Hawaiian Electric Industries (HE) investor relations material

Executive summary

• Finalized global Maui wildfire tort settlement, with the first $479 million payment made in April 2026, funded by prior equity issuance; three annual installments remain.

• 2026 is a transitional year focused on strengthening financial stability, advancing regulatory and operational initiatives, and aligning leadership for a pure-play utility strategy.

• Affordability and customer support measures implemented in response to rising global oil prices, including payment plans and bill credits.

• Updated wildfire mitigation plans and legislative actions guide risk reduction and future liability management.

• Moody’s upgraded credit ratings following settlement; leadership restructuring announced for utility focus.

Financial highlights

• Q1 2026 net income was $30.5 million ($0.18/share), up from $26.7 million ($0.15/share) in Q1 2025.

• Core net income and EPS, excluding wildfire and non-core items, were $31 million and $0.18, down from $39.8 million and $0.23 year-over-year.

• Total revenues for Q1 2026 were $746.4 million, up 0.3% from Q1 2025.

• Hawaiian Electric core net income fell to $35.7 million from $49.7 million due to higher O&M and insurance costs.

• Holding company and other segment core net loss improved to $4.8–$5 million from $9.9–$21 million, reflecting lower interest expense and asset sales.

Outlook and guidance

• Expect higher O&M expenses in 2026 due to increased insurance premiums, storm response, vegetation management, maintenance, IT, and labor costs.

• Phased rate rebasing proposal under review, targeting a 5.3% consolidated increase starting in 2027.

• CapEx forecast for 2026 increased, with Waiau project costs rising to $1.16 billion; baseline CapEx remains $350–$400 million annually.

• Management expects continued liquidity impacts from future wildfire settlement payments and higher working capital needs due to inflation and fuel prices.

• Utilities anticipate meeting or exceeding Hawaii's 2030 renewable portfolio standard, though the 70% carbon reduction target may be delayed.