Core Viewpoint - The utilities sector is experiencing a significant narrative shift from being viewed as defensive and income-oriented to being recognized for its growth potential driven by rising electricity demand due to artificial intelligence and data center expansion [2][3]. Industry Trends - The demand for electricity is expected to surge as AI models require substantial computational power, marking a unique inflection point for the utilities sector, which has historically focused on yield and stability rather than growth [3]. - The Utilities Select Sector SPDR Fund (NYSEARCA: XLU) has increased over 18% in the past 12 months and approximately 10.5% year-to-date, outperforming the broader S&P 500 [4]. Institutional Investment - Institutional flows indicate a shift in sentiment, with around $6.5 billion flowing into XLU over the past year, contrasting with $1.65 billion in outflows, particularly notable during Q4 of 2025 [5]. - The ETF has recently surpassed its 52-week high, supporting the narrative of a structural trend in the utilities sector [5]. Future Outlook - Elon Musk has highlighted a potential AI-driven power crunch, suggesting that utilities may become essential components of the AI ecosystem, similar to the benefits seen in memory and semiconductor sectors [6]. - Companies like Constellation Energy and NextEra Energy are well-positioned to benefit from the increasing baseload power needs and grid expansion associated with AI adoption [8].

Investor Presentation Canadian Utilities Limited March 2026 Legal notice Forward-looking information advisory Certain statements made by company representatives and information provided in this presentation may be considered forward-looking information. Forward-looking information is often, but not always, identified by the use of words such as "anticipate", "plan", "estimate", "expect", "may", "will", "intend", "should", "goals", "targets", "strategy", "future", "potential" and similar expressions. Such in ...

Core Insights - Canadian Utilities reported adjusted earnings of $658 million, or $2.42 per share, in 2025, reflecting a growth from $647 million in 2024 despite overcoming $57 million in headwinds [3][7][20] - The company announced a record $12 billion five-year capital plan, marking the largest in its history, which is expected to increase the regulated utility rate base compound annual growth rate (CAGR) to 6.9% [6][9][8] - Management emphasized a "transformational year" in 2025, highlighting adjusted earnings growth, an expanded regulated capital plan, and progress on major infrastructure initiatives in Alberta and Australia [4][6] Financial Performance - Adjusted earnings increased to $658 million in 2025, up from $647 million in 2024, with a significant increase in operating cash flow by $144 million [3][7][20] - The company faced $57 million in headwinds but managed to maintain strong performance through a challenging wildfire season [19] Capital Expenditure and Growth Plans - The five-year capital expenditure plan of $12 billion is primarily driven by natural gas transmission projects, including the Yellowhead Pipeline Project, which is estimated at $2.9 billion [6][8][12] - The capital plan is expected to support $36 million of Alberta utility rate base growth and includes projects that have been approved or effectively sanctioned [2][9] Project Updates - The Central East Transfer Out (CETO) transmission project is on track with a $255 million investment and is expected to be energized by June [11] - The Yellowhead Pipeline Project aims to connect supply to demand growth and is 100% contracted, with construction expected to begin in late Q3 2025 pending regulatory approval [12][11] Non-Regulated Operations - Canadian Utilities acquired 100% of Northstone Power, an 18.6 MW gas peaking facility, to enhance its energy storage and generation capabilities [5][14] - The company has paused work on the Alberta Hydrogen Hub due to lack of federal support but remains committed to reevaluating the project in the future [15][13] - Progress is being made on the Atlas Carbon Storage Hub, with commercial operations expected to begin in late 2028 [16] Funding and Operational Performance - The funding for the Yellowhead project is fully secured through a combination of hybrids, preferred shares, and cash from operations, with no need for common equity issuance [17] - Management indicated that while near-term funding is in place, future capital recycling or equity may be necessary to fund the broader five-year plan [18]

