[Second Quarter 2025 Consolidated Results Overview](index=1&type=section&id=Second%20Quarter%202025%20Consolidated%20Results%20Overview) HEI's Q2 2025 overview details consolidated financial performance, strategic business advancements, legislative developments, and key operational initiatives [Consolidated Financial Highlights](index=1&type=section&id=Consolidated%20Financial%20Highlights) HEI reported Q2 2025 GAAP net income of **$26 million** ($0.15/share) and Core income of **$35 million** ($0.20/share), compared to **$28 million** ($0.26/share) Core income in Q2 2024 | Metric | Q2 2025 (GAAP) | Q2 2025 (Core) | Q2 2024 (Core) | | :----- | :------------- | :------------- | :------------- | | Net Income | $26 million | $35 million | $28 million | | EPS | $0.15 | $0.20 | $0.26 | - Core income from continuing operations decreased year-over-year from **$0.26 per share** in Q2 2024 to **$0.20 per share** in Q2 2025[2](index=2&type=chunk) [Strategic Business Updates](index=1&type=section&id=Strategic%20Business%20Updates) HEI is simplifying its business model by selling Pacific Current assets and planning to divest American Savings Bank, with the asset sale impacting earnings by **$5 million** - Sale of Pacific Current's solar and battery storage assets completed[3](index=3&type=chunk)[4](index=4&type=chunk) - Expected divestiture of remaining stake in American Savings Bank over the next year[4](index=4&type=chunk) - Quarter's results reflect a **$5 million** earnings impact from asset impairment and tax credit recapture related to the Pacific Current sale[3](index=3&type=chunk) [Legislative and Regulatory Progress](index=1&type=section&id=Legislative%20and%20Regulatory%20Progress) New legislation establishes a wildfire liability cap, authorizes **$500 million** for safety improvements via securitization, and funds Maui wildfire tort settlement contributions - Legislation signed into law directs the Public Utilities Commission to establish an aggregate liability cap for economic damages from future wildfires[3](index=3&type=chunk)[5](index=5&type=chunk) - Legislation authorizes securitization to finance **$500 million** in wildfire safety improvements, enhancing customer affordability[3](index=3&type=chunk)[5](index=5&type=chunk) - Legislation appropriates funds for the State of Hawaii's contribution to the Maui wildfire tort litigation settlement[3](index=3&type=chunk)[5](index=5&type=chunk) [Key Operational Initiatives](index=1&type=section&id=Key%20Operational%20Initiatives) The utility actively advances its wildfire safety strategy to enhance service safety, reliability, and resilience, mitigating extreme weather risks - Utility continues to improve the safety, reliability, and resilience of service to communities through advancement of wildfire safety strategy[3](index=3&type=chunk) [Segment-Specific Financial Performance](index=2&type=section&id=Segment-Specific%20Financial%20Performance) This section analyzes the Q2 2025 financial performance of Hawaiian Electric and Holding and Other Companies, highlighting key earnings drivers and operational expenses [Hawaiian Electric Company](index=2&type=section&id=HAWAIIAN%20ELECTRIC%20COMPANY%20%28HAWAIIAN%20ELECTRIC%29%20EARNINGS) Hawaiian Electric reported Q2 2025 net income of **$39 million**, a significant recovery from a **$1,229 million** net loss in Q2 2024, driven by the absence of wildfire liabilities [Earnings Analysis](index=2&type=section&id=Earnings%20Analysis) This section provides a detailed analysis of Hawaiian Electric's GAAP and Core earnings for Q2 2025 and Q2 2024, highlighting year-over-year changes | Metric | Q2 2025 (GAAP) | Q2 2024 (GAAP) | Change | | :----- | :------------- | :------------- | :----- | | Net Income (Loss) | $39 million | $(1,229) million | +$1,268 million | | Metric | Q2 2025 (Core) | Q2 2024 (Core) | Change | | :----- | :------------- | :------------- | :----- | | Net Income | $42 million | $44 million | -$2 million | - The **$1,712 million** loss recorded in Q2 2024 due to the accrual of estimated wildfire liabilities was the primary driver for the year-over-year improvement[7](index=7&type=chunk) [Operational Expenses and Revenue Drivers](index=2&type=section&id=Operational%20Expenses%20and%20Revenue%20Drivers) This section details Hawaiian Electric's operational expenses, including wildfire mitigation costs, and revenue drivers for Q2 2025 - Higher O&M expenses of **$11 million**, driven by **$7 million** in higher wildfire mitigation program expenses, **$4 million** in higher legal and consulting costs, **$2 million** in higher property and general liability insurance costs, and **$1 million** in higher demand response expenses[6](index=6&type=chunk) - Partially offset by **$7 million** in higher revenues, primarily from the annual revenue adjustment mechanism, and a **$4 million** impact from better heat rate performance[7](index=7&type=chunk) - Pre-tax wildfire-related expenses of **$11 million** were partially offset by **$10 million** of costs deferred pursuant to the Public Utilities Commission's decision[6](index=6&type=chunk) [Utility Dividend Declaration](index=3&type=section&id=Utility%20Dividend%20Update) The Hawaiian Electric Board of Directors declared a **$10 million** cash dividend payable to HEI for the second quarter of 2025 - The Hawaiian Electric Board of Directors declared a **$10 million** cash dividend payable to HEI for the second quarter of 2025[8](index=8&type=chunk) [Holding and Other Companies](index=3&type=section&id=HOLDING%20AND%20OTHER%20COMPANIES) Holding and Other Companies reported a Q2 2025 net loss of **$13 