Core Viewpoint - Hawaiian Electric's stock has been downgraded by an analyst, reflecting concerns about its pricing and business uncertainty [2][3]. Company Summary - Hawaiian Electric's shares fell by 2.5% following a downgrade to "underperform" from a previous "buy" recommendation by Jefferies' analyst Julian Dumoulin-Smith [1][2]. - The new price target for Hawaiian Electric's stock is set at $12.50 per share, reduced by $1 from the previous target [3]. - The current market capitalization of Hawaiian Electric is $2.5 billion, with a current stock price of $14.09 [4][5]. Industry Context - The uncertainty surrounding Hawaiian Electric's pricing and legislative decisions may affect its competitiveness compared to other electric utility companies [3][5]. - Rising concerns about affordability in the utility sector suggest that Hawaiian Electric is not alone in facing pressure regarding its pricing strategies [5].

Core Insights - Three stocks in the utilities sector are showing signs of being overbought, which may concern momentum-focused investors [1] Group 1: Stock Performance and Indicators - Enlight Renewable Energy Ltd (NASDAQ:ENLT) has an RSI value of 71.9, indicating it is overbought. The stock gained approximately 27% over the past month, closing at $50.35 [5] - Hawaiian Electric Industries Inc (NYSE:HE) has an RSI value of 71.1. The stock rose about 11% in the last five days, closing at $13.66 [5] - Ellomay Capital Ltd (NYSE:ELLO) has an RSI value of 75.5, also indicating it is overbought. The stock gained around 27% over the past month, closing at $28.40 [5] Group 2: Analyst Ratings and Price Targets - JP Morgan analyst Mark Strouse downgraded Enlight Renewable Energy from Neutral to Underweight, maintaining a price target of $35 [5] - Hawaiian Electric reached a $47.75 million shareholder settlement related to the Maui wildfires, which may have influenced its recent stock performance [5] - Ellomay Capital reported third-quarter earnings of 93 cents per share, an increase from 52 cents per share in the previous year [5]

Core Viewpoint - Halper Sadeh LLC is investigating potential breaches of fiduciary duties by officers and directors of Hawaiian Electric Industries, Inc. (NYSE: HE) towards shareholders [1] Group 1: Legal Actions and Shareholder Rights - Long-term shareholders of Hawaiian Electric may seek corporate governance reforms, return of funds, court-approved financial incentives, or other benefits [2] - Shareholder involvement is crucial for improving company policies and practices, leading to enhanced shareholder value [3] Group 2: Firm's Background and Services - Halper Sadeh LLC represents global investors affected by securities fraud and corporate misconduct, having recovered millions for defrauded investors [4]

Core Insights - The company has the potential to survive until it pays a total of $1.91 billion due to a regulatory decision related to its partial responsibility for the Maui fires in 2023 [1] Financial Analysis - The total amount the company is expected to pay is $1.91 billion, which is a significant financial burden [1]

Core Insights - The company has the potential to survive until it pays a total of $1.91 billion due to a regulatory decision related to its partial responsibility for the Maui fires in 2023 [1] Financial Analysis - The total amount the company is expected to pay is $1.91 billion, which is a significant financial burden [1]

Core Viewpoint - Hawaiian Electric Industries experienced a significant stock price increase of 10.80% due to its inclusion in the S&P SmallCap 600 Index, driven by market enthusiasm rather than any proprietary news [1][2]. Group 1: Index Inclusion Impact - S&P Global Indices announced that Hawaiian Electric will be added to the S&P SmallCap 600 Index as part of its quarterly rebalancing, effective before trading on December 22 [2][4]. - A total of 14 stocks, including Hawaiian Electric, were added to the index, while 13 stocks were removed [4]. - The inclusion in the index is expected to attract investment from index funds, benefiting Hawaiian Electric's stock price [6]. Group 2: Stock Performance Metrics - Following the announcement, Hawaiian Electric's stock price rose by $1.22 to a current price of $12.46 [5]. - The market capitalization of Hawaiian Electric is reported at $2 billion, with a trading volume of 6.9 million shares on the day of the announcement [5][6]. - The stock's 52-week range is between $8.14 and $13.41, indicating a notable increase in value [6].