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Core Viewpoint - Constellation Energy Corporation (NASDAQ: CEG) is recognized as one of the best income stocks with significant upside potential, supported by strong financial performance and favorable market conditions [1]. Financial Performance - On February 24, Constellation reported fourth-quarter adjusted profit that exceeded Wall Street estimates, driven by rising electricity demand, particularly from data centers [3]. - The company's nuclear fleet produced 45,459 gigawatt-hours of electricity during the period, a slight decrease from 45,494 gigawatt-hours a year earlier, attributed to increased planned refueling and maintenance outages [4]. Market Developments - TD Cowen raised its price recommendation on Constellation to $454 from $440, maintaining a Buy rating, citing strong company guidance and expected acceleration in contracting activity in 2026 [2]. - Positive developments in the PJM market, including the reliability backstop auction and a new non-firm tariff structure, are anticipated to increase electricity demand beyond previous expectations [2]. Strategic Agreements - Constellation has signed agreements with CyrusOne to support a new data center in Texas, and with Meta to extend the operation of a nuclear reactor in Illinois for another 20 years [3]. - Additionally, a deal with Microsoft aims to restart a nuclear reactor at a Pennsylvania facility formerly known as Three Mile Island [3]. Acquisition - The company completed a $16.4 billion acquisition of Calpine Corp., enhancing its generation portfolio and solidifying its position in the energy market [4]. Clean Energy Contribution - Constellation produces emissions-free energy and supplies power to various sectors across the U.S., with its facilities capable of powering approximately 16 million homes and contributing to about 10% of the nation's clean energy generation [5].

Core Insights - The company reported record levels of demand in 2025, achieving a system peak of 8,648 megawatts, which is over 400 MW higher than the previous year [2] - Management emphasized improvements in customer satisfaction and digital engagement, with APS ranking in the top quartile for residential satisfaction and first quartile in digital experience [1][2] - The company is focused on disciplined execution of grid expansion plans and maintaining safety as a top priority, especially during extreme weather conditions [2] Financial Performance - For Q4 2025, the company reported earnings per share (EPS) of $0.13, compared to a loss of $0.06 in Q4 2024, and a full-year EPS of $5.05, down from $5.24 in 2024 [4][10] - Weather-normalized sales growth was 6.8% in Q4 and 5% for the full year, with residential growth at 2% and commercial and industrial growth at 7.5% [11] - The company reiterated its 2026 EPS guidance of $4.55 to $4.75 and long-term sales growth expectations of 5% to 7% through 2030 [15] Capital and Regulatory Plans - APS completed over 400 MW of owned resources ahead of schedule and is pursuing up to 2 GW of additional gas capacity by 2030 [3][5] - The company plans to file an updated 15-year integrated resource plan (IRP) mid-year, reflecting committed customer demand and resource needs [6][8] - A rate case is scheduled for hearings in May, with management emphasizing collaboration with regulators to reduce regulatory lag [16][19] Infrastructure and Growth - The company added more than 34,000 new meters for the second consecutive year, marking the highest level of customer additions in 20 years [4][11] - Management is developing a pipeline of generation and transmission projects to support large-load customers and is open to settlements regarding regulatory matters [9][17] - The company is monitoring the expansion of the Transwestern Desert Southwest Pipeline to meet strong regional demand [5]

