HE Hawaiian Electric Industries

• Favorable Hawaii Supreme Court Decision Provides Clarity Needed to Help Finalize Maui Tort Litigation Settlement
• Strong Execution on Strategic Priorities in a Pivotal Year
  • Definitive Settlement Agreements Reached in Maui Wildfire Tort Litigation
  • Sale of 90.1% of American Savings Bank Simplified HEI’s Strategy and Regulatory Position While Allowing Enhanced Focus on Utility Business; Proceeds Will Be Used to Reduce Debt
  • Rapid Implementation of Utility Wildfire Mitigation Efforts: Grid Hardening and Redesign, Improved Situational Awareness and Operational Practices, and Enhanced Stakeholder Engagement Efforts Implemented to Reduce Risk
  • Utility Achieved a 36% Renewable Portfolio Standard in 2024, Accelerating Progress Toward the 2030 Milestone of 40%
  • Typical Residential Bill Decreased 7% in 2024; Utility Returned $18 Million in Bill Credits to Customers

Hawaiian Electric Industries, Inc. (NYSE - HE) (HEI) today reported a net loss for the full year 2024 of $1,426 million, or $11.23 per share, compared to net income of $199 million, or $1.81 per share in 2023. Excluding the impacts of discontinued operations, Maui wildfire-related expenses and the Pacific Current asset impairment recorded in the third quarter, Core1 income from continuing operations was $124 million, or $0.98 per share, compared to $152 million, or $1.38 per share in 2023.

The fourth quarter 2024 net loss was $68 million, or $0.40 per share, compared to net income of $49 million, or $0.44 per share, in the fourth quarter of 2023. Core income from continuing operations was $35 million for the fourth quarter of 2024 compared to $37 million in the fourth quarter of 2023.

“The past year was pivotal in our company’s history, and I am proud of the significant progress we’ve made to address the challenges before us and build a foundation for long-term success,” said Scott Seu, HEI president and CEO.

“Over the course of the year, we achieved numerous milestones in our efforts to regain HEI’s financial strength and emerge a stronger, more resilient company best positioned to serve our communities for the long term. The settlement agreements signed in November, along with the favorable Hawaii Supreme Court decision issued earlier this month, allow us to move forward with a clearer line of sight toward resolution of the Maui wildfire tort litigation. The sale of over 90% of American Savings Bank in December simplifies our strategy and regulatory position while allowing us to reduce holding company debt and focus more on our core utility business. The utility continued to rapidly progress its wildfire mitigation efforts throughout the year, and operational changes, new technology and the Public Safety Power Shutoff program implemented in 2024 have led to substantial strides in reducing risk of ignition from utility equipment. We also saw significant progress on another key strategic initiative, with the utility reaching a 36% renewable portfolio standard in 2024. This puts us on track to meet the 40% by 2030 milestone significantly ahead of schedule. These collective actions position our company well as we continue our commitment to a stronger, more resilient and more financially healthy future.”

As previously disclosed, on February 10, 2025 the Hawaii Supreme Court issued a decision regarding the reserved questions posed to them by the Second Circuit Court. The Hawaii Supreme Court’s decision clarifies that, once the settlement becomes final, insurers seeking to recover amounts paid to settling plaintiffs cannot separately sue defendants, including for amounts beyond the settlement agreed to by the plaintiffs and defendants. The Court’s decision aligns with the Company’s and plaintiffs’ positions on key questions that arose from insurers’ challenges to the settlement agreements reached in the Maui wildfire tort litigation.

HAWAIIAN ELECTRIC COMPANY (HAWAIIAN ELECTRIC) EARNINGS2

Full Year Results:

Hawaiian Electric’s full-year net loss was $1,226 million, compared to net income of $194 million in 2023, with the decrease primarily driven by the following items:

• $1,875 million ($1,392 million after-tax) loss due to the accrual of estimated wildfire liabilities from tort-related legal claims and cross claims as of December 31, 2024 (net of insurance recoveries);
• $76 million ($56 million after taxes) in higher operations and maintenance (O&M) expenses, driven principally by the settlement of indemnification claims asserted by the state, higher wildfire mitigation program expenses and higher property and general liability insurance costs; and
• $7 million ($6 million after taxes) of higher depreciation expense.