million**, an improvement from **$20 million** in Q2 2024, primarily due to lower wildfire expenses | Metric | Q2 2025 (GAAP) | Q2 2025 (Core) | Q2 2024 (Core) | | :----- | :------------- | :------------- | :------------- | | Net Loss | $(13) million | $(7) million | $(15) million | | Metric | Q2 2025 (GAAP) | Q2 2024 (GAAP) | Change | | :----- | :------------- | :------------- | :----- | | Net Loss | $(13) million | $(20) million | +$7 million | - The lower net loss for the quarter was primarily due to lower wildfire expenses, partially offset by expenses taken in relation to the strategic review of Pacific Current[9](index=9&type=chunk) [Consolidated GAAP Financial Statements](index=5&type=section&id=Consolidated%20GAAP%20Financial%20Statements) This section provides HEI's consolidated GAAP statements of income, detailing revenues, expenses, and net income for Q2 2025 and year-to-date [HEI and Subsidiaries Statements of Income](index=5&type=section&id=CONSOLIDATED%20STATEMENTS%20OF%20INCOME%20DATA) HEI's consolidated statements of income show significant Q2 2025 recovery, driven by the absence of prior-year wildfire claims, with positive operating income despite slightly decreased revenues | Metric (in thousands) | Three months ended June 30, 2025 | Three months ended June 30, 2024 | Six months ended June 30, 2025 | Six months ended June 30, 2024 | | :-------------------- | :------------------------------- | :------------------------------- | :------------------------------- | :------------------------------- | | Total revenues | $746,392 | $795,417 | $1,490,462 | $1,587,431 | | Total expenses | $692,645 | $2,457,006 | $1,374,295 | $3,198,133 | | Operating income (loss) | $53,747 | $(1,661,589) | $116,167 | $(1,610,702) | | Income (loss) from continuing operations | $26,558 | $(1,249,224) | $53,702 | $(1,227,563) | | Net income (loss) for common stock | $26,085 | $(1,295,484) | $52,756 | $(1,253,362) | | Diluted earnings (loss) per common share | $0.15 | $(11.74) | $0.31 | $(11.37) | - Electric utility expenses in Q2 2024 included **$1,712 million** of Wildfire tort-related claims, which were absent in Q2 2025, leading to a dramatic improvement in operating income[19](index=19&type=chunk) [Hawaiian Electric GAAP Financial Statements](index=6&type=section&id=Hawaiian%20Electric%20GAAP%20Financial%20Statements) This section presents Hawaiian Electric's GAAP statements of income and key operating data, including kilowatthour sales and fuel costs for Q2 2025 [Hawaiian Electric and Subsidiaries Statements of Income](index=6&type=section&id=Hawaiian%20Electric%20Company%2C%20Inc.%20%28Hawaiian%20Electric%29%20and%20Subsidiaries%20CONSOLIDATED%20STATEMENTS%20OF%20INCOME%20DATA) Hawaiian Electric's statements of income reflect a strong Q2 2025 recovery to net income, primarily due to the absence of wildfire claims, with positive operating income | Metric (in thousands) | Three months ended June 30, 2025 | Three months ended June 30, 2024 | Six months ended June 30, 2025 | Six months ended June 30, 2024 | | :-------------------- | :------------------------------- | :------------------------------- | :------------------------------- | :------------------------------- | | Revenues | $742,482 | $792,331 | $1,480,848 | $1,580,909 | | Total expenses | $677,938 | $2,436,771 | $1,340,367 | $3,161,994 | | Operating income (loss) | $64,544 | $(1,644,440) | $140,481 | $(1,581,085) | | Net income (loss) for common stock | $39,150 | $(1,229,394) | $86,966 | $(1,190,173) | - Wildfire tort-related claims of **$1,712,000 thousand** were recorded in Q2 2024, but not in Q2 2025, which is the main reason for the improved financial performance[21](index=21&type=chunk) [Other Electric Utility Operating Data](index=6&type=section&id=OTHER%20ELECTRIC%20UTILITY%20INFORMATION) Hawaiian Electric reported increased kilowatthour sales across all subsidiaries and a decrease in average fuel oil cost per barrel in Q2 2025 | Metric | Q2 2025 | Q2 2024 | YoY Change | | :---------------------- | :------ | :------ | :--------- | | Kilowatthour sales (millions) | 2,032 | 1,971 | +61 | | Average fuel oil cost per barrel | $100.40 | $120.12 | -$19.72 | - Kilowatthour sales increased across all Hawaiian Electric subsidiaries (Hawaiian Electric, Hawaii Electric Light, Maui Electric) in Q2 2025 compared to Q2 2024[21](index=21&type=chunk) [Non-GAAP Measures and Reconciliations](index=7&type=section&id=Non-GAAP%20Measures%20and%20Reconciliations) This section explains and reconciles non-GAAP "Core" measures for HEI, Hawaiian Electric, and Holding and Other Companies, adjusting for wildfire and strategic review costs [Explanation of Non-GAAP Measures](index=7&type=section&id=Explanation%20of%20HEI%27s%20Use%20of%20Certain%20Unaudited%20Non-GAAP%20Measures) HEI management uses "Core" non-GAAP measures to assess performance, excluding Maui wildfire-related costs and Pacific Current strategic review expenses for a clearer view of core operations - "Core" measures exclude Maui wildfire-related costs and expenses taken in connection with HEI's ongoing review of strategic options for Pacific Current[3](index=3&type=chunk)[16](index=16&type=chunk)[23](index=23&type=chunk) - Management believes these non-GAAP measures provide useful information and are a better indicator of the companies' core operating activities[23](index=23&type=chunk) [HEI Consolidated Non-GAAP Reconciliation](index=7&type=section&id=Reconciliation%20of%20GAAP%20to%20non-GAAP%20Measures%20%28HEI%20Consolidated%29) HEI's consolidated Core income from continuing operations for Q2 2025 was **$35,356 thousand** ($0.20 diluted