HAWAIIAN ELECTRIC CO INC

Note 1 · Basis of presentation

The accompanying unaudited condensed consolidated financial statements have been prepared in conformity with accounting principles generally accepted in the United States of America (GAAP) for interim financial information, the instructions to SEC Form 10-Q and Article 10 of Regulation S-X. Accordingly, they do not include all of the information and footnotes required by GAAP for complete financial statements. In preparing the unaudited condensed consolidated financial statements, management is required to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the balance sheet and the reported amounts of revenues and expenses for the period. Actual results could differ significantly from those estimates. The accompanying unaudited condensed consolidated financial statements and the following notes should be read in conjunction with the audited consolidated financial statements and the notes thereto in HEI’s and Hawaiian Electric’s Form 10-K for the year ended December 31, 2025.

In the opinion of HEI’s and Hawaiian Electric’s management, the accompanying unaudited condensed consolidated financial statements contain all material adjustments required by GAAP to fairly state consolidated HEI’s and Hawaiian Electric’s financial positions as of September 30, 2026 and December 31, 2025, the results of their operations for the three and nine months ended September 30, 2026 and 2025, and cash flows for the nine months ended September 30, 2026 and 2025. All such adjustments are of a normal recurring nature, unless otherwise disclosed below or in other referenced material. Results of operations for interim periods are not necessarily indicative of results for the full year.

Assets held for sale and discontinued operations. In June 2025, the Company determined the net assets of Mahipapa, the remaining Pacific Current operating subsidiary, met the criteria for classification as held for sale. The Company reclassified these assets and liabilities as “Assets held for sale” and “Liabilities held for sale” in the condensed consolidated balance sheets as of December 31, 2025. In addition, the Company had also determined that the planned sale of this asset did not represent a strategic shift having a major effect on the Company’s operations and financial results, and therefore did not meet the criteria for classification as discontinued operations.

During the quarter, the Company determined Mahipapa to be an abandoned asset which no longer met the criteria for classification as held for sale. Accordingly, the related assets and liabilities were reclassified to held and used. Upon reclassification, these assets were written down to their estimated net salvage value at the date of the reclassification. For further discussion, see “Assets held for sale - Mahipapa” in Note 3.

Recent accounting pronouncements.

Income statement disclosures. In November 2024, the Financial Accounting Standards Board (FASB) issued Accounting Standards Update (ASU) No. 2024-03, Income Statement—Reporting Comprehensive Income—Expense Disaggregation Disclosures (Subtopic 220-40). The guidance requires more detailed information about specified categories of expenses included in certain captions presented on the face of the income statement. ASU No. 2024-03 is effective for annual periods beginning after December 15, 2026, and interim periods beginning after December 15, 2027. Early adoption is permitted. The Company is currently evaluating the impact of this amendment on the Company’s consolidated financial statements.

Accounting for Internal-use software. In September 2025, the FASB issued ASU No. 2025-06, Intangibles—Goodwill and Other—Internal-Use Software: Targeted Improvements to the Accounting for Internal-Use Software. The guidance removes all references to project stages in software development and requires capitalization of internal-use software costs to begin when management has authorized and committed to funding the project and it is probable the project will be completed and used to perform the intended function. ASU No. 2025-06 is effective for annual reporting periods beginning after December 15, 2027, and interim reporting periods within those annual reporting periods, with early adoption permitted. The Company is currently evaluating the impact of this amendment on the Company’s consolidated financial statements.

Accounting for government grants. In December 2025, the FASB issued ASU No. 2025-10, Accounting for Government Grants Received by Business Entities. The ASU adds guidance on the recognition, measurement and presentation of government grants received by business entities. ASU No. 2025-10 is effective for annual reporting periods beginning after December 15, 2028, and for interim reporting periods within those annual reporting periods, with early adoption permitted. The Company is currently evaluating the impact of this amendment on the Company’s consolidated financial statements.

Note 2 ·Maui windstorm and wildfires

On August 8, 2023, a number of brush fires in the West Maui (Lahaina) and Upcountry Maui areas caused widespread property damage, including damage to property of the Utilities, and 102 confirmed fatalities in Lahaina (the Maui windstorm and wildfires). The Maui windstorm and wildfires were fueled by extreme winds and drought-like conditions in those parts of Maui.

Restoration costs and recoveries. The Utilities are continuing restoration work to rebuild portions of the electric system in Lahaina to ensure safe and reliable power to customers. Restoration efforts include the rebuilding of electrical lines along former routes in the Lahaina area with the installation of new poles and electrical equipment. Ongoing work is focused on reestablishing electrical service to homes as they are being built.

The Public Utilities Commission of the State of Hawaii (PUC) has issued orders authorizing deferred accounting treatment for certain incremental non-labor expenses related to the Maui windstorm and wildfires incurred from August 8, 2023 through December 31, 2025. The approval pertains only to deferred cost treatment for expenses that are not already part of base rates; any actual recovery of deferred costs will be the subject of a separate application. As of September 30, 2026, the Utilities have deferred $79.1 million of these incremental costs to a regulatory asset.

Tort-related legal claims. HEI and the Utilities each were named in several thousand lawsuits related to the Maui windstorm and wildfires. These lawsuits (collectively, tort-related legal claims) named as defendants HEI, the Utilities, and others, including the County of Maui, the State of Hawaii and related state entities, private landowners and developers, and telecommunications companies. Most of these lawsuits alleged that the defendants were responsible for, and/or negligent in failing to prevent or respond to, the wildfires that led to property destruction and loss of life. The defendants filed lawsuits and/or asserted cross-claims against one another, and approximately 200 subrogation insurers brought actions against certain of the defendants, including HEI and the Utilities.