These items were partially offset by the following:

• $43 million ($29 million after taxes) higher revenues, including $25 million from the annual revenue adjustment mechanism, $7 million from the major project interim recovery mechanism, $6 million of demand response program revenues (offset by expenses included in O&M) and $5 million from performance incentive mechanisms;
• $4 million ($3 million after taxes) of lower interest expense; and
• $3 million ($2 million after taxes) from a gain on sale of property.

Hawaiian Electric’s Core net income for 2024 was $181 million. Pre-tax wildfire-related expenses of $2,019 million were partially offset by $86 million in insurance recoveries and $38 million of costs deferred pursuant to the Public Utilities Commission’s decision allowing Hawaiian Electric to defer these costs.

Fourth Quarter Results:

Hawaiian Electric’s net income for the fourth quarter of 2024 was $46 million, compared to $58 million in the fourth quarter of 2023, with the variance driven by the following items: $30 million ($25 million after taxes) of higher O&M, $13 million ($9 million after taxes) in higher revenues, $3 million ($2 million after taxes) from a gain on sale of property and a $3 million ($2 million after taxes) impact from better heat rate performance. Hawaiian Electric’s Core net income was approximately $49 million for both the fourth quarters of 2024 and 2023.

Utility Dividend Update

The utility dividend to HEI continues to be suspended, as holding company cash needs are limited following HEI’s recent equity issuance and the continued suspension of the dividend to HEI’s common equity shareholders.

DISCONTINUED OPERATIONS - AMERICAN SAVINGS BANK (ASB)

As previously announced, on December 31, 2024 HEI, ASB and ASB Hawaii (ASB’s parent holding company) closed on the sale of 90.1% of the common stock of ASB to various investors. Accordingly, the results of ASB are presented as discontinued operations in the consolidated financial statements. For the full year 2024, the loss from discontinued operations totaled $103 million, compared to net income of $53 million in 2023. Excluding wildfire expenses, the goodwill impairment recorded in the second quarter, and the net loss recorded in accordance with the December 2024 sale transaction, Core income for 2024 was $79 million.

HOLDING AND OTHER COMPANIES

The holding and other companies’ net loss was $96 million in 2024 compared to $48 million in 2023. The higher net loss for the year was primarily due to the Pacific Current asset impairment recorded in the third quarter, higher wildfire-related expenses and higher expenses at Pacific Current. Core net loss for the year was $56 million compared to $43 million in 2023. The fourth quarter 2024 net loss was $17 million compared to $13 million in the fourth quarter of 2023. The higher net loss compared to the prior year quarter was primarily due to lower Pacific Current net income. Core net loss for the fourth quarter of 2024 was $14 million compared to $12 million in the fourth quarter of 2023.

EARNINGS RELEASE, WEBCAST AND CONFERENCE CALL TO DISCUSS EARNINGS

HEI will conduct a webcast and conference call to review its fourth quarter and full year 2024 consolidated financial results today at 11:30 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 March 7, 2025. 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

The HEI family of companies provides the energy services that empower much of the economic and community activity of Hawaii. 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 resilience and public safety. HEI also helps advance Hawaii’s sustainability goals through investments by its non-regulated subsidiary, Pacific Current. For more information, visit www.hei.com.

NON-GAAP MEASURES

Measures described as “Core” are non-GAAP measures which exclude Maui wildfire-related costs, the asset impairment taken in connection with HEI’s ongoing review of strategic options for Pacific Current and expenses recorded in connection with the review of strategic options for ASB. See “Explanation of HEI’s Use of Certain Unaudited Non-GAAP Measures” and the related GAAP reconciliations at the end of this release.

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, 2023 and HEI’s other SEC periodic reports and 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.

Note: Throughout this release, per share values are calculated based on diluted shares.

