The utility was enjoying a double-digit gain, but not because of any proprietary news.Hawaiian Electric Industries (HE +10.80%) was providing plenty of financial juice to its shareholders on Monday. Following news that the utility stock is set to be included in a key equity index, market players rushed to buy it, driving the price up by 11% in mid-afternoon trading.Graduation dayJust after market close last Friday, S&P Global Indices -- the company behind such closely followed stock market gauges as the S&P ...

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]

HEI 3Q 2025 Financial Results November 7, 2025 Non-GAAP Financial Information See Appendix for definition of Core Earnings and Core EPS. 2 Continued Progress on Key Strategic Goals Advancing Our Strategy and Laying the Foundation for Sustainable Growth Continuously Improving Utility Safety Profile Moving forward with operational risk profile that's greatly improved since the 2023 Maui wildfires. 2025 - 2027 Wildfire Safety Strategy awaits PUC approval. Tort Litigation Settlement Agreement Progressing as Exp ...

Financial Performance - HEI's revenues for the three months ended September 30, 2025, decreased by 5% to $790.6 million compared to $833.2 million in the same period of 2024[240] - Operating income for the three months ended September 30, 2025, was $52.0 million, a significant improvement from a loss of $149.7 million in the prior year, primarily due to a $163 million adjustment to tort-related claims[240] - Net income for the three months ended September 30, 2025, was $30.7 million, compared to a loss of $104.4 million in the same period of 2024, reflecting improved performance in the electric utility segment[240] - For the nine months ended September 30, 2025, revenues decreased by 6% to $2.28 billion from $2.42 billion in 2024, driven by a decline in the electric utility segment[241] - The company recorded an operating income of $168.2 million for the nine months ended September 30, 2025, compared to a loss of $1.76 billion in the prior year, largely due to the prior year's $1.87 billion tort-related claims[241] - Revenues for the three months ended September 30, 2025, were $787 million, a decrease of $43 million compared to $830 million in 2024, primarily due to lower fuel oil prices and lower kWh generated[302] - Operating income for the three months ended September 30, 2025, was $63 million, an increase largely due to wildfire tort-related claims in 2024 and higher ARA revenues[302] - Net income for common stock for the three months ended September 30, 2025, was $37 million, an increase due to higher income before income taxes[302] - Revenues for the nine months ended September 30, 2025, were $2,268 million, a decrease of $143 million compared to $2,411 million in 2024, mainly due to lower fuel oil prices[303] - Operating income for the nine months ended September 30, 2025, was $203 million, an increase largely due to higher ARA revenue and better heat rate performance[303] - Net income for common stock for the nine months ended September 30, 2025, was $124 million, an increase due to higher income before income taxes[303] Expenses and Liabilities - Incremental expenses related to the Maui windstorm and wildfires for the three months ended September 30, 2025, totaled $59.8 million, with net expenses after insurance recoveries amounting to $4.5 million[243] - Total Maui windstorm and wildfires related expenses incurred by the company from August 8, 2023, through September 30, 2025, amount to approximately $2.3 billion, including $203 million for wildfire tort-related claims[245] - As of September 30, 2025, HEI and Hawaiian Electric had accrued estimated wildfire liabilities of approximately $1.92 billion, with the first installment of $479 million classified as a current liability[266] - The Utilities are expected to incur costs related to the Maui windstorm and wildfires amounting to $1.9 billion, which will not impact customer payments[349] Financing and Liquidity - On September 18, 2025, Hawaiian Electric issued $500 million in unsecured senior notes with a 6.00% interest rate, maturing on October 1, 2033, to finance capital expenditures and repay debt[232] - HEI increased its revolving credit facility to $300 million, extending the termination date to September 5, 2030, enhancing liquidity for future operations[231] - As of September 30, 2025, HEI consolidated had $2.5 billion in long-term and short-term debt, with $144 million due within 12 months[269] - The total available liquidity from cash and credit facilities as of September 30, 2025, was $1.611 billion, including $548 million in cash and cash equivalents[268] - HEI raised approximately $557.7 million from the sale of 62.2 million shares of common stock to fund contributions to the Maui wildfire tort litigation settlement[277] - The Utilities received PUC approval to issue up to $900 million in unsecured obligations during 2025-2027 to finance capital expenditures and repay debt[386] - The Utilities' liquidity has improved, but credit rating downgrades have resulted in higher credit spreads compared to investment-grade spreads[381] - The Utilities' capital structure as of September 30, 2025, included 58% long-term debt and 41% common stock equity[393] Market and Economic Conditions - The average daily passenger count in Hawaii was 3.7% lower in Q3 2025 compared to the same period in 2024, with international visitor arrivals (excluding Japan) remaining 22.1% below 2019 levels[248] - Hawaii's unemployment rate in August 2025 was 2.7%, slightly lower than the 3.0% rate in August 2024[249] - The median sales price for single-family homes in Hawaii was $1,145,000 in September 2025, slightly lower than the all-time high of $1,185,000 set earlier in February 2025[250] - The Federal Open Market Committee lowered the federal funds rate target range to 3.75% to 4% on October 29, 2025, citing moderated economic growth and elevated uncertainty[252] - UHERO forecasts a 1.7% real GDP growth for Hawaii in 2025, with a projected unemployment rate of 3.0%[253] Renewable Energy and Environmental Initiatives - The Utilities aim to cut carbon emissions from power generation by 70% by 2030, but progress has been slowed due to supply chain disruptions and federal policy changes[313] - Hawaiian Electric is committed to achieving net zero carbon emissions from power generation by 2045, with significant milestones already completed, including the closure of the last coal-fired plant and a 50% increase in rooftop solar over 2021 levels[314] - The Hawaii PUC's 2024 Inclinations set a goal to limit fossil fuel generation to no more than 40% on each island by 2030, alongside a push for 100% renewable electricity production in Hawaii and Maui by 2035[315] - The Utilities achieved a renewable portfolio standard (RPS) of 34.5% for 2020, exceeding the 30% target, and a revised RPS of 31.8% for 2022 under new calculation methods[319] - A penalty of $20 per megawatt-hour (MWh) could be imposed for failing to meet RPS targets, with a 1% shortfall in 2024 potentially resulting in a $2.1 million penalty[320] - The Utilities received a reward of $1.9 million for exceeding the RPS target in 2024, achieving a 35.8% RPS[320] - The Integrated Grid Planning process aims to modernize the grid and achieve high levels of renewable energy through stakeholder engagement and actionable steps[324] - The Utilities are exploring community-based renewable energy projects, with 12.5 MW of dedicated low-to-moderate income projects expected to become operational in 2026, though delays have occurred[332] - Contracts for solar plus storage facilities totaling 2.45 MW of photovoltaic capacity paired with 11.1 MWh of battery storage were approved for Molokai[334] - The PUC approved the Microgrid Service Tariff, creating a regulatory pathway for microgrid development in Hawaii[336] Operational Challenges and Developments - Hamakua Energy experienced a plant shutdown due to damages from contaminated fuel, leading to the purchase of a new combustion turbine for $X million, restoring full capacity by September 2024[258] - Mahipapa facility's cooling tower was destroyed by fire, resulting in a shutdown; repairs were completed by December 2024, and the facility returned to full capacity in Q1 2025, receiving $1.4 million in insurance proceeds[260] - The Utilities have faced delays in renewable energy projects due to supply chain disruptions and other unforeseen conditions, impacting their renewable portfolio standards goals[353] - Hawaiian Electric terminated a Grid Services Purchase Agreement due to financial difficulties faced by one of the aggregators[359] - The rebuilding of Lahaina's electric utility infrastructure is expected to incur significant costs due to new grid hardening strategies[383]

