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

Ever wondered how the lights stay on in paradise? Hawaiian Electric Industries, Inc. (HE) has been powering Hawaii for over a century, but how exactly does it all work, and more importantly, how does it make money? Serving 95% of Hawaii's population across Oahu, Maui, and Hawaii Island, HEI reported a revenue of $3.22 billion in 2024, but with a net loss of $1.426 billion, understanding their business model is more critical than ever. Keep reading to discover the history, ownership, mission, and financial mechanisms that drive this essential island institution.

Hawaiian Electric Industries, Inc. (HE) History

Hawaiian Electric Industries, Inc. Founding Timeline

Year established

Hawaiian Electric Industries, Inc. (HEI) was originally established in 1891 as Hawaiian Electric Company.

Original location

The company was founded in Honolulu, Hawaii.

Founding team members

Details on the specific founding team members are not widely available in the provided search results. However, the company's early leadership would have consisted of individuals instrumental in establishing electric service in Honolulu.

Initial capital/funding

Specific details regarding the initial capital or funding of the Hawaiian Electric Company in 1891 are not available in the provided search results.

Hawaiian Electric Industries, Inc. Evolution Milestones

Hawaiian Electric Industries, Inc. Transformative Moments

• Formation of Hawaiian Electric Industries (HEI): The creation of HEI as a holding company in 1968 was a transformative decision, allowing the company to diversify its business interests beyond electric services. This move provided financial flexibility and opportunities for growth in new sectors.
• Diversification into Banking: HEI's entry into the banking sector through American Savings Bank was a significant strategic shift. This diversification provided a stable source of revenue and helped to balance the cyclical nature of the utility business.
• Focus on Renewable Energy: The increasing emphasis on integrating renewable energy sources into its grid has been a crucial transformation. This focus aligns with Hawaii's ambitious clean energy goals and positions HEI as a leader in sustainable energy practices.
• Response to the 2024 Maui Wildfires: The 2024 wildfires on Maui and the subsequent scrutiny and legal challenges mark a critical moment in HEI's history. The company's response to this crisis will significantly shape its future and its relationship with the community.

For more information, you might be interested in: Exploring Hawaiian Electric Industries, Inc. (HE) Investor Profile: Who’s Buying and Why?

Hawaiian Electric Industries, Inc. (HE) Ownership Structure

Hawaiian Electric Industries, Inc. (HE) features a mixed ownership structure, including institutional, retail, and insider stakeholders. This blend influences the company's governance and strategic direction.

Hawaiian Electric Industries, Inc. (HE) Current Status

Hawaiian Electric Industries, Inc. is a publicly traded company. This means its shares are available for purchase on the open market, and the company is subject to regulatory oversight and reporting requirements.

Hawaiian Electric Industries, Inc. (HE) Ownership Breakdown

Here's a look at the ownership breakdown of Hawaiian Electric Industries, Inc. (HE):

Hawaiian Electric Industries, Inc. (HE) Leadership

Key figures leading Hawaiian Electric Industries, Inc. as of April 2025 include:

• Scott W. H. Seu: President and Chief Executive Officer of Hawaiian Electric Industries, Inc. and Chief Executive Officer of Hawaiian Electric Company.
• Ann Teranishi: President and Chief Executive Officer of American Savings Bank.
• Tayne S. Fujimoto: Executive Vice President and Chief Financial Officer.

For more insight into the company's guiding principles, see: Mission Statement, Vision, & Core Values of Hawaiian Electric Industries, Inc. (HE).

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

Hawaiian Electric Industries, Inc. (HE) is dedicated to providing affordable, reliable, and clean energy services to the people of Hawaii, while also working towards a sustainable future for the islands. The company's core values emphasize customer service, environmental stewardship, and community engagement.

Hawaiian Electric Industries, Inc.'s Core Purpose

Official mission statement

Hawaiian Electric Industries, Inc. has the following mission statement:

• To provide affordable, reliable, clean energy and services to all.

Vision statement

Hawaiian Electric Industries, Inc. has the following vision:

• To power a cleaner, brighter future for Hawai‘i.

Company slogan/tagline

Hawaiian Electric Industries, Inc. uses the following slogans:

• Powering a cleaner, brighter future.
• Committed to a sustainable Hawai'i.

To gain more insights into the company's investors and their motivations, check out this in-depth analysis: 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) is a holding company focused on providing electric service to approximately 95% of the state of Hawaii’s population through its subsidiaries.

Hawaiian Electric Industries, Inc.'s Product/Service Portfolio

Hawaiian Electric Industries, Inc.'s Operational Framework

Hawaiian Electric's operational framework involves several key processes to ensure reliable energy delivery and financial performance:

• Energy Generation: Operates power plants utilizing a mix of fossil fuels and renewable resources. Transitioning towards greater reliance on renewable energy to meet state mandates.
• Grid Management: Manages the transmission and distribution infrastructure to deliver electricity efficiently across its service territories.
• Customer Service: Provides billing, support, and energy efficiency programs to residential, commercial, and government customers.
• Regulatory Compliance: Adheres to regulations set by the Hawaii Public Utilities Commission (HPUC) and other governmental bodies.
• Banking Operations: American Savings Bank provides a full range of banking services, contributing to HE's overall financial stability.