1Measures described as “Core” for the periods in this news release are non-GAAP measures which exclude Maui wildfire-related costs, and expenses taken in connection with strategic reviews for Pacific Current and American Savings Bank. See the “Explanation of HEI’s Use of Certain Unaudited Non-GAAP Measures” and the related GAAP reconciliation at the end of this release.

2 Utility amounts indicated as after-tax in this earnings release are based upon adjusting items using a current year composite statutory tax rate of 25.75%.

Hawaiian Electric Industries, Inc. (HEI) and Subsidiaries CONSOLIDATED STATEMENTS OF INCOME DATA (Unaudited)

 

 

Three months ended December 31

 

Years ended December 31

(in thousands, except per share amounts)

 

 

2024

 

 

 

2023

 

 

 

2024

 

 

 

2023

 

Revenues

 

 

 

 

 

 

 

 

Electric utility

 

$

796,174

 

 

$

849,982

 

 

$

3,206,700

 

 

$

3,269,521

 

Other

 

 

3,006

 

 

 

3,442

 

 

 

13,150

 

 

 

17,982

 

Total revenues

 

 

799,180

 

 

 

853,424

 

 

 

3,219,850

 

 

 

3,287,503

 

Expenses

 

 

 

 

 

 

 

 

Electric utility (includes nil and $1,875 million of provision, net, for Wildfire tort-related claims recorded in quarter and year ended December 31, 2024, respectively)

 

 

722,383

 

 

 

768,682

 

 

 

4,818,558

 

 

 

2,967,363

 

Other (includes $35 million of impairment recorded in third quarter of 2024)

 

 

23,135

 

 

 

10,411

 

 

 

108,052

 

 

 

45,148

 

Total expenses

 

 

745,518

 

 

 

779,093

 

 

 

4,926,610

 

 

 

3,012,511

 

Operating income (loss)

 

 

 

 

 

 

 

 

Electric utility

 

 

73,791

 

 

 

81,300

 

 

 

(1,611,858

)

 

 

302,158

 

Other

 

 

(20,129

)

 

 

(6,969

)

 

 

(94,902

)

 

 

(27,166

)

Total operating income (loss)

 

 

53,662

 

 

 

74,331

 

 

 

(1,706,760

)

 

 

274,992

 

Retirement defined benefits credit—other than service costs

 

 

903

 

 

 

1,017

 

 

 

3,754

 

 

 

4,014

 

Interest expense, net

 

 

(31,131

)

 

 

(34,273

)

 

 

(127,207

)

 

 

(125,532

)

Allowance for borrowed funds used during construction

 

 

1,409

 

 

 

1,403

 

 

 

5,470

 

 

 

5,201

 

Allowance for equity funds used during construction

 

 

3,510

 

 

 

4,091

 

 

 

13,786

 

 

 

15,164

 

Interest income

 

 

9,433

 

 

 

9,105

 

 

 

19,362

 

 

 

9,105

 

Loss on equity-method investment

 

 

—

 

 

 

(644

)

 

 

—

 

 

 

(644

)

Income (loss) from continuing operations before income taxes

 

 

37,786

 

 

 

55,030

 

 

 

(1,791,595

)

 

 

182,300

 

Income tax expense (benefit)

 

 

8,147

 

 

 

8,999

 

 

 

(470,962

)

 

 

34,534

 

Income (loss) from continuing operations

 

 

29,639

 

 

 

46,031

 

 

 

(1,320,633

)

 

 

147,766

 

Preferred stock dividends of subsidiaries

 

 

473

 

 

 

473

 

 

 

1,890

 

 

 

1,890

 

Income (loss) from continuing operations for common stock

 

 

29,166

 

 

 

45,558

 

 

 

(1,322,523

)

 

 

145,876

 

Income (loss) from discontinued operations

 

 

(97,411

)

 

 

3,231

 

 

 

(103,486

)

 

 

53,362

 

Net income (loss) for common stock

 

$

(68,245

)

 

$

48,789

 