EPS), after adjusting for wildfire costs, subsidiary sale loss, and asset impairment | Metric (in thousands) | Q2 2025 (GAAP) | Q2 2025 (Core) | Q2 2024 (GAAP) | Q2 2024 (Core) | | :-------------------- | :------------- | :------------- | :------------- | :------------- | | Income (loss) - continuing operations | $26,085 | $35,356 | $(1,249,697) | $28,377 | | Diluted EPS - continuing operations | $0.15 | $0.20 | $(11.33) | $0.26 | - Total Maui wildfire-related expenses, net of insurance recoveries and approved deferral treatment (after tax), were **$3,829 thousand** in Q2 2025, significantly lower than **$1,278,074 thousand** in Q2 2024[25](index=25&type=chunk) - Loss on sale of a subsidiary (after tax) was **$9,809 thousand** for the six months ended June 30, 2025[25](index=25&type=chunk) [Hawaiian Electric Non-GAAP Reconciliation](index=9&type=section&id=Reconciliation%20of%20GAAP%20to%20non-GAAP%20Measures%20%28Hawaiian%20Electric%20Company%2C%20Inc.%29) Hawaiian Electric's Core net income for Q2 2025 was **$42,481 thousand**, a slight decrease from **$43,874 thousand** in Q2 2024, with 2024 GAAP-Core difference due to wildfire expenses | Metric (in thousands) | Q2 2025 (GAAP) | Q2 2025 (Core) | Q2 2024 (GAAP) | Q2 2024 (Core) | | :-------------------- | :------------- | :------------- | :------------- | :------------- | | Net income (loss) | $39,150 | $42,481 | $(1,229,394) | $43,874 | - Total Maui wildfire-related expenses, net of insurance recoveries and approved deferral treatment (after tax), were **$3,331 thousand** in Q2 2025, compared to **$1,273,268 thousand** in Q2 2024[26](index=26&type=chunk) [Holding and Other Companies Non-GAAP Reconciliation](index=10&type=section&id=Reconciliation%20of%20GAAP%20to%20non-GAAP%20Measures%20%28Holding%20and%20Other%20Companies%29) Holding and Other Companies' Core net loss for Q2 2025 improved to **$7,125 thousand** from **$15,497 thousand** in Q2 2024, reflecting lower wildfire expenses and asset adjustments | Metric (in thousands) | Q2 2025 (GAAP) | Q2 2025 (Core) | Q2 2024 (GAAP) | Q2 2024 (Core) | | :-------------------- | :------------- | :------------- | :------------- | :------------- | | Net loss | $(13,065) | $(7,125) | $(20,303) | $(15,497) | - Total Maui wildfire-related expenses, net of insurance recoveries (after tax), were **$498 thousand** in Q2 2025, down from **$4,806 thousand** in Q2 2024[27](index=27&type=chunk) - Loss on sale of a subsidiary (after tax) and asset impairment (after tax) contributed **$9,809 thousand** and **$5,442 thousand** respectively to adjustments for the six months ended June 30, 2025[27](index=27&type=chunk) [Corporate Information and Disclosures](index=3&type=section&id=Corporate%20Information%20and%20Disclosures) This section provides details on the earnings call, an overview of HEI's operations, and important disclosures regarding forward-looking statements and associated risks [Earnings Call and Investor Relations](index=3&type=section&id=EARNINGS%20RELEASE%2C%20WEBCAST%20AND%20CONFERENCE%20CALL%20TO%20DISCUSS%20EARNINGS) HEI will host a webcast and conference call on August 7, 2025, to discuss Q2 2025 results, with materials available on HEI's and the PUC's websites - Webcast and conference call scheduled for August 7, 2025, at 10:30 a.m. Hawaii time (4:30 p.m. Eastern)[10](index=10&type=chunk) - Investors can access presentation materials and listen to the call via HEI's website (www.hei.com) under "Investor Relations" and the Public Utilities Commission of the State of Hawaii (PUC) website[11](index=11&type=chunk)[12](index=12&type=chunk)[13](index=13&type=chunk) [About Hawaiian Electric Industries, Inc. (HEI)](index=4&type=section&id=ABOUT%20HEI) HEI is a family of companies providing energy services in Hawaii, with Hawaiian Electric serving 95% of the population, committed to decarbonization, grid modernization, and public safety - HEI's electric utility, Hawaiian Electric, supplies power to approximately **95%** of Hawaii's population[15](index=15&type=chunk) - HEI is undertaking an ambitious effort to decarbonize its operations and the broader state economy, and modernize and harden the grid to ensure resilience and public safety[15](index=15&type=chunk) [Forward-Looking Statements and Risk Factors](index=4&type=section&id=Forward-Looking%20Statements) This release contains forward-looking statements subject to risks and uncertainties, not guarantees of future performance, and HEI does not undertake to update them unless legally required - Forward-looking statements are predictive in nature, depend upon or refer to future events or conditions, and are subject to risks, uncertainties, and assumptions[17](index=17&type=chunk) - Investors should read forward-looking statements in conjunction with the "Cautionary Note Regarding Forward-Looking Statements" and "Risk Factors" discussions in HEI's Annual Report on Form 10-K for the year ended December 31, 2024, and other SEC periodic reports[18](index=18&type=chunk) - HEI, Hawaiian Electric, and their subsidiaries undertake no obligation to publicly update or revise any forward-looking statements, whether as a result of new information, future events or otherwise, except to the extent required by federal securities laws[18](index=18&type=chunk)