Effective November 1, 2024, HEI and Hawaiian Electric entered intotwo definitive settlement agreements (one with class plaintiffs and one with lawyers representing individual plaintiffs, collectively, the Settlement Agreements) to settle the tort-related legal claims in the litigation arising out of the Maui windstorm and wildfires on a global basis without any admission of liability. The Settlement Agreements, including mutual releases among the parties, became effective upon the satisfaction of the last remaining condition on April 10, 2026. Most of the thousands of lawsuits have now been dismissed.

Under the Settlement Agreements, HEI and Hawaiian Electric are obligated to contribute a total of $1.99 billion, including $75 million previously contributed to the One ‘Ohana Initiative, of the total defendant contribution of approximately $4.04 billion. HEI and Hawaiian Electric paid the first offour equal annual $479 million installments on April 10, 2026. In April 2026, HEI recorded a $479 million noncash equity contribution to Hawaiian Electric, which used it to relieve the current wildfire tort-related claim liability. See Note 11. The funds for the first installment were previously raised through HEI’s September 2024 equity offering and held in a special purpose vehicle formed specifically to hold the first payment pending satisfaction of all conditions to payment. The remaining installments are due in April 2027, April 2028, and April 2029. HEI and Hawaiian Electric have the option to accelerate the payments, in whole or in part, with such accelerated payments to be discounted at a rate of 5.5% per annum. HEI and Hawaiian Electric are also obligated to contribute a share to the settlement administration fees only if certain other sources are exhausted when such fees become due, for which $4.5 million was accrued as of September 30, 2026, based on the best estimate at this time.

The Settlement Agreements also provide that $500 million of the total settlement payments will be reserved and made available to defendants to defray the cost to resolve any claims brought by plaintiffs who do not release claims as part of either Settlement Agreement. Approximately 70 plaintiffs who “opted out” of the class Settlement Agreement have not signed individual agreements and releases to join the global settlement. Some of these opt outs are pursuing their claims through lawsuits in state and federal court, includingtwo putative class actions pending in federal court; others have stated that they will accept settlements in line with the global settlement amount; and others have indicated they are abandoning their claims. The defendants are continuing in their efforts to resolve all of these claims through the $500 million holdback fund. Based on current projections, HEI and Hawaiian Electric believe that the $500 million holdback will be sufficient to resolve these claims.

The Company believes the tort-related legal claims arising out of the Maui windstorm and wildfires have been substantially concluded and that settlements or judgments from any remaining claims will be funded from the $500 million holdback. If additional liabilities were to be incurred, or if the holdback is insufficient to cover remaining claims, however, the losses could be material to the Company’s results of operations, financial position and cash flows and could result in violations of the financial covenants in the Company’s debt agreements. If any such losses were to be sufficiently high, the Company may not have liquidity or the ability to access liquidity at levels necessary to satisfy such losses. However, any possible loss in excess of the amount recorded cannot reasonably be estimated at this time.

After the final condition to payment under the Settlement Agreements was satisfied in the second quarter of 2026, the Utilities remeasured the remaining settlement liability at present value using their incremental borrowing rate, in accordance with Accounting Standards Codification Topic 835-30 Imputation of Interest. As of June 30, 2026, the remeasurement reduced Hawaiian Electric’s remaining settlement liability by $154 million and was recognized as a reduction to expense. The discounted settlement liability will accrete through interest expense under the effective interest method until the applicable settlement payment due dates, when its carrying amount is expected to equal the remaining gross settlement payment obligation. Accretion expense for the three and nine months ended September 30, 2026, was $18 million and $36 million, respectively and is reported in “Interest expense, net” and “Interest expense and other charges, net” on HEI’s and the Utilities’ Condensed Consolidated Statements of Income, respectively. On September 16, 2026, HEI made a partial prepayment of

$40 million towards the second installment amount due in April 2027. As of September 30, 2026, the remaining settlement liability, measured at present value, was classified as a current liability of $376 million and a noncurrent liability of $903 million on HEI’s and the Utilities’ Condensed Consolidated Balance Sheets. On October 28, 2026, HEI made another partial prepayment of $40 million towards the second installment amount due in April 2027.

Securities class action. On August 24, 2023, a putative securities class action was filed in the United States District Court for the Northern District of California claiming violations of the Securities Exchange Act of 1934 (the Exchange Act) and Rule 10b-5 promulgated thereunder against HEI and Hawaiian Electric and certain of HEI’s and Hawaiian Electric’s current and former officers, and Section 20(a) of the Exchange Act against certain current and former officers (the Securities Action). The lawsuit broadly alleges that the defendants made materially false and misleading statements or omissions regarding the wildfire prevention and safety protocols and related matters.

On November 5, 2025, the parties signed a binding term sheet to settle the Securities Action (the Securities Action Term Sheet) following negotiations facilitated by a mediator. On January 5, 2026, the parties executed a definitive stipulation of settlement (the Securities Action Stipulation of Settlement) that will provide for the complete resolution of the Securities Action in exchange for a payment by the Company of $47.8 million as part of the overall settlement described below. As of now, the only remaining condition is the final approval of the Securities Action Stipulation of Settlement and dismissal of the case. In connection with the settlement of the Securities Action, there will be no admission of liability by the Company or any defendants and the Company, the defendants, and related persons will receive a customary full release of all claims. On March 3, 2026, the United States District Court for the Northern District of California preliminarily approved the Securities Action Stipulation of Settlement. On October 15, 2026, the court held a hearing to finally approve the settlement. On October 23, 2026, the court issued its order finally approving the settlement. On November 5, 2026, the court entered its order of final judgment.

