Hawaiian Electric Industries, Inc. (HE): History, Ownership, Mission, How It Works & Makes Money

Hawaiian Electric Industries, Inc. (HE) is the utility that powers 95% of Hawaii's residents, but after the recent challenges, are its fundamentals strong enough to support the necessary grid modernization?

The company defintely showed resilience in 2025, with the electric utility segment generating $2.27 billion in revenue for the first nine months, yet it is simultaneously navigating a complex financial landscape, including an expected $400 million in capital expenditures (CapEx) this year to boost resilience.

With Q3 2025 core net income-which excludes one-time expenses-at $32.8 million, and institutional ownership sitting at nearly 75%, you need to know exactly how this essential island institution works, where its money comes from, and what its mission is for the next decade.

Hawaiian Electric Industries, Inc. (HE) History

Given Company's Founding Timeline

The company you know today as Hawaiian Electric Industries, Inc. (HE) began as a single utility, the Hawaiian Electric Company, established to bring electric light to the Kingdom of Hawaii's capital.

Year established

The original Hawaiian Electric Company was incorporated on October 13, 1891.

Original location

Honolulu, Hawaii, which was then the capital of the Kingdom of Hawaii.

Founding team members

The company was formed from a co-partnership that included key figures like William W. Hall, who became the first President, along with Edwin Oscar White, William V. Lockwood, and Jonathan Austin.

Initial capital/funding

The Hawaiian Electric Company was incorporated with total assets of just $17,000 in 1891.

Given Company's Evolution Milestones

The company's history is a story of island expansion and, more recently, a sharp pivot toward clean energy and grid resilience. This table highlights how the utility evolved into the diversified holding company it is today.

Given Company's Transformative Moments

The most recent, defintely transformative period for Hawaiian Electric Industries, Inc. has been its response to the 2023 Maui wildfires, which forced a rapid and painful strategic realignment. This crisis led to a major shift in the company's structure and financial focus.

The core decision was to simplify the business model by shedding non-utility assets to shore up the balance sheet and fund critical grid safety improvements. The sale of American Savings Bank and the divestiture of Pacific Current's largest asset, Hamakua Energy, were direct results of this strategy. For example, the holding company used the proceeds from the ASB sale to reduce its debt by $384 million in April 2025.

The financial impact of the ongoing legal and operational challenges is clear in the 2025 results, even as core operations show stability:

• Q1 2025 Net Income: $27 million (or $0.15 per share).
• Q2 2025 Net Income: $26 million (or $0.15 per share).
• Q3 2025 Net Income: $30.7 million (or $0.18 per share).

Crucially, the Hawaii State Legislature stepped in during 2025, passing legislation that directed the Public Utilities Commission to establish an aggregate liability cap for future wildfire damages and authorized securitization to finance $500 million in wildfire safety improvements. This legislative support is a game-changer, giving the utility a clearer path to financial stability and allowing it to focus on its expanded Wildfire Safety Strategy. You can learn more about the institutional interest in this evolving landscape at Exploring Hawaiian Electric Industries, Inc. (HE) Investor Profile: Who's Buying and Why?

Hawaiian Electric Industries, Inc. (HE) Ownership Structure

If you're looking at Hawaiian Electric Industries, Inc. (HE), you need to know that institutional money is firmly in the driver's seat, holding the vast majority of shares. This concentration of ownership means decisions are heavily influenced by a few major financial players, so you should track their sentiment defintely.

Hawaiian Electric Industries, Inc.'s Current Status

Hawaiian Electric Industries, Inc. is a publicly traded company, listed on the New York Stock Exchange (NYSE) under the ticker symbol HE. As of November 2025, the company's common stock was trading around $11.56 per share. This public status means the company is subject to rigorous Securities and Exchange Commission (SEC) reporting requirements, providing you with transparent financial data for your analysis.

The company's holding structure includes its electric utility, Hawaiian Electric Company, Inc., which serves about 95% of Hawai'i's population, plus its financial services arm, American Savings Bank. The stock price has seen a significant change over the last year, reflecting the market's reaction to recent events and the company's ongoing efforts to modernize its grid and transition to renewable energy.

Mission Statement, Vision, & Core Values of Hawaiian Electric Industries, Inc. (HE).

Hawaiian Electric Industries, Inc.'s Ownership Breakdown

The ownership structure of Hawaiian Electric Industries, Inc. is dominated by institutions, which is typical for a major utility holding company. This means that while retail investors hold a notable stake, the power to influence corporate governance-like board elections or major strategic shifts-rests with large asset managers.