Group 1 - The Zacks Rank emphasizes earnings estimates and revisions to identify strong stocks, while also considering value, growth, and momentum trends [1] - Value investing focuses on identifying companies undervalued by the market, using fundamental analysis and metrics [2] - Zacks has a Style Scores system that highlights stocks with specific traits, particularly those with high grades in the "Value" category [3] Group 2 - Hawaiian Electric Industries (HE) has a Zacks Rank of 2 (Buy) and an A grade for Value, indicating strong potential [4] - HE's current P/E ratio is 11.4, significantly lower than the industry average of 14.72, suggesting it may be undervalued [4] - The P/B ratio for HE is 1.28, compared to the industry average of 2.44, further indicating attractiveness in valuation [5] - HE's P/B has fluctuated between 0.42 and 1.78 over the past 12 months, with a median of 1.16, reinforcing its undervalued status [5] - Overall, HE's strong Value grade and positive earnings outlook position it as an impressive value stock [6]

Core Viewpoint - The article emphasizes the importance of value investing and highlights Hawaiian Electric Industries (HE) as a strong candidate for value investors due to its favorable financial metrics and Zacks Rank [2][4][6]. Group 1: Company Overview - Hawaiian Electric Industries (HE) currently holds a Zacks Rank of 2 (Buy) and a Value grade of A, indicating strong potential for value investors [4]. - The stock has a Price-to-Earnings (P/E) ratio of 10.77, significantly lower than the industry average P/E of 15.29, suggesting it may be undervalued [4]. - Over the past 12 months, HE's Forward P/E has fluctuated between a high of 11.93 and a low of 5.53, with a median of 10.75 [4]. Group 2: Financial Metrics - HE has a Price-to-Book (P/B) ratio of 1.2, which is favorable compared to the industry average P/B of 2.44, indicating solid valuation [5]. - The P/B ratio for HE has ranged from a high of 1.78 to a low of 0.42 over the past year, with a median of 1.15 [5]. - These financial metrics contribute to HE's strong Value grade, suggesting that the stock is likely undervalued at present [6].

Core Viewpoint - The article emphasizes the importance of value investing and highlights Hawaiian Electric Industries (HE) as a strong value stock opportunity based on its financial metrics and Zacks Rank [2][4][6]. Company Summary - Hawaiian Electric Industries (HE) currently holds a Zacks Rank of 2 (Buy) and a Value grade of A, indicating strong potential for value investors [4]. - The stock is trading with a P/E ratio of 11.15, significantly lower than its industry's average of 15.12, suggesting it may be undervalued [4]. - Over the past 52 weeks, HE's Forward P/E has fluctuated between a high of 11.93 and a low of 5.53, with a median of 10.68 [4]. - HE has a P/B ratio of 1.23, which is favorable compared to the industry's average P/B of 2.41, indicating solid valuation metrics [5]. - The P/B ratio for HE has ranged from a high of 1.78 to a low of 0.42 over the past year, with a median of 1.14 [5]. - Overall, the financial metrics suggest that Hawaiian Electric Industries is likely undervalued, making it one of the strongest value stocks in the market [6].

Financial Data and Key Metrics Changes - In Q1 2025, the company generated net income of $26.7 million or $0.15 per share, which includes a $13.2 million pre-tax loss on the sale of Pacific Current and $4.5 million in pre-tax Maui wildfire-related expenses [19][20] - Consolidated core net income was $39.8 million or $0.23 per share, compared to $28.4 million or $0.26 per share in Q1 2024 [20] - Utility core net income increased to $49.7 million from $44.2 million in Q1 2024, driven by better heat rate performance and higher revenues [20] Business Line Data and Key Metrics Changes - The utility segment showed improved performance with higher revenues from the annual revenue adjustment mechanism and lower bad debt expenses, despite increased wildfire mitigation program expenses [20] - The holding company reported a core net loss of $9.9 million, reduced from $15.8 million in Q1 2024, due to higher interest income from cash reserves [21] Market Data and Key Metrics Changes - As of the end of Q1 2025, the holding company had approximately $492 million in unrestricted cash, while the utility had $130 million [22] - The holding company cash balance included about $384 million from the sale of American Savings Bank, which was used to retire debt [22] Company Strategy and Development Direction - The company is focused on regaining financial strength and simplifying its business model to concentrate solely on regulated utility operations [6][9] - Significant investments are planned in the utility's generation system and electric grid to enhance safety and reliability [10] - The company aims to advance Hawaii's clean energy goals, targeting 100% renewable portfolio standard (RPS) and net zero emissions by 2045 [11] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about the company's future, citing improved financial strength and a clearer path to resolving the Maui wildfire tort litigation [66] - The company is well-positioned to finance remaining settlement payments amidst a robust capital expenditure cycle [10] Other Important Information - The Hawaii State Legislature passed several bills, including one that directs the Public Utilities Commission (PUC) to establish a liability cap on economic damages from future wildfires [12][13] - The utility dividend has been reinstated, with a quarterly dividend of $10 million approved for Q1 2025 [24] Q&A Session Summary Question: Anticipated feedback from rating agencies if SB 897 is signed into law - Management indicated that they expect positive feedback from rating agencies once the bill is signed, as it represents credit positives [27] Question: How SB 897 will shift discussions towards future wildfire fund implementation - Management explained that the PUC will study the viability of a wildfire fund and report back to the legislature with recommendations [28] Question: Details on the liability cap and its establishment - Management clarified that SB 897 mandates the PUC to establish an aggregate liability cap, considering various factors [32][34] Question: Financing strategy for remaining settlement payments - Management stated that financing will be a combination of debt and equity, with no immediate plans to finance until closer to the payment dates [36][47] Question: Planned rate case filing and its components - Management confirmed that the utility will file for rebasing target revenues later this year, with a focus on a 2026 test year [50][53]