 

$

(1,426,009

)

 

$

199,238

 

Continuing operations - Basic earnings (loss) per common share

 

$

0.17

 

 

$

0.41

 

 

$

(10.42

)

 

$

1.33

 

Discontinued operations - Basic earnings (loss) per common share

 

 

(0.56

)

 

 

0.03

 

 

 

(0.81

)

 

 

0.49

 

Basic earnings (loss) per common share

 

$

(0.40

)

 

$

0.44

 

 

$

(11.23

)

 

$

1.82

 

Continuing operations - Diluted earnings (loss) per common share

 

$

0.17

 

 

$

0.41

 

 

$

(10.42

)

 

$

1.33

 

Discontinued operations - Diluted earnings (loss) per common share

 

 

(0.56

)

 

 

0.03

 

 

 

(0.81

)

 

 

0.48

 

Diluted earnings (loss) per common share

 

$

(0.40

)

 

$

0.44

 

 

$

(11.23

)

 

$

1.81

 

Dividends declared per common share

 

$

—

 

 

$

—

 

 

$

—

 

 

$

1.08

 

Weighted-average number of common shares outstanding

 

 

172,466

 

 

 

110,134

 

 

 

126,927

 

 

 

109,739

 

Weighted-average shares assuming dilution

 

 

172,466

 

 

 

110,301

 

 

 

126,927

 

 

 

110,038

 

Income (loss) from continuing operations for common stock by segment

 

 

 

 

 

 

 

 

Electric utility

 

$

46,396

 

 

$

58,183

 

 

$

(1,226,362

)

 

$

193,952

 

Other

 

 

(17,230

)

 

 

(12,625

)

 

 

(96,161

)

 

 

(48,076

)

Income (loss) from continuing operations for common stock

 

$

29,166

 

 

$

45,558

 

 

$

(1,322,523

)

 

$

145,876

 

Comprehensive income (loss) attributable to HEI

 

$

(96,214

)

 

$

117,463

 

 

$

(1,422,825

)

 

$

245,916

 

Return on average common equity (%) (twelve months ended)1

 

 

 

 

 

 

NM

 

 

 

8.8

 

1 Simple average. NM Not meaningful.

This information should be read in conjunction with the consolidated financial statements and the notes thereto in HEI filings with the SEC.

Hawaiian Electric Company, Inc. (Hawaiian Electric) and Subsidiaries CONSOLIDATED STATEMENTS OF INCOME DATA (Unaudited)

 

 

Three months ended December 31

 

Years ended December 31

($ in thousands, except per barrel amounts)

 

 

2024

 

 

 

2023

 

 

 

2024

 

 

 

2023

 

Revenues

 

$

796,174

 

 

$

849,982

 

 

$

3,206,700

 

 

$

3,269,521

 

Expenses

 

 

 

 

 

 

 

 

Fuel oil

 

 

256,059

 

 

 

329,728

 

 

 

1,078,045

 

 

 

1,211,420

 

Purchased power

 

 

173,061

 

 

 

172,779

 

 

 

703,371

 

 

 

671,769

 

Other operation and maintenance

 

 

156,024

 

 

 

126,373

 

 

 

609,672

 

 

 

533,557

 

Wildfire tort-related claims, net

 

 

—

 

 

 

—

 

 

 

1,875,000

 

 

 

—

 

Depreciation

 

 

62,706

 

 

 

60,924

 

 

 

251,142

 

 

 

243,705

 

Taxes, other than income taxes

 

 

74,533

 

 

 

78,878

 

 

 

301,328

 

 

 

306,912

 

Total expenses

 

 

722,383

 

 

 

768,682

 

 

 

4,818,558

 

 

 

2,967,363

 

Operating income (loss)

 

 

73,791

 

 

 

81,300

 

 

 

(1,611,858

)

 

 

302,158

 

Allowance for equity funds used during construction

 

 

3,510

 

 

 

4,091

 

 

 

13,786

 

 

 

15,164

 

Retirement defined benefits credit—other than service costs

 

