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On August 7, Hawaiian Electric (NYSE:HE) reported second-quarter net income of $123.2 million, or $0.71 per share, numbers that look strong at first glance. Much of that gain traces back to a non-cash Maui wildfire settlement adjustment, not the underlying business, and core net income actually dropped once it's stripped out. The quarter tells the story of a utility making real regulatory progress on wildfire recovery and grid investment while its day-to-day operating costs keep climbing. Hawaiian Electric has cleared several regulatory hurdles this year. In June, the Public Utilities Commission approved recovery of roughly $350 million in Wildfire Mitigation Plan spending, and the company now plans to finance that spending through securitization under Act 258 rather than the more limited Exceptional Project Recovery Mechanism, a move it says lowers the cost to customers. The commission also accepted the company's rate rebasing methodology in June, and Hawaiian Electric resubmitted its request last month seeking a total base rate increase of $170 million phased in over two years, with $125 million taking effect in 2027 if the commission issues an interim decision by December 18. On the generation side, the company submitted a request for proposals on July 17 ahead of the August 7 issuance date, seeking nearly 1,650 gigawatt-hours of renewable energy, one of the largest competitive procurements in state history. Credit agencies have taken notice, with S&P upgrading Hawaiian Electric one notch in July, following Moody's upgrade in April. The cost side of the ledger tells a rougher story. Core net income and earnings per share fell to $22.5 million and $0.13 in the quarter, down from $35.4 million and $0.20 a year earlier, and utility core net income slipped to $32.6 million from $42.5 million. Higher interest expense from last September's high-yield debt issuance is part of the drag, along with increased spending on vegetation management, generation overhauls, and inspection and maintenance. The company also lost a deferral it used last year for roughly $28 million in wildfire-related expenses, including insurance premiums, and it is now absorbing storm response costs from the severe flooding that hit Hawaii in February and March. Management expects to hit the maximum penalty under its Fuel Cost Risk Sharing Mechanism this year and to book a loss under its performance incentive mechanisms. Regulators are also pushing back in places. On August 5, the commission told Hawaiian Electric it needs to demonstrate a clear need before it can proceed with a proposed request for up to 500 megawatts of additional firm generation capacity on Oahu. Hedge fund ownership rose from 25 funds to 28 in the most recent quarter, a modest sign of accumulating interest. Short sellers remain heavily positioned against the stock, with short interest at 12.44% of the float, territory that reflects real skepticism. Yet the stock trades at a forward price-to-earnings ratio of just 11.85, as of August 17, a discount that suggests the market has not fully priced in the regulatory progress management laid out this quarter. That gap between rising fund interest, elevated short interest, and a still-cheap multiple is the tension defining the stock right now. Hawaiian Electric's second quarter shows a company clearing real regulatory milestones, from securitization authority to a growing renewable pipeline, while absorbing costs that are rising faster than its core earnings. For the bull case to hold, the securitization financing and rate rebasing need to land as filed and finally catch the utility's cost structure up to its spending. While we acknowledge the potential of HE as an investment, we believe certain AI stocks offer greater upside potential and carry less downside risk. If you're looking for an extremely undervalued AI stock that also stands to benefit significantly from Trump-era tariffs and the onshoring trend, see our free report on the best short-term AI stock. READ NEXT: 10 Best Future Stocks to Buy Under $10 and 12 Best Performing Semiconductor Stocks to Invest In. Disclosure: None. Follow Insider Monkey on Google News.

Make better investment decisions with Simply Wall St's easy, visual tools that give you a competitive edge. Hawaiian Electric Industries (HE) is back in focus after reporting second quarter 2026 results, with revenue of US$939.7 million and net income of US$123.2 million, alongside updated wildfire cost recovery and rate plans. See our latest analysis for Hawaiian Electric Industries. At a share price of US$11.73, Hawaiian Electric Industries has seen its 30 day share price return fall 13.11% and its year to date share price return decline 7.13%, while the 1 year total shareholder return is 2.89%. This points to fading short term momentum despite that modest longer term gain and keeps recent earnings news and wildfire recovery developments firmly in focus for investors assessing risk. If you are weighing how regulated utilities and infrastructure stories compare, it can help to scan the wider grid upgrade space using the 38 power grid technology and infrastructure stocks After that sharp 30 day pullback and with Hawaiian Electric Industries posting much stronger recent earnings, it comes down to this: Do current wildfire and rate risks still justify the reward on offer in the valuation today? The most widely followed narrative suggests Hawaiian Electric Industries has a fair value of $12.75 compared with the last close of $11.73. That puts the stock at a modest discount and puts more weight on how investors view wildfire risk, grid investment and long term earnings power. Read the complete narrative. Investors who follow this narrative may want to understand why it still sees upside for Hawaiian Electric Industries with only a small discount rate applied and mid single digit growth assumptions. The key consideration is how margins are expected to rebuild and what kind of earnings multiple that could be associated with in the future. It can be useful to examine which specific revenue and profit assumptions would need to be met for that $12.75 fair value estimate to hold. Result: Fair Value of $12.75 (UNDERVALUED) Have a read of the narrative in full and understand what's behind the forecasts. However, there are still wildfire liabilities and higher mitigation and insurance costs that could pressure Hawaiian Electric Industries margins and strain future cash generation. Find out about the key risks to this Hawaiian Electric Industries narrative. The earlier narrative focused on a fair value of $12.75 using forward earnings assumptions and a future P/E of 11.6x. A simpler check looks at today’s P/E of 9x, which sits well below the US Electric Utilities industry at 20.8x, the peer average at 23.5x, and an estimated fair ratio of 17.8x. That wide gap suggests the market is pricing in meaningful risk, so the key question is whether you think those risks are still being overstated or not. See what the numbers say about this price — find out in our valuation breakdown. Simply Wall St performs a discounted cash flow (DCF) on every stock in the world every day (check out Hawaiian Electric Industries for example). We show the entire calculation in full. You can track the result in your watchlist or portfolio and be alerted when this changes, or use our stock screener to discover 50 high quality undervalued stocks. If you save a screener we even alert you when new companies match - so you never miss a potential opportunity. With sentiment clearly mixed around Hawaiian Electric Industries, this is a good time to look through the numbers yourself and decide how you see the balance of risks and rewards. To frame that view with both sides of the story in one place, review the 4 key rewards and 2 important warning signs If Hawaiian Electric Industries has sharpened your focus on risk and reward, do not stop here. Use the Simply Wall Street Screener to uncover more ideas built from the same data driven approach. Target resilient cash generators and strong balance sheets by reviewing the solid balance sheet and fundamentals stocks screener (50 results) that highlight companies built to handle tougher conditions. Hunt for potential upside in quality stocks trading below estimated value using the 50 high quality undervalued stocks that spotlight opportunities the market may be overlooking. Prioritize stability and income potential by scanning the 10 dividend fortresses which filters for companies offering higher yields with a focus on durability. This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned. Companies discussed in this article include HE. Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email [email protected]

