Wrong

Expense pressure: O&M increased $11M YoY, largely from wildfire mitigation (+$7M), legal/consulting (+$4M), higher insurance (+$2M), and demand response expenses (+$1M), partially offset by the absence of certain state indemnification settlement costs from 2024 .
Continued wildfire-related non-GAAP adjustments: Pre-tax wildfire-related expenses of $11M were partially offset by $10M of deferred costs per PUC decision, still constraining Core net income vs. last year ($42.5M vs. $43.9M) .
Asset sale impact: The quarter reflected a $5M earnings impact tied to asset impairment and ITC recapture from Pacific Current asset sales, a near-term drag as the company repositions .

Financial Results

Utility and Consolidated Results (Quarterly)

Metric	Q4 2024	Q1 2025	Q2 2025
Utility Revenues ($USD)	$796.174M	$738.366M	$742.482M
Utility Net Income ($USD)	$46.666M	$48.086M	$39.420M
Utility Diluted EPS (Continuing Ops)	$2.60	$2.68	$2.19
Utility Operating Income ($USD)	$74.825M*	$76.988M	$65.596M*
Utility EBIT ($USD)	$74.825M*	$76.988M	$65.596M*
Utility EBIT Margin (%)	9.40%*	10.43%*	8.83%*
Utility Net Income Margin (%)	5.86%*	6.51%*	5.31%*
Utility Total Operating Expenses ($USD)	$721.349M*	$661.378M*	$676.886M*

Values marked with * are retrieved from S&P Global.

Notes:

Utility revenues and net income are Hawaiian Electric-level figures; diluted EPS at the utility level reflects SPGI calculation and does not represent HEI consolidated EPS .
HEI consolidated diluted EPS for Q2 2025 was $0.15; Core diluted EPS (non-GAAP) was $0.20 .

Segment Breakdown (Q2 2025)

Segment	Revenue ($USD)	Operating Income ($USD)	Notes
Electric Utility	$742.482M	$64.544M	O&M up $10.7M YoY; no wildfire claims in 2025 vs. $1.712B in 2024
Other (Holding & Other Companies)	$3.910M	$(10.797)M	Includes Pacific Current items, legal, and corporate costs

KPIs

KPI	Q2 2024	Q2 2025
kWh Sales – Hawaiian Electric (millions)	1,470	1,509
kWh Sales – Hawaii Electric Light (millions)	254	257
kWh Sales – Maui Electric (millions)	247	266
Total kWh Sales (millions)	1,971	2,032
Avg. fuel oil cost per barrel ($)	$120.12	$100.40

Guidance Changes

Metric	Period	Previous Guidance	Current Guidance	Change
Financial guidance (Revenue/EPS/Margins)	FY/Q3-Q4 2025	Not provided	Not provided	Maintained (no explicit guidance)
Wildfire liability regime	Ongoing	—	Legislation directs PUC to establish aggregate liability cap for economic damages from future wildfires	Structural de-risking
Resilience investments financing	Multi-year	—	Authorization of securitization to finance $500M in wildfire safety improvements	New tool for affordability and investment
Clean energy procurement risk	Ongoing	—	Legislation to reduce IPP risk and support reliable, affordable clean energy procurement	Supportive framework
Utility Dividend (to HEI)	Q2 2025	—	$10M declared	New declaration

Earnings Call Themes & Trends

Note: No Q2 2025 earnings call transcript was available in the document set. HEI scheduled a webcast/call for Aug 7, 2025; presentation materials and replay were posted on hei.com .

Topic	Previous Mentions (Q4 2024, Q1 2025)	Current Period (Q2 2025)	Trend
Wildfire risk and mitigation	Not available in transcripts	Continued mitigation program; $7M O&M increase tied to wildfire safety; legislative liability cap framework	Intensifying focus; regulatory support improving
Grid resilience and securitization	Not available	$500M securitization authorization for resilience investments	Positive structural shift
Clean energy procurement and IPP risk	Not available	Legislation reducing IPP risk and supporting affordable procurement	Improving procurement environment
Portfolio simplification	Not available	Sale of Pacific Current solar/storage assets; plan to divest ASB stake	Accelerating simplification
Operational efficiency	Not available	Better heat rate performance (+$4M pre-tax impact)	Operational improvement

Management Commentary

“Our core operations performed as expected in the second quarter, with the utility progressing measures to protect our communities against the risks posed by extreme weather events. We’ve also continued to make the changes necessary to move forward as a simpler, more focused company...” — Scott Seu, President & CEO .
“Governor Josh Green signed legislation... directing the Public Utilities Commission to establish a liability cap... authorizing securitization to finance $500 million in wildfire safety improvements... legislation appropriating funds for the State of Hawaii’s contribution to the settlement...” .

Q&A Highlights

Transcript and detailed Q&A were not available in the document dataset. HEI hosted the call on Aug 7, 2025 with materials and replay posted; no transcript was furnished to the SEC or captured here .

Estimates Context

S&P Global consensus estimates for Q2 2025 were unavailable for EPS and revenue at the HAWEL utility level in the dataset; actual revenue was reported at $742.482M. Values retrieved from S&P Global.
Given the lack of consensus figures, we cannot determine beats/misses versus Wall Street estimates for Q2 2025 at the utility level [GetEstimates: Revenue actual; consensus unavailable]. Values retrieved from S&P Global.

Key Takeaways for Investors

Utility fundamentals are normalizing: Q2 2025 utility net income of $39.4M reflects absence of 2024 wildfire accrual and modest revenue uplift; Core utility net income was $42.5M, slightly below prior year due to higher wildfire-related O&M and legal costs .
Legislative framework reduces tail risk and supports affordability: Liability cap directive and $500M securitization authorization are meaningful structural positives for risk management and financing resilience investments .
Expense discipline is the near-term swing factor: Elevated O&M (+$11M) tied to wildfire mitigation and insurance could cap margin expansion; continued deferrals per PUC decisions partially offset .
Portfolio simplification should enhance focus: Asset sale (Pacific Current) and contemplated ASB divestiture concentrate capital and management attention on the regulated utility, with a $5M earnings drag in the quarter from sale-related items .
Operational improvements matter: Heat rate gains (~$4M) and lower fuel oil costs ($100.40/bbl vs. $120.12/bbl YoY) support unit economics; watch continuation into H2 2025 .
Watch regulatory implementation details: The magnitude and mechanics of the PUC’s liability cap and securitization execution will drive valuation and credit perceptions; track filings on PUC site and HEI investor disclosures .
Near-term trading lens: Headline legal de-risking and resilience financing could be supportive; expense inflation and lack of numeric forward guidance are constraints—monitor subsequent quarters and any filed proceedings for quantification .

Values retrieved from S&P Global.

HAWAIIAN ELECTRIC CO INC (HAWEL)·Q2 2025 Earnings Summary