Hawaiian Electric Profit Rises on ASB Stake Gains
Storm-related costs and a Kauai bankruptcy weighed on the utility holding company's July-September results.
Updated on Nov. 10, 2026 in Public Companies
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Hawaiian Electric Industries reported a $35 million profit for the July-September quarter, up from $31 million a year earlier, driven by $64 million in gains from its minority stake in American Savings Bank. The company said Hurricanes Lala and Lowell caused an estimated $14 million in extraordinary expenses.
Why it matters
Damage from Hurricane Lowell prevented the restart of a Kauai biomass plant owned by subsidiary Mahipapa LLC, which subsequently declared Chapter 7 bankruptcy and had its asset value cut by $51 million. The results show how storm losses and asset writedowns can be offset by investment gains at the parent company level.
HEI earned $35 million in the July-September quarter, up from $31 million a year earlier, with $64 million in ASB-related gains driving the result. The company also cut the value of Mahipapa's assets by $51 million after the Kauai plant bankruptcy.
The players
Hawaiian Electric Industries Inc.
Hawaii-based holding company whose utility subsidiary serves customers across Oahu, Hawaii Island, Maui, Molokai and Lanai.
Scott Seu
Chief executive of Hawaiian Electric Industries, who has overseen the company's wildfire mitigation investments since the 2023 Lahaina disaster.
American Savings Bank
Honolulu-based bank in which Hawaiian Electric Industries holds a minority stake that was partially sold in a New York Stock Exchange public offering.
The details
HEI sold about a third of its 9.9% stake in American Savings Bank in September as part of an initial public share sale on the New York Stock Exchange, and recognized a pre-tax gain of $46 million on its remaining 6.4% stake. CEO Scott Seu said the company's wildfire mitigation investments reduced fire risk during the recent storms, while Lala's winds caused outages for more than 40% of customers, with 95% of those affected restored within three days.
Timeline
August 2026: Hurricane Lala caused outages and extraordinary expenses.
September 2026: Hurricane Lowell damaged the Kauai plant, and HEI sold ASB shares.
Oct. 26, 2026: HEI stock hit a 52-week low of $8.21.
Nov. 10, 2026: HEI reported quarterly earnings and the stock closed at $8.42.
Public Companies Context
The company's financial position is being shaped by the 2023 Lahaina wildfire, where a downed power line was a major contributing factor. Hawaiian Electric plans to fund later settlement payments through a mix of debt, equity and the sale of its remaining ASB shares.
Hawaii utility customers who lost power during the August and September storms were restored within three days for most, and rate and reliability decisions will reflect the company's storm and wildfire spending. Investors in the stock, which closed at $8.42 after touching a 52-week low of $8.21, face ongoing uncertainty tied to settlement payments.
The takeaway
Hawaiian Electric's quarterly profit depended on investment gains rather than core operations, highlighting how storm damage and settlement obligations can pressure a utility even when headline earnings rise. Investors and customers alike should watch how the company funds its remaining wildfire payments.
What happens next
Hawaiian Electric expects first payouts to Maui wildfire victims by the end of this year and plans to sell its remaining ASB shares to help fund its second settlement payment.
Further reading
For more on how publicly traded firms are reporting results, see Public Companies coverage in Hawaii.
Source note: This article includes information reported by Hawaii Tribune-Herald.
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