Image source: The Motley Fool. Friday, Aug. 7, 2026 at 4:30 p.m. ET Director of Investor Relations - Mateo Garcia President and Chief Executive Officer - Scott Seu President - Shelee Kimura Senior Vice President and Chief Financial Officer - Paul Ito Senior Vice President of Regulatory Affairs - Joe Viola Operator: Thank you for standing by, and welcome to the HEI second quarter 2026 earnings conference call. All lines have been placed on mute to prevent any background noise. After the speaker's remarks, there will be a question and answer session. If you would like to ask a question during that time, simply press star, then the number 1 on your telephone keypad. I would now like to turn the call over to Mateo Garcia, Director of Investor Relations. Sir, please go ahead. Mateo Garcia: Thank you. Welcome everyone to HEI's second quarter 2026 earnings call. Joining me today are our CEO, Scott Seu, our President, Shelee Kimura, our Senior Vice President and CFO, Paul Ito, and other members of senior management. Our earnings release and our presentation for this call are available in the investor relations section of our website. As a reminder, forward-looking statements will be made on today's call. Factors that could cause actual results to differ materially from expectations can be found in our presentation, our SEC filings, and in the investor relations section of our website. Today's presentation also includes references to non-GAAP financial measures, including those referred to as core items. You should refer to the information contained in the slides accompanying today's presentation for definitional information and reconciliations of historical non-GAAP measures to the closest GAAP financial measure. We will take questions from institutional investors at the end of this call. Individual investors and others can reach out to investor relations. Scott Seu will begin with his remarks. Scott Seu: Aloha kakou. Welcome everyone. For today's call, I'll start with updates on key strategic priorities and regulatory processes. Paul Ito will walk through our financial results and then open it up for questions. As you'll recall, in December of last year, the PUC approved the utility's three-year Wildfire Mitigation Plan or WMP, concluding that our proposed strategy can be expected to reduce wildfire risk. In June, the PUC granted our request to recover approximately $350 million of WMP spending through the Exceptional Project Recovery Mechanism, or EPRM. This includes roughly $270 million of capital and $80 million of O&M. In addition, the PUC approved recovery of up to $11.5 million of WMP related O&M already spent in 2025, and $3.9 million of annual ongoing WMP related O&M spending in 2028 and beyond. Act 258, which authorizes securitization for recovery of infrastructure resilience costs, was signed into law after we had submitted our request for recovery of WMP costs. We plan to request recovery of WMP costs through securitization rather than the EPRM, and we're currently working on an application requesting the Commission's issuance of a financing order. Affordability remains a core focus of ours, and securitization will allow us to implement these critical investments at the least possible cost to customers. We expect that EPRM recovery would only be used for WMP costs that may not be eligible for securitization. Turning to the next slide, as we discussed last quarter, we're in a transitional year as we prepare for our expected reset of rates in 2027. We submitted our rate rebasing request in early March. In June, the Commission accepted our proposed rate rebasing methodology, issued a tentative procedural schedule, and directed us to refile our request in a new docket. We resubmitted our rebasing request last month, and our request continues to have stakeholder support. The Commission's tentative procedural schedule allows for a final decision and order in mid to late April of 2027, with public hearings to begin soon. Our total $170 million proposed base rate increase is phased in over 2 years, with $125 million of the increase proposed to take effect beginning in 2027. We've requested that the Commission issue an interim decision by December 18, 2026, so that new rates reflecting this first phase of the rebasing can go into effect by January 1, 2027. Turning to the next slide. In June, we filed our annual action plan update to our Integrated Grid Plan or IGP. As a reminder, our IGP lays out a pathway that includes a short-term action plan and long-term strategy to meet the energy needs of our customers while balancing reliability, affordability, and decarbonization needs. Our June IGP update proposes actions that prioritize affordability, identifying what we can do within the next five years to stabilize rates and advance energy equity. These actions include using competitive procurements for all types of renewable generation to attract the lowest pricing for customers. Last month, on July 17, we submitted the final IGP request for proposals or RFP to the PUC in advance of its issuance today, August 7. Our RFP is intended to meet our customers' growing energy needs and modernize the generation fleet. It will be one of the largest competitive procurements for generation resources in state history, seeking nearly 1,650 gigawatt-hours of variable renewable energy, 465 MW of grid forming resources, and 111 MW of firm generating capacity. We're also requesting to launch an RFP for all fuels by the end of 2026, including both liquid and gaseous fuels, to provide a competitive evaluation of price, sourcing, environmental impact, and other measures. A competitive process best serves the interests of customers. In line with this, in our July 17 request, we also asked that the PUC allow us to issue a new RFP to consider all options for development of up to 500 MW of additional firm generation on Oʻahu, above and beyond the IGP RFP and the projects selected in the Stage 3 RFP, including our Waiau repowering project. On August 5, the PUC responded to our letter informing us that a demonstration of need must be made before advancing such a significant procurement. The commission noted that the demonstration of need should include thorough analyses of system capacity and reliability needs, consider substantial stakeholder engagement, and explain how the proposed new generation aligns with the IGP. We believe the commission's request is reasonable and prudent, and we plan to respond to the PUC accordingly. We're also continuing to move forward with bringing new resources from our previous procurements online. In June, the commission approved two more PPAs for solar plus storage projects from our 2023 Stage 3 RFP. There are now three solar plus storage contracts approved from our Stage 3 RFP, totaling 166 MW of solar and 670 megawatt hours of battery storage, and multiple firm generation projects, including Waiau. Seven other Stage 3 projects have been or will be submitted to the commission for review. While we advance our competitive procurements, we'll continue to work in parallel to grow a thriving competitive marketplace for customer skill renewable generation, including by targeting roughly 1.2 GW of private rooftop solar by 2030. We have a responsibility to plan for the holistic needs of our system, and we can't simply consider generation, transmission, or distribution requirements in isolation. Delivering safe, reliable, and resilient electricity for our customers while also meeting the state's renewable energy policy goals requires a modern and resilient grid. We've identified over $1.3 billion in investments through 2035 to build or expand interconnection points between renewable projects. Nearly $60 million of investments in distribution upgrades required over the next 10 years and $190 million over the next five years for our PUC-approved Climate Adaptation Program to harden the grid and implement other resilience measures. In summary, successfully delivering the service our customers expect while making the critical investments required in transmission, distribution, and generation. Not to mention the critical need to increase resilience to wildfire and other severe weather event risk requires holistic planning and excellent execution. Our Wildfire Mitigation Plan and Integrated Grid Plan have been years in the making and are designed to be dynamic and evolving. We'll continue our focus on execution of our plans to deliver safe, reliable, resilient, and affordable service to our customers. I'll now turn the call over to Paul to discuss our financial results. Paul Ito: Thank you, Scott. I'll start with our financial results on slide six. For the second quarter of 2026, we generated net income of $123.2 million or $0.71 per share. The results include the impacts of a non-cash accounting adjustment to the remaining Maui wildfire settlement liability. Following the final conditions to payment under the settlement agreement being met, the wildfire tort liability became a contractual liability rather than a contingent liability. This required an accounting remeasurement of the remaining liability to present value. The remaining settlement liability was adjusted down from $1.44 billion to $1.3 billion, reducing expenses by $153.9 million. The benefit recognized will reverse over time through the accretion of interest expense over the next three years. The remeasurement totals $136.2 million pre-tax net of the accretion recognized this quarter. We also recognized $8.5 million in insurance recoveries this quarter related to the Maui wildfire tort liability. Excluding these Maui wildfire settlement-related impacts and