In connection with the execution of the Securities Action Term Sheet, HEI accrued $47.8 million in the third quarter of 2025, and recorded an insurance reimbursement receivable of an equivalent amount as the recovery of the agreed settlement payment under its directors and officers liability insurance policy is deemed probable. In the third quarter of 2025, HEI charged the accrued settlement to “Expenses-Other” in HEI and Subsidiaries’ Condensed Consolidated Statements of Income, which was offset by the probable insurance recovery. The accrued settlement and insurance receivable is included in “Wildfire related claims” and “Accounts receivable and unbilled revenues, net,” under current liabilities and current assets, respectively, in HEI and Subsidiaries’ Condensed Consolidated Balance Sheets.

Shareholder derivative lawsuits. Two putative shareholder derivative actions were filed in the Circuit Court of the First Circuit, State of Hawaii on September 11, 2023 and on November 6, 2024. In addition, three putative shareholder derivative actions were filed in the United States District Court for the Northern District of California between December 26, 2023 and February 8, 2024, andtwo putative shareholder derivative actions were filed in the United States District Court for the District of Hawaii between April 8, 2024 and June 8, 2024. All of the lawsuits were purportedly brought by shareholders on behalf of nominal defendants HEI and Hawaiian Electric against certain current and former officers and directors of HEI and Hawaiian Electric. In all of the cases, the plaintiffs generally alleged state law breaches of fiduciary duty, abuse of control, corporate waste, unjust enrichment, gross mismanagement and aiding and abetting breaches of fiduciary duty claims in connection with the Maui windstorm and wildfires and certain of the Company’s prior public disclosures, and some of them added claims based on purported violations of federal securities laws.

On November 5, 2025, the parties signed a binding term sheet (the Derivative Litigation Term Sheet) to settle all of the outstanding derivative actions described above (the Derivative Actions). The Derivative Litigation Term Sheet was signed following negotiations facilitated by a mediator. On December 31, 2025, the parties executed a definitive settlement agreement (the Derivative Litigation Settlement Agreement) that provides for a complete resolution of the claims asserted in the Derivative Actions in exchange for a payment on behalf of the individual defendants by the Company’s insurers in the amount of $100 million (the Derivative Litigation Settlement Proceeds, which was fully funded by the directors and officers’ liability insurance policies), which will be used in part to pay the $47.8 million for the Securities Action Stipulation of Settlement and fees and expenses for plaintiffs’ counsel. In connection with the settlement of the Derivative Actions, there were no admissions of liability, and the defendants and related persons received a customary full release of all claims. On March 9, 2026, the United States District Court for the District of Hawaii preliminarily approved the Derivative Litigation Settlement Agreement. On May 28, 2026, the United States District Court for the District of Hawaii issued an order of final approval of the Derivative Litigation Settlement Agreement and dismissal of the Derivative Actions with prejudice. The court granted plaintiffs’ award for attorneys’ fees (25% of the Derivative Litigation Settlement Proceeds), plus expenses, and service fees for the plaintiffs. On June 29, 2026, the judgment dismissing the Derivative Actions with prejudice became final. On July 14, 2026 and consistent with that final judgment and the Derivative Litigation Settlement Agreement, the Circuit Court of the First Circuit, State of Hawaii approved the parties’ notice of voluntary dismissal with prejudice of the lasttwo Derivative Actions.

As noted above, $47.8 million of the $100 million Derivative Litigation Settlement Proceeds will be used to fund the settlement of the Securities Action. The remaining amount, the award in the Derivative Actions for the plaintiffs’ attorneys’

fees and expenses, and payment of other settlement-related expenses provided for in the term sheet, is accounted for as a contingent gain which will be recognized when realized or realizable.

Maui windstorm and wildfires costs. Legal costs in connection with the litigation and loss contingencies are expensed as incurred. The Company has $165 million of excess liability insurance and $25 million of professional liability insurance for third party claims, including claims related to wildfires, with a retention of $0.3 million and $1.0 million, respectively, and $145 million directors and officers liability insurance to cover claims related to the shareholder and derivative lawsuits, with a retention of $1.0 million. As of September 30, 2026, the Company’s insurance receivable totaled $48 million, related to the settlement of the Securities Action and the Utilities had no insurance receivable under the policies. As of September 30, 2026, HEI and its subsidiaries have approximatelynil, nil and $71 million of insurance coverage remaining under the excess liability, professional liability, and directors and officers liability policies, respectively, after deducting applicable retention amounts, amounts that have been recovered under insurance policies (including the One ‘Ohana Initiative contribution), and amounts expected to be recovered for incurred costs and recognized as a receivable.

See table below for the incremental items related to the Maui windstorm and wildfires.

1 Includes $8.5 million recognized as an adjustment to the Wildfire tort-related claims for the nine months ended September 30, 2026.

2 Represents an adjustment related to remeasuring the remaining settlement liability at present value in accordance with Accounting Standards Codification Topic 835-30 Imputation of Interest.

3 Represents accretion expense related to remeasuring the remaining settlement liability, which is included in “Interest expense, net” and “Interest expense and other charges, net” in HEI’s and the Utilities’ Condensed Consolidated Statements of Income, respectively.

4 HEI consolidated includes insurance recovery related to the settlement of the securities class action of $47.8 million for the three and nine months ended September 30, 2025. Also includes adjustments related to costs that are no longer probable of recovery under the insurance policies. For the three and nine months ended September 30, 2025, HEI consolidated and Electric utility adjustments amount to $1.0 million and $7.6 million, respectively, of which, $0.5 million and $4.5 million were deferred to a regulatory asset, respectively, and are reported on line “Deferral treatment approved by the PUC.”