Financial Data and Key Metrics Changes - In Q3 2025, the company generated net income of $30.7 million or $0.18 per share, including $4.5 million for pre-tax Maui wildfire-related expenses [10] - Consolidated core net income was $32.8 million or $0.19 per share, compared to $32.7 million or $0.29 per share in Q3 2024 [10] - Utility core net income for the quarter was $39.6 million, down from $43.7 million in Q3 2024, driven by lower tax benefits and higher expenses [10][11] Business Line Data and Key Metrics Changes - The holding company reported a core net loss of $6.8 million, improved from a loss of $10.9 million in Q3 2024, due to lower interest expenses and higher interest income [11] - The company has approximately $40 million in unrestricted cash at the holding company and $504 million at the utility as of the end of Q3 [12] Market Data and Key Metrics Changes - The company completed a $500 million unsecured debt offering in September, enhancing liquidity and access to capital markets [12] - The board approved a $10 million quarterly dividend to HEI for Q3 2025 [13] Company Strategy and Development Direction - The company is focused on improving financial strength and resilience, implementing wildfire safety strategies, and advancing tort litigation settlements [4][5] - A proposal for an alternative non-rate case process to rebase rates was approved by the PUC, aiming to avoid the burdens of a formal rate case [5][6] - Capital expenditures (CapEx) are projected to increase significantly, with expectations of $400 million in 2025 and $550 million-$700 million in 2026, driven by wildfire safety and reliability projects [15][16] Management Comments on Operating Environment and Future Outlook - Management expressed confidence in the progress of the Maui wildfire tort litigation settlement and operational risk improvements since the 2023 wildfires [7][9] - The company anticipates that the first payment related to the settlement will be due no sooner than early 2026 [14] - Management is cautious about providing earnings guidance until after the final settlement approval process is completed [25] Other Important Information - The company is awaiting PUC approval for its utility wildfire safety strategy and has filed an application to increase costs for the Wai'a Repowering Project [15] - Approximately $1.8 billion-$2.4 billion in total CapEx is expected over the next three years, subject to additional PUC approvals [16] Q&A Session Summary Question: Revenue requirement and timing under the alternative rebasing filing - Management discussed the timing of the rebasing proposal due to the PUC on January 7, 2026, and the potential for a 2027 test year rate case if the proposal is unsuccessful [20][22] Question: Sustainable cadence of utility to hold co-dividends - The utility dividend to the holding company has been set based on the needs of the holding company, with no changes expected in the foreseeable future [23] Question: CapEx guidance and earnings guidance - Management indicated it is too soon to provide earnings guidance, as it will depend on the final settlement approval process and the outcomes of the rate rebasing [25][26] Question: Update on the sale of the remaining portion of the bank - The company intends to monetize its remaining stake in American Savings but has not committed to a specific timeline [32] Question: Expectations of the commission's report on the wildfire fund - The PUC is on track to submit a report to the Hawai'i State Legislature, but management is uncertain about potential legislative movements in 2026 [33][34]

Financial Data and Key Metrics Changes - In Q3 2025, the company generated net income of $30.7 million or $0.18 per share, which includes $4.5 million for pre-tax Maui wildfire-related expenses [10] - Consolidated core net income was $32.8 million or $0.19 per share, compared to $32.7 million or $0.29 per share in Q3 2024 [10] - Utility core net income for the quarter was $39.6 million, down from $43.7 million in Q3 2024, primarily due to lower tax benefits and higher expenses [10][11] Business Line Data and Key Metrics Changes - The holding company reported a core net loss of $6.8 million, improved from a loss of $10.9 million in Q3 2024, driven by lower interest expenses and higher interest income [11] - The company has approximately $40 million in unrestricted cash at the holding company and $504 million at the utility as of the end of Q3 [12] Market Data and Key Metrics Changes - The company completed a $500 million unsecured debt offering in September, enhancing liquidity and access to capital markets [12] - The board approved a $10 million quarterly dividend to HEI for Q3 2025 [13] Company Strategy and Development Direction - The company is focused on improving financial strength and resilience, implementing wildfire safety strategies, and preparing for a multi-year rate period under the performance-based regulation (PBR) framework [4][5] - Capital expenditures (CapEx) are projected to increase significantly, with expectations of $400 million in 2025 and $550 million to $700 million in 2026, aimed at reducing wildfire risk and increasing reliability [15][16] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the progress of the Maui wildfire tort litigation settlement and the implementation of safety measures [7][9] - The company is awaiting PUC approval for its wildfire safety strategy and is actively working on the rate rebasing process [15] Other Important Information - The company has $479 million held in a subsidiary for the first payment of the tort litigation settlement, expected no sooner than early 2026 [14] - Future CapEx is expected to total $1.8 billion to $2.4 billion from 2026 to 2028, subject to regulatory approvals [16] Q&A Session Summary Question: How should we think about the revenue requirement and timing under the alternative rebasing filing? - Management indicated that discussions with PBR parties are ongoing, with a proposal due to the PUC on January 7, 2026, and a potential test year rate case if the proposal is unsuccessful [20][22] Question: What is the sustainable cadence of utility to hold co-dividends through the settlement years? - The utility dividend to the holding company has been set based on the needs of the holding company, and this is not expected to change in the foreseeable future [23] Question: Can you provide an update on the sale of the remaining portion of the bank? - The company intends to monetize its remaining stake in American Savings but has not committed to a specific timeline [32] Question: What are the expectations of the commission's report on the wildfire fund? - The Public Utilities Commission is on track to submit a report to the Hawai'i State Legislature, but the content and implications for legislation in 2026 are uncertain [33][34]

