Hawaiian Electric Industries, Inc. (HE) SEC Filings & Earnings Calls

Wildfire settlement funding reliance on asset sales may indicate liquidity pressure.

“Enabling Advance Funding of Maui Wildfire Settlement” · word for word

Hurricane Lala and Kona Low storms caused significant O&M and capex costs, with potential non-recovery of 20-25% of storm O&M.

“approximately 20% – 25% of the total storm O&M estimated may be deemed non-incremental and ineligible for recovery”

Wildfire risk remains a key operational and financial exposure, though mitigation efforts are underway.

“Implementing industry leading wildfire mitigation efforts and reducing operating risk” · word for word

Wildfire Liability Uncertainty

“The impact of the Maui windstorm and wildfires, including potential liabilities in excess of settlement amounts and potential regulatory penalties, which may result in significant costs that may be unrecoverable (or not reimbursed on a timely basis) through insurance and/or rates.” · word for word

Liquidity Risk from Settlement Payments

“Settlement payment (478,750) in cash flow from operations for six months ended June 30, 2026.”

Going Concern Risk

“the inability to execute financing plans to alleviate future conditions that may cause substantial doubt about HEI's and the Utilities' ability to continue as a going concern prior to the issuance of their respective annual financial statements, which could result in an event of default and an acceleration of the Company's and the Utilities' debt and lead to” · word for word

Wildfire liability remains significant despite remeasurement; ongoing litigation and regulatory risk

“Remeasurement of remaining settlement liability from $1.44B to $1.30B; $18M accretion expense recognized”

Core earnings decline signals underlying operational pressure

“Core net income down 37% YoY; higher O&M and interest expense”

PPA effectiveness subject to PUC approval; if not received within 12 months, contract may be voided.

“the effectiveness of the New PPA is subject to the satisfaction of certain conditions, including the issuance by the Public Utilities Commission of the State of Hawaii (PUC) of an order approving the New PPA” · word for word

Wildfire liability settlement obligation of $1.99B

“Under the Settlement Agreements, HEI and Hawaiian Electric are obligated to contribute a total of $1.99 billion” · word for word

Going concern risk due to financing needs

“the inability to execute financing plans to alleviate future conditions that may cause substantial doubt about HEI’s and the Utilities’ ability to continue as a going concern” · word for word

Potential further equity dilution

“potential further dilution to existing shareholders if the Company raises funds by issuing additional equity or equity-linked securities” · word for word

Wildfire settlement payments ($479M annually for 4 years) strain liquidity; credit rating upgrade may mitigate but still a cash drain.

“HEI and Hawaiian Electric Issued First of Four $479 Million Settlement Payments in April” · word for word

Higher O&M expenses expected for full year 2026 due to insurance, storm response, and vegetation management.

“Hawaiian Electric is expecting 2026 O&M expense, excluding pension, to significantly outpace inflation as we progress through a transitional year ahead of a 2027 rate rebasing.” · word for word

Wildfire liability and litigation risk

“Court approval of the settlement in April cleared the way for our first settlement payment, marking a meaningful step forward for affected families and communities, and for the company’s ability to move ahead with greater clarity.” · word for word

Regulatory risk

“The companies continue to advance regulatory initiatives designed to support long-term financial strength, including an innovative rate-rebasing proposal developed collaboratively with stakeholders and currently under review by the Hawai’i Public Utilities Commission.” · word for word

Stock price volatility and dilution risk

“The use of cash in lieu of equity has helped ensure such compensation continued to serve as an incentive and helped to mitigate shareholder dilution during a period of significant volatility in the Company’s stock price” · word for word

Retention risk for key executives

“These factors, among others, have created heightened retention and recruiting challenges to which the Company’s compensation practices have needed to adapt.” · word for word

Large cash outflow for wildfire settlement may strain liquidity despite prior equity raise.

“First of four $479 million annual installments paid.”

Key executive departure may signal management instability or transition risk.

“CFO Scott DeGhetto's term ended and he entered a consulting agreement.”

Wildfire-related expenses continue to impact financials, though reduced from 2024.

“After-tax wildfire expenses net of insurance recoveries and approved deferral treatment of $12.2 million in 2025 vs $1.4 billion in 2024.” · word for word

Revenue decline and negative equity ratio (40% common equity) indicate financial strain.

“Revenue down 4.1% YoY; common stock equity ratio 40.0% at Dec 2025.”

Litigation liability from Maui wildfires; $100M settlement paid by insurers, but reputational and operational risk remains.

“Derivative Settlement Agreement resolves stockholder derivative actions related to Maui wildfires; $100 million settlement.”

Potential dilution from ATM offering; no new shares sold yet.

“ATM offering of up to $250M common stock; no sales disclosed in this filing.”

Ongoing Maui wildfire litigation and regulatory risk; settlement nearing final court approval but still uncertain.

“Wildfire tort litigation settlement nearing final court approval; PUC's Wildfire Fund Study completed.” · word for word

Higher O&M and interest expense pressuring margins; $11M higher O&M driven by legal and consulting fees.

“$11 million in higher O&M, driven by $10 million in previously deferred legal and consulting fees; $10 million in higher interest expense.” · word for word

Wildfire Liability

“the impact of the Maui windstorm and wildfires, including liabilities in excess of settlement amounts and potential regulatory penalties, which may result in significant costs that may be unrecoverable (or not reimbursed on a timely basis) through insurance and/or rates” · word for word

Going Concern Risk

“the inability to execute financing plans to alleviate future conditions that may cause substantial doubt about HEI’s and the Utilities’ ability to continue as a going concern prior to the issuance of their respective annual financial statements, which could result in an event of default and an acceleration of the Company’s and the Utilities’ debt and lead to” · word for word

Credit Downgrade Impact

“The downgrade of Hawaiian Electric’s credit ratings after the Maui windstorm and wildfires, which makes it more difficult for independent power producers to procure low-cost financing, has added an additional impediment to completion of new renewable energy and storage projects.” · word for word

Renewable Energy Target Delay

“the Utilities expect the planned 70% reduction in carbon emissions to be achieved later than the original 2030 target date.” · word for word

Wildfire tort litigation settlement still pending final court approval; first payment expected no earlier than Q1 2026.

“Maui wildfire tort litigation settlement continues to advance, with a hearing on final court approval for the class settlement in the coming months.” · word for word

Pre-tax wildfire-related expenses of $10 million in Q3 2025, partially offset by deferred costs.

“Pre-tax wildfire-related expenses of $10 million were partially offset by approximately $6 million of costs deferred.” · word for word

Wildfire liability overhang

“Wildfire tort-related claims (Note 2) 526,500 (current) and 1,436,250 (noncurrent) as of September 30, 2025.”

Going concern risk

“the inability to execute financing plans to alleviate future conditions that may cause substantial doubt about HEI's and the Utilities' ability to continue as a going concern prior to the issuance of their respective annual financial statements, which could result in an event of default and an acceleration of the Company's and the Utilities' debt and lead to” · word for word

Equity dilution risk

“potential further dilution to existing shareholders if the Company raises funds by issuing additional equity or equity-linked securities” · word for word

Regulatory risk

“the potential delay by the Public Utilities Commission of the State of Hawaii (PUC) in considering (and potential disapproval of actual or proposed) wildfire safety, renewable energy or resilience proposals, among others, and related costs” · word for word

Insurance availability risk

“an increase in insurance premiums and the inability to fully recover premiums through rates or the potential inability to obtain wildfire and general liability insurance coverage at reasonable rates, if available at all” · word for word