5 Pursuant to the PUC order received on February 12, 2025, deferral accounting treatment limited to insurance premiums and outside services and legal costs associated with the asset-based lending facility credit agreement incurred in 2025 was granted. Applicable amounts were deferred to a regulatory asset.

Note 3 ·Segment financial information

Reportable segments are strategic business units of the Company that offer different products and services and operate in different regulatory environments. The Company operates and reports onone reportable segment: Electric utility. HEI and its other subsidiaries (ASB Hawaii, GLST1 up until its termination on June 3, 2026, and Pacific Current and its subsidiaries) which are not reportable segments are grouped and reported as an “all other” non-reportable segment.

Sales from Hamakua Energy to Hawaii Electric Light (a regulated affiliate), up until the close of its sale on March 10, 2025, are eliminated in consolidation.

ASB Hawaii. ASB Hawaii was formed in 1988 and served as the holding company for ASB prior to its sale on December 31, 2024. As part of the sale, ASB Hawaii retained a 9.9% noncontrolling investment in ASB amounting to $44.6 million. As of December 31, 2025, the ASB investment of $44.6 million was included in “Other noncurrent assets” on the Company’s Condensed Consolidated Balance Sheets.

On September 16, 2026, ASB’s common stock commenced trading on The Nasdaq Stock Market LLC (Nasdaq) following the completion of ASB’s initial public offering (IPO) at a price of $16 per share. In connection with the IPO, ASB effected a 7,222-to-1 forward stock split, and the Company sold 2,253,264 shares of ASB common stock, reducing its ownership interest in ASB to 6.43%. The Company received net cash proceeds of $33.9 million from the sale and recognized a pretax realized gain, net of transaction costs, of $18.3 million, and plans to use the cash proceeds to fund partial prepayments of the wildfire settlement. As of September 30, 2026, the Company remeasured its remaining investment in ASB at fair value based on the closing price of ASB’s common stock on Nasdaq. The Company’s remaining investment, consisting of 4,181,538 shares of ASB common stock, had a fair value of $74.8 million as of September 30, 2026, resulting in the recognition of a pretax unrealized gain of $45.9 million for the quarter then ended. In 2027, the Company plans to sell its remaining shares and use the cash proceeds to fund partial prepayments of the wildfire settlement. The realized gain on the sale of ASB common stock and the unrealized gain on the remeasurement of the Company’s remaining investment in ASB are included in “Gain on sale of investment and net unrealized gain on investment measured at fair value” in the Company’s Condensed Consolidated Statements of Income. As of September 30, 2026, the ASB investment of $74.8 million was included in “Other current assets” on the Company’s Condensed Consolidated Balance Sheets.

GLST1. GLST1 was formed in November 2024 for the purpose of holding the first installment payment pursuant to the settlement of the Maui windstorm and wildfire tort-related legal claims. HEI transferred the amount of the first settlement payment, $479 million, into GLST1, which was restricted from disbursing such funds except in connection with the initial payment to the settlement funds and was classified as “Restricted cash” on HEI’s Condensed Consolidated Balance Sheet as of December 31, 2025. Effective March 31, 2025, HEI assigned 60% of the membership interests of GLST1 to Hawaiian Electric. As of December 31, 2025, the assigned equity interests totaled $287.3 million, which was reported on “Investment in unconsolidated affiliate” on the Utilities’ Condensed Consolidated Balance Sheet. On April 10, 2026, HEI and Hawaiian Electric paid the first offour equal annual $479 million installments, and effective June 3, 2026, GLST1 was dissolved and terminated.

Pacific Current. Pacific Current was formed in 2017 to focus on investing in non-regulated renewable energy and sustainable infrastructure in the State of Hawaii to help achieve the state’s sustainability goals. As part of HEI’s comprehensive review of strategic options for Pacific Current, significant investments of Pacific Current that were made through its subsidiaries, Hamakua Energy, Mauo and Kaʻieʻie Waho were sold in 2025. Mahipapa is Pacific Current’s subsidiary, which owns a 7.5-MW renewable, firm dispatchable closed-loop biomass-to-energy facility on Kauai that provides electricity to Kauai Island Utility Cooperative (KIUC) under a PPA that was scheduled to expire in January 2036, but was mutually terminated by the parties effective October 1, 2026 as described below.

Assets held for sale-Mahipapa. In connection with the sale of Mauo, Kaʻieʻie Waho and other solar and battery assets (Solar Asset Disposition) and as part of the membership interest purchase agreement pursuant to which the Solar Asset Disposition was conducted (MIPA), but as a separate transaction, Pacific Current agreed to sell all of the membership interest in its biomass subsidiary, Mahipapa, to the same unaffiliated third party that is party to the MIPA (the Mahipapa Sale), with each of the parties’ obligations to complete the Mahipapa Sale subject to the conditions set forth in the MIPA. In September 2026, the proposed sale of Mahipapa to an unaffiliated third party was terminated because the parties were unable to resolve certain obligations required to complete the transaction. In addition, Mahipapa’s facility has remained offline since early September 2026, as damage from Hurricane Lowell continues to prevent the plant from restarting. These developments, along with other past issues, led Mahipapa and KIUC to agree to terminate their PPA effective October 1, 2026. As of September 30, 2026, the Company was evaluating strategic alternatives for Mahipapa, including a potential Chapter 7 bankruptcy filing. The Company therefore concluded Mahipapa to be an abandoned asset which no longer met the criteria for classification as held for sale and reclassified its related assets and liabilities as held and used.

