Hawaiian Electric Industries 8-K

Summary

Investor presentation covering Q3 2026 results and HEI’s multi-year outlook. Hawaiian Electric’s core earnings declined as operating costs rose, while an investment gain lifted GAAP results. The strategy centers on its regulated utility: rate rebasing and performance-based regulation are intended to support revenue and returns, alongside wildfire mitigation and a large investment cycle.

Developments

• Hawaiian Electric is seeking a $169.8M total rate increase, phased across 2027 and 2028; a preliminary Public Utilities Commission schedule anticipates a decision in mid-to-late April 2027. The request and proposed changes to the regulatory framework remain subject to commission review.
• The utility’s wildfire and resilience program combines grid upgrades, weather stations, artificial-intelligence-assisted cameras and public safety power shutoffs. The presentation reports more than 99% coverage of high wildfire-risk areas by camera stations and 5,072 wood poles replaced since 1/1/2024.
• Hawaiian Electric plans competitive procurement of ≈1,650 GWh of variable renewable energy, 465 MW of grid-forming resources and 111 MW of firm generation; it expects to launch an all-fuels request for proposals by the end of 2026.
• The company says its risk-reduction, legal and financing progress has supported credit-rating upgrades. HEI’s ratings are Ba2/B+/BB- and Hawaiian Electric’s are Ba1/BB-/BB- from Moody’s, Fitch and S&P, respectively.

Key Figures

• GAAP net income rose while Core net income fell: a $64.1M after-tax investment gain lifted GAAP results; Core results excluded that gain, $14.0M of Maui wildfire-related expenses and a $37.7M Pacific Current impairment loss.
• Higher operating and storm costs weighed on Core earnings. Adjusted operating and maintenance expense, excluding pension, was $158.9M, up from $139.8M Y/Y; the company cited higher storm response and incident management costs, integration costs and other operating expenses.
• Hurricane Lala’s estimated operating and maintenance impact was $14M; total Q3 storm costs were estimated at $23M, of which ≈$19M could qualify for recovery. The utility applied to defer qualifying storm costs, with recovery subject to commission approval.
• At 9/30/2026, HEI and the utility had $48M and $176M of unrestricted cash, respectively, plus $1.1B of additional available liquidity. The utility declared an $11M dividend to HEI for Q3.

Guidance