Financial Performance - HEI reported a net income of $31 million, or $0.18 per share, for Q3 2025, compared to a net loss of $83 million in Q3 2024[2] - Core income from continuing operations was $33 million, or $0.19 per share, down from $33 million, or $0.29 per share in Q3 2024[2] - Hawaiian Electric's net income for Q3 2025 was $37 million, a significant recovery from a net loss of $83 million in Q3 2024[5] - Core net income for Hawaiian Electric was $40 million in Q3 2025, compared to $44 million in the same quarter last year[6] - Revenues for Q3 2025 were $787,428, a decrease of 5.1% from $829,617 in Q3 2024[19] - Net income for Q3 2025 was $37,486, compared to a net loss of $82,087 in Q3 2024[19] - Core earnings for Q3 2025 were $32,808, compared to $32,724 in Q3 2024, showing a slight increase[23] - For the three months ended September 30, 2025, Hawaiian Electric reported a GAAP net income of $36.988 million, compared to a net loss of $82.585 million for the same period in 2024[24] - For the nine months ended September 30, 2025, Hawaiian Electric's GAAP net income was $123.954 million, a recovery from a net loss of $1.272758 billion in the same period of 2024[24] Revenue and Expenses - Total revenues for HEI in Q3 2025 were $790.6 million, down from $833.2 million in Q3 2024[18] - Total expenses decreased to $738.6 million in Q3 2025 from $983 million in Q3 2024[18] - Total expenses for Q3 2025 were $724,635, down 22.4% from $934,181 in Q3 2024[19] - The utility's operating income was $62.8 million in Q3 2025, recovering from an operating loss of $104.6 million in Q3 2024[18] Wildfire and Windstorm Expenses - The company reported a total of $59,834 in pretax expenses related to Maui windstorm and wildfires for Q3 2025[22] - Total Maui windstorm and wildfires related expenses, net of insurance recoveries and approved deferral treatment, amounted to $3.571 million for Q3 2025, significantly down from $170.036 million in Q3 2024[24] - The total Maui windstorm and wildfires related expenses for the nine months ended September 30, 2025, were $10.607 million, down from $1.891576 billion in the same period of 2024[24] - Total Maui windstorm and wildfires related expenses for Holding and Other Companies, net of insurance recoveries, were $956,000 for Q3 2025, compared to $4.721 million in Q3 2024[25] Liquidity and Financial Strategy - HEI expanded its credit facility capacity to $600 million from $375 million, enhancing liquidity for critical investments[2] - The company anticipates the first settlement payment related to the Maui wildfire litigation will occur no earlier than Q1 2026[4] - The company expects ongoing review of strategic options for Pacific Current to impact future earnings positively[21] Operational Metrics - Average fuel oil cost per barrel decreased to $98.20 in Q3 2025 from $114.61 in Q3 2024, a reduction of 14.5%[19] - Kilowatthour sales increased to 2,234 million in Q3 2025, up from 2,191 million in Q3 2024, representing a growth of 1.96%[19] - The return on average common equity for the twelve months ended September 30, 2025, was 12.8%[19] Holding and Other Companies - Holding and Other Companies reported a GAAP net loss of $6.241 million for the three months ended September 30, 2025, compared to a loss of $40.595 million in Q3 2024[25] - Non-GAAP (Core) net loss for Holding and Other Companies was $6.832 million for the three months ended September 30, 2025, compared to a loss of $10.943 million in the same period of 2024[25] - The total insurance recoveries for Holding and Other Companies amounted to $48.640 million for Q3 2025, compared to $2.533 million in Q3 2024[25] - For the nine months ended September 30, 2025, Holding and Other Companies reported a net loss of $40.451 million, an improvement from a loss of $78.931 million in the same period of 2024[25]