excluding losses related to Pacific Current asset sales, both of which we refer to as non-core, consolidated core net income and EPS were $22.5 million and $0.13, down from $35.4 million and $0.20 in the second quarter of 2025. Utility core net income for the quarter was $32.6 million compared to $42.5 million in 2025. The decrease in utility core net income primarily reflects higher interest expense related to the higher debt balances following last September's debt issuance and higher O&M expenses. Higher O&M expenses were driven by higher vegetation management expenses, higher generation overhaul and maintenance costs, and higher overhead and underground inspection and maintenance costs. Holding company core net loss for the quarter was $10.1 million compared to $7.1 million in 2025. The higher core net loss was primarily driven by lower interest income due to lower cash balances following the first settlement payment. Turning to the next slide, as of the end of the second quarter, on a consolidated basis, total liquidity was approximately $1.3 billion. The holding company and the utility had approximately $52 million and $186 million of unrestricted cash on hand, respectively. In addition, the holding company has approximately $550 million in combined liquidity available under its ATM program and credit facility capacity. The utility also has approximately $550 million of liquidity available under its accounts receivable facility and revolving credit facility. We continue to believe that we are well-positioned to meet increased working capital requirements due to sustained higher fuel prices. We have not seen a meaningful increase in bad debt expense or write-offs this year. As you can see on slide seven, bad debt expense is actually lower than it was at this time last year, while net write-offs have been relatively flat. Our financing plans for the remaining settlement payments are unchanged from what we communicated last quarter. We intend to manage our settlement financing consistent with targeting investment-grade credit metrics. We continue to see a positive trajectory with our credit ratings, and in July, S&P upgraded HEI and Hawaiian Electric one notch to double B-minus. In doing so, S&P recognized the progress made to reduce our wildfire risk exposure through implementation and commission support of our WMP. S&P also revised their assessment of HEI's and Hawaiian Electric's business risk profile to satisfactory from fair. S&P's action follows Moody's one-notch upgrade for both the utility and holding company in April of this year. As Scott mentioned, we are very focused on affordability. We plan to finance our $350 million in approved Wildfire Mitigation Plan CapEx through securitization. Later this year, we'll be submitting our request to the commission for the financing order required to launch our securitization. Turning to the next slide, our expected CapEx over the next three years remains largely unchanged, although we've tightened the ranges now that our WMP is approved for separate recovery. As mentioned last quarter, we do expect higher O&M for the full year as we progress through a year of transition ahead of our rate rebasing. The higher O&M is driven by numerous factors, many of which we talked about last quarter. As a reminder, we deferred approximately $28 million of pre-tax wildfire-related expenses last year. We are no longer authorized to defer such costs. These include wildfire insurance premiums, which were authorized for deferral treatment prior to 2026. As discussed on our first quarter earnings call, we've also incurred significant storm response expenses related to severe weather and historic flooding in February and March. Higher vegetation management expenses as we've prioritized safety and reliability following record rainfall in the first quarter. Higher overhauls and station maintenance expenses have also driven higher O&M as we've prioritized reliability. IT-related costs have been elevated as we improve our cyber defenses. We've also faced higher labor and benefit costs in the current inflationary environment. In addition, we continue to expect to realize the maximum penalty under our Fuel Cost Risk Sharing Mechanism or FCRS. We also do not expect to achieve the same level of PIM and Shared Savings Mechanism rewards as we did last year. PIMs and SSMs last year totaled $7.5 million. We also achieved rewards from better heat rate performance of $3.3 million. We are currently expecting to accrue a loss from PIMs and SSMs for the full year 2026. We'll also continue to see higher interest expense this year from the high-yield debt issuance completed in September of 2025. Following April's settlement payment, we are no longer receiving interest income on the cash we had set aside for making the payment. As mentioned, we'll continue to see additional interest expense from accretion following the wildfire settlement liability remeasurement until we've made the settlement payments. However, this accretion is non-cash and considered non-core. Our rate rebasing request is intended to address many of the higher costs, such as the increased insurance premiums we experienced over the last few years. In parallel, what is designated as PBR Phase Six, our commission will consider potential PBR framework changes for the next multi-year rate plan. The commission intends to resume Phase Six with a staff proposal informed by prior party input. We'll be pursuing modifications in Phase Six that would address other drivers of structurally higher O&M expenses, including addressing the annual area increase based on forecasted GDPPI, which has consistently lagged actual cost increases in utility supply chains nationwide. Additionally, we are in the process of reprioritizing work to mitigate expense headwinds while managing expenses to operate as efficiently as possible. This work is well underway as we progress through the remainder of the year. With that, let's open up the call to questions. Operator: As a reminder, if you would like to ask a question, press star, then the number one on your telephone keypad. To withdraw your question, simply press star one again. We will pause for just a moment to compile the Q&A roster. Your first question comes from the line of Michael Lonegan with Barclays. Please go ahead. Michael Lonegan: Hi. Thanks for taking my question. You talked about the $350 million of securitization for the Wildfire Mitigation Plan. Just wondering, does all that fall in your capital plan through 2028 that you detail on slide nine? I am just wondering how we should think about rate base items through 2028. Should we take out that full $350 from the capital plan? Can you help us just understand your rate base growth outlook through 2028? Paul Ito: Yeah. Hey, Mike, this is Paul. Yes. To the extent that we do get approval to securitize the Wildfire Mitigation Plan expenses, then that would not be part of rate base. That would be recovered through the securitization. As we mentioned in our prepared remarks, we are planning to file the application this year. The commission will then have to rule on whether those costs would be eligible for securitization, which we expect they would be. Michael Lonegan: Okay. Thank you. On the rate rebasing proposal, I know the commission denied your ability to file a rate case afterwards. Can you just help us understand when you plan to file your next rate case? When you are able to file your next rate case, is it 5 years after the rebased rates go into effect, after the next PBR term ends, or could you come in sooner for a case? Scott Seu: Yeah. Hey, Mike, this is Scott Seu. I am going to ask Joe Viola, our Senior VP who oversees regulatory affairs, to respond. Joe Viola: Hi, Michael. Yeah, I think the expectation would be, we're going to rebase rates right now for the next five-year multi-year rate plan. We would expect we'd be rebasing rates through some process in roughly the 2032 timeframe. Michael Lonegan: Okay, thank you. Obviously you're saying you expect O&M to be materially higher than inflation. Any more detail you could provide on how much higher? I noticed your trailing 12-month earned ROE took a 2.6% hit from O&M and depreciation and other items. Is that something we could expect for the balance of the year? Paul Ito: Yeah, Mike, the way I would look at it is, I would categorize O&M into three buckets. There are different drivers. For the first bucket, like storm activity, these are costs that are episodic, difficult to predict. I wouldn't view that as a normal run rate item. The second bucket is, we've been making a conscious decision to spend ahead of recovery in certain areas. For example, vegetation management to reduce risk, in an effort to support safety and reliability and maintenance and overhead and underground maintenance. That's just part of our core responsibilities, and I'll address how we're planning to manage that cost. The third bucket would be what I would call more of a structural change. The higher insurance premiums are a clear example of that, where just given what we've gone through with the fires, our insurance premiums have gone up significantly. We are trying to address that in a number of