Hawaiian Electric Industries (HE) Q4 2024 earnings summary

Executive summary

• Achieved major 2024 milestones, including finalizing Maui wildfire settlement agreements, completing the sale of 90.1% of American Savings Bank, and implementing enhanced wildfire safety measures and renewable integration, resulting in a 36% renewable portfolio standard and a 7% reduction in average residential bills.

• Ended 2024 with the strongest liquidity position in company history, supported by a $558 million equity offering, ASB sale proceeds, and new credit facilities.

• Favorable Hawai'i Supreme Court decision and definitive settlement agreements provided clarity for wildfire litigation resolution and accelerated financial recovery.

• Strategic actions, including the ASB divestiture and risk mitigation, simplified the business and strengthened financial flexibility.

Financial highlights

• Reported a net loss of $1,426 million for 2024, primarily due to $1,392 million after-tax wildfire liability accruals and related costs, with a loss from continuing operations of $1.3 billion.

• Core net income from continuing operations was $124 million, down from $152 million in 2023; utility core net income was $181 million, compared to $195 million in 2023.

• Sale of ASB resulted in a net loss from discontinued operations of $103 million, including a $116 million loss on sale; core income from discontinued operations was $79 million.

• Revenues for 2024 were $3.22 billion, down from $3.29 billion in 2023.

Outlook and guidance

• Focus remains on obtaining supportive wildfire recovery legislation, finalizing settlement agreements, and returning to investment-grade credit ratings.

• Nearly $400 million in capital to be invested in wildfire safety from 2025–2027, with $120 million planned for 2025; CapEx for 2025 targeted at $350–$375 million.

• No anticipated equity raises or ATM facility drawdowns in the medium term, barring legislative changes.