 

1,034

 

 

 

1,076

 

 

 

4,137

 

 

 

4,303

 

Interest expense and other charges, net

 

 

(20,457

)

 

 

(22,575

)

 

 

(82,082

)

 

 

(86,140

)

Allowance for borrowed funds used during construction

 

 

1,409

 

 

 

1,403

 

 

 

5,470

 

 

 

5,201

 

Interest income

 

 

2,078

 

 

 

6,454

 

 

 

6,633

 

 

 

6,454

 

Income (loss) before income taxes

 

 

61,365

 

 

 

71,749

 

 

 

(1,663,914

)

 

 

247,140

 

Income tax expense (benefit)

 

 

14,470

 

 

 

13,067

 

 

 

(439,547

)

 

 

51,193

 

Net income (loss)

 

 

46,895

 

 

 

58,682

 

 

 

(1,224,367

)

 

 

195,947

 

Preferred stock dividends of subsidiaries

 

 

229

 

 

 

229

 

 

 

915

 

 

 

915

 

Net income (loss) attributable to Hawaiian Electric

 

 

46,666

 

 

 

58,453

 

 

 

(1,225,282

)

 

 

195,032

 

Preferred stock dividends of Hawaiian Electric

 

 

270

 

 

 

270

 

 

 

1,080

 

 

 

1,080

 

Net income (loss) for common stock

 

$

46,396

 

 

$

58,183

 

 

$

(1,226,362

)

 

$

193,952

 

Comprehensive income (loss) attributable to Hawaiian Electric

 

$

46,426

 

 

$

58,337

 

 

$

(1,226,425

)

 

$

193,940

 

OTHER ELECTRIC UTILITY INFORMATION

 

 

 

 

 

 

 

 

Kilowatthour sales (millions)

 

 

 

 

 

 

 

 

Hawaiian Electric

 

 

1,608

 

 

 

1,604

 

 

 

6,134

 

 

 

6,138

 

Hawaii Electric Light

 

 

267

 

 

 

272

 

 

 

1,047

 

 

 

1,043

 

Maui Electric

 

 

276

 

 

 

264

 

 

 

1,038

 

 

 

1,046

 

 

 

 

2,151

 

 

 

2,140

 

 

 

8,219

 

 

 

8,227

 

Average fuel oil cost per barrel

 

$

104.38

 

 

$

132.47

 

 

$

115.00

 

 

$

126.73

 

Return on average common equity (%) (twelve months ended)1

 

 

 

 

 

 

NM

 

 

 

8.2

 

1 Simple average. NM Not meaningful. This information should be read in conjunction with the consolidated financial statements and the notes thereto in Hawaiian Electric filings with the SEC.

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 costs related to the Maui wildfires, costs related to the strategic review and majority sale of ASB, and the asset impairment taken in connection with 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.

Reconciliation of GAAP to non-GAAP Measures Hawaiian Electric Industries, Inc. (HEI) and Subsidiaries Unaudited

 

Three months ended December 31

 

Years ended December 31

(in thousands)

 

2024

 

 

 

2023

 

 

 

2024

 

 

 

2023

 

Maui wildfire-related costs2

 

 

 

 

 

 

 

Pretax expenses:

 

 

 

 

 

 

 

Legal expenses

$

13,449

 

 

$

23,768

 

 

$

69,779

 

 

$

33,969

 

Outside services expenses

 

7,541

 

 

 

6,640

 

 

 

11,014

 

 

 

12,024

 

Wildfire tort-related claims

 

—

 

 

 

—

 

 

 

1,915,000

 

 

 

75,000

 

Other expenses

 

8,281

 

 

 

1,034

 

 

 

35,403

 

 

 

3,519

 

Interest expense

 

3,185

 

 

 

1,645

 

 

 

14,834

 

 

 

2,600

 

Pretax expenses

 

32,456

 

 

 

33,087

 

 

 

2,046,030

 

 

 

127,112

 

Insurance recoveries

 

(11,089

)

 

 