ways, right? The way that we're addressing all of these cost increases is, as we mentioned, the rate rebasing is a key one. The insurance increase was one of the things that was contemplated in the rate rebasing request. In addition to that, we're also making a lot of progress on reducing risk on our system through the operational changes. We've actually been getting better insurance rates per million of coverage over time as we demonstrate the progress that we've been making. With that rate reduction, we're increasing coverage, that also reduces risk. The other thing that we're focused on in managing these costs is, as I mentioned, the Phase 6 process, right? There are additional changes that we would be proposing to basically align the recovery with the cost increases that we're seeing, provided that we perform. That's another way that we're planning on addressing some of these higher costs. The third way to address this is just internal efficiency measures. For example, we're looking at key areas where it would make sense to insource more work versus outsourcing to contractors. We're in that process right now. We're also looking at end-to-end processes to increase output for each dollar spent. These efforts will take time to show up, but it's a critical initiative in managing our O&M going forward. Scott Seu: Yeah, Mike, this is Scott. I think I'd just emphasize what Paul just said. We're essentially taking a pretty holistic viewpoint of how we manage across the business to address these various pressures. Michael Lonegan: Thank you. Lastly from me, I was just wondering your thoughts on JERA's proposal with the PUC to establish a regulated generation utility. Seems somewhat unprecedented. Just wonder if you could talk about engagement with stakeholders. From what I've seen, it seems like the governor is supportive of it. Scott Seu: Certainly, Mike. It's been pretty public with the filings or the letter filings that JERA made to the PUC back in July. Their intent is that in the Q1 of 2027, that they would submit an application to establish themselves as a new regulated GenCo utility here in Hawaii. Their letter filing actually has not formally kicked off any part of the process. The governor has been public in terms of his support of JERA's plans. Our position on this is that ultimately, whatever gets decided needs to be in the best interest of all customers in Hawaii. We have an existing framework that's been well-established for many, many years that we operate under as the current regulated utility here serving 95% of the state. We believe that framework should be followed. Albeit we can certainly would suggest that it can be looked at from efficiency and effectiveness. I would just sum it up like this. Right now, we have JERA that is here trying to understand how they can serve here in Hawaii. We continue to serve Hawaii, and we will participate fully in terms of whatever process gets kicked off with the PUC. Lastly, I would just say, I think we are all aligned in what the governor is trying to achieve here in terms of his energy vision to address affordability and reliability and clean energy. It's really less of a question of the endpoint. It's more a question of how do we best get there. Michael Lonegan: Great. Thanks for taking my questions. Operator: That concludes our question and answer session. I will now turn the call back to Scott Seu for closing remarks. Scott Seu: Thank you all for calling in today. In closing, 2026 continues to be a year of transition for us. We've made significant progress improving the safety of our system, and I'm pleased that this has led to credit ratings improvement and PUC-approved costs for our WMP. We remain laser-focused on affordability, and our planned securitization for WMP costs, as well as our plans for competitive procurements of resources, will help us improve reliability and resilience at lower cost to customers. Thank you again. Aloha. Operator: Ladies and gentlemen, this concludes today's call. Thank you all for joining. You may now disconnect. Before you buy stock in Hawaiian Electric Industries, consider this: The Motley Fool Stock Advisor analyst team just identified what they believe are the 10 best stocks for investors to buy now… and Hawaiian Electric Industries wasn’t one of them. The 10 stocks that made the cut could produce monster returns in the coming years. Consider when Netflix made this list on December 17, 2004... if you invested $1,000 at the time of our recommendation, you’d have $421,943!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you’d have $1,382,819!* Now, it’s worth noting Stock Advisor’s total average return is 983% — a market-crushing outperformance compared to 216% for the S&P 500. Don't miss the latest top 10 list, available with Stock Advisor, and join an investing community built by individual investors for individual investors. See the 10 stocks » *Stock Advisor returns as of August 14, 2026. This article is a transcript of this conference call produced for The Motley Fool. While we strive for our Foolish Best, there may be errors, omissions, or inaccuracies in this transcript. As with all our articles, The Motley Fool does not assume any responsibility for your use of this content, and we strongly encourage you to do your own research, including listening to the call yourself and reading the company's SEC filings. Please see our Terms and Conditions for additional details, including our Obligatory Capitalized Disclaimers of Liability. The Motley Fool has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. Hawaiian Electric (HE) Q2 2026 Earnings Call Transcript was originally published by The Motley Fool

Interested in Hawaiian Electric Industries, Inc.? Here are five stocks we like better. Hawaiian Electric reported $123.2 million in Q2 net income, or $0.71 per share, boosted by a $153.9 million non-cash reduction in its Maui wildfire settlement liability. Excluding wildfire-related and other non-core items, core net income fell to $22.5 million from $35.4 million a year earlier. Utility earnings declined as higher interest expense, operations and maintenance costs, storm response, vegetation management and other expenses pressured results. The company had approximately $1.3 billion in consolidated liquidity at quarter-end. Hawaiian Electric is shifting wildfire-mitigation cost recovery toward securitization and plans to seek a financing order later this year, while also pursuing a proposed $170 million rate increase and significant renewable, storage and grid-resilience investments through 2035. 3 Aerospace Suppliers That Could Benefit as Aircraft Makers Face Bottlenecks Hawaiian Electric Industries (NYSE:HE) reported second-quarter 2026 net income of $123.2 million, or $0.71 per share, including a non-cash accounting adjustment related to the remaining Maui wildfire settlement liability. Senior Vice President and CFO Paul Ito said the settlement liability was reclassified from a contingent liability to a contractual liability after final conditions to payment were met. The company remeasured the remaining liability to present value, reducing it from $1.44 billion to $1.3 billion and lowering expenses by $153.9 million. → Sandisk Just Delivered a Blowout Quarter—Here's Why the Stock Is Falling 3 Crucial Aerospace Component Makers That Analysts Love The benefit will reverse over the next three years through interest-expense accretion, Ito said. The company also recorded $8.5 million of insurance recoveries during the quarter related to the Maui wildfire tort liability. Excluding Maui wildfire settlement-related items and losses tied to Pacific Current asset sales, which the company classifies as non-core, consolidated core net income was $22.5 million, or $0.13 per share. That compared with $35.4 million, or $0.20 per share, in the second quarter of 2025. → 4 Oil and Gas ETF Plays as Prices Stay Sky-High End the Year Strong With These 3 Comeback Champions Utility core net income declined to $32.6 million from $42.5 million a year earlier. Ito attributed the decrease primarily to higher interest expense following the company’s September 2025 debt issuance, along with higher operations and maintenance costs. The higher O&M costs reflected increased vegetation-management spending, generation overhaul and maintenance expenses, and overhead and underground inspection and maintenance work. Holding-company core net loss widened to $10.1 million from $7.1 million in the prior-year period, largely because interest income fell after the company used cash for its first settlement payment. → No Hangover: Revisiting Microsoft One Week After Earnings As of the end of the quarter, Hawaiian Electric Industries had approximately $1.3 billion of total consolidated liquidity. The holding company had about $52 million of unrestricted cash, while the utility had approximately $186 million. Additional liquidity was available through the holding company’s at-the-market program and credit facilities, as well as the utility’s accounts receivable and revolving credit facilities. Management said it has not experienced a meaningful increase in bad-debt expense or write-offs during 2026 despite sustained higher fuel