Upon reclassification, the assets were written down to their estimated net salvage value, as of September 30, 2026. The Company recognized a pretax impairment charge of $50.7 million for the three months ended September 30, 2026, in connection with the reclassification, resulting in total pretax impairment charges of $54.5 million for the nine months ended September 30, 2026. These charges are included in “Gain (loss) on sale of subsidiaries and impairment losses on subsidiary assets sold and assets formerly classified as held for sale” in the Company’s Condensed Consolidated Statements of Income.

The net assets and liabilities of Mahipapa classified as held for sale in the Company’s Condensed Consolidated Balance Sheets as of December 31, 2025 were classified as current, and are summarized as follows:

Subsequent event-Mahipapa bankruptcy. On November 3, 2026, Mahipapa filed a voluntary petition for bankruptcy under Chapter 7 in the United States Bankruptcy Court for the District of Hawaii.

The decision to file under Chapter 7 followed the termination of the proposed sale of Mahipapa to an unaffiliated third party in September 2026 because the parties were unable to resolve certain obligations required to complete the transaction and the subsequent termination of Mahipapa’s PPA with KIUC. The terminated sale and other operating issues led Mahipapa and KIUC to terminate their PPA effective October 1, 2026.

Upon the filing of the Chapter 7 petition, Mahipapa’s assets will become part of its bankruptcy estate and a trustee will be appointed to administer and liquidate the bankruptcy estate. As of September 30, 2026, Mahipapa had long-lived assets amounting to approximately $2 million and outstanding long-term debt of $49 million. The ultimate disposition of Mahipapa’s assets and liabilities will depend upon the Chapter 7 proceedings. The anticipated completion date of the liquidation proceedings cannot be reasonably estimated at this time.

Note 4 · Electric utility segment

Consolidated variable interest entities. The HE AR INTER LLC and its direct subsidiary, HE AR BRWR LLC, (collectively, the Special Purpose Entities or SPEs) are bankruptcy remote, direct and indirect wholly owned subsidiaries of the Utilities. Pursuant to the asset-based lending facility (ABL Facility) credit agreement, the Utilities sell certain accounts receivable to the SPEs as collateral, which in turn, obtain financing from financial institutions. As of September 30, 2026, the ABL Facility remains undrawn and the SPEs have $319.0 million of net accounts receivable, included in “Customer accounts receivable, net,” and “Accrued unbilled revenues, net” on the Utilities’ Condensed Consolidated Balance Sheets and “Accounts receivable and unbilled revenues, net” on the Company’s Condensed Consolidated Balance Sheets.

The SPEs are considered VIEs due to insufficient equity investment at risk. The most significant activities that impact the economic performance of the SPEs are cash and financing management. The Utilities are considered the primary beneficiary as the Utilities direct the activities related to cash and financing management and therefore, are required to consolidate the SPEs. Although the SPEs are direct and indirect wholly owned consolidated subsidiaries of the Utilities, the SPEs are legally separate from the Utilities. The assets of the SPEs (which are primarily accounts receivables) are not available to creditors of the Utilities.

Unconsolidated variable interest entities.

Power purchase agreements. The Utilities have power purchase agreements (PPAs) with independent power producers (IPPs) and Schedule Q providers (i.e., customers with cogeneration and/or power production facilities who buy power from or sell power to the Utilities). As of September 30, 2026, the Utilities evaluated and concluded none of the IPPs or Schedule Q providers are currently required to be consolidated by reasons that i) no variable interests exist in the PPAs; ii) where variable interests are present, the Utilities are not deemed the primary beneficiary due to lack of power to direct the activities that most significantly impact the IPPs’ economic performance; or iii) the PPAs qualify for scope exceptions under current accounting standards for consolidation.

The carrying amounts of assets and liabilities related to the Utilities’ PPAs, where variable interests are present but the Utilities are not deemed the primary beneficiary, are limited to the purchased power and energy payments. As the Utilities recover such payments through the PUC-approved Purchased Power Adjustment Clause (PPAC) or the Energy Cost Recovery Clause (ECRC) mechanism, there is no significant potential exposure to loss to the Utilities as of September 30, 2026.

GLST1. GLST1 was formed in November 2024 for the purpose of holding the first installment payment pursuant to the settlement of the Maui windstorm and wildfire tort-related legal claims. Effective March 31, 2025, HEI assigned 60% of the membership interests of GLST1 to Hawaiian Electric. The Utilities are deemed to have a variable interest in GLST1 but concluded that the Utilities are not the primary beneficiary of GLST1. As the Utilities have the ability to exercise significant influence over GLST1, the Utilities accounted for the membership interests under the equity method of accounting. On April 10, 2026, HEI and Hawaiian Electric paid the first offour equal annual installments and subsequently dissolved and terminated GLST1 in June 2026.

Commitments and contingencies.

Contingencies. The Utilities are subject in the normal course of business to legal, regulatory and environmental proceedings. Excluding the liabilities from the Maui windstorm and wildfires, management does not anticipate that the aggregate ultimate liability arising out of these pending or threatened legal proceedings will be material to its financial position. However, the Utilities cannot rule out the possibility that such outcomes could have a material effect on the results of operations or liquidity for a particular reporting period in the future.

August 2023 Maui windstorm and wildfires. See Note 2.