Financial Data and Key Metrics Changes - In Q3 2025, the company generated net income of $30.7 million or $0.18 per share, which includes $4.5 million for pre-tax Maui wildfire-related expenses [11] - Consolidated core net income was $32.8 million or $0.19 per share, compared to $32.7 million or $0.29 per share in Q3 2024 [11] - Utility core net income decreased to $39.6 million from $43.7 million in Q3 2024, driven by lower tax benefits and higher expenses [11] Business Line Data and Key Metrics Changes - The holding company reported a core net loss of $6.8 million, improved from a loss of $10.9 million in Q3 2024, due to lower interest expenses and higher interest income [11] - The utility's operational risk profile has improved significantly since the 2023 Maui wildfires, with enhanced wildfire safety measures implemented [9] Market Data and Key Metrics Changes - As of the end of Q3 2025, the holding company had approximately $40 million and the utility had $504 million of unrestricted cash on hand [12] - The utility has approximately $544 million of liquidity available under its accounts receivable facility and credit facility capacity [13] Company Strategy and Development Direction - The company is focused on improving financial strength and resilience, implementing wildfire safety improvements, and preparing for a successful second multi-year rate period under the performance-based regulation framework [4][5] - Capital expenditures (CapEx) are projected to increase significantly, with expectations of $400 million in 2025 and $550 million to $700 million in 2026, aimed at reducing wildfire risk and increasing reliability [15] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about the ongoing implementation of the Maui wildfire tort litigation settlement and the progress made in enhancing operational safety [10] - The company is awaiting PUC approval for its utility wildfire safety strategy and is working through the rate rebasing process [15] Other Important Information - The company completed a $500 million unsecured debt offering in September 2025, enhancing liquidity and access to capital markets [13] - The first payment related to the tort litigation settlement is expected no sooner than early 2026, with $479 million held in a subsidiary for this purpose [14] Q&A Session Summary Question: How should we think about the revenue requirement and timing under the alternative rebasing filing? - Management indicated that discussions with PBR parties are underway, with a proposal due to the PUC on January 7, 2026, and a potential test year rate case if the proposal is unsuccessful [18][19] Question: What is the sustainable cadence of utility to hold co-dividends through the settlement years? - Management stated that utility dividends to the holding company have been set based on the needs of the holding company and do not foresee changes in the near future [21] Question: How do you think about earnings guidance and EPS? - Management noted it is too soon to provide earnings guidance, as they want to wait until after the final settlement approval process [24]

Financial Performance - HEI's GAAP income from continuing operations for 3Q 2025 was $30.7 million, or $0.18 EPS[15] - Excluding Maui wildfire expenses ($3.4 million) and Pacific Current gain on sale (negative $1.3 million), Core earnings were $32.8 million, or $0.19 EPS[15] - As of the end of 3Q, the HoldCo and Utility had $40 million and $504 million of unrestricted cash on hand, respectively[26] Wildfire Tort Litigation and Risk Reduction - Definitive settlement agreements signed in November of 2024, consistent with key terms announced in August of 2024[11] - The company expects to make its first payment under the settlement no sooner than early 2026[11] - The company replaced or upgraded 3,628 wood poles[14] - The company replaced 36 miles of overhead copper conductor with stronger aluminum conductor[14] - The company replaced 10,361 expulsion fuses with firesafe fuses[14] Capital Investment and Strategy - The company anticipates investing nearly $400 million in capital between 2025 and 2027 to reduce wildfire risk, with approximately $120 million invested in 2025[39] - The company successfully executed a $500 million Utility senior unsecured notes offering in September[26] Regulatory and Legislative Actions - Governor Green signed legislation into law in July 2025, appropriating the State's contribution to the settlement[11] - Act 301 ensures the State of Hawaii's $807 million obligation is fully funded[37]