prices. Bad-debt expense was lower than at the same point last year, while net write-offs were relatively flat, according to Ito. President and CEO Scott Seu said the Hawaii Public Utilities Commission approved the utility’s three-year Wildfire Mitigation Plan in December and, in June, granted recovery of roughly $350 million of plan spending through the Exceptional Project Recovery Mechanism. The amount includes about $270 million of capital expenditures and $80 million of O&M spending. The commission also approved recovery of up to $11.5 million in WMP-related O&M already spent in 2025 and $3.9 million in annual ongoing WMP-related O&M beginning in 2028. However, following enactment of Act 258, which authorizes securitization for infrastructure-resilience costs, Hawaiian Electric plans to seek recovery of eligible WMP costs through securitization rather than through the EPRM. Seu said the company expects to file an application for a financing order later this year. “Affordability remains a core focus of ours,” Seu said, adding that securitization is intended to allow the investments to be made at the lowest possible cost to customers. In response to an analyst question, Ito said WMP expenditures approved for securitization would not become part of the utility’s rate base. The PUC will determine whether the costs qualify for securitization. The company resubmitted its rate rebasing request in July after the PUC directed it to file in a new docket. Hawaiian Electric is seeking a total $170 million base-rate increase phased in over two years, including $125 million proposed to take effect in 2027. The company requested an interim decision by Dec. 18, 2026, that would allow the first phase of new rates to begin Jan. 1, 2027. Under the commission’s tentative schedule, a final order is expected in mid- to late April 2027. Joe Viola, senior vice president of customer, legal and regulatory affairs, said the company expects to rebase rates again around 2032 for the following five-year multi-year rate plan. Management said full-year O&M expense will be elevated as the utility moves through what it described as a transition year. Cost pressures include storm response spending after severe weather and flooding in February and March, vegetation management, maintenance work, cybersecurity investments, labor and benefits, and higher insurance premiums. Hawaiian Electric also expects to incur the maximum penalty under its Fuel Cost Risk Sharing Mechanism and does not expect to achieve the level of Performance Incentive Mechanism and Shared Savings Mechanism rewards it earned in 2025. The utility recorded $7.5 million of such rewards last year, plus $3.3 million from improved heat-rate performance, but currently expects a loss from PIMs and SSMs in 2026. Seu said the company’s updated Integrated Grid Plan prioritizes affordability and energy equity, including through competitive procurement of renewable generation. Hawaiian Electric submitted its final IGP request for proposals to the PUC on July 17 ahead of its Aug. 7 issuance. The RFP seeks nearly 1,650 gigawatt-hours of variable renewable energy, 465 megawatts of grid-forming resources, and 111 megawatts of firm generating capacity. The company also intends to seek proposals for liquid and gaseous fuels by the end of 2026. Two additional solar-plus-storage power purchase agreements from the 2023 Stage 3 RFP were approved in June. Hawaiian Electric now has three approved Stage 3 solar-plus-storage contracts totaling 166 MW of solar capacity and 670 megawatt-hours of battery storage. The company has identified more than $1.3 billion of investments through 2035 for renewable-project interconnection expansion, nearly $60 million of distribution upgrades over the next decade, and $190 million over five years for its PUC-approved Climate Adaptation Program. Separately, Seu said the PUC asked the company to demonstrate the need for a potential procurement of up to 500 MW of additional firm generation on Oʻahu. Hawaiian Electric said it views the request as reasonable and plans to respond with analyses of capacity, reliability, stakeholder engagement and alignment with the Integrated Grid Plan. Hawaiian Electric Industries, Inc is a diversified holding company operating in the energy and financial services sectors in the state of Hawaii. Its principal subsidiary, Hawaiian Electric Company, provides generation, transmission, distribution and customer service to the island of Oahu, while its Maui Electric and Hawaii Electric Light Company subsidiaries serve Maui, Molokai, Lanai and Hawaii Island. The roots of the electric utility business trace back to 1891 when service first commenced in Honolulu. Through its subsidiary Hawaii Gas, HEI extends its energy portfolio to include the distribution of natural gas and propane, supporting residential, commercial and industrial customers across the islands. This instant news alert was generated by narrative science technology and financial data from MarketBeat in order to provide readers with the fastest reporting and unbiased coverage. Please send any questions or comments about this story to [email protected]. The article "Hawaiian Electric Industries Q2 Earnings Call Highlights" was originally published by MarketBeat. View MarketBeat's top stocks for August 2026.

Our analysts just identified a stock with the potential to be the next Nvidia. Tell us how you invest and we'll show you why it's our #1 pick. Tap here. Management characterizes 2026 as a transitional year focused on safety improvements and preparing for a comprehensive rate rebasing in 2027. Utility core net income declined primarily due to higher interest expense from 2025 debt issuances and increased O&M costs related to vegetation management and generation overhauls. The company successfully transitioned the Maui wildfire tort liability from a contingent to a contractual liability, resulting in a $153.9 million non-cash accounting adjustment. Strategic prioritization of safety and reliability led to higher O&M spending ahead of recovery, particularly in response to severe weather and historic flooding in early 2026. Management attributes the holding company's higher core net loss to reduced interest income following the initial wildfire settlement payment. Credit rating upgrades from S&P and Moody's reflect management's progress in reducing wildfire risk exposure through the execution of the Wildfire Mitigation Plan (WMP). The company is shifting toward a holistic planning model that integrates generation, transmission, and distribution to meet state renewable goals while maintaining grid resilience. Management plans to request recovery of $350 million in WMP costs through securitization to minimize customer bill impacts compared to traditional recovery mechanisms. The rate rebasing request seeks a $170 million increase phased over two years, with the first $125 million targeted for January 1, 2027, pending an interim PUC decision. HEI is launching one of the largest competitive procurements in state history, seeking 1,650 GWh of renewable energy and significant grid-forming and firm capacity resources. Future O&M management will focus on insourcing work and pursuing PBR Phase Six modifications to better align recovery with actual inflationary supply chain costs. The company expects to realize the maximum penalty under the Fuel Cost Risk Sharing Mechanism and anticipates a net loss from PIMs and SSMs for the full year 2026. The cessation of wildfire-related expense deferrals, including insurance premiums, creates a structural headwind for O&M until the 2027 rate rebasing. Non-cash interest accretion related to the wildfire settlement liability will continue to impact GAAP results over the next three years but is excluded from core earnings. The PUC has required a formal 'demonstration of need' before HEI can advance a proposed 500 MW firm generation procurement on Oȑhu. Management is monitoring JERA's proposal to establish a competing regulated generation utility, emphasizing that any new framework must serve the best interests of all customers. One stock. Nvidia-level potential. 30M+ investors trust Moby to find it first. Get the pick. Tap here. Management confirmed that if the $350 million in WMP expenses is approved for securitization, those costs will be excluded from the rate base. Recovery will occur through the securitization mechanism rather than traditional utility rate base returns. The company expects the next formal rate rebasing process to occur in approximately the 2032 timeframe, following the next five-year multi-year rate plan. Management is addressing O&M pressures through three buckets: managing episodic storm costs, aligning structural insurance increases via rate rebasing, and improving internal efficiency. Efficiency initiatives include insourcing work previously handled by contractors and optimizing end-to-end processes to increase output per dollar spent. HEI intends to participate fully in the PUC process regarding JERA's proposal, which is expected to be formally filed in Q1 2027. Management noted that while they share the Governor's energy vision, the primary concern is the methodology and framework used to reach those goals.

