Hawaiian Electric Industries, Inc. Q3 FY2025 earnings call

• Progress on wildfire safety initiatives: Fully deployed all weather stations and AI-assisted high-definition video cameras ahead of schedule, and has an in-house meteorologist. - Maui wildfire tort litigation: Process to obtain final court approval is advancing, with a hearing on January 8, 2026, to consider final approval of the class settlement agreement, and a summary judgment request filed to dismiss subrogation insurer claims. - Rate rebasing: Working with the PUC and PBR working group parties, and awaiting PUC approval of the utility wildfire safety strategy. - Dividends: Hawaiian Electric's Board of Directors approved a $10 million quarterly dividend to HEI for the third quarter of 2025. - CapEx: Projected to increase significantly in coming years to support reducing wildfire risk, increasing reliability and resilience, and repowering firm generation, with 2025 CapEx expected to be approximately $400 million.

In the third quarter, HEI generated net income of $30.7 million or $0.18 per share. Quarter's results included $4.5 million of pretax Maui wildfire-related expenses net of insurance recoveries and deferrals. Excluding non-core items, consolidated core net income was $32.8 million for the quarter or $0.19 per share. Utility core net income for the quarter was $39.6 million compared to $43.7 million in the third quarter of 2024. Holding company core net loss was $6.8 million compared to $10.9 million in the third quarter of 2024. As of the end of the third quarter, the holding company and the utility had approximately $40 million and $504 million of unrestricted cash on hand, respectively. The holding company had approximately $519 million in combined liquidity available under its ATM program and credit facility capacity, and the utility had approximately $544 million of liquidity available under its accounts receivable facility and credit facility capacity.

• CapEx: Expect 2025 CapEx to be ~$400 million, 2026 CapEx $550 million to $700 million, with higher spend to be funded primarily with retained earnings and proceeds from recent debt issuance. - EPS guidance: Too soon to say, will depend on final settlement approval and steady-state business performance; won't give guidance until through final settlement approval process. - Rate rebasing: Results of regulatory proceedings will impact capital expenditure forecast.

• Regulatory proceedings: Results of rate rebasing process with PUC and PUC approval of utility wildfire safety strategy will impact capital expenditure forecast. - Settlement funding: Second settlement payment expected to be funded with debt and/or convertible debt, and subsequent payments with mix of debt and equity depending on market conditions. - Market conditions: Monetization of remaining bank stake is subject to market conditions, with no specific time frame committed.

Q: How should we think about the revenue requirement and timing under the alternative rebasing filing?

A: Discussed timing of rebasing proposal due to PUC by January 7, 2026, and potential for rate case filing if rebasing process fails; goal is to set new starting point for second multiyear rate plan.

Q: What's the sustainable cadence of utility to holdco dividends through the settlement years and gating criteria?

A: Utility dividend to holding company set based on holding company needs, and no change foreseen in foreseeable future.

Q: Could we see EPS guidance in the Q4 call?

A: Too soon to say, will depend on final settlement approval process; won't give guidance until through that process.

Q: Update on sale of remaining portion of the bank?

A: Intend to monetize the stake, likely to look at it again in next 6 months or so but no specific time frame committed.

Q: Expectations of the commission's report on the wildfire fund going into the new legislative window?

A: PUC is on track to submit the study due to the Hawaii State Legislature 20 days before the next legislative session starts, but too soon to say if movement on key legislation in 2026 will occur based on the report