Property insurer litigation. HEI and Hawaiian Electric were actively seeking recovery of damages to rebuild the covered electrical infrastructure from their insurers and, to date, have received insurance reimbursements of more than $22 million related to submitted claims under the $500 million property insurance coverage. On February 13, 2026, Hawaiian Electric Industries, Inc., Hawaiian Electric Company, Inc., and Maui Electric Company, Limited (collectively, the Hawaiian Electric Plaintiffs) filed suit against four of their property insurers: Defendants XL Insurance Company of America, Inc., Allianz Global Risks US Insurance Company, the Princeton Excess and Surplus Lines Insurance Company, and General Security Indemnity Company of Arizona (collectively, the HEI Insurers). The HEI Insurers are commercial property insurers that insured the Hawaiian Electric Plaintiffs at the time of the August 2023 Maui windstorm and wildfires. The Hawaiian Electric Plaintiffs also had commercial property insurance under policies issued by Associated Electric & Gas Insurance Services (AEGIS), Ascot Syndicate 1414, IQUW Syndicate 1856, Energy Insurance Mutual, QBE International Markets, and Certain Underwriters at Lloyd’s London (collectively, the AEGIS Insurers). Under the policies issued by the AEGIS Insurers, the Hawaiian Electric Plaintiffs and the AEGIS Insurers were required to engage in negotiation meetings, and if negotiation was unsuccessful, mediation prior to litigation. Accordingly, the Hawaiian Electric Plaintiffs did not name the AEGIS Insurers as defendants in the complaint filed on February 13, 2026.

The HEI Insurers and AEGIS Insurers (jointly, the Property Insurers) acknowledged coverage under the policies at issue for loss or damage to the Hawaiian Electric Plaintiffs’ property in connection with the Maui windstorm and wildfires and paid a portion of the Hawaiian Electric Plaintiffs’ losses. However, the Property Insurers denied coverage and refused to pay for a substantial portion of the loss and expense claimed. In April 2026, the Hawaiian Electric Plaintiffs and the Property Insurers engaged in negotiations and finalized a partial settlement in the second quarter of 2026 (the Settlement). The Settlement resolved all disputes with the AEGIS Insurers with respect to coverage under the AEGIS policies for loss arising out of the Maui windstorm and wildfires, as well as a portion of the disputes between the Hawaiian Electric Plaintiffs and the HEI Insurers. As the proceeds from the Settlement will be used to offset the Utilities’ rebuild and/or replacement capital costs, the unapplied fund in excess of incurred costs are reflected in other non-current liabilities as of September 30, 2026. Litigation is ongoing in the federal district court for the District of Hawaii with respect to the remaining coverage disputes with the HEI Insurers that were not resolved by the Settlement. The Hawaiian Electric Plaintiffs seek declaratory relief regarding the extent of the HEI Insurers’ obligations under the policies, as well as a determination that the HEI Insurers have breached the policies by refusing to indemnify the Hawaiian Electric Plaintiffs for covered loss and expense. The Hawaiian Electric Plaintiffs and the HEI Insurers engaged in mediation on July 8, 2026, but the mediation was not successful. The Hawaiian Electric Plaintiffs filed an amended complaint in the litigation on July 29, 2026, seeking approximately $40.7 million in damages.

Hu Honua Bioenergy, LLC (Hu Honua). In 2013, Hu Honua filed a lawsuit in the U.S. District Court for the District of Hawaii based on Hawaii Electric Light’s termination of a PPA between the parties. The lawsuit asserted breach of contract and antitrust claims. On April 17, 2025, the U.S. District Court granted Hawaii Electric Light’s Motion to Dismiss in part, dismissing the Federal Antitrust claims, but declining to exercise jurisdiction over the State antitrust claim. The remaining State claims, including the contract claims and the State antitrust claim, were dismissed without prejudice.

On May 14, 2025, Hu Honua filed its notice of appeal in federal Ninth Circuit court. Due to ongoing negotiations between Hu Honua and Hawaii Electric Light on a new PPA, the appellate briefing schedule has been vacated, and the court issued an administrative closure until February 1, 2027, and Hu Honua must provide a status report to the court by January 25, 2027.

On May 16, 2025, Hu Honua filed its complaint in state court for the remaining State claims. Hu Honua has granted Hawaii Electric Light an open-ended extension to answer or otherwise respond to the State complaint while PPA negotiations are ongoing. The State court ordered a scheduling conference for August 12, 2025, which was subsequently postponed to January 14, 2027, to allow the parties to continue ongoing settlement discussions.

Molokai New Energy Partners (MNEP). In July 2018, the PUC approved Maui Electric’s PPA with MNEP to purchase solar energy from a photovoltaic (PV) plus battery storage project. The 4.88-MW PV and 3-MW Battery Energy Storage System (BESS) project was to deliver no more than 2.64 MW at any time to the Molokai system. On March 25, 2020, MNEP filed a complaint in the U.S. District Court for the District of Hawaii against Maui Electric claiming breach of contract. On June 3, 2020, Maui Electric provided a Notice of Default and Termination of the PPA to MNEP terminating the PPA with an effective date of July 10, 2020. Thereafter, MNEP filed an amended complaint to include claims relating to the termination and Hawaiian Electric filed its answer to the amended complaint on September 11, 2020, disputing the facts presented by MNEP and all claims within the original and amended complaint. Currently, the discovery phase is ongoing. Trial which was previously set to commence on September 16, 2025 was continued to February 18, 2026 and is now set to begin November 13, 2026.

Madison Energy v. Apparent Inc. lawsuits. In two similar lawsuits, third-party claims have been asserted against the Utilities concerning the Utilities’ purported approvals and alleged representations regarding customer-sited solar projects. The first matter concerns a project at the Kamehameha Schools Maui (KSM) campus, and the second concerns a project at a KTA Super Stores (KTA) location on Hawaii Island.

