Hawaiian Electric Industries — Third Quarter 2026 Earnings Summary

Financial Performance:

• Consolidated GAAP net income for the quarter was $35 million ($0.20 per share), compared to $31 million ($0.18 per share) in the third quarter of 2025.
• Consolidated GAAP net income includes $64 million of pre-tax gains related to American Savings Bank (ASB) investment and a $51 million pre-tax asset impairment at Pacific Current.
• Core net income for the quarter was $23 million ($0.13 per share), compared to $33 million ($0.19 per share) in the third quarter of 2025.
• Both GAAP and Core results include $14 million of estimated incremental pre-tax storm-related costs for August and September.
• Hawaiian Electric net income was $13 million in the third quarter of 2026, compared to $37 million in the third quarter of 2025.
• Hawaiian Electric Core net income was $28 million in the third quarter of 2026, compared to $40 million in the third quarter of 2025.
• Holding and Other Companies net income was $22 million in the third quarter of 2026, compared to a net loss of $6 million in the third quarter of 2025.
• Holding and Other Companies Core net loss was $5 million in the third quarter of 2026, compared to a Core net loss of $7 million in the third quarter of 2025.
• Consolidated total revenues were $1,008.7 million for the quarter ended September 30, 2026, compared to $790.6 million for the same period in 2025.
• Electric utility revenues were $1,007.1 million for the quarter ended September 30, 2026, compared to $787.4 million for the same period in 2025.
• Hawaiian Electric reported $8 million in higher revenues (net of fuel and purchased power), primarily from the annual revenue adjustment mechanism.
• Hawaiian Electric reported $23 million in higher interest expense, including $18 million of non-cash accretion expense related to the wildfire settlement liability.
• Hawaiian Electric reported $20 million in higher O&M expense, driven by $14 million in incremental storm costs and $6 million in expenses transferred from the holding company.
• Consolidated total expenses were $967.5 million for the quarter ended September 30, 2026, compared to $738.6 million for the same period in 2025.
• Electric utility expenses were $958.9 million for the quarter ended September 30, 2026, compared to $724.6 million for the same period in 2025.
• The Company's effective tax rate was lower for the first nine months of 2026 compared to 2025, primarily due to discrete tax benefits from valuation allowance release related to ASB gains and R&D tax credits.
• Return on average common equity (twelve months ended) was 13.6% for HEI in 2026 compared to 7.2% in 2025.
• Hawaiian Electric Return on average common equity (twelve months ended) was 13.4% in 2026 compared to 12.8% in 2025.

Guidance and Future Outlook:

• The Company's pending rate rebasing request proposes a 5.3% base rate increase, phased in over two years and aligned with inflation, to support continued grid investment.
• The Company recently sought approval for up to $500 million in wildfire safety and resilience investments through a structure passed by the legislature.
• The Wildfire Mitigation Plan is on schedule and has significantly reduced wildfire risk across service territories since 2023.
• The Company intends to continue evaluating early payments of the wildfire settlement liability to reduce the total amount due.
• The Company will request recovery of storm costs once final incremental costs are known.

Business Segments and Product Lines:

• Electric Utility: Hawaiian Electric restored power quickly and safely to customers following severe weather in August and September.
• Holding and Other Companies: The segment's net income primarily reflects a pre-tax $18 million gain on the sale of ASB shares and a pre-tax $46 million unrealized gain on remaining ASB shares.
• American Savings Bank (ASB): HEI sold 35% of its 9.9% stake in ASB's initial public offering; the remaining stake is approximately 6.4% of ASB's total shares outstanding.
• Pacific Current: HEI recorded a pre-tax $51 million asset impairment related to exiting the Mahipapa biomass plant on Kauai, the last remaining asset. HEI is in the final stages of its strategic exit from Pacific Current.
• Wildfire Mitigation: Grid resilience investments under the Wildfire Mitigation Plan proved beneficial during severe weather, reducing wildfire risk while delivering value.
• Integration Costs: Approximately $6 million of pre-tax expenses previously recorded at the holding company were transferred to the utility following the integration of holding company and utility employees at the beginning of the third quarter.

Market and Competitive Landscape:

• Hawaiian Electric supplies power to approximately 95% of Hawaii's population.
• The Company is undertaking an effort to decarbonize operations and the broader state economy, and to modernize and harden the grid.
• The Company has implemented industry-wide best practices, adopting proven measures used by wildfire-affected utilities on the mainland tailored to its specific risk profile.

Risks and Challenges:

• The Company faces elevated storm activity, with severe weather in August and September causing damage statewide.
• The Company is managing the financial impact of the Maui wildfire settlement liability, including non-cash accretion expense and potential future payments.
• The Company recognizes significant cost pressures for customers, especially low-income customers, and is focused on financing and phasing investments to manage bill impacts.
• The Company faces risks related to the strategic exit from Pacific Current and the valuation of its ASB investment.

Management Commentary and Tone:

• Scott Seu, HEI CEO, stated the company continued to execute well on strategic priorities to deliver safe, affordable, reliable, and resilient power.
• Management emphasized that reducing wildfire risk remains a top priority and is central to grid investments.
• Management noted the importance of maintaining financial capacity to deliver a safe, reliable, and resilient grid.
• Management highlighted the benefit of resilience investments during severe weather, which allowed for quick and safe power restoration.

Other Key Points:

• $80 million of the second settlement payment has been prepaid to date, reducing the $479 million amount due by $82 million (after early-payment discount).
• The Company will conduct a webcast and conference call to review third quarter 2026 consolidated financial results.
• The Company intends to continue using its website (www.hei.com) as a primary means of disclosing additional information.
• The Company is subject to regulatory oversight by the Public Utilities Commission of the State of Hawaii (PUC).