(29,580

)

 

 

(94,699

)

 

 

(104,580

)

Deferral of cost

 

(13,817

)

 

 

(14,692

)

 

 

(37,960

)

 

 

(14,692

)

Wildfire-related expenses, net of insurance recoveries and approved deferral treatment

 

7,550

 

 

 

(11,185

)

 

 

1,913,371

 

 

 

7,840

 

Pretax asset impairment

 

—

 

 

 

—

 

 

 

35,216

 

 

 

—

 

Income tax (benefits) expense3

 

(1,945

)

 

 

2,880

 

 

 

(501,763

)

 

 

(2,019

)

After-tax adjustments

$

5,605

 

 

$

(8,305

)

 

$

1,446,824

 

 

$

5,821

 

1 Accounting principles generally accepted in the United States of America. 2 Excludes Maui wildfire-related costs of our discontinued operations. 3 Current year composite statutory tax rate of 25.75% is used for Utility and Other amounts. Note: Other segment (Holding and Other Companies) wildfire-related expenses (legal, outside services and other) are included in “Expenses-Other” and interest expense is included in “Interest expense, net” on the HEI and subsidiaries’ Consolidated Statements of Income Data. See Electric Utilities tables below for more detail.

Reconciliation of GAAP to non-GAAP Measures (continued) Hawaiian Electric Industries, Inc. (HEI) and Subsidiaries Unaudited

 

Three months ended December 31

 

Years ended December 31

(in thousands)

 

2024

 

 

 

2023

 

 

 

2024

 

 

 

2023

 

HEI Consolidated - Continuing Operations

 

 

 

 

 

 

 

GAAP income (loss) - continuing operations (as reported)

$

29,166

 

 

$

45,558

 

 

$

(1,322,523

)

 

$

145,876

 

Excluding special items related to the Maui wildfire (after tax):

 

 

 

 

 

 

 

Legal expenses

 

9,987

 

 

 

17,648

 

 

 

51,811

 

 

 

25,222

 

Outside services expenses

 

5,599

 

 

 

4,931

 

 

 

8,178

 

 

 

8,928

 

Wildfire tort-related claims

 

—

 

 

 

—

 

 

 

1,421,887

 

 

 

55,688

 

Other expenses

 

6,147

 

 

 

766

 

 

 

26,286

 

 

 

2,612

 

Interest expense

 

2,365

 

 

 

1,222

 

 

 

11,014

 

 

 

1,931

 

After tax expenses

 

24,098

 

 

 

24,567

 

 

 

1,519,176

 

 

 

94,381

 

Insurance recoveries

 

(8,234

)

 

 

(21,963

)

 

 

(70,314

)

 

 

(77,651

)

Deferral of cost

 

(10,259

)

 

 

(10,909

)

 

 

(28,185

)

 

 

(10,909

)

Maui wildfire-related expenses, net of insurance recoveries and approved deferral treatment (after tax)

 

5,605

 

 

 

(8,305

)

 

 

1,420,677

 

 

 

5,821

 

Asset impairment (after tax)

 

—

 

 

 

—

 

 

 

26,147

 

 

 

—

 

Non-GAAP (core) income - continuing operations

$

34,771

 

 

$

37,253

 

 

$

124,301

 

 

$

151,697

 

GAAP Diluted earnings (loss) per share - continuing operations (as reported)

$

0.17

 

 

$

0.41

 

 

$

(10.42

)

 

$

1.33

 

Non-GAAP (Core) Diluted earnings per share - continuing operations

$

0.20

 

 

$

0.34

 

 

$

0.98

 

 

$

1.38

 

 

Three months ended December 31

 

Years ended December 31

(in thousands)

 

2024

 

 

 

2023

 

 

2024

 

 

 

2023

HEI Consolidated - Discontinued Operations

 

 

 

 

 

 

 

GAAP income (loss) - discontinued operations (as reported)

$

(97,411

)

 

$

3,231

 

$

(103,486

)

 

$

53,362

Less: Net loss from the sale of ASB

 

