🧾 What This Document Is

This is a "statistical supplement" filed as an exhibit to an 8-K report. Think of it as a detailed, data-heavy appendix that provides a multi-year financial snapshot of Hawaiian Electric Industries (HEI). It's not a quarterly earnings release, but rather a reference document that compiles key numbers from their annual reports (10-Ks) for 2023, 2024, and 2025 in one place. It's designed for analysts and investors who want to easily track trends.

👉 Why it matters: It gives a clean, side-by-side view of how the company's financial health has changed, especially through a very difficult period.

🏢 What The Company Does

In simple terms, Hawaiian Electric Industries (HEI) is the parent company of Hawaiian Electric Company, which is the primary electric utility serving the state of Hawaii. Their core business is generating and distributing electricity to homes and businesses across the islands. After selling their banking subsidiary (ASB) in late 2024, HEI is now almost entirely a utility company.

👉 Why it matters: Their fortunes are directly tied to Hawaii's economy, tourism, and the huge challenge of transitioning to renewable energy while managing grid reliability and costs.

📈 The Financial Rollercoaster: A 3-Year Story

The most striking story in these numbers is the wild swing from a massive loss to a small profit.

• 2025 (The Recovery Year): HEI reported a net income of $123 million, or $0.71 per share. This was a return to profitability.
• 2024 (The Catastrophic Year): They posted a staggering net loss of $1.43 billion, or a loss of $11.23 per share. The culprit? A nearly $1.88 billion expense related to claims from the devastating 2023 Maui wildfires, net of insurance.
• 2023 (The "Normal" Year): Before the wildfires, net income was a more typical $199 million, or $1.82 per share.

👉 Why it matters: The company's recent performance is completely dominated by the financial impact of the Maui wildfires. The 2024 loss is an event-driven anomaly, not a reflection of core business operations, which also faced pressure.

🔥 The Wildfire Shadow: A $2 Billion Overhang

The single most important number in this entire filing might be the wildfire-related liabilities on the balance sheet. As of December 31, 2025, HEI carries:

• $530 million in current (due within a year) wildfire claims.
• $1.44 billion in long-term wildfire tort-related claims.

This totals nearly $2 billion in estimated liability. The 2025 income statement also includes a smaller, but still significant, $12.2 million net wildfire expense for the year.

👉 Why it matters: This is the company's biggest risk. The final cost is still uncertain and could change with court rulings or settlements. It represents a massive financial burden that will affect their strategy for years.

💰 Financial Position & Capital Structure

Despite the turmoil, HEI's balance sheet has actually strengthened on some key metrics from 2024 to 2025.

• Total Debt (Long-Term): Decreased from $2.80 billion to $2.41 billion.
• Common Equity: Increased from $1.48 billion to $1.61 billion.
• Capital Structure Ratio: Equity now makes up 40% of the capital stack, up from 33.9% in 2024. This is a healthier, less leveraged position.

Total Assets remained stable at about $8.92 billion.

👉 Why it matters: The company has actively managed its debt and rebuilt some equity cushion after the 2024 shock. A stronger equity ratio is a positive sign for financial resilience.

💸 The Cash Flow Picture

Cash is king, and here's where it gets interesting.

• Operating Cash Flow: Generated a solid $391 million in 2025. This is the cash from selling electricity.
• Investing Cash Flow: Used $322 million, primarily for $341 million in capital expenditures (think: upgrading power lines and plants).
• Financing Cash Flow: Used $331 million, mainly to repay $734 million in long-term debt.

The net result? Total cash and restricted cash decreased by about $262 million during 2025.

👉 Why it matters: The core utility operation is generating healthy cash, but it's being consumed by heavy investment in the grid and paying down debt. This is a typical pattern for a regulated utility but leaves less free cash for dividends or other uses.

🔮 What's Next & The Big Picture

The path forward for HEI is clear but challenging:

• Resolve Wildfire Claims: The primary focus is managing and settling the massive wildfire liabilities. This will involve legal battles, insurance, and potential regulatory solutions.
• Grid Modernization & Renewables: They must continue investing billions to modernize Hawaii's grid and meet the state's ambitious clean energy goals, all while keeping electricity rates affordable.
• Financial Stability: Maintaining a strong balance sheet and credit ratings is crucial to fund these investments at reasonable costs.

Strengths (👍):

• Essential Service: It's a regulated monopoly with a captive customer base.
• Improving Balance Sheet: Reduced debt and higher equity percentage post-2024.
• Clear Operational Cash Flow: The utility business generates reliable cash.

Risks (⚠️):

• Wildfire Liability: The ~$2 billion potential liability is a sword of Damocles. The final cost could be higher.
• Regulatory Risk: The Public Utilities Commission (PUC) must approve cost recoveries, which can be contentious.
• Capital Needs: Massive required investments in grid infrastructure strain finances.

🧠 The Analogy

Imagine HEI's financials like a house that survived a major storm (the 2024 wildfires). The 2024 report showed the huge repair bill (the $1.4 billion loss). This 2025 supplement is like the homeowner's updated ledger: they've taken out a smaller new loan (less debt) and added some savings (more equity) to stabilize their finances. However, they still have a massive, pending contractor bill (the $2 billion wildfire liability) that isn't fully settled, which makes it hard to plan for the long-desired kitchen remodel (grid modernization). The house is still standing and functional, but that big unpaid bill hangs over everything.

📇 Key Contacts & People

This specific statistical supplement does not list any individual contacts, officers, or directors. For that information, you would need to refer to HEI's main 10-K filing or proxy statement.

🧩 Final Takeaway

Hawaiian Electric (HE) has successfully stabilized its finances after the catastrophic 2024 wildfire loss, returning to a small profit and strengthening its balance sheet. However, the company's future remains dominated by the unresolved ~$2 billion wildfire liability, which is the critical risk investors must watch. The core utility operation is functioning, but this massive overhang clouds the path forward.