Hawaiian Electric Industries · NYSE:HE

Hawaiian Electric Industries — Q2 2025 Earnings Presentation

24 slides from Hawaiian Electric Industries's earnings presentation, Aug 7, 2025

  1. Slide 1: HEI 2Q 2025 Financial Results

    HEI 2Q 2025 Financial Results August 7, 2025

  2. Slide 2: Non-GAAP Financial Information

    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 and Core Net Income. Reconciliations of those non-GAAP financial measures to the most directly compar

  3. Slide 3: Continuing Progress to Reposition for the Future

    Continuing Progress to Reposition for the Future Advancing Our Strategy and Laying the Foundation for Sustainable Growth Act 258 directs the PUC to establish a wildfire liability cap “as soon Critical Legislation Now Signed Into as practicable,” and study a potential wildfire fund. The Act also Law,

  4. Slide 4: Rapid Advancement of Wildfire Risk Reduction Efforts

    Rapid Advancement of Wildfire Risk Reduction Efforts1 Grid Hardening and Redesign • Replaced or upgraded 3,055 wood poles • Replaced 36 miles of overhead copper conductor with stronger aluminum conductor • Replaced 7,047 expulsion fuses with firesafe fuses • Replaced 1,897 lightning arresters with f

  5. Slide 5: 2Q 2025 Financial Performance & Highlights

    2Q 2025 Financial Performance & Highlights GAAP Results Include Wildfire Expenses and Impacts from Pacific Current’s 2Q Core EPS—Continuing Operations1 Asset Sale $0.26 2Q 2025 Earnings EPS $0.20 Income from continuing $26.1M $0.15 $0.40 operations (GAAP) $0.25 excl.: Maui wildfire expenses $3.8M $0

  6. Slide 6: Maintaining Solid Liquidity as Financing Plan Progresses

    Maintaining Solid Liquidity as Financing Plan Progresses LIQUIDITY UPDATE • As of the end of 2Q, the HoldCo and Utility had $44 million and $106 million of unrestricted cash on hand, respectively – In addition, $479 million remains set aside in a special purpose entity to make the first payment unde

  7. Slide 7: Q&A

    Q&A

  8. Slide 8: Appendix

    Appendix we

  9. Slide 9: Continued Momentum Toward Resolution of Wildfire Tort Litigation

    Continued Momentum Toward Resolution of Wildfire Tort Litigation SUMMARY NEXT STEPS • Definitive settlement agreements signed in November of 2024, consistent • Additional approvals (in particular, final approval of the class settlement) with key terms announced in August of 2024 from the Second Circ

  10. Slide 10: Recent Legislative Actions

    Recent Legislative Actions Governor Green Signed Critical Legislation Into Law, Providing Increased Clarity to Path Ahead HELPING MAUI WILDFIRE TORT PROTECTING UTILITY’S ABILITY TO LIMITING CUSTOMER BILL IMPACTS OF LITIGATION SETTLEMENT MOVE PROCURE AFFORDABLE CLEAN WILDFIRE INVESTMENTS FORWARD ENER

  11. Slide 11: Enhanced Wildfire Safety Strategy Specifies Path Forward

    Enhanced Wildfire Safety Strategy Specifies Path Forward Updated strategy builds upon actions to-date, establishes 3-year action plan to further reduce risk HOW FURTHER RISK REDUCTION WILL BE WHAT WE EXPECT TO INVEST: ACCOMPLISHED: 1 Identify areas of high risk and drivers of risk Nearly $400 millio

  12. Slide 12: Adjusted O&M Excluding Pension (non-GAAP)

    Adjusted O&M Excluding Pension (non-GAAP)1 $ in millions $138.4 GAAP TO NON-GAAP RECONCILIATION OF O&M, NET OF EXCLUSIONS $126.7 2Q 2024 2Q 2025 GAAP O&M $147.6 $160.6 (less): Pension1 12.3 12.3 Covered by surcharges 4.2 5.8 Covered by third parties 4.3 4.1 Adjusted O&M $126.7 $138.4 2Q24 2Q25 1. In

  13. Slide 13: Utility LTM ROE

    Utility LTM ROE ROE (%) 9.5% (0.4%) 9.1% 0.1% (2.0%) 7.2% Allowed Non-recoverable ROE less Actual O&M, Others, Net Actual Q2 ROE items (i.e. Incentive Structural Depreciation and 2025 compensation, Items Return on Core ROE advertising, charitable Rate Base contributions, etc.) over Recovery

