HEI(US:HE)2026-02-27 21:05Financial Performance - Hawaiian Electric Industries reported a net income of $123 million for the full year 2025, a significant recovery from a net loss of $1,426 million in 2024[2]. - Core net income for Hawaiian Electric in 2025 was $178 million, slightly down from $181 million in 2024, impacted by $42 million in pre-tax wildfire-related expenses[9]. - Fourth quarter net income for 2025 was $44 million, compared to a net income of $46 million in the same quarter of 2024[10]. - Core income from continuing operations for the fourth quarter of 2025 was $41 million, up from $35 million in the fourth quarter of 2024[4]. - The holding and other companies reported a net loss of $45 million in 2025, improved from a net loss of $96 million in 2024[11]. - Total revenues for Q4 2025 were $805.824 million, a slight increase from $799.180 million in Q4 2024, while total revenues for the year 2025 were $3.086896 billion, down from $3.219850 billion in 2024[23]. - Operating income for Q4 2025 was $67.109 million, compared to $53.662 million in Q4 2024, with a total operating income for the year 2025 of $235.322 million, significantly improved from a loss of $1.706760 billion in 2024[23]. - Net income for common stock in Q4 2025 was $39.617 million, recovering from a loss of $68.245 million in Q4 2024, with a total net income of $123.120 million for 2025 compared to a loss of $1.426009 billion in 2024[23]. - The return on average common equity for the twelve months ended was 12.3%[26]. - Non-GAAP (Core) net income for the year ended December 31, 2025, was $177.547 million, slightly down from $180.739 million in 2024[31]. - The return on average equity based on GAAP for the year ended December 31, 2025, was 12.3%[31]. Wildfire-Related Expenses - The company recorded $1,875 million in wildfire tort-related claims in 2024, impacting overall expenses significantly[26]. - Total Maui windstorm and wildfires related expenses, net of insurance recoveries and approved deferral treatment, amounted to $1.961 million for the three months ended December 31, 2025[31]. - Legal expenses related to the Maui wildfires for the year ended December 31, 2025, totaled $15.685 million, down from $51.406 million in 2024[31]. - The total pretax expenses related to Maui windstorm and wildfires for the year ended December 31, 2025, were $99.476 million[30]. - Total Maui windstorm and wildfires related expenses, net of insurance recoveries, amounted to $299,000 for Q4 2025, compared to $4,040,000 in Q4 2024[32]. - The company recorded $47,750,000 in wildfire securities-related claims for the year ended December 31, 2025[32]. - The total pretax expenses related to the Maui windstorm and wildfires were $848,000 for Q4 2025, down from $5,321,000 in Q4 2024[32]. Cost Management - The average fuel oil cost per barrel decreased to $98.84 in Q4 2025 from $104.38 in Q4 2024, contributing to lower operational costs[26]. - Interest expense for Q4 2025 was $29.655 million, a decrease from $31.131 million in Q4 2024, reflecting improved financial management[23]. - Interest expense for Q4 2025 was $92,000, a decrease from $981,000 in Q4 2024[32]. Community Support and Legislative Measures - The typical residential bill remained stable in 2025, with the utility providing $1 million in payment assistance to customers[3]. - The company is pursuing legislative measures to better serve communities amid wildfire risks and is advancing Maui wildfire tort settlements towards final court approval[5]. - Hawaiian Electric's strong balance sheet and liquidity position support long-term investments in community service[3]. Strategic Planning - The company plans to continue evaluating strategic options for Pacific Current, which may influence future financial performance[28]. - Management emphasizes the use of non-GAAP measures to better reflect core operating activities, excluding costs related to the Maui wildfires[28].