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 PUC approval for $350 million in Wildfire Mitigation Plan (WMP) recovery, with securitization planned to minimize customer impact.

• Revenues for Q2 2026 increased 26% year-over-year to $939.7 million, with GAAP net income rising to $123.2 million, primarily due to the wildfire settlement liability remeasurement and insurance recoveries.

• Core net income for Q2 2026 was $22.5 million ($0.13/share), down from $35.4 million year-over-year, reflecting higher O&M and interest expenses.

• Major renewable energy procurements and grid modernization initiatives advanced, including a historic RFP for 1,650 GWh of renewables.

• 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), including a non-cash benefit from wildfire settlement liability remeasurement; Core net income was $22.5 million ($0.13/share), excluding wildfire and asset impairment items.

• Operating income for Q2 2026 was $204.2 million, up from $53.7 million in Q2 2025, driven by the wildfire settlement remeasurement and higher revenues.

• Utility segment net income for Q2 2026 was $137.9 million, up from $39.2 million in Q2 2025.

• Total liquidity at quarter-end was approximately $1.3 billion, with $52 million at HoldCo and $186 million at Utility.

• Return on average common equity (trailing twelve months) was 15.0% (GAAP) and 5.7% (Core).

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.

• Expect 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 interim rates expected by January 2027.

• Management expects short-term liquidity to be sufficient, but long-term liquidity will be impacted by remaining wildfire settlement payments and higher working capital needs.

• CapEx guidance for the next three years remains largely unchanged, with tightened ranges post-WMP approval.