The first lawsuit, referred to as the KSM lawsuit, concerns a solar project at the KSM campus. The original developer, Apparent Inc. (Apparent), entered into a PPA with KSM and subsequently sold the project to Madison Energy, which retained Apparent to design, construct, and operate the project. Apparent purportedly received a conditional Permission to Operate letter (PTO) from Maui Electric and, in purported reliance on that letter and other alleged representations, interconnected the project to Maui Electric’s grid and began operations. Upon learning of the purported PTO and the project’s operation, Maui Electric determined that it had no record of creating, issuing, or transmitting the PTO and that several project items required prior to PTO remained outstanding. Accordingly, Maui Electric directed that the project be disconnected from the grid. KSM subsequently terminated the PPA, and Madison Energy terminated its agreement with Apparent. In December 2024, Madison Energy filed suit against Apparent in state court, asserting contract, quasi-contract and fraud claims relating to the purported PTO. Apparent denied liability and filed a counterclaim against Madison Energy for breach of contract, and asserted third-party claims against Maui Electric and Hawaiian Electric. Apparent alleges, among other things, that the Utilities issued and subsequently disavowed the purported PTO. The discovery phase is ongoing, and trial is currently scheduled for March 8, 2027.

The second lawsuit, referred to as the KTA lawsuit, was filed by Madison Energy in February 2025 and concerns a solar project at a KTA location on Hawaii Island. The allegations and claims are substantially similar to those asserted in the KSM lawsuit. The discovery phase is ongoing.

The Utilities dispute the claims and intend to defend against them vigorously. The Utilities are unable to predict the ultimate outcomes of these matters or reasonably estimate the amount or range of any possible loss.

Environmental regulation. The Utilities are subject to environmental laws and regulations that regulate the operation of existing facilities, the construction and operation of new facilities and the proper cleanup and disposal of hazardous waste and toxic substances.

Hawaiian Electric, Hawaii Electric Light and Maui Electric, like other utilities, periodically encounter petroleum or other chemical releases associated with current or previous operations. The Utilities report and take action on these releases when and as required by applicable law and regulations. The Utilities believe the costs of responding to such releases identified to date will not have a material effect, individually or in the aggregate, on Hawaiian Electric’s consolidated results of operations, financial condition or liquidity.

Former Molokai Electric Company generation site. In 1989, Maui Electric acquired Molokai Electric Company. Molokai Electric Company had sold its former generation site (Site) in 1983 but continued to operate at the Site under a lease until 1985 and left the property in 1987. The Environmental Protection Agency (EPA) has since identified environmental impacts in the subsurface soil at the Site. In cooperation with the State of Hawaii Department of Health and EPA, Maui Electric further investigated the Site and the adjacent parcel to determine the extent of impacts of polychlorinated biphenyls (PCBs), residual fuel oils and other subsurface contaminants. Maui Electric has a reserve balance of $2.4 million as of September 30, 2026, representing the probable and reasonably estimable undiscounted cost for remediation of the Site and the adjacent parcel based on presently available information; however, final costs of remediation will depend on the cleanup approach implemented.

Pearl Harbor sediment study. In July 2014, the U.S. Navy notified Hawaiian Electric of the Navy’s determination that Hawaiian Electric is a Potentially Responsible Party under Comprehensive Environmental Response, Compensation, and Liability Act responsible for the costs of investigation and cleanup of PCB contamination in sediment in the area offshore of the Waiau power plant as part of the Pearl Harbor Superfund Site. Hawaiian Electric was also required by the EPA to assess potential sources and extent of PCB contamination onshore at Waiau power plant.

As of September 30, 2026, the reserve account balance recorded by Hawaiian Electric to address the PCB contamination was $8.8 million. The reserve balance represents the probable and reasonably estimable undiscounted cost for the onshore and offshore investigation and remediation. The final remediation costs will depend on the actual onshore and offshore cleanup costs.

Endangered Species Act. The Utilities received a notice under the federal Endangered Species Act, from Earthjustice on behalf of the American Bird Conservancy and Conservation Council for Hawaii (Conservation Groups) in January 2024. The notice is the pre-cursor to a citizen’s suit under the Endangered Species Act. The notice alleges that the Utilities are out of compliance with the Act due to alleged impacts on endangered seabirds caused by the Utilities’ powerlines, street lights and facility lights on Maui and Lanai. At the time the notice was served, the Utilities were already in the process of drafting a Habitat Conservation Plan (HCP) with respect to the powerlines and will be applying for associated state and federal take/license permits. Notwithstanding, the notice asserts that the scope of the HCP should be broader and additional interim measures are necessary while the HCP and related permits are pending.

After negotiations among the parties, a complaint was filed on November 12, 2024 regarding the powerlines and on December 11, 2024, the court approved a settlement agreement. Pursuant to that agreement, the Utilities will continue the HCP process and take specific actions to minimize and mitigate the potential impact of the Utilities’ powerlines while the document is being prepared. The agreement also contains additional requirements that include coordination with the Conservation Groups with various aspects of the HCP and powerline operations, and continuing the Utilities’ commitment to a species mitigation project with University of Hawaii Foundation to monitor, protect and increase the population of Hawaiian Petrels.

The street and facility lights aspect of the notice was not resolved and a second complaint was filed on November 19, 2024, that includes the County of Maui as a party. Hawaiian Electric and Maui Electric answered the complaint on December 12, 2024, and at this time, the parties have completed discovery. On July 3, 2025, the parties executed an interim agreement eliminating the need for the Conservation Groups to file for injunctive relief related to the 2025 seabird fallout season, and a similar interim agreement was reached in September 2026 for the 2026 fallout season. The County of Maui’s and the

Conservation Groups’ cross-motions for summary judgment were denied, and the trial was continued from September 2026 to March 2027 for scheduling reasons. The parties may engage in additional settlement discussions in an effort to resolve the matter. However, the Utilities are unable to determine the ultimate outcome or the amount of any possible loss.

Commitments.