PART I. FINANCIAL INFORMATION [Financial Statements](index=8&type=section&id=Item%201.%20Financial%20Statements) Unaudited consolidated financial statements for HEI and Hawaiian Electric detail HEI's net income decline from ASB sale and wildfire liability, contrasting with Hawaiian Electric's increased net income [Hawaiian Electric Industries, Inc. and Subsidiaries Financial Statements](index=8&type=section&id=Hawaiian%20Electric%20Industries%2C%20Inc.%20and%20Subsidiaries%20Financial%20Statements) HEI's Q1 2025 consolidated financial statements show decreased revenues and net income, primarily due to the ASB sale, with a significant $1.915 billion wildfire tort liability on the balance sheet HEI Condensed Consolidated Statements of Income (unaudited) | (in thousands, except per share amounts) | Three months ended March 31, 2025 | Three months ended March 31, 2024 | | :--- | :--- | :--- | | **Total revenues** | $744,070 | $792,014 | | **Total operating income** | $62,420 | $50,887 | | **Income from continuing operations** | $27,144 | $21,661 | | **Income from discontinued operations** | $— | $20,934 | | **Net income for common stock** | $26,671 | $42,122 | | **Diluted earnings per common share** | $0.15 | $0.38 | HEI Condensed Consolidated Balance Sheets (unaudited) | (dollars in thousands) | March 31, 2025 | December 31, 2024 | | :--- | :--- | :--- | | **Total assets** | $8,766,181 | $8,931,416 | | **Total current liabilities** | $1,559,019 | $1,324,591 | | **Wildfire tort-related claims (Current)** | $478,750 | $478,750 | | **Wildfire tort-related claims (Noncurrent)** | $1,436,250 | $1,436,250 | | **Total liabilities** | $7,226,012 | $7,418,034 | | **Total shareholders' equity** | $1,505,876 | $1,479,089 | - Net cash provided by operating activities **decreased to $49.7 million** in Q1 2025 from **$124.6 million** in Q1 2024, with net cash used in financing activities totaling **$102.2 million** primarily for long-term debt repayment[24](index=24&type=chunk)[26](index=26&type=chunk) [Hawaiian Electric Company, Inc. and Subsidiaries Financial Statements](index=14&type=section&id=Hawaiian%20Electric%20Company%2C%20Inc.%20and%20Subsidiaries%20Financial%20Statements) Hawaiian Electric's Q1 2025 financial statements report decreased revenues but increased operating and net income, despite significant wildfire tort-related claims liability Hawaiian Electric Condensed Consolidated Statements of Income (unaudited) | (in thousands) | Three months ended March 31, 2025 | Three months ended March 31, 2024 | | :--- | :--- | :--- | | **Revenues** | $738,366 | $788,578 | | **Total expenses** | $662,429 | $725,223 | | **Operating income** | $75,937 | $63,355 | | **Net income for common stock** | $47,816 | $39,221 | Hawaiian Electric Condensed Consolidated Balance Sheets (unaudited) | (dollars in thousands) | March 31, 2025 | December 31, 2024 | | :--- | :--- | :--- | | **Total assets** | $7,864,144 | $7,613,604 | | **Wildfire tort-related claims (Current)** | $478,750 | $478,750 | | **Wildfire tort-related claims (Noncurrent)** | $1,436,250 | $1,436,250 | | **Total capitalization and liabilities** | $7,864,144 | $7,613,604 | [Notes to Condensed Consolidated Financial Statements (unaudited)](index=19&type=section&id=Notes%20to%20Condensed%20Consolidated%20Financial%20Statements%20%28unaudited%29) Notes detail accounting policies and significant events, including the $1.99 billion Maui wildfire settlement, ASB sale, regulatory environment, and debt compliance - HEI and Hawaiian Electric entered into settlement agreements to resolve tort-related legal claims from the Maui wildfires for a total contribution of **$1.99 billion**, including a **$75 million** contribution to the One 'Ohana Initiative, payable in four equal annual installments of approximately **$479 million** starting in early 2026[49](index=49&type=chunk)[50](index=50&type=chunk) - As of March 31, 2025, the company accrued a liability of **$1.915 billion** for wildfire tort-related claims (**$478.75 million** current, **$1.436 billion** non-current), with an additional **$40 million** recorded as an insurance receivable related to the settlement[55](index=55&type=chunk)[21](index=21&type=chunk) - The company is defending against a putative securities class action and several shareholder derivative lawsuits related to the Maui wildfires, with the ultimate outcome and potential loss not reasonably estimable at this time[60](index=60&type=chunk)[61](index=61&type=chunk)[62](index=62&type=chunk) - On December 31, 2024, the company sold **90.1%** of American Savings Bank (ASB), resulting in ASB's results being presented as discontinued operations for all periods shown[69](index=69&type=chunk)[71](index=71&type=chunk)[72](index=72&type=chunk) - The Public Utilities Commission (PUC) temporarily suspended the Earnings Sharing Mechanism (ESM) to prevent customers from potentially bearing costs associated with the Maui wildfires without prior PUC review[110](index=110&type=chunk) [Management's Discussion and Analysis of Financial Condition and Results of Operations](index=58&type=section&id=Item%202.