Hawaiian Electric Industries, Inc. Q4 FY2025 earnings call

• Progressed Maui Wildfire Tort Settlement with court approvals and favorable decisions from Hawaii Supreme Court. - Pursued legislative measures including PUC's wildfire fund study and approval of utilities' three-year wildfire safety strategy. - Successfully issued $500 million utility debt and upsized revolver to $600 million. - Utility reached 37% renewable portfolio standard in 2025, on track for 40% by 2030. - Continued to manage balance sheet, advance clean energy goals, and focus on affordability with stable customer bills and financial assistance. - Executive transition at HEI with Scott DeGhetto resigning as CFO and Paul Ito resuming the role effective April 2, 2026.

• Expect to make first $479 million settlement payment in second half of 2026 after resolving outstanding appeals. - 2026 CapEx expected to be $550 - $700 million, with 2027 and 2028 CapEx increasing to $600 - $800 million and $600 - $850 million respectively. - Plan to submit joint rebasing proposal with Ulupono Initiative by March 6. - Pursue low-cost financing options for wildfire safety strategy CapEx and other infrastructure resilience costs via securitization.

• Q: Talk about latest appeal by insurers.

A: Only remaining item is appeal of earlier summary judgment dismissing insurers' direct claims; no briefing scheduled yet, but court decisions have been supportive of settlements. - Q: Thoughts on financing second settlement payment.

A: Leaning towards convertible debt, will do relevering at HEI through debt or convertible debt, and will wait until after settlement is approved to do financing. - Q: Use of $250 million ATM program.

A: Will be opportunistic in use, depends on market conditions. - Q: Elements in upcoming March 6th joint PBR rebasing proposal.

A: High-level elements include inflationary adjustment factor, true-up mechanism, PIM redesign, and potential expansion of EPRM. - Q: Triggers for pivoting to traditional 2027 test year rate case.

A: Pivoting would occur if rebasing proposal is denied. - Q: PIM redesign.

A: Want targets reasonably set and means to achieve them within control, aim for 150 - 200 basis points incremental earnings power above authorized ROE, and potentially reduce number of PIMs. - Q: Wildfire path milestones in 2026.

A: Focus on PUC rulemaking process for liability cap, which is expected to take 18 - 24 months with steps including information gathering, proposed rules for comment, and final rule issuance.