This article first appeared on GuruFocus. Release Date: August 07, 2026 For the complete transcript of the earnings call, please refer to the full earnings call transcript. PUC approved recovery of approximately $350 million in wildfire mitigation plan spending, including $270 million in capital and $80 million in O&M, with an additional $11.5 million for 2025 O&M and $3.9 million annual ongoing O&M. Plans to use securitization for WMP cost recovery, which will lower costs to customers and improve affordability. Credit ratings improved: S&P upgraded HEI and Hawaiian Electric to double minus, and Moody's upgraded both entities by one notch, reflecting reduced wildfire risk and business risk profile improvements. The company is advancing one of the largest competitive renewable generation procurements in state history, seeking nearly 1,650 GWh of variable renewable energy, 465 MW of grid-forming resources, and 111 MW of firm capacity, which could lower costs. PUC approved two more solar plus storage PPAs from the Stage 3 RFP, bringing total approved to 166 MW of solar and 670 MWh of battery storage, supporting renewable goals. The company has identified over $1.3 billion in transmission and distribution investments through 2035, including $190 million for climate adaptation, to harden the grid and improve resilience. Core earnings declined significantly: consolidated core net income was $22.5 million ($0.13 per share) in Q2 2026, down from $35.4 million ($0.20 per share) in Q2 2025, driven by higher interest expense and O&M costs. Higher O&M expenses due to increased vegetation management, generation overhaul and maintenance, overhead and underground inspection costs, and higher labor and benefit costs in an inflationary environment. The company expects to incur a loss from PIM and shared savings mechanisms (PIMs and SSMs) for the full year 2026, compared to $7.5 million in rewards last year, and will not achieve the same level of rewards. The PUC denied the request to launch a new RFP for up to 500 MW of additional firm generation, requiring a demonstration of need, which could delay necessary capacity additions. The company faces structurally higher O&M costs, including significantly higher insurance premiums, which are not fully recovered under the current rate framework, and the GDPPI-based annual rate increase has lagged actual cost increases. The holding company core net loss widened to $10.1 million in Q2 2026 from $7.1 million in Q2 2025, due to lower interest income after the first settlement payment. Warning! GuruFocus has detected 3 Warning Signs with HE. Is HE fairly valued? Test your thesis with our free DCF calculator. Q: Regarding the $350 million securitization for the wildfire mitigation plan (WMP), does all of that fall within the capital plan through 2028, and how should we think about the rate base growth outlook if that amount is excluded?A: Paul Ito (CFO) confirmed that if the securitization is approved, the WMP expenses would not be part of rate base and would instead be recovered through the securitization. The company plans to file the application this year, and the commission will rule on eligibility, which they expect to be approved. Q: After the rate rebasing proposal, when does the company plan to file its next rate case? Is it 5 years after the new rates go into effect, or could it come sooner?A: Scott Sue (CEO) deferred to Joe Viola (Senior VP of Regulatory Affairs), who stated that the expectation is to rebase rates for the next 5-year multi-year rate plan, meaning the next rebasing process would likely occur around 2032. Q: Given that O&M is expected to be materially higher than inflation, can you provide more detail on how much higher, and is the 2.6% hit to trailing 12-month earned ROE from O&M and depreciation sustainable for the rest of the year?A: Paul Ito (CFO) categorized O&M into three buckets: episodic storm costs (not a normal run rate), conscious spending ahead of recovery in areas like vegetation management and maintenance, and structural changes like higher insurance premiums. He outlined mitigation strategies including rate rebasing, phase 6 PBR framework changes, and internal efficiency measures such as insourcing work and improving end-to-end processes. Q: What are your thoughts on the proposal by Jira (a third party) to establish a regulated generation utility in Hawaii, and how are you engaging with stakeholders given the governor's support?A: Scott Sue (CEO) acknowledged the public nature of Jira's filings and the governor's support. He stated that HEI's position is that any decision must be in the best interest of all customers and Hawaii. HEI believes the existing regulatory framework should be followed, but they are open to examining efficiency and effectiveness. HEI will participate fully in any PUC process and noted alignment with the governor's goals on affordability, reliability, and clean energy. Q: Can you clarify the financial impact of the Maui wildfire settlement liability remeasurement on the second quarter results?A: Paul Ito (CFO) explained that the remaining settlement liability was adjusted down from $1.44 billion to $1.3 billion, reducing expenses by $153.9 million. This non-cash accounting adjustment occurred because the liability became contractual rather than contingent. The benefit will reverse over time through accretion of interest expense over the next 3 years. The remeasurement totaled $136.2 million pre-tax net of accretion, and the company also recognized $8.5 million in insurance recoveries. Q: What is driving the higher O&M expenses in the second quarter, and how does this impact the full-year outlook?A: Paul Ito (CFO) attributed the increase to higher vegetation management expenses, generation overhaul and maintenance costs, and overhead and underground inspection costs. For the full year, the company expects higher O&M due to factors such as the loss of deferral authorization for wildfire-related expenses, storm response costs, higher insurance premiums, and elevated IT costs for cyber defenses. They also expect to realize the maximum penalty under the fuel cost risk sharing mechanism and a loss from PIMs and SSMs for 2026. Q: How is the company addressing affordability concerns while making critical infrastructure investments?A: Scott Sue (CEO) highlighted the planned securitization for WMP costs to minimize customer impact, competitive procurements for renewable generation to attract lower pricing, and a focus on holistic planning for transmission, distribution, and generation needs. The company has identified over $1.3 billion in investments through 2035 for interconnection points, $60 million for distribution upgrades, and $190 million for climate adaptation programs. Q: What is the status of the rate rebasing request and the expected timeline for new rates?A: Scott Sue (CEO) stated that the company resubmitted its rebasing request in July after the commission accepted the proposed methodology. The request includes a $170 million base rate increase phased over 2 years, with $125 million proposed to take effect in 2027. The company has requested an interim decision by December 18, 2026, to allow new rates to go into effect by January 1, 2027, with a final decision expected in mid to late April 2027. Q: Can you provide an update on the integrated grid plan (IGP) and the recent RFP for generation resources?A: Scott Sue (CEO) noted that the company submitted its final IGP RFP on July 17, seeking nearly 1,650 GWh of variable renewable energy, 465 MW of grid-forming resources, and 111 MW of firm generating capacity. They also requested to launch an RFP for all fuels by the end of 2026 and asked the PUC to allow a new RFP for up to 500 MW of additional firm generation on Oahu. The PUC responded on August 5, requesting a demonstration of need before advancing such a significant procurement, which the company considers reasonable and plans to address. Q: How is the company's liquidity position and financing plan for the remaining settlement payments?A: Paul Ito (CFO) reported total consolidated liquidity of approximately $1.3 billion, with the holding company and utility having $52 million and $186 million in unrestricted cash, respectively. The holding company has $550 million in combined liquidity from its ATM program and credit facility, while the utility has $550 million from its accounts receivable and revolving credit facilities. Financing plans for the remaining settlement payments remain unchanged, targeting investment grade credit metrics. The company also noted S&P's upgrade of HEI and Hawaiian Electric to double minus in July, following Moody's upgrade in April. For the complete transcript of the earnings call, please refer to the full earnings call transcript.