Here's the quick math: Institutional investors control over two-thirds of the outstanding shares. This is why you see major firms like BlackRock, Inc. and Vanguard Group Inc consistently listed as top shareholders-they hold significant sway.

Hawaiian Electric Industries, Inc.'s Leadership

The company's strategy is steered by an experienced leadership team that manages both the regulated utility and the financial services businesses. The dual structure requires a leadership team adept at navigating both regulatory environments and market demands.

• Scott W. H. Seu: President and Chief Executive Officer of Hawaiian Electric Industries, Inc. (the parent company). He guides the overarching strategy for the entire enterprise.
• Thomas B. Fargo: Chairman of the Executive Board.
• Scott Deghetto: Executive Vice President and Chief Financial Officer of Hawaiian Electric Industries, Inc. His role is critical in managing the holding company's capital structure and financial stability.
• Kurt K. Murao: Executive Vice President, General Counsel, Chief Administrative Officer, and Corporate Secretary. He manages legal, compliance, and administrative functions.
• Shelee M. T. Kimura: President and Chief Executive Officer of Hawaiian Electric Company, Inc. (the utility subsidiary). She is focused on the core mission of energy delivery and the transition to 100% renewable energy.

The leadership's primary challenge right now is balancing the need for massive capital investment in grid modernization and resilience with the financial health of the holding company.

Hawaiian Electric Industries, Inc. (HE) Mission and Values

Hawaiian Electric Industries, Inc. (HE) defines its purpose beyond profit, centering its mission on being a catalyst for a better and more sustainable future for Hawaii, a commitment now underscored by significant 2025 investments in grid resilience.

You're not just investing in a utility; you're backing a company whose cultural DNA is rooted in the long-term well-being of the islands it serves, which is a crucial factor in a regulated market.

Hawaiian Electric Industries, Inc.'s Core Purpose

The company's core purpose, or mission, is deeply integrated with the community's future, recognizing that their energy infrastructure is key to Hawaii's economic and social health. This sense of responsibility is what drives their massive grid modernization efforts.

Official mission statement

Hawaiian Electric Industries, Inc. (HE) articulates its formal mission as a dedication to a better Hawaii, aiming for a future that is economically, environmentally, culturally, and socially thriving. Honestly, their mission is less about kilowatts and more about community prosperity.

• Dedicate to a better Hawaii that is thriving economically and environmentally.
• Ensure the community enjoys an abundance of resources and opportunities.
• Navigate a path toward a resilient and sustainable future.
• Lead with integrity, humility, and aloha for one another and the land.

Vision statement

The vision statement maps out their long-term aspiration to be a global leader in performance and trust, especially in the context of sustainability. They want to be recognized for catalyzing a better future for Hawaii and beyond, which is a bold goal for an island utility.

• Be among the world's most trusted and highest performing corporations.
• Be recognized for catalyzing a better and more sustainable future for Hawaii.
• Empower customers with affordable, reliable, clean energy.

This vision is backed by real capital allocation; for 2025, the company expects to spend approximately $400 million on capital expenditures, primarily focused on wildfire risk reduction and grid resilience.

Hawaiian Electric Industries, Inc. slogan/tagline

The company uses several phrases that capture its role, but the most succinct and powerful is its self-identification as a core driver of change. You can see this focus in their recent performance, with Q3 2025 core net income reaching $32.8 million, demonstrating continued operational focus despite significant challenges.

• Catalyst for a better Hawaii.
• Accelerating a Sustainable Future for Hawaii.
• Empowering Hawaii to Thrive, Together.

The core values, like Safety and Aloha (caring for each other as family and for the community), defintely guide their operational decisions, especially as they modernize the grid to meet the state's 100% clean energy goal by 2045. This mission-driven approach is critical for understanding the long-term investment thesis. Exploring Hawaiian Electric Industries, Inc. (HE) Investor Profile: Who's Buying and Why?

Hawaiian Electric Industries, Inc. (HE) How It Works

Hawaiian Electric Industries, Inc. (HE) primarily works as a regulated utility holding company, delivering electricity to approximately 95% of Hawaii's population across five islands, while strategically divesting non-core assets to focus on grid modernization and wildfire risk reduction. The company generates revenue by producing, purchasing, transmitting, and distributing power under a regulated rate structure that allows for a return on its infrastructure investments.

