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    Hawaiian Electric Industries (HE) Is Down 5.3% After Profitability Surges On Modest Sales Growth Has The Bull Case Changed?

    Simply Wall St·08/14/2026 04:49:32
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    • Hawaiian Electric Industries, Inc. reported second-quarter 2026 results, with sales rising to US$936.86 million and net income to US$123.2 million, while earnings per share from continuing operations increased to US$0.71 from US$0.15 a year earlier.
    • An interesting aspect of these results is the strong year-on-year expansion in profitability, as six-month net income more than tripled to US$153.65 million even though revenue growth was much more modest.
    • With this sharp improvement in quarterly earnings now on record, we’ll explore how it reshapes Hawaiian Electric’s investment narrative and risk profile.

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    Hawaiian Electric Industries Investment Narrative Recap

    To own Hawaiian Electric today, you need to believe the utility can steadily recover from wildfire fallout while funding heavier grid and safety investments without severely diluting shareholders. The sharp jump in Q2 2026 earnings to US$123.2 million helps the short term case that margins can absorb higher wildfire and resilience costs, but it does not remove the core risk around ongoing litigation and settlement funding obligations.

    Among recent developments, Hawaiian Electric’s addition to the Russell 2000 Defensive and Russell 2000 Value Defensive indices in June stands out alongside these strong Q2 numbers. Together, they highlight how the market is starting to see the company as a more stable, income style utility again, even as key catalysts still hinge on wildfire legislation, securitization, and the pace of reinvestment into a safer, more resilient grid.

    Yet beneath this improving earnings picture, investors should still be aware of the long tail of wildfire liabilities and the funding strain that could...

    Read the full narrative on Hawaiian Electric Industries (it's free!)

    Hawaiian Electric Industries' narrative projects $3.4 billion revenue and $234.7 million earnings by 2029. This requires 3.6% yearly revenue growth and a $107.8 million earnings increase from $126.9 million today.

    Uncover how Hawaiian Electric Industries' forecasts yield a $12.75 fair value, a 8% upside to its current price.

    Exploring Other Perspectives

    HE 1-Year Stock Price Chart
    HE 1-Year Stock Price Chart

    Some of the most optimistic analysts were already assuming revenue near US$3.5 billion and earnings around US$247.7 million by 2029, so this profit jump may either support their faster grid modernization story or prompt you to question whether wildfire, climate and demographic risks could still derail that upbeat view.

    Explore 7 other fair value estimates on Hawaiian Electric Industries - why the stock might be worth less than half the current price!

    The Verdict Is Yours

    Don't just follow the ticker - dig into the data and build a conviction that's truly your own.

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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.