Hawaiian Electric Industries — Second Quarter 2026 Earnings Summary

Financial Performance

• Consolidated GAAP net income for the quarter was $123 million ($0.71 per share), compared to $26 million ($0.15 per share) in the second quarter of 2025.
• Consolidated Core net income for the quarter was $22 million ($0.13 per share), compared to $35 million ($0.20 per share) in the second quarter of 2025.
• Hawaiian Electric reported GAAP net income of $138 million for the quarter, compared to $39 million in the second quarter of 2025.
• Hawaiian Electric Core net income for the quarter was $33 million, compared to $42 million in the second quarter of 2025.
• Holding and Other Companies reported a GAAP net loss of $15 million for the quarter, compared to a net loss of $13 million in the second quarter of 2025.
• Holding and Other Companies Core net loss for the quarter was $10 million, compared to a Core net loss of $7 million in the second quarter of 2025.
• Consolidated total revenues for the quarter were $939.7 million, compared to $746.4 million in the second quarter of 2025.
• Electric utility revenues for the quarter were $936.9 million, compared to $742.5 million in the second quarter of 2025.
• A $101 million after-tax non-cash gain was recognized from remeasuring the remaining Maui wildfire settlement liability to present value, which included a $153.9 million pre-tax benefit recognized in utility expenses and a $17.7 million pre-tax accretion expense recognized in interest expense.
• Hawaiian Electric's operating income for the quarter was $218.6 million, compared to $64.5 million in the second quarter of 2025.
• Consolidated interest expense, net for the quarter was $48.4 million, compared to $27.3 million in the second quarter of 2025.
• Hawaiian Electric's fuel oil expenses for the quarter were $336.6 million, compared to $210.6 million in the second quarter of 2025.
• Hawaiian Electric's purchased power expenses for the quarter were $223.6 million, compared to $175.0 million in the second quarter of 2025.
• Hawaiian Electric's other operation and maintenance expenses for the quarter were $166.7 million, compared to $158.2 million in the second quarter of 2025.
• Hawaiian Electric's depreciation expense for the quarter was $66.4 million, compared to $64.0 million in the second quarter of 2025.
• Hawaiian Electric's taxes, other than income taxes, for the quarter were $87.3 million, compared to $70.2 million in the second quarter of 2025.
• Kilowatthour sales for Hawaiian Electric were 1,496 million, compared to 1,509 million in the second quarter of 2025.
• Kilowatthour sales for Hawaii Electric Light were 260 million, compared to 257 million in the second quarter of 2025.
• Kilowatthour sales for Maui Electric were 259 million, compared to 266 million in the second quarter of 2025.
• Average fuel oil cost per barrel for the quarter was $145.67, compared to $100.40 in the second quarter of 2025.

Guidance and Future Outlook

• Hawaiian Electric expects 2026 adjusted O&M excluding pension to significantly outpace inflation due to higher insurance premiums, storm response expenses, vegetation management, overhauls, station maintenance, IT costs, and labor costs.
• A maximum penalty of approximately $3.7 million (pre-tax) is expected under the Fuel Cost Risk Sharing mechanism, recorded as a reduction of fuel revenue.
• The non-cash benefit from the wildfire settlement liability remeasurement in the second quarter will be offset over time by future interest accretion expense as the liability increases to the full settlement amount when payments become due.
• Proposed rate rebasing and modifications to the PBR framework are intended to address higher O&M costs, including increased insurance premiums.
• The company is reprioritizing work to mitigate expense headwinds while managing expenses to operate efficiently.

Business Segments and Product Lines

• Hawaiian Electric filed an annual action plan update to its Integrated Grid Plan (IGP) in June, laying out immediate actions to meet growing energy needs and improve reliability, resilience, and affordability.
• On July 17, Hawaiian Electric submitted an IGP Request for Proposals to the PUC, one of the largest energy solicitations ever, seeking to procure nearly 1,650 gigawatt-hours of variable renewable energy, 465 megawatts of grid-forming resources, and 111 megawatts of firm generating capacity.
• The Wildfire Mitigation Plan (WMP) costs were fully approved by the PUC, and the company plans to securitize these costs to prioritize customer affordability.
• Hawaiian Electric is undertaking efforts to decarbonize operations, modernize the grid, and harden infrastructure to ensure public safety, reliability, and resilience.
• The company is conducting an ongoing review of strategic options for Pacific Current.

Market and Competitive Landscape

• A recent S&P ratings upgrade acknowledged progress made in implementing the WMP and reducing wildfire risk exposure.
• Stronger credit ratings are expected to lower the cost of borrowing, directly improving customer affordability.
• Hawaiian Electric supplies power to approximately 95% of Hawaii's population.

Risks and Challenges

• Higher O&M costs are driven by higher insurance premiums (reflecting deferral treatment of wildfire insurance premiums prior to 2026), storm response expenses from severe weather in February and March, higher vegetation management expenses, higher overhauls and station maintenance expenses, higher IT-related costs for cyber defenses, and higher labor and benefits costs.
• Future interest accretion expense will offset the non-cash benefit from the wildfire settlement liability remeasurement.
• Forward-looking statements are subject to risks, uncertainties, and assumptions regarding future events, economic factors, and industry performance.

Management Commentary and Tone

• Scott Seu, HEI president and CEO, stated that the proposed procurement would help build a portfolio meeting reliability and lower carbon emission requirements at the least cost to customers.
• Management emphasized continuing to focus on making investments outlined in the WMP while operating efficiently and maintaining financial strength.
• Management noted that the positive credit ratings trajectory acknowledges progress in reducing wildfire risk in service territories.

Other Key Points

• The remaining Maui wildfire settlement liability was adjusted from $1.44 billion to $1.30 billion and recognized on the income statement as a reduction to expense of $154 million.
• Insurance recoveries of $9 million were recognized as an adjustment to tort-related legal claims.
• A loss on sale of a subsidiary and impairment loss on assets held for sale of $3.7 million was recognized in the second quarter of 2026.
• The first wildfire settlement payment was made in April, resulting in a lower cash balance and lower interest income for the Holding and Other Companies segment.
• The Utilities' assigned equity interests of GLST1 were adjusted down to nil in April 2026 following the first installment payment of the settlement liability.
• HEI will conduct a webcast and conference call to review second quarter 2026 consolidated financial results at 10:30 a.m. Hawaii time (4:30 p.m. Eastern).