One of Hawaiian Electric’s Largest-Ever Energy Solicitations Submitted for PUC Approval in July; Plan Would Meet Customers’ Growing Energy Needs While Modernizing Generation Fleet to Stabilize and Drive Down Costs Wildfire Mitigation Plan (WMP) Recovery Approved, Ensuring Critical Investments While Prioritizing Customer Affordability Through Planned Securitization GAAP Net Income for the Quarter of $123 Million Includes a $101 Million1 After-tax Non-Cash Gain from Remeasuring the Remaining Wildfire Settlement Liability to Present Value. Core2 Net Income for the Second Quarter Was $22 Million Compared to $35 Million in 2025 HONOLULU, August 07, 2026--(BUSINESS WIRE)--Hawaiian Electric Industries, Inc. (NYSE - HE) (HEI) today reported net income for the second quarter of 2026 of $123 million, or $0.71 per share, compared to net income of $26 million, or $0.15 per share in the second quarter of 2025. The quarter’s results include the impact of remeasuring the remaining Maui wildfire settlement liability to present value after the settlement agreement was finalized in April, resulting in the remaining payment obligations becoming fixed under contract. Excluding Maui wildfire-related items and expenses taken in connection with the review of strategic options for Pacific Current, Core net income was $22 million, or $0.13 per share, compared to $35 million, or $0.20 per share in 2025. "In June we filed our annual action plan update to our IGP, laying out immediate actions necessary to meet customers’ growing energy needs while improving reliability, resilience and affordability. These actions include using competitive procurements for all types of generation to attract the lowest pricing for customers, and on July 17 we submitted our IGP Request for Proposals to the PUC. We are 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 proposed procurement is one of our largest ever, and would help us build a portfolio that meets the requirements of reliability and lower carbon emissions at the least cost to customers," said Scott Seu, HEI president and CEO. "We’ve also continued progressing our Wildfire Mitigation Plan implementation, with the PUC fully approving our Wildfire Mitigation Plan costs, which we plan to securitize as we prioritize customer affordability. Our positive credit ratings trajectory has continued as another rating agency upgraded us in recent months, acknowledging the progress we’ve made reducing wildfire risk in our service territories. Stronger credit ratings ultimately lower our cost of borrowing, which directly improves customer affordability. Moving forward, we’ll continue to focus on making the investments outlined in our Wildfire Mitigation Plan, while operating efficiently and maintaining financial strength," said Seu. HAWAIIAN ELECTRIC COMPANY (HAWAIIAN ELECTRIC) EARNINGS Hawaiian Electric’s net income for the second quarter of 2026 was $138 million compared to net income of $39 million in the second quarter of 2025, with the increase primarily driven by the following pre-tax variances (among others): $154 million from remeasurement of the remaining settlement liability to present value (as the remaining 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); $9 million of insurance recoveries recognized as an adjustment to the tort-related legal claims; $8 million in higher revenues, primarily from the annual revenue adjustment mechanism; and $1 million in higher interest income. These items were partially offset by (among others): $23 million in higher interest expense, which includes $18 million of accretion expense related to remeasuring the remaining settlement liability to present value; $9 million in higher O&M (driven by higher generation, transmission and distribution costs, higher labor and employee benefits costs and higher other general and administrative costs partially offset by lower WMP expenses); and $2 million in higher depreciation expense. Hawaiian Electric’s Core net income for the second quarter was $33 million compared to $42 million in 2025, with the decrease primarily driven by higher interest expense and higher O&M. UTILITY OUTLOOK AND GUIDANCE Hawaiian Electric continues to expect 2026 adjusted O&M excluding pension3, to significantly outpace inflation as we progress through a transitional year ahead of a 2027 rate rebasing. This is due to the following factors: higher insurance premiums, primarily reflecting the deferral treatment of wildfire insurance premiums prior to 2026; storm response expenses related to severe weather in February and March; higher vegetation management expenses; higher overhauls and station maintenance expenses as the utility prioritizes reliability; higher IT-related costs to improve cyber defenses; and higher labor and benefits costs. In addition, the maximum penalty of ~$3.7 million (pre-tax) is expected under the Fuel Cost Risk Sharing mechanism, which is recorded as a reduction of fuel revenue. Additionally, the remeasurement of the remaining wildfire settlement liability in the second quarter reduced the liability to its present value and resulted in a non-cash benefit in the quarter. This benefit will be offset over time by future interest accretion (expense) as the liability increases to the full settlement amount when payments become due. Hawaiian Electric’s proposed rate rebasing and proposed modifications to the PBR framework are intended to address many of the higher O&M costs, such as increased insurance premiums. Additionally, the Company is in the process of reprioritizing work to mitigate expense headwinds, while managing expenses to operate as efficiently as possible. HOLDING AND OTHER COMPANIES The holding and other companies’ net loss was $15 million in the second quarter of 2026 compared to $13 million in the second quarter of 2025. The higher net loss for the quarter was primarily driven by lower interest income due to the lower cash balance following the first wildfire settlement payment made in April, partially offset by a lower loss related to the ongoing review of strategic options for Pacific Current. Core net loss for the quarter was $10 million compared to $7 million in the same quarter of 2025, primarily due to lower interest income. EARNINGS RELEASE, WEBCAST AND CONFERENCE CALL TO DISCUSS EARNINGS HEI will conduct a webcast and conference call to review its second quarter 2026 consolidated financial results today at 10:30 a.m. Hawaii time (4:30 p.m. Eastern). To listen to the conference call, dial 1-888-660-6377 (U.S.) or 1-929-203-0797 (international) and enter passcode 2393042. Parties may also access presentation materials (which include reconciliation of non-GAAP measures) and/or listen to the conference call by visiting the conference call link on HEI’s website at www.hei.com under "Investor Relations," sub-heading "News and Events — Events and Presentations." A replay will be available online and via phone. The online replay will be available on HEI’s website about two hours after the event. The audio replay will also be available about two hours after the event through August 14, 2026. To access the audio replay, dial 1-800-770-2030 (U.S.) or 1-647-362-9199 (international) and enter passcode 2393042. HEI and Hawaiian Electric Company, Inc. (Hawaiian Electric) intend to continue to use HEI’s website, www.hei.com, as a means of disclosing additional information; such disclosures will be included in the Investor Relations section of the website. Accordingly, investors should routinely monitor the Investor Relations section of HEI’s website, in addition to following HEI’s and Hawaiian Electric’s press releases, HEI’s and Hawaiian Electric’s Securities and Exchange Commission (SEC) filings and HEI’s public conference calls and webcasts. Investors may sign up to receive e-mail alerts via the "Investor Relations" section of the website. The information on HEI’s website is not incorporated by reference into this document or into HEI’s and Hawaiian Electric’s SEC filings unless, and except to the extent, specifically incorporated by reference. Investors may also wish to refer to the Public Utilities Commission of the State of Hawaii (PUC) website at https://hpuc.my.site.com/cdms/s/ to review documents filed with, and issued by, the PUC. No information on the PUC website is incorporated by reference into this document or into HEI’s and Hawaiian Electric’s SEC filings. NON-GAAP MEASURES Measures described as "Core" are non-GAAP measures which exclude Maui wildfire-related items, and expenses taken in connection with HEI’s ongoing review of strategic options for Pacific Current. "Adjusted O&M excluding pension" is a non-GAAP measure which excludes pension nonservice retirement benefits and net income neutral items (consisting of O&M covered by surcharges or covered by third parties). See "Explanation of HEI’s Use of Certain Unaudited Non-GAAP Measures" and the related GAAP reconciliations at the end of this release. FORWARD LOOKING STATEMENTS This release may contain "forward-looking statements," which include statements that are predictive in nature, depend upon or refer to future events or conditions, and usually include words such as "will," "expects," "anticipates," "intends," "plans," "believes," "predicts," "estimates" or similar expressions. In addition, any statements concerning future