Financial Data and Key Metrics Changes - For the full year 2025, the company generated net income of $123.1 million, or $0.71 per share, compared to a net loss of approximately $1.4 billion in 2024 [17] - Consolidated core net income was $149.3 million or $0.86 per share, compared to core income from continuing operations of $124.3 million or $0.98 per share in 2024 [18] - Utility core net income for the year was $177.5 million compared to $180.7 million in 2024, driven by higher O&M expenses and other factors [18] Business Line Data and Key Metrics Changes - The utility's financial performance was impacted by higher operational and maintenance expenses, primarily due to previously deferred consulting and legal fees, and higher interest expenses [18] - The holding company reported a core net loss of $28.2 million, an improvement from a loss of $56.4 million in 2024, attributed to lower interest expenses and higher interest income [18] Market Data and Key Metrics Changes - The company achieved a 37% renewable portfolio standard (RPS) in 2025, remaining on track to meet the 40% statutory RPS requirement by 2030 [10][11] - Customer bills remained stable in 2025 despite significant investments in wildfire safety and resilience [11] Company Strategy and Development Direction - The company is focused on advancing key initiatives related to wildfire safety, including the Maui wildfire tort settlement and legislative measures to support community safety [5][9] - The company plans to submit a joint rebasing proposal with Ulupono Initiative by March 6, 2026, aiming for a non-traditional rate rebasing process [12] - The company is pursuing low-cost financing options to mitigate impacts on customers from necessary investments in safety and resilience [13] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about the future, highlighting progress made in key initiatives and the importance of resolving outstanding appeals related to the tort settlement [15] - The company anticipates making its first $479 million settlement payment in the second half of 2026, contingent on resolving outstanding appeals [20] Other Important Information - The company successfully issued $500 million in utility debt and increased its revolver to $600 million, enhancing financial flexibility [10] - An executive transition is planned, with Scott DeGhetto resigning as CFO effective April 2, 2026, and Paul Ito returning to the role [15] Q&A Session Summary Question: What are the chances the Hawaii Supreme Court will take up the insurers' appeal? - Management indicated that the only remaining item is the appeal, with no briefing scheduled yet, and expressed cautious optimism based on previous supportive decisions from the courts [24] Question: What are the latest thoughts on financing the second settlement payment? - Management stated that they are leaning towards convertible debt for financing and will wait until after the settlement is approved to raise funds [25][26] Question: How much of the $250 million ATM program will be used for financing? - Management confirmed that the ATM program is available for opportunistic use, depending on market conditions [27] Question: What is the timing for the divestment of the remaining stake in American Savings Bank? - Management plans to divest the remaining 9.9% stake in 2026, subject to market conditions [28] Question: What key elements will be included in the upcoming PBR rebasing proposal? - Management highlighted the focus on inflationary adjustments, PIM redesign, and ensuring targets are achievable within their control [33][34] Question: What are the critical milestones for the Wildfire Recovery Fund and liability cap process? - Management outlined that the PUC rulemaking process for the liability cap is expected to take 18-24 months, with no immediate legislative actions planned [42][43]