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Wildfire Litigation And Regulatory Uncertainty Could Be A Game Changer For Hawaiian Electric Industries (HE)

Simply Wall St·01/05/2026 03:28:07
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  • Hawaiian Electric Industries is contending with ongoing wildfire litigation, tighter regulatory scrutiny, and questions over its future structure, all of which continue to shape how investors view the utility today.
  • The company’s outlook now hinges less on typical utility fundamentals and more on how courts, regulators, and potential strategic decisions ultimately define its legal exposure, grid investment recovery, and access to funding.
  • Next, we’ll examine how this unresolved wildfire litigation and regulatory uncertainty could reshape Hawaiian Electric Industries’ previously improving investment narrative.

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Hawaiian Electric Industries Investment Narrative Recap

To own Hawaiian Electric Industries today, you have to believe the company can ultimately contain wildfire liabilities, secure supportive regulation, and maintain access to capital despite elevated legal and operational risk. The latest news mainly reinforces that the key near term catalyst remains how courts and regulators treat wildfire claims and cost recovery, while the biggest immediate risk is that adverse outcomes could strain liquidity and equity value further.

Among recent developments, HEI’s exploration of a potential US$400 million 8 year senior unsecured notes offering via Hawaiian Electric Company stands out, because it goes directly to the heart of that funding question and the company’s ability to finance grid investments and refinancing obligations while wildfire issues remain unresolved.

Yet investors should be aware that wildfire related liabilities could still pressure cash flow and...

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

Hawaiian Electric Industries' narrative projects $3.7 billion revenue and $145.4 million earnings by 2028. This requires 6.2% yearly revenue growth and a $186.7 million earnings increase from -$41.3 million today.

Uncover how Hawaiian Electric Industries' forecasts yield a $10.75 fair value, a 15% downside to its current price.

Exploring Other Perspectives

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

Four members of the Simply Wall St Community currently estimate fair value anywhere from about US$4.45 up to above US$6,000 per share, showing how far apart opinions can be. When you set those views against the unresolved wildfire litigation and regulatory scrutiny that now drive the story more than traditional utility metrics, it becomes even more important to compare several perspectives before forming your own.

Explore 4 other fair value estimates on Hawaiian Electric Industries - why the stock might be worth less than half the current price!

Build Your Own Hawaiian Electric Industries Narrative

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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.