financial performance, ongoing business strategies or prospects or possible future actions are also forward-looking statements. Forward-looking statements are based on current expectations and projections about future events and are subject to risks, uncertainties and the accuracy of assumptions concerning HEI and its subsidiaries, the performance of the industries in which they do business and economic, political and market factors, among other things. These forward-looking statements are not guarantees of future performance. Forward-looking statements in this release should be read in conjunction with the "Cautionary Note Regarding Forward-Looking Statements" and "Risk Factors" discussions (which are incorporated by reference herein) set forth in HEI’s Annual Report on Form 10-K for the year ended December 31, 2025 and HEI’s other SEC periodic and current reports and other filings that discuss important factors that could cause HEI’s results to differ materially from those anticipated in such statements. These forward-looking statements speak only as of the date of the report, presentation or filing in which they are made. Except to the extent required by the federal securities laws, HEI, Hawaiian Electric, and their subsidiaries undertake no obligation to publicly update or revise any forward-looking statements, whether as a result of new information, future events or otherwise. ABOUT HEI HEI’s electric utility, Hawaiian Electric, supplies power to approximately 95% of Hawaii’s population and is undertaking an ambitious effort to decarbonize its operations and the broader state economy, and modernize and harden the grid to ensure public safety, reliability and resilience. For more information, visit www.hei.com. Explanation of HEI’s Use of Certain Unaudited Non-GAAP Measures HEI management uses certain non-GAAP measures to evaluate the performance of HEI. Management believes these non-GAAP measures provide useful information and are a better indicator of the companies’ core operating activities. Core earnings and other financial measures as presented here may not be comparable to similarly titled measures used by other companies. The accompanying tables provide a reconciliation of reported GAAP1 earnings to non-GAAP Core earnings. The reconciling adjustments from GAAP earnings to Core earnings are limited to the items related to the Maui wildfires and costs related to HEI’s ongoing review of strategic options for Pacific Current. Management does not consider these items to be representative of the company’s fundamental Core earnings. View source version on businesswire.com: https://www.businesswire.com/news/home/20260807736898/en/ Contacts Mateo GarciaDirector, Investor RelationsTelephone: (808) 543-7300E-mail: [email protected]

HONOLULU, July 08, 2026--(BUSINESS WIRE)--Hawaiian Electric Industries, Inc. (HEI) (NYSE - HE) will announce its second quarter 2026 financial results on Friday, August 7 and conduct a webcast and conference call to discuss the results at 10:30 a.m. Hawaii time (4:30 p.m. Eastern time). To listen to the conference call, dial 1-888-660-6377 (U.S.) or 1-929-203-0797 (international) and enter passcode 2393042. Parties may also access presentation materials and/or listen to the conference call by visiting the conference call link on HEI’s website at www.hei.com under "Investor Relations," sub-heading "News and Events – Events and Presentations." A replay will be available online and via phone. The online replay will be available on HEI’s website about two hours after the event. An audio replay will also be available about two hours after the event through August 14. To access the audio replay, dial 1-800-770-2030 (U.S.) or 1-647-362-9199 (international) and enter passcode 2393042. HEI and Hawaiian Electric Company, Inc. (Hawaiian Electric) intend to continue to use HEI’s website, www.hei.com, as a means of disclosing additional information; such disclosures will be included in the Investor Relations section of the website. Accordingly, investors should routinely monitor the Investor Relations section of HEI’s website, in addition to following HEI’s and Hawaiian Electric’s press releases, HEI’s and Hawaiian Electric’s Securities and Exchange Commission (SEC) filings and HEI’s public conference calls and webcasts. Investors may sign up to receive e-mail alerts via the Investor Relations section of the website. The information on HEI’s website is not incorporated by reference into this document or into HEI’s and Hawaiian Electric’s SEC filings unless, and except to the extent, specifically incorporated by reference. Investors may also wish to refer to the Public Utilities Commission of the State of Hawaii (PUC) website at https://hpuc.my.site.com/cdms/s/ to review documents filed with, and issued by, the PUC. No information on the PUC website is incorporated by reference into this document or into HEI’s and Hawaiian Electric’s SEC filings. About HEI HEI provides the energy services that empower much of the economic and community activity of Hawaii. HEI’s sole operating company is its electric utility, Hawaiian Electric. Hawaiian Electric supplies power to approximately 95% of Hawaii’s population and is undertaking an ambitious effort to decarbonize its operations and the broader state economy, and modernize and harden the grid to ensure resilience and public safety. For more information, visit www.hei.com. View source version on businesswire.com: https://www.businesswire.com/news/home/20260708939641/en/ Contacts Mateo GarciaDirector, Investor RelationsPhone: (808) 543-7300E-mail: [email protected]

On May 15, 2026, Horizon Kinetics Asset Management reported buying 504,627 shares of WaterBridge Infrastructure (NYSE:WBI), an estimated $12.02 million trade based on quarterly average pricing. According to a SEC filing dated May 15, 2026, Horizon Kinetics Asset Management increased its holding in WaterBridge Infrastructure by 504,627 shares. The estimated value of the shares acquired was $12.02 million, based on the average closing price during the first quarter of 2026. The quarter-end valuation of the position rose by $59.88 million, reflecting both the purchase and price appreciation. WaterBridge Infrastructure now represents 2.1% of Horizon Kinetics Asset Management’s reportable AUM. Top holdings after the filing: As of Monday, shares of WaterBridge Infrastructure were priced at $31.06, up about 55% from their September IPO price of $20. WaterBridge Infrastructure provides water management solutions, including collection, transportation, recycling, and management of produced water for oil and gas operations. The firm operates an integrated water infrastructure network in major U.S. shale basins. It serves oil exploration and production companies, primarily in the Delaware Basin with additional assets in the Eagle Ford and Arkoma basins. WaterBridge Infrastructure LLC is a specialized water management provider supporting the energy sector, with a focus on efficient handling of produced water for oil and gas producers. The company leverages its extensive infrastructure network to deliver reliable and scalable services across key U.S. shale regions. Horizon Kinetics already has exposure to real asset and energy-adjacent plays (top holdings include Texas Pacific Land and LandBridge), so adding to WaterBridge fits neatly into that broader strategy.The company’s latest results suggest demand remains strong. WaterBridge reported first-quarter revenue of $201 million and adjusted EBITDA of $102.9 million, while raising full-year guidance for both produced water volumes and adjusted EBITDA. Management now expects up to 2.725 million barrels per day of produced water handling volume and as much as $465 million in adjusted EBITDA this year.The bigger story may be the company’s Speedway pipeline expansion and growing commercial demand from both existing and new customers. WaterBridge also generated a 51% adjusted EBITDA margin in the quarter. Ultimately, it looks like the appeal here is less about oil prices themselves and more about owning the infrastructure that producers increasingly rely on, regardless of commodity swings. Before you buy stock in WaterBridge Infrastructure Llc, consider this: The Motley Fool Stock Advisor analyst team just identified what they believe are the 10 best stocks for investors to buy now… and WaterBridge Infrastructure Llc wasn’t one of them. The 10 stocks that made the cut could produce monster returns in the coming years. Consider when Netflix made this list on December 17, 2004... if you invested $1,000 at the time of our recommendation, you’d have $469,293!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you’d have $1,381,332!* Now, it’s worth noting Stock Advisor’s total average return is 993% — a market-crushing outperformance compared to 207% for the S&P 500. Don't miss the latest top 10 list, available with Stock Advisor, and join an investing community built by individual investors for individual investors. See the 10 stocks » *Stock Advisor returns as of May 18, 2026. Jonathan Ponciano has no position in any of the stocks mentioned. The Motley Fool has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. WaterBridge Stock Is Up 55% Since IPO. One Fund Bought Up $12 Million More Last Quarter was originally published by The Motley Fool