%20Management%27s%20Discussion%20and%20Analysis%20of%20Financial%20Condition%20and%20Results%20of%20Operations) Management discusses the financial impact of the Maui wildfire settlement, HEI's net income decline from the bank segment sale, and the electric utility's increased net income, outlining liquidity and strategic priorities [HEI Consolidated](index=58&type=section&id=HEI%20consolidated) HEI's consolidated results were dominated by the Maui wildfire settlement and the bank segment sale, leading to a net income drop despite significant capital raising for settlement funding HEI Consolidated Results of Operations | (in thousands) | Three months ended March 31, 2025 | Three months ended March 31, 2024 | | :--- | :--- | :--- | | **Revenues** | $744,070 | $792,014 | | **Operating income** | $62,420 | $50,887 | | **Income from continuing operations for common stock** | $26,671 | $21,188 | | **Income from discontinued operations** | $— | $20,934 | | **Net income for common stock** | $26,671 | $42,122 | - HEI and Hawaiian Electric are obligated to contribute **$1.99 billion** towards a settlement for tort-related legal claims from the Maui wildfires, with the first of four equal annual installments of **$479 million** classified as a current liability[197](index=197&type=chunk)[200](index=200&type=chunk) - To finance the first settlement payment, HEI completed a sale of **62.2 million** shares of common stock, raising net proceeds of approximately **$557.7 million**[201](index=201&type=chunk) - Total available liquidity as of March 31, 2025, was **$1.232 billion**, consisting of **$299 million** in undrawn utility credit, **$304 million** in undrawn 'All Other' credit, and **$629 million** in cash and cash equivalents[227](index=227&type=chunk)[228](index=228&type=chunk) [Electric Utility](index=65&type=section&id=Electric%20Utility) The electric utility segment's net income increased due to higher Annual Revenue Adjustment (ARA) revenue and lower O&M expenses, despite decreased revenues, while focusing on wildfire safety and facing decarbonization delays Electric Utility Results of Operations | (in millions) | Three months ended March 31, 2025 | Three months ended March 31, 2024 | | :--- | :--- | :--- | | **Revenues** | $738 | $789 | | **Operating income** | $76 | $63 | | **Net income for common stock** | $48 | $39 | - Kilowatt-hour (kWh) sales increased by **3.1%** in Q1 2025 compared to Q1 2024, reflecting warmer weather and economic recovery on Maui[247](index=247&type=chunk) - The utility developed a 2025-2027 Wildfire Safety Strategy estimated to cost **$450 million**, focusing on grid hardening, enhanced inspections, and operational changes, and launched a Public Safety Power Shutoff (PSPS) program on July 1, 2024[265](index=265&type=chunk)[266](index=266&type=chunk) - Due to project delays and financing challenges, the utility expects its goal of a **70%** reduction in carbon emissions will be achieved later than the original 2030 target date[269](index=269&type=chunk) - As of March 31, 2025, the utility's total available liquidity was approximately **$504 million**, including **$374 million** in undrawn credit and **$130 million** in cash[322](index=322&type=chunk)[323](index=323&type=chunk) [Quantitative and Qualitative Disclosures About Market Risk](index=79&type=section&id=Item%203.%20Quantitative%20and%20Qualitative%20Disclosures%20About%20Market%20Risk) The company reports no significant changes in its exposure to market risk during the first quarter of 2025, referring to its 2024 Form 10-K for full discussion - There have been no significant changes in HEI's and Hawaiian Electric's exposure to market risk during the quarter ended March 31, 2025[343](index=343&type=chunk) [Controls and Procedures](index=79&type=section&id=Item%204.%20Controls%20and%20Procedures) Management for both HEI and Hawaiian Electric concluded their disclosure controls and procedures were effective, with no material changes in internal control over financial reporting during the quarter - Management of both HEI and Hawaiian Electric concluded that their respective disclosure controls and procedures were effective as of the end of the reporting period[345](index=345&type=chunk)[349](index=349&type=chunk) - No changes in internal control over financial reporting occurred during the first quarter of 2025 that materially affected, or are reasonably likely to materially affect, internal controls[346](index=346&type=chunk)[350](index=350&type=chunk) PART II. OTHER INFORMATION [Legal Proceedings](index=80&type=section&id=Item%201.%20Legal%20Proceedings) This section incorporates by reference detailed descriptions of legal proceedings from other parts of the report, including the 2024 Form 10-K and financial statement notes - The report incorporates by reference detailed discussions of legal proceedings from its 2024 Form 10-K and Notes 2 and 4 of this Form 10-Q, which cover the Maui wildfire litigation and regulatory matters[352](index=352&type=chunk) [Risk Factors](index=80&type=section&id=Item%201A.%20Risk%20Factors) This section directs readers to the risk factors detailed in the company's 2024 Form 10-K, the MD&A, and other sections of this quarterly report for information regarding risks and uncertainties - For information on risk factors, the report refers to the 2024 Form 10-K, the MD&A, and the Cautionary Note Regarding Forward-Looking Statements within this document[353](index=353&type=chunk) [Unregistered Sales of Equity Securities, Use of Proceeds, and Issuer Purchases of Equity Securities](index=80&type=section&id=Item%202.