Purchase commitments. As of December 31, 2025, the Utilities’ estimated future minimum payments pursuant to purchase obligations related to material contracts of $2.63 billion. See Note 4 of the Notes to the Consolidated Financial Statements in Item 8 of the 2025 Form 10-K.

As of September 30, 2026, a total ofnine Stage 1 and Stage 2 renewable projects provide the Utilities with a capacity of 301.5 MW, with 1,771-MWh batteries.

Purchases from all IPPs were as follows:

1 Includes hydro power and other PPAs.

Utility projects. Many public utility projects require PUC approval and various permits from other governmental agencies. Difficulties in obtaining, or the inability to obtain, the necessary approvals or permits or community support can result in significantly increased project costs or even cancellation of projects. In the event a project does not proceed, or if it becomes probable the PUC will disallow cost recovery for all or part of a project, or if PUC-imposed caps on project costs are expected to be exceeded, project costs may need to be written off in amounts that could result in significant reductions in Hawaiian Electric’s consolidated net income.

Waena battery energy storage system project. In September 2020, Maui Electric filed a PUC application to purchase and install a 40-MW BESS at its Waena Site in Central Maui. In December 2023, the PUC approved Maui Electric’s request to commit funds estimated at $82.1 million, for the purchase and installation of the project, and to recover costs for the project under Exceptional Project Recovery Mechanism (EPRM). In July 2025, the PUC approved the Utilities’ request to authorize recovery of costs in addition to the amounts approved in December 2023 due to the uncertainty of changes in law, limited to the lesser of either the actual costs or 20% over the approved estimated capital costs. Project costs incurred as of September 30, 2026, amount to $66.4 million.

Climate adaptation transmission and distribution resilience program. The Utilities maintain that improving resiliency of the electric grid is an urgent matter and recognizes that evolving climate dynamics are making Hawaii increasingly vulnerable to severe weather events. On January 31, 2024, the PUC approved the Utilities’ request to commit an estimated $189.7 million in funds for the climate adaptation transmission and distribution resilience program, over a project period offive years. The project will focus on, among other things, system hardening in wildfire risk areas including installing video camera and weather monitors in wildfire risk areas and strengthening transmission lines to help prevent ignition, enable quicker response and add situational awareness.

The project costs to be recovered through EPRM is subject to a cap of $95 million and any amount in excess will be subject to the PUC’s further review. On August 7, 2024, the Utilities received a notification from the U.S. Department of Energy (DOE) that their application for $95 million in federal funds under the Infrastructure Investment and Jobs Actwas officially awarded. On August 20, 2024, the Utilities submitted a copy of their executed agreement with the DOE to the PUC. On July 16, 2026, the Utilities received a notification of an award modification from the DOE that updated certain terms and conditions including the removal of the scope related to community benefits plans and the associated funding for those deliverables. As a result, the federal share total was reduced from $95 million to $92.6 million. The $95 million EPRM cap is not impacted at this time. On October 2, 2026, the Utilities filed their August 2026 - August 2027 Forward Looking Annual Report. Project costs incurred as of September 30, 2026, amount to $51.5 million.

In 2025, the President issued multiple executive orders that impact federal funding. The Utilities are not impacted at this time but will continue to monitor for any new executive orders and any changes that are passed down through the federal contracting officer for the resilience program.

Waiau repower project. On March 28, 2025, the Utilities filed an application to the PUC for their self-build project - Waiau repower project. The project, selected as part of a competitive bid process, was estimated at $847 million and involves replacingsix existing turbines withsix fuel-flexible combustion turbines that provide 253 MW of renewable firm generation, expected to be placed in service in stages from 2029 to 2033. The Utilities requested, among other things, approvals of 1) the commitment of funds for such project, and 2) recovery of project costs through the EPRM. On October 17, 2025, the Utilities filed an updated application reflecting revised costs of $1.16 billion, citing unavoidable and changed market conditions outside the Utilities’ control. On March 23, 2026, the PUC approved the commitment of funds and EPRM recovery for the Waiau repower project at the initial estimated cost of $847 million plus the lesser of a 10% increase or the difference in the Gross Domestic Product Price Index (GDPPI) between the date of the best and final offer submission and the date of the PUC’s decision and order (Inflationary Adjustment). On April 2, 2026, the Utilities filed a motion for reconsideration of the PUC’s decision and order. On April 17, 2026, the PUC issued an order addressing the Utilities’ motion for reconsideration which, among other things, affirmed that the project costs up to $847 million plus the Inflationary Adjustment can be recovered through EPRM and clarified that the Utilities may, after the project is in-service, seek recovery for project cost amounts greater than the approved amount in a general rate case or rate re-basing proceeding. Based on the estimated GDPPI for the first quarter of 2026 released by the Bureau of Economic Analysis on June 25, 2026, the project costs plus the Inflationary Adjustment are currently estimated at $908 million. Project costs incurred as of September 30, 2026, amount to $102.9 million.

On April 28, 2026, in connection with the Waiau repower project, Hawaiian Electric entered into three contracts to acquire a total ofsix gas turbine units from GE Vernova Operations, LLC to secure the manufacturing and staggered delivery of gas turbine units in pairs between 2029 and 2030. These contracts mitigate the risk of delayed turbine unit deliveries, remove the exposure to non-tariff price increases, and support the achievement of on-time commercial operations of the Waiau repower project.

In December 2025, Federal Emergency Management Agency issued a Letter of Final Determination on the preliminary updates to Oahu’s Flood Insurance Rate Maps. As a result of the updates, portions of the Waiau power plant will transition to a newly designated flood zone A, which is estimated to have a 1% chance of annual flooding. The new flood maps became effective on June 10, 2026. The Utilities are currently assessing the impact the change may have on the Waiau repower project.

Wildfire Mitigation Plan (WMