Hawaiian Electric Industries (HE) investor relations material

Executive summary

• Q2 2026 results were shaped by significant wildfire-related items, including a $154 million reduction in wildfire settlement liability expense and a $101 million after-tax non-cash gain from remeasurement, driving GAAP net income to $123.2 million.

• Core net income, excluding wildfire-related and non-core items, was $22.5 million ($0.13/share), down from $35.4 million year-over-year, mainly due to higher O&M and interest expenses.

• Wildfire mitigation plan costs of $350 million were approved, with securitization planned to minimize customer bill impact and ensure recovery.

• Major renewable and firm generation procurements advanced, with new solar plus storage contracts and the largest competitive procurement in state history.

• Credit ratings were upgraded by Moody's and S&P in 2026, reflecting improved outlooks after settlement progress and financial actions.

Financial highlights

• Q2 2026 GAAP net income was $123.2 million ($0.71/share), with a non-cash benefit from wildfire settlement liability remeasurement; Core net income was $22.5 million ($0.13/share), excluding wildfire and non-core items.

• Revenues for Q2 2026 were $939.7 million, up 26% year-over-year, driven by wildfire settlement remeasurement and higher utility segment performance.

• Operating income for Q2 2026 was $204.2 million, up from $53.7 million in Q2 2025.

• Utility core net income fell to $32.6 million from $42.5 million year-over-year, mainly due to higher interest and O&M expenses.

• Total liquidity at quarter-end was $1.3 billion, with $52 million and $186 million in unrestricted cash at the holding company and utility, respectively.

Outlook and guidance

• Capital expenditures are forecasted at $700–$750 million in 2026, rising to $750–$850 million by 2028, focused on wildfire mitigation, grid modernization, and resilience.

• Management expects higher O&M for the full year, driven by increased vegetation management, maintenance, insurance, and labor costs.

• Rate rebasing application re-submitted in July 2026, with phased increases and new rates targeted for January 2027.

• Securitization application for WMP costs to be filed this year; recovery through EPRM only if not eligible for securitization.

• Liquidity is sufficient in the short term, but long-term liquidity will be impacted by remaining wildfire settlement payments and higher working capital needs.