%20Unregistered%20Sales%20of%20Equity%20Securities%2C%20Use%20of%20Proceeds%2C%20and%20Issuer%20Purchases%20of%20Equity%20Securities) During Q1 2025, HEI purchased common shares on the open market to satisfy plan requirements, not under a publicly announced repurchase program Issuer Purchases of Equity Securities (Q1 2025) | Period | Total Shares Purchased | Average Price Paid per Share | | :--- | :--- | :--- | | January 2025 | 30,376 | $9.01 | | February 2025 | 23,836 | $9.91 | | March 2025 | 18,728 | $10.73 | - Share purchases were made to satisfy the requirements of the HEI Dividend Reinvestment and Stock Purchase Plan and the Hawaiian Electric Industries Retirement Savings Plan, not as part of a publicly announced buyback program[357](index=357&type=chunk) [Exhibits](index=81&type=section&id=Item%206.%20Exhibits) This section lists the exhibits filed with the Form 10-Q, including CEO and CFO certifications and XBRL data files - The exhibits filed with this report include certifications from the CEOs and CFOs of both HEI and Hawaiian Electric, as well as XBRL interactive data files[358](index=358&type=chunk)

[Q1 2025 Financial Highlights and Corporate Update](index=1&type=section&id=HEI%20REPORTS%20FIRST%20QUARTER%202025%20RESULTS) [Overall Performance and CEO Remarks](index=1&type=section&id=Overall%20Performance%20and%20CEO%20Remarks) HEI reported Q1 2025 GAAP net income of **$27 million**, with core income from continuing operations at **$40 million**, reflecting financial recovery and legislative progress Q1 2025 vs Q1 2024 Performance Summary | Metric | Q1 2025 | Q1 2024 | | :--- | :--- | :--- | | **GAAP Net Income** | $27 million | - | | **GAAP EPS** | $0.15 | - | | **Core Income (Continuing Ops)** | $40 million | $28 million | | **Core EPS (Continuing Ops)** | $0.23 | $0.26 | - Key strategic and legislative achievements during the quarter include: - **Debt Reduction**: Completed a **$384 million** debt reduction at the holding company using proceeds from the American Savings Bank sale[4](index=4&type=chunk) - **Asset Sale**: Pacific Current completed the sale of its largest asset, Hamakua Energy, resulting in a **$13 million** pre-tax loss[5](index=5&type=chunk) - **Critical Legislation**: The Hawaii State Legislature passed bills to fund the state's contribution to the Maui wildfire settlement, establish a liability cap for future wildfires, and protect clean energy procurement[6](index=6&type=chunk) [Segment Performance](index=2&type=section&id=Segment%20Performance) [Hawaiian Electric Company (Utility)](index=2&type=section&id=HAWAIIAN%20ELECTRIC%20COMPANY%20%28HAWAIIAN%20ELECTRIC%29%20EARNINGS) The utility segment's Q1 2025 net income increased to **$48 million**, with core net income rising to **$50 million**, driven by higher revenues and improved performance Utility Net Income (Q1 2025 vs Q1 2024) | Metric | Q1 2025 | Q1 2024 | | :--- | :--- | :--- | | **GAAP Net Income** | $48 million | $39 million | | **Core Net Income** | $50 million | $44 million | - Key drivers for the increase in utility net income include: - **$7 million** in higher revenues, primarily from the annual revenue adjustment mechanism[8](index=8&type=chunk) - **$5 million** positive impact from better heat rate performance[8](index=8&type=chunk) - **$1 million** in lower O&M expenses[8](index=8&type=chunk) - The Hawaiian Electric Board of Directors declared a **$10 million** cash dividend payable to HEI for the first quarter of 2025[10](index=10&type=chunk) [Holding and Other Companies](index=3&type=section&id=HOLDING%20AND%20OTHER%20COMPANIES) The Holding and Other Companies segment reported a Q1 2025 GAAP net loss of **$21 million**, primarily due to an asset sale, while core net loss improved to **$10 million** Holding and Other Companies Net Loss (Q1 2025 vs Q1 2024) | Metric | Q1 2025 | Q1 2024 | | :--- | :--- | :--- | | **GAAP Net Loss** | ($21 million) | ($18 million) | | **Core Net Loss** | ($10 million) | ($16 million) | - The higher net loss was primarily due to a **$13 million** pre-tax loss from Pacific Current's sale of Hamakua Energy[11](index=11&type=chunk) [Financial Statements](index=6&type=section&id=Financial%20Statements) [HEI Consolidated Statements of Income](index=6&type=section&id=CONSOLIDATED%20STATEMENTS%20OF%20INCOME%20DATA) HEI's consolidated revenues decreased to **$744.1 million** in Q1 2025, with net income for common stock falling to **$26.7 million** due to the absence of discontinued operations income present in Q1 2024 HEI Consolidated Income Statement Highlights (in thousands) | Metric | Q1 2025 | Q1 2024 | | :--- | :--- | :--- | | **Total Revenues** | $744,070 | $792,014 | | **Total Operating Income** | $62,420 | $50,887 | | **Income from Continuing Ops** | $27,144 | $21,661 | | **Net Income for Common Stock** | $26,671 | $42,122 | | **Diluted EPS** | $0.15 | $0.38 | [Hawaiian Electric Company Statements of Income](index=7&type=section&id=Hawaiian%20Electric%20Company%2C%20Inc.