HEI Q2 2026: $0.71 EPS on $154M Settlement Remeasurement; First $479M Tort Payment Made
HE sits 18% above its 52-week low of $10.595.
Summary
Hawaiian Electric reported Q2 2026 net income of $123.2 million ($0.71 per share), boosted by a $154 million non-cash settlement remeasurement benefit. The company paid the first $479 million installment of its wildfire tort settlement and received credit rating upgrades.
Key Events · Earnings and Guidance · HE
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Q2 2026 Earnings Surge on Settlement Remeasurement
Net income of $123.2M ($0.71 diluted EPS) vs $26.1M ($0.15) in Q2 2025, driven by a $154M non-cash benefit from remeasuring the remaining wildfire tort settlement liability to present value.
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First $479M Tort Settlement Installment Paid
On April 10, 2026, HEI paid the first of four equal annual $479M installments under the $1.99B settlement agreement. The remaining liability was remeasured to $1.30B, with $410M classified as current.
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Credit Rating Upgrades
Moody's upgraded HEI to Ba2 (from Ba3) and S&P to BB- (from B+), both with stable outlooks, reflecting progress on the wildfire settlement and improved financial position.
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Bylaw Amendments Establish CEO Office
Effective August 5, 2026, HEI and Hawaiian Electric amended their bylaws to create a chief executive officer position, reallocating certain authority from the president to the CEO.
Analysis · HE · Energy & Transportation
Hawaiian Electric's Q2 2026 results are dominated by a $154 million non-cash benefit from remeasuring the remaining wildfire tort settlement liability to present value, flipping the quarter to a $0.71 EPS profit from $0.15 a year ago. The company also paid the first $479 million installment of the $1.99 billion settlement, funded by a prior equity raise, and saw credit rating upgrades from Moody's and S&P. These are major milestones in the company's recovery from the 2023 Maui wildfires, but the remaining $1.30 billion liability and the need to raise additional capital to fund future payments remain significant overhangs. The filing also includes bylaw amendments creating a CEO office and regulatory approvals for wildfire mitigation cost recovery and the Waiau repower project, underscoring the ongoing operational and financial transformation.
At the time of this filing, HE was trading at $12.54 on NYSE in the Energy & Transportation sector, with a market capitalization of approximately $2.1B. The 52-week trading range was $10.60 to $17.38. This filing was assessed with positive market sentiment and an importance score of 8 out of 10.