HEI Announces Q4 and Full-Year 2024 Results
Hawaiian Electric Industries, Inc., recently released its financial results for the fourth quarter and full year of 2024. The company reported a net loss of $1,426 million, or $11.23 per share, for the full year, compared to a net income of $199 million, or $1.81 per share, in 2023. Excluding the impacts of discontinued operations, Maui wildfire-related expenses, and the Pacific Current asset impairment recorded in the third quarter, HEI’s Core income from continuing operations was $124 million, or $0.98 per share, compared to $152 million, or $1.38 per share in 2023.
For the fourth quarter of 2024, the company posted a net loss of $68 million, or $0.40 per share, compared to a net income of $49 million, or $0.44 per share, in the fourth quarter of 2023. Core income from continuing operations was $35 million in the fourth quarter of 2024, compared to $37 million in the same period of 2023.
HEI’s President and CEO, Scott Seu, emphasized the pivotal nature of 2024 for the company, highlighting significant progress in addressing challenges and establishing a foundation for long-term success. Key milestones include:
- Settlement agreements signed in November, combined with a favorable Hawaii Supreme Court decision in February 2025, providing clarity on the resolution of the Maui wildfire tort litigation.
- The sale of over 90% of American Savings Bank in December, simplifying HEI’s strategy and regulatory position, reducing holding company debt, and refocusing on the core utility business.
- Rapid progress in wildfire mitigation efforts, with operational changes, new technology, and the Public Safety Power Shutoff program leading to significant risk reduction.
- Hawaiian Electric achieving a 36% renewable portfolio standard in 2024, positioning the company well ahead of the 40% target set for 2030.
Hawaii Supreme Court Ruling
In February 2025, the Hawaii Supreme Court ruled in favor of HEI regarding key legal questions in the Maui wildfire litigation. The decision confirmed that insurers seeking to recover amounts paid to settling plaintiffs cannot pursue additional claims against defendants beyond the settlement terms. This ruling aligns with the company’s and plaintiffs’ positions, reinforcing the viability of settlement agreements reached in the litigation.
Hawaiian Electric Company (HECO) Earnings Performance
Full Year 2024 Results:
Hawaiian Electric reported a net loss of $1,226 million for the full year, compared to a net income of $194 million in 2023. The decline was primarily attributed to:
- A $1,875 million ($1,392 million after-tax) loss due to the accrual of estimated wildfire liabilities from tort-related legal claims and cross claims, net of insurance recoveries.
- $76 million ($56 million after taxes) in higher operations and maintenance (O&M) expenses, primarily due to indemnification settlements, increased wildfire mitigation costs, and higher insurance costs.
- $7 million ($6 million after taxes) in increased depreciation expenses.
These losses were partially offset by:
- $43 million ($29 million after taxes) in higher revenues, driven by revenue adjustment mechanisms, major project interim recovery, demand response programs, and performance incentive mechanisms.
- $4 million ($3 million after taxes) in lower interest expenses.
- $3 million ($2 million after taxes) from a gain on the sale of property.
Hawaiian Electric’s Core net income for 2024 was $181 million. Wildfire-related expenses totaling $2,019 million were partially offset by $86 million in insurance recoveries and $38 million in costs deferred under Public Utilities Commission (PUC) authorization.
Fourth Quarter 2024 Results:
The fourth-quarter net income for Hawaiian Electric was $46 million, compared to $58 million in the same period in 2023. The decrease was driven by:
- $30 million ($25 million after taxes) in higher O&M expenses.
- $13 million ($9 million after taxes) in higher revenues.
- $3 million ($2 million after taxes) from a gain on the sale of property.
- $3 million ($2 million after taxes) from improved heat rate performance.
Hawaiian Electric’s Core net income was approximately $49 million for both Q4 2024 and Q4 2023.
Utility Dividend Suspension
The utility dividend to HEI remains suspended due to limited holding company cash needs following the recent equity issuance and the continued suspension of common equity shareholder dividends.
Discontinued Operations – American Savings Bank (ASB)
HEI, ASB, and ASB Hawaii closed the sale of 90.1% of ASB’s common stock to various investors on December 31, 2024. Consequently, ASB’s financial results are classified as discontinued operations. The loss from discontinued operations for 2024 was $103 million, compared to a net income of $53 million in 2023. Excluding wildfire expenses, a goodwill impairment recorded in Q2, and the loss from the sale transaction, Core income for 2024 was $79 million.
Holding and Other Companies Performance
The holding and other companies reported a net loss of $96 million in 2024, compared to a loss of $48 million in 2023. The increased loss was mainly due to:
- Pacific Current asset impairment recorded in Q3.
- Higher wildfire-related expenses.
- Increased costs at Pacific Current.
Core net loss for the year was $56 million, compared to $43 million in 2023. In Q4 2024, the net loss was $17 million, compared to $13 million in Q4 2023. The increase was primarily due to lower net income at Pacific Current. Core net loss for Q4 2024 was $14 million, compared to $12 million in Q4 2023.