Core Viewpoint - Halper Sadeh LLC is investigating potential breaches of fiduciary duties by officers and directors of Hawaiian Electric Industries, Inc. (NYSE: HE), urging shareholders to contact the firm to discuss their rights and possible legal actions [1][2]. Group 1: Shareholder Rights and Legal Options - Long-term shareholders of Hawaiian Electric may seek corporate governance reforms, return of funds, court-approved financial incentives, or other benefits [2][3]. - Shareholder involvement is emphasized as a means to improve company policies and enhance shareholder value through better oversight and accountability [3]. Group 2: Firm's Background and Services - Halper Sadeh LLC represents global investors affected by securities fraud and corporate misconduct, having successfully implemented corporate reforms and recovered millions for defrauded investors [4].

Financial Data and Key Metrics Changes - In Q2 2025, the company generated net income of $26.1 million or $0.15 per share, which includes $5.4 million of earnings impacts related to the sale of Pacific Current assets and $5.2 million of pre-tax Maui wildfire related expenses [14][15] - Consolidated core net income was $35.4 million or $0.20 per share, compared to $28.4 million or $0.26 per share in 2024 [15] - Utility core net income for the quarter was $42.5 million, down from $43.9 million in 2024, primarily due to higher wildfire mitigation program expenses and insurance costs [15] Business Line Data and Key Metrics Changes - The company has continued to simplify its business model by selling 90.1% of American Savings Bank and the Hamakua Energy Plant, with the recent sale of solar and battery energy storage facilities on Kauai, Oahu, and Maui [10][11] - The holding company reported a core net loss of $7.1 million, improved from a loss of $15.5 million in 2024, driven by lower interest expenses and higher interest income [15] Market Data and Key Metrics Changes - The company has approximately $44 million and $106 million of unrestricted cash on hand at the holding company and utility levels, respectively [16] - The holding company has $374 million in combined liquidity available under its ATM program and credit facility capacity, while the utility has $382 million of liquidity available under its accounts receivable facility [17] Company Strategy and Development Direction - The company is focused on a simpler business model centered on utility operations, divesting remaining assets, and implementing enhanced wildfire safety measures [10][12] - The legislative framework established for wildfire safety and the ongoing Maui wildfire tort litigation settlement are expected to strengthen the company's financial position [7][12] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about the company's future, citing improvements in financial strength and resilience following the Maui wildfires [31][32] - The company is committed to managing metrics consistent with investment-grade ratings and expects to provide updates on capital expenditure and rate base growth later this year [12][27] Other Important Information - The Board of Directors approved a quarterly dividend of $10 million for 2025 [18] - The first settlement payment of $479 million is expected to be made in early 2026, with plans to raise funds through debt [17][24] Q&A Session Summary Question: Thoughts on derisking the second payment for the Maui wildfire settlement - Management indicated that the second payment would likely be raised in the first quarter of next year, with plans to raise funds through straight or convertible debt [22][24] Question: When will there be clarity on consolidated rate base growth and CapEx outlook - Management expects to provide updates on consolidated rate base growth and capital expenditure outlook around November this year [26][27]

HEI 2Q 2025 Financial Results August 7, 2025 Non-GAAP Financial Information This presentation refers to certain financial measures that were not prepared in accordance with U.S. generally accepted accounting principles, including Core Earnings and Core Net Income. Reconciliations of those non-GAAP financial measures to the most directly comparable GAAP financial measures can be found in the Appendix herein. See Appendix for definition of Core Earnings and Core EPS. 2 Continuing Progress to Reposition for th ...