%20%28Hawaiian%20Electric%29%20and%20Subsidiaries%20CONSOLIDATED%20STATEMENTS%20OF%20INCOME%20DATA) The electric utility's revenues decreased to **$738.4 million** in Q1 2025, primarily due to lower fuel costs, while operating income increased to **$75.9 million** and net income rose to **$47.8 million** Hawaiian Electric Income Statement Highlights (in thousands) | Metric | Q1 2025 | Q1 2024 | | :--- | :--- | :--- | | **Revenues** | $738,366 | $788,578 | | **Total Expenses** | $662,429 | $725,223 | | **Operating Income** | $75,937 | $63,355 | | **Net Income for Common Stock** | $47,816 | $39,221 | Utility Operational Data | Metric | Q1 2025 | Q1 2024 | | :--- | :--- | :--- | | **Kilowatthour sales (millions)** | 1,965 | 1,906 | | **Average fuel oil cost per barrel** | $104.55 | $121.84 | [Reconciliation of GAAP to Non-GAAP Measures](index=8&type=section&id=Explanation%20of%20HEI%27s%20Use%20of%20Certain%20Unaudited%20Non-GAAP%20Measures) [Explanation of Non-GAAP Measures](index=8&type=section&id=Explanation%20of%20Non-GAAP%20Measures) HEI uses non-GAAP 'Core' financial measures to assess fundamental operating performance by excluding non-representative items like Maui wildfire costs and asset sale losses - Non-GAAP "Core" measures are used to evaluate performance by excluding certain items to provide a better indicator of core operating activities[27](index=27&type=chunk) - The primary reconciling adjustments are costs related to the Maui wildfires and the loss on sale from the strategic review of Pacific Current[27](index=27&type=chunk) [HEI Consolidated Reconciliation](index=9&type=section&id=Reconciliation%20of%20GAAP%20to%20non-GAAP%20Measures%20%28continued%29%20-%20HEI%20Consolidated) HEI's Q1 2025 GAAP income from continuing operations of **$26.7 million** was adjusted to a Non-GAAP (Core) income of **$39.8 million** by excluding wildfire expenses and a subsidiary sale loss HEI Consolidated GAAP to Non-GAAP (Core) Reconciliation - Q1 2025 (in thousands) | Description | Amount | | :--- | :--- | | **GAAP income - continuing operations** | **$26,671** | | After-tax Maui wildfire expenses | $3,362 | | After-tax loss on sale of a subsidiary | $9,809 | | **Non-GAAP (Core) income - continuing operations** | **$39,842** | HEI Consolidated Diluted EPS Reconciliation - Q1 2025 | Description | Amount | | :--- | :--- | | **GAAP Diluted EPS - continuing operations** | **$0.15** | | **Non-GAAP (Core) Diluted EPS - continuing operations** | **$0.23** | [Hawaiian Electric (Utility) Reconciliation](index=10&type=section&id=Reconciliation%20of%20GAAP%20to%20non-GAAP%20Measures%20%28continued%29%20-%20Hawaiian%20Electric) The utility's Q1 2025 GAAP net income of **$47.8 million** was adjusted for **$1.9 million** in wildfire-related expenses, resulting in a Non-GAAP (Core) net income of **$49.7 million** Hawaiian Electric GAAP to Non-GAAP (Core) Reconciliation - Q1 2025 (in thousands) | Description | Amount | | :--- | :--- | | **GAAP net income** | **$47,816** | | Total after-tax Maui wildfire related expenses | $1,893 | | **Non-GAAP (Core) net income** | **$49,709** | [Holding and Other Companies Reconciliation](index=11&type=section&id=Reconciliation%20of%20GAAP%20to%20non-GAAP%20Measures%20%28continued%29%20-%20Holding%20and%20Other%20Companies) The Holding and Other Companies' Q1 2025 GAAP net loss of **$21.1 million** was adjusted to a Non-GAAP (Core) net loss of **$9.9 million** after accounting for wildfire expenses and a subsidiary sale loss Holding and Other Co. GAAP to Non-GAAP (Core) Reconciliation - Q1 2025 (in thousands) | Description | Amount | | :--- | :--- | | **GAAP net loss** | **($21,145)** | | After-tax Maui wildfire related expenses | $1,469 | | After-tax loss on sale of a subsidiary | $9,809 | | **Non-GAAP (Core) net loss** | **($9,867)** |

Financial Performance - The company's GAAP income from continuing operations was $267 million, or $015 per share[15] - Core earnings from continuing operations reached $398 million, or $023 per share[15] - Maui wildfire expenses reduced earnings by $34 million, or $002 per share[15] - Loss on sale at Pacific further decreased earnings by $98 million, or $006 per share[15] - Adjusted O&M excluding pension decreased from $1246 million in 1Q24 to $1220 million in 1Q25[30] Liquidity and Capital Allocation - The HoldCo and Utility had $492 million and $130 million of unrestricted cash on hand, respectively, as of the end of 1Q[17] - $479 million has been set aside in a special purpose entity for the first settlement payment[17] - Additional ~$600 million in liquidity is available from the ATM program, Utility accounts receivable backed credit facility, and corporate credit facility capacity[17] - $384 million in holding company long term debt was retired on April 9[17] - The Utility declared a $10 million dividend to HEI for the quarter[17] Wildfire Safety and Litigation - The company plans to invest nearly $400 million in capital from 2025 to 2027, with approximately $120 million invested in 2025, to enhance wildfire safety[22] - The Hawaii State Legislature passed House Bill 1001, appropriating funds to address the State of Hawaii's settlement of claims related to the Maui wildfire tort litigation settlement[13]

UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D. C. 20549 FORM 10-Q ☒ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the quarterly period ended March 31, 2020 OR ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 | Exact Name of Registrant as Specified in Its Charter Commission File Number I.R.S. Employer Identification No. | | | | | | | --- | --- | --- | --- | --- | --- | | HAWAIIAN ELECTRIC INDUSTRIES, INC. ...

UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D. C. 20549 FORM 10-Q ☒ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the quarterly period ended September 30, 2019 OR ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 Exact Name of Registrant as Specified in Its Charter Commission File Number I.R.S. Employer Identification No. HAWAIIAN ELECTRIC INDUSTRIES, INC. 1-8503 99-0208097 and Principal Subsidiary HAWAII ...