Hawaiian Electric Industries, Inc. (HE) Product/Service Portfolio

The core of Hawaiian Electric Industries' operation is its regulated electric utility, Hawaiian Electric Company, Inc., which provides essential power services and is actively transitioning to a cleaner, more resilient energy system. While the company is simplifying its structure by selling non-utility assets like its remaining stake in American Savings Bank, the value proposition centers on power delivery and grid evolution.

Hawaiian Electric Industries, Inc. (HE) Operational Framework

The operational framework is heavily focused on capital expenditure (CapEx) for safety and resilience, plus an aggressive shift away from fossil fuels. The company operates under a performance-based regulation (PBR) model, which ties utility earnings to service quality and clean energy goals, not just volume.

• Capital Investment: The company expects its 2025 CapEx to be approximately $400 million, with a significant portion dedicated to grid resilience and wildfire mitigation. This spending is the engine for future rate base growth.
• Wildfire Safety Strategy: Implementing a comprehensive strategy that includes deploying weather stations and AI-assisted cameras to better manage operational risk, a critical post-2023 focus.
• Decarbonization: Continuing to integrate renewable energy sources like wind, solar, and geothermal. The utility achieved a 36% Renewable Portfolio Standard (RPS) in 2024, keeping it on track for the 40% interim goal by 2030.
• Financial Simplification: Core net income for Q3 2025 was $32.8 million, reflecting the utility's stable performance, but the holding company is streamlining its structure. Here's the quick math: the sale of non-core assets, like Pacific Current's solar and battery assets, simplifies the balance sheet and focuses management on the utility's defintely complex challenges. You can get a deeper dive on the numbers at Breaking Down Hawaiian Electric Industries, Inc. (HE) Financial Health: Key Insights for Investors.

Hawaiian Electric Industries, Inc. (HE) Strategic Advantages

Hawaiian Electric Industries' market success is built on its regulated monopoly status, which is now being reinforced by legislative action to manage catastrophic risk, a crucial development for investor confidence.

• Geographic Monopoly: As the franchised electric utility on five major Hawaiian islands, the company faces no direct competition for transmission and distribution services in its service territory.
• Favorable Regulatory Environment: Recent Hawaii state legislation has significantly reduced financial risk by establishing an aggregate liability cap for economic damages from future wildfires and authorizing securitization to finance infrastructure resilience investments. This regulatory support stabilizes future earnings.
• Enhanced Liquidity: The company successfully expanded its credit facility capacity to $600 million and issued approximately $500 million in unsecured debt in 2025, which provides the necessary financial flexibility to fund CapEx and manage wildfire-related liabilities.
• Mission Alignment: The utility's core mission to achieve 100% renewable energy by 2045 aligns directly with state mandates, positioning it as a key partner in Hawaii's energy future, not just a service provider.

Next Step: Finance should model the impact of the 2025 CapEx of $400 million on the 2026 rate base by the end of the month.

Hawaiian Electric Industries, Inc. (HE) How It Makes Money

Hawaiian Electric Industries, Inc. (HE) primarily makes money by generating, transmitting, and distributing electricity to approximately 95% of Hawai'i's population across five islands, operating as a regulated utility. This core business is supplemented by a small, rapidly shrinking stream of income from its remaining non-utility holdings, as the company is strategically shifting to a pure-play electric utility model.

You're looking at a business model that is now almost entirely focused on regulated utility operations, which means stable, predictable cash flow, but with growth tied directly to capital investment and regulatory rate cases.

Hawaiian Electric Industries' Revenue Breakdown

As of the nine months ended September 30, 2025, the company's revenue profile overwhelmingly reflects its core utility function, following the sale of the majority interest in American Savings Bank (ASB) in late 2024 and the divestiture of certain Pacific Current assets in 2025.

Here's the quick math: The Electric Utility segment brought in approximately $2.27 billion of the total 9-month revenue of $2.28 billion through September 30, 2025. That's a defintely concentrated revenue base.

Business Economics

The economics of Hawaiian Electric Industries are driven by its status as a regulated monopoly, meaning the Hawai'i Public Utilities Commission (PUC) dictates how the company can price its electricity and recover costs, including capital expenditures (CapEx) and fuel costs.

• Rate Base Regulation: The company earns a regulated rate of return on its invested capital (the rate base). This structure incentivizes large capital investments, such as the estimated $400 million in CapEx for 2025, primarily for wildfire mitigation and grid modernization.
• Fuel Cost Pass-Through: Historically, the utility has relied on imported fossil fuels, but fluctuations in oil prices are generally passed directly to the customer. This mechanism stabilizes the utility's operating margin (which was recently analyzed at 1.78%) but creates volatility in customer bills.
• Strategic Simplification: The sale of the majority of American Savings Bank in late 2024 and the divestiture of Pacific Current assets in 2025 have simplified the business model, allowing a sharper focus on the core utility and its significant safety and resilience investments.
• Decarbonization Mandate: Hawai'i's goal of achieving 100% renewable energy by 2045 is a massive, long-term driver of CapEx and a clear opportunity for the utility. The company reached a 36% Renewable Portfolio Standard (RPS) in 2024, accelerating toward the 2030 milestone of 40%.

The regulatory environment is the ultimate arbiter of the company's profitability and stability. You need to watch the PUC decisions more closely than market swings.

Hawaiian Electric Industries' Financial Performance

The company's financial health in 2025 shows a significant recovery from the 2024 wildfire-related losses, reflecting reduced expenses and the strategic focus on the utility. The core business is returning to stability, but the balance sheet still reflects the need for enhanced liquidity and capital for ongoing risk mitigation.

• Revenue (TTM): Trailing twelve months revenue as of Q3 2025 was approximately $3.08 billion.
• Net Income (9M 2025): Net income attributable to common stock for the nine months ended September 30, 2025, was a positive $83.503 million, a stark contrast to the large loss recorded in 2024.
• Core Net Income (Q3 2025): Core net income from continuing operations for the third quarter of 2025 was $32.8 million, or $0.19 per share.
• Liquidity: The company enhanced its financial flexibility by expanding its credit facility capacity to $600 million from $375 million and successfully issuing approximately $500 million in debt in 2025.
• Leverage: The Debt-to-Equity ratio was recently analyzed at 1.64, suggesting a moderate level of leverage for a utility.

The improved net income is a critical sign of operational stability, but the real story is the focus on securing capital-like the $544 million in unrestricted cash reported in Q3 2025-to fund the massive, necessary investments in grid safety and resilience. For more on the long-term strategic direction, check out the company's Mission Statement, Vision, & Core Values of Hawaiian Electric Industries, Inc. (HE).

Hawaiian Electric Industries, Inc. (HE) Market Position & Future Outlook

Hawaiian Electric Industries (HE) holds a dominant position, supplying power to approximately 95% of Hawaii's population, but its future hinges on successfully navigating massive wildfire liability risks and executing a rapid, costly grid modernization plan. The company is actively shedding non-core assets and pivoting towards a singular focus on utility resilience and the state's ambitious 100% clean energy mandate by 2045.

Competitive Landscape

In its core electric utility business, Hawaiian Electric operates as a near-monopoly within the state of Hawaii, making direct market share comparison with mainland US utilities difficult. The real competition is for capital and investor confidence, where HE is measured against larger, more geographically diversified peers with lower risk profiles. For example, IDACORP, a regional utility, boasts a higher net margin, which translates to a stronger financial footing for capital investment.

Opportunities & Challenges

The company is making significant capital expenditure (CapEx) commitments to transform its infrastructure, planning to spend approximately $400 million in 2025, with a jump to a range of $550 million-$700 million in 2026. This spending is critical, but it also creates a substantial financing challenge, especially while facing ongoing legal liabilities.

Industry Position

Hawaiian Electric Industries is in a unique, high-stakes position as the primary utility for a state with aggressive decarbonization goals. Its industry standing is defined by its essential service role combined with its recent financial and operational challenges.

• The core net income for Q3 2025 was $32.8 million, a return to profitability that has helped restore some investor confidence after a turbulent period.
• Strategic focus is on grid hardening and situational awareness, including replacing or upgrading thousands of wood poles and installing 101 weather stations in wildfire-prone areas.
• The company's valuation is complex; while one narrative suggests the stock is 8.4% overvalued at a fair value estimate of $10.75, traditional P/E ratios are below the industry average of 20.7x, suggesting relative value.
• A successful divestiture of its remaining interest in American Savings Bank will complete the shift to a simpler, utility-focused model, aligning with the core Mission Statement, Vision, & Core Values of Hawaiian Electric Industries, Inc. (HE).

The path forward is defintely clearer now, but execution risk remains high given the scale of the required infrastructure investment and the need to manage debt while facing a challenging regulatory environment.