115,803

 

 

 

—

 

 

115,803

 

 

 

—

Excluding special items:

 

 

 

 

 

 

 

Goodwill impairment

 

—

 

 

 

—

 

 

66,130

 

 

 

—

Loss on sale of investment securities

 

—

 

 

 

10,954

 

 

—

 

 

 

10,954

Wildfire expenses

 

59

 

 

 

1,987

 

 

963

 

 

 

8,251

Non-GAAP (Core) income - discontinued operations

$

18,451

 

 

$

16,172

 

$

79,410

 

 

$

72,567

Reconciliation of GAAP to non-GAAP Measures (continued) Hawaiian Electric Company, Inc. and Subsidiaries Unaudited

 

Three months ended December 31

 

Years ended December 31

(in thousands)

 

2024

 

 

 

2023

 

 

 

2024

 

 

 

2023

 

Maui windstorm and wildfires related costs

 

 

 

 

 

 

 

Pretax expenses:

 

 

 

 

 

 

 

Legal expenses

$

11,237

 

 

$

18,486

 

 

$

51,406

 

 

$

24,737

 

Outside services expenses

 

6,080

 

 

 

5,826

 

 

 

8,500

 

 

 

10,532

 

Wildfire tort-related claims

 

—

 

 

 

—

 

 

 

1,915,000

 

 

 

75,000

 

Other expenses

 

7,614

 

 

 

834

 

 

 

32,753

 

 

 

3,316

 

Interest expenses

 

2,204

 

 

 

720

 

 

 

11,168

 

 

 

1,223

 

Pretax expenses

 

27,135

 

 

 

25,866

 

 

 

2,018,827

 

 

 

114,808

 

Insurance recoveries

 

(9,808

)

 

 

(23,613

)

 

 

(85,781

)

 

 

(98,613

)

Deferral of cost

 

(13,817

)

 

 

(14,692

)

 

 

(37,960

)

 

 

(14,692

)

Total Maui windstorm and wildfires related expenses, net of insurance recoveries and approved deferral treatment

 

3,510

 

 

 

(12,439

)

 

 

1,895,086

 

 

 

1,503

 

Income tax expense (benefits)1

 

(904

)

 

 

3,203

 

 

 

(487,985

)

 

 

(387

)

After-tax adjustments

$

2,606

 

 

$

(9,236

)

 

$

1,407,101

 

 

$

1,116

 

 

 

 

 

 

 

 

 

Hawaiian Electric consolidated net income (loss)

 

 

 

 

 

 

 

GAAP2 net income (loss) (as reported)

$

46,396

 

 

$

58,183

 

 

$

(1,226,362

)

 

$

193,952

 

Excluding special items related to the Maui windstorm and wildfires (after tax):

 

 

 

 

 

 

 

Legal expenses

 

8,344

 

 

 

13,726

 

 

 

38,169

 

 

 

18,367

 

Outside services expenses

 

4,514

 

 

 

4,326

 

 

 

6,311

 

 

 

7,820

 

Wildfire tort-related claims

 

—

 

 

 

—

 

 

 

1,421,887

 

 

 

55,688

 

Other expenses

 

5,654

 

 

 

619

 

 

 

24,320

 

 

 

2,462

 

Interest expenses

 

1,636

 

 

 

534

 

 

 

8,292

 

 

 

908

 

Maui windstorm and wildfires related expenses (after tax)

 

20,148

 

 

 

19,205

 

 

 

1,498,979

 

 

 

85,245

 

Insurance recoveries (after tax)

 

(7,283

)

 

 

(17,532

)

 

 

(63,693

)

 

 

(73,220

)

Deferral of cost (after tax)

 

(10,259

)

 

 

(10,909

)

 

 

(28,185

)

 

 

(10,909

)

Total Maui windstorm and wildfires related expenses, net of insurance recoveries and approved deferral treatment (after tax)

 

2,606

 

 

 

(9,236

)

 

 

1,407,101

 

 

 

1,116

 

Non-GAAP (Core) net income

$

49,002

 

 

$

48,947

 

 

$

180,739

 

 

$

195,068

 

1 Current year composite statutory tax rate of 25.75% is used for Utility amounts. 2 Accounting principles generally accepted in the United States of America. Note: Legal, outside services and other are included in “Other operation and maintenance” and interest expense is included in “Interest expense and other charges, net” on the Hawaiian Electric and subsidiaries’ Consolidated Statements of Income Data.