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 [14] - 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 [15] - 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 [15] Business Line Data and Key Metrics Changes - The utility's core net income decreased due to higher operational expenses, including deferred consulting and legal fees, and higher interest expenses [15] - 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 [15] Market Data and Key Metrics Changes - The utility achieved a 37% renewable portfolio standard (RPS) in 2025, remaining on track to meet the 40% RPS requirement by 2030 [8][9] - Customer bills remained stable in 2025 despite significant investments in wildfire safety and resilience [9] Company Strategy and Development Direction - The company is focused on advancing key initiatives related to wildfire safety, legislative measures, and financial stability in the face of severe weather events [4][7] - The company plans to submit a joint rebasing proposal with Ulupono Initiative by March 6, 2026, aiming for a non-traditional rate rebasing process [10][11] - The company is pursuing low-cost financing options to reduce impacts on customers from critical investments required for safety and resilience [11] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about the path ahead, highlighting progress made in key initiatives and the importance of resolving outstanding appeals related to the tort settlement [12][14] - The company anticipates making its first $479 million settlement payment in the second half of 2026, contingent on resolving outstanding appeals [17] Other Important Information - The company successfully issued $500 million in utility debt and increased its revolver to $600 million to support financial flexibility [8] - An executive transition is planned, with Scott DeGhetto resigning as CFO effective April 2, 2026, and Paul Ito returning to the role [12][13] Q&A Session Summary Question: What are the chances the Hawaii Supreme Court will take up the insurers' appeal? - Management noted that the only remaining item is the appeal, and previous decisions by the courts have been supportive of the settlements [21] Question: What are the latest thoughts on financing the second settlement payment? - Management indicated a preference for convertible debt for financing and stated that no financing would occur until after the settlement is approved [22][23] Question: How much of the $250 million ATM program will be used for financing? - Management stated that the ATM program is available for opportunistic use, depending on market conditions [24] Question: What is the timing for the divestment of the remaining stake in American Savings Bank? - Management confirmed plans to divest the remaining 9.9% stake in 2026, subject to market conditions [25] Question: What are the key elements in the upcoming PBR rebasing proposal? - Management highlighted the focus on inflationary adjustments, PIM redesign, and ensuring targets are within the company's control [31][32] Question: What are the 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 critical milestones tied to this process [41][42]

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]

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 [14] - 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 [15] - Utility core net income for the year was $177.5 million compared to $180.7 million in 2024, driven by higher O&M expenses [15] - The holding company core net loss was $28.2 million compared to $56.4 million in 2024, attributed to lower interest expense and higher interest income [15] 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 expense [15] - The company achieved a 37% renewable portfolio standard (RPS) in 2025, remaining on track to meet the 40% by 2030 statutory requirement [8] Market Data and Key Metrics Changes - The company has approximately $16 million and $486 million of unrestricted cash on hand at the holding company and utility levels, respectively [16] - The holding company has approximately $530 million in combined liquidity available under its ATM program and credit facility capacity [16] Company Strategy and Development Direction - The company is focused on advancing key initiatives post-Maui wildfires, including wildfire safety improvements and legislative measures to support community resilience [4] - The company plans to submit a joint rebasing proposal with Ulupono Initiative by March 6, 2026, aiming for a non-traditional rate rebasing process [10] - The company is pursuing low-cost financing options to reduce impacts on customers from critical investments required for safety and resilience [11] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about the path ahead, highlighting significant progress made in 2025 and the importance of resolving outstanding appeals related to the tort settlement [12][14] - The company anticipates making its first $479 million settlement payment in the second half of 2026, contingent on resolving outstanding appeals [17] Other Important Information - The company successfully issued $500 million in utility debt last year, enhancing financial flexibility and liquidity [8] - An executive transition is planned, with Scott DeGhetto resigning as CFO effective April 2, 2026, and Paul Ito returning to the role [12] Q&A Session Summary Question: Can you discuss the latest appeal by the insurers? - Management noted that the only remaining item is the appeal regarding the summary judgment that dismissed the insurers' claims, with no briefing scheduled yet [20][21] Question: What are your thoughts on financing the second settlement payment? - Management indicated a preference for convertible debt for financing, with plans to wait until after the settlement is approved before raising funds [22][23] Question: How do you plan to use the ATM program for financing? - Management stated that the ATM program is available for opportunistic use, depending on market conditions [24] Question: What is the status of the divestment of the remaining stake in American Savings Bank? - The company intends to divest the remaining 9.9% stake in 2026, subject to market conditions [25] Question: What are the key elements in the upcoming PBR rebasing proposal? - Management highlighted the focus on inflationary adjustment factors, PIM redesign, and expanding the scope of the Exceptional Project Recovery Mechanism [30][31] Question: What are the milestones for the Wildfire Recovery Fund? - Management indicated that the PUC rulemaking process for the liability cap is expected to take 18-24 months, with critical milestones tied to this process [39][40]

HEI 4Q and Full Year 2025 Financial Results February 27, 2026 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, Core Net Income and other Core measures. 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. | 20 ...