Hawaiian Electric Industries, Inc.'s Strategic Advantages

Hawaiian Electric possesses several strategic advantages that contribute to its market position and long-term sustainability:

• Established Infrastructure: Extensive grid and generation assets provide a solid foundation for serving its customer base.
• Renewable Energy Leadership: Proactive in developing and integrating renewable energy sources, aligning with Hawaii's clean energy goals.
• Diversified Business Model: Banking operations through American Savings Bank provide a stable source of earnings and diversification.
• Regulatory Relationships: Strong relationships with regulatory bodies facilitate constructive dialogue and policy development.
• Community Engagement: Active involvement in community initiatives and sustainability programs enhances its reputation and stakeholder support.

To gain more in-depth knowledge about the financial stability of the company, check this out: Breaking Down Hawaiian Electric Industries, Inc. (HE) Financial Health: Key Insights for Investors

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

Hawaiian Electric Industries, Inc. primarily generates revenue through the production, purchase, distribution, and sale of electricity on the islands of Oʻahu, Hawaiʻi, Maui, Lānaʻi, and Molokaʻi.

Hawaiian Electric Industries, Inc.'s Revenue Breakdown

While specific percentage breakdowns for revenue streams can fluctuate yearly, a general overview can be provided based on available information regarding the company's operations.

Hawaiian Electric Industries, Inc.'s Business Economics

The business economics of Hawaiian Electric Industries are influenced by several key factors:

• Regulatory Environment: As a regulated utility, the company's rates and investments are subject to oversight by the Hawaii Public Utilities Commission (PUC). This regulatory framework impacts how the company can price its electricity and recover costs.
• Fuel Costs: Historically, the company has relied on imported fossil fuels to generate electricity. Fluctuations in oil prices can significantly affect the company's operating expenses and, consequently, electricity rates for consumers.
• Renewable Energy Transition: A major aspect of the company's economics is its transition to renewable energy sources. Investments in solar, wind, and other renewables are reshaping its cost structure and requiring significant capital expenditures.
• Grid Modernization: Upgrading the electric grid to support renewable energy integration and improve reliability requires substantial investments. These modernization efforts are essential for the company's long-term sustainability but also impact its financial planning.

More information can be found here: Mission Statement, Vision, & Core Values of Hawaiian Electric Industries, Inc. (HE).

Hawaiian Electric Industries, Inc.'s Financial Performance

Key aspects of Hawaiian Electric Industries' financial performance include:

• Revenue Stability: As an essential service provider, the company generally experiences stable revenue streams. Demand for electricity is relatively consistent, providing a reliable base for financial performance.
• Capital Expenditures: Significant ongoing investments in renewable energy projects and grid infrastructure affect the company's cash flow and capital structure. These investments are crucial for meeting renewable energy mandates and improving system resilience.
• Profitability: The company's profitability is influenced by factors such as fuel costs, regulatory decisions on rate adjustments, and the efficiency of its operations. The transition to renewables also plays a role, as these projects can have different cost structures compared to traditional fossil fuel generation.
• Debt and Equity: The company uses a mix of debt and equity to finance its operations and investments. Managing its debt levels and maintaining a healthy balance sheet are important for financial stability and access to capital markets.

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

Hawaiian Electric Industries (HE) faces a transforming energy landscape, striving to solidify its position while navigating significant regulatory and market shifts. The company's future hinges on its ability to execute its clean energy transition effectively and capitalize on emerging opportunities in renewable energy and grid modernization. For more in-depth information, you can read about Mission Statement, Vision, & Core Values of Hawaiian Electric Industries, Inc. (HE).

Competitive Landscape

The utility sector in Hawaii sees Hawaiian Electric as the primary player, though it faces competition from smaller independent power producers and alternative energy providers. The competitive dynamics are influenced by Hawaii's unique energy market, which is characterized by a high dependence on imported fossil fuels and a strong push for renewable energy adoption.

Opportunities & Challenges

Hawaiian Electric is presented with numerous opportunities in Hawaii's evolving energy sector but must also address critical challenges to maintain its market leadership and achieve its strategic objectives.

Industry Position

Hawaiian Electric holds a dominant position in the Hawaiian electric utility market, serving approximately 95% of the state’s population through its subsidiaries on the islands of O'ahu, Hawai'i, Maui, Lāna'i and Moloka'i.

• The company is actively transitioning from fossil fuels to renewable energy sources, aligning with Hawaii's goal of achieving 100% renewable energy by 2045.
• Hawaiian Electric is investing in grid modernization projects to enhance the reliability and resilience of its infrastructure, including upgrades to substations, transmission lines, and distribution networks.
• The company faces increasing pressure from regulators and stakeholders to accelerate its clean energy transition, reduce greenhouse gas emissions, and improve customer affordability.