  14. Slide 14: 2025 – 2027 Wildfire Safety Strategy (WSS) Details

    2025 – 2027 Wildfire Safety Strategy (WSS) Details Identifying areas of high risk and drivers of risk will help inform wildfire mitigation efforts. • Hawaiian Electric developed a geospatial wildfire risk map specific to the utility’s service territory, helping to better understand fire risk on the

  15. Slide 15: Fossil Fuel Cost Risk Sharing

    Fossil Fuel Cost Risk Sharing • Symmetrical mechanism • Variations in fossil fuel price above or below baseline shared 98% customers / 2% utility • Applies to utility fossil fuel generation (not IPP generation or non-fossil fuels), includes fuel efficiency impacts • Baseline price: January fuel pric

  16. Slide 16: Status of Key Open Dockets

    Status of Key Open Dockets Subject and Description Docket # Latest Developments Next Milestone Performance-based regulation 2018-0088 On February 27, 2025, the PUC issued Order No. 41575, which allows Following review of the briefs, the PUC will issue an Proceeding to evolve regulatory framework to

  17. Slide 17: Status of Key Open Dockets, Continued

    Status of Key Open Dockets, Continued Subject and Description Docket # Latest Developments Next Milestone Integrated Grid Planning (IGP) 2018-0165 On September 6, 2024, the PUC issued an order providing direction and Within 12 months of September 2024, Hawaiian Electric Next phase of long-range plan

  18. Slide 18: Cautionary Note Regarding Forward Looking Statements

    Cautionary Note Regarding Forward Looking Statements This presentation made by Hawaiian Electric Industries, Inc. (HEI) and Hawaiian Electric Company, Inc. (Hawaiian Electric) and their subsidiaries contain “forward-looking statements,” which include statements that are predictive in nature, depend

  19. Slide 19: Cautionary Note Regarding Forward Looking Statements

    Cautionary Note Regarding Forward Looking Statements • the timing, speed and extent of changes in interest rates and the shape of the yield curve, which could result in higher borrowing costs and changes in market liquidity; • the continued ability of the Company and the Utilities to access the cred

  20. Slide 20: Cautionary Note Regarding Forward Looking Statements

    Cautionary Note Regarding Forward Looking Statements • the ability of IPPs to deliver the firm capacity anticipated in their power purchase agreements (PPAs); • the potential that, as IPP contracts near the end of their terms, there may be less economic incentive for the IPPs to make investments in

  21. Slide 21: Explanation of HEI’s Use of Certain Unaudited Non-GAAP Measures

    Explanation of HEI’s Use of Certain Unaudited Non-GAAP Measures HEI management uses certain non-GAAP measures to evaluate the performance of HEI. Management believes these non-GAAP measures provide useful information and are a better indicator of the companies’ core operating activities. Core earnin

  22. Slide 22: Reconciliation of GAAP to Non-GAAP Measures—HEI

    Reconciliation of GAAP to Non-GAAP Measures—HEI Three months ended June 30 Six months ended June 30 (in thousands) 2025 20241 2025 20241 HEI Consolidated - Continuing Operations GAAP income (loss) - continuing operations (as reported) $ 26,085 $ (1,249,697) $ 52,756 $ (1,228,509) Excluding special i

  23. Slide 23: Reconciliation of GAAP to Non-GAAP Measures—Hawaiian Electric

    Reconciliation of GAAP to Non-GAAP Measures—Hawaiian Electric Three months ended June 30 Six months ended June 30 (in thousands) 2025 2024 2025 2024 Maui windstorm and wildfires related costs Pretax expenses: Legal expenses $ 4,304 $ 17,613 $ 8,153 $ 28,348 Outside services expense — 997 — 1,781 Wil

  24. Slide 24: Reconciliation of GAAP to Non-GAAP Measures—Holding Company & Other

    Reconciliation of GAAP to Non-GAAP Measures—Holding Company & Other Three months ended June 30 Six months ended June 30 (in thousands) 2025 2024 2025 2024 Maui windstorm and wildfires related costs Pretax expenses: Legal expenses $ 1,584 $ 6,568 $ 6,585 $ 10,777 Outside services expense 11 399 135 7

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