Reconciliation of GAAP to non-GAAP Measures (continued) Holding and Other Companies Unaudited

 

Three months ended December 31

 

Years ended December 31

(in thousands)

 

2024

 

 

 

2023

 

 

 

2024

 

 

 

2023

 

Maui windstorm and wildfires related costs

 

 

 

 

 

 

 

Pretax expenses:

 

 

 

 

 

 

 

Legal expenses

$

2,212

 

 

$

5,282

 

 

$

18,373

 

 

$

9,232

 

Outside services expenses

 

1,461

 

 

 

814

 

 

 

2,514

 

 

 

1,492

 

Other expenses

 

667

 

 

 

200

 

 

 

2,650

 

 

 

203

 

Interest expenses

 

981

 

 

 

925

 

 

 

3,666

 

 

 

1,377

 

Pretax expenses

 

5,321

 

 

 

7,221

 

 

 

27,203

 

 

 

12,304

 

Insurance recoveries

 

(1,281

)

 

 

(5,967

)

 

 

(8,918

)

 

 

(5,967

)

Total Maui windstorm and wildfires related expenses, net of insurance recoveries

 

4,040

 

 

 

1,254

 

 

 

18,285

 

 

 

6,337

 

Income tax benefits1

 

(1,041

)

 

 

(323

)

 

 

(4,709

)

 

 

(1,632

)

After-tax adjustments

$

2,999

 

 

$

931

 

 

$

13,576

 

 

$

4,705

 

 

 

 

 

 

 

 

 

Holding and Other Companies net loss

 

 

 

 

 

 

 

GAAP2 net loss (as reported)

$

(17,230

)

 

$

(12,625

)

 

$

(96,161

)

 

$

(48,076

)

Excluding special items related to the Maui windstorm and wildfires (after tax):

 

 

 

 

 

 

 

Legal expenses

 

1,643

 

 

 

3,922

 

 

 

13,642

 

 

 

6,855

 

Outside services expenses

 

1,085

 

 

 

605

 

 

 

1,867

 

 

 

1,108

 

Other expenses

 

493

 

 

 

147

 

 

 

1,966

 

 

 

150

 

Interest expenses

 

729

 

 

 

688

 

 

 

2,722

 

 

 

1,023

 

Maui windstorm and wildfires related expenses (after tax)

 

3,950

 

 

 

5,362

 

 

 

20,197

 

 

 

9,136

 

Insurance recoveries (after tax)

 

(951

)

 

 

(4,431

)

 

 

(6,621

)

 

 

(4,431

)

Total Maui windstorm and wildfires related expenses, net of insurance recoveries (after tax)

 

2,999

 

 

 

931

 

 

 

13,576

 

 

 

4,705

 

Asset impairment (after tax)

 

—

 

 

 

—

 

 

 

26,147

 

 

 

—

 

Non-GAAP (Core) net loss

$

(14,231

)

 

$

(11,694

)

 

$

(56,438

)

 

$

(43,371

)

1 Current year composite statutory tax rate of 25.75% is used for Holding and Other Companies’ amounts. 2 Accounting principles generally accepted in the United States of America. Note: Holding and Other Companies wildfire-related expenses (legal, outside services and other) are included in “Expenses-Other” and interest expense is included in “Interest expense, net” on the HEI and subsidiaries’ Consolidated Statements of Income Data.

 

View source version on businesswire.com: https://www.businesswire.com/news/home/20250221176474/en/

Mateo Garcia Telephone: (808) 543-7300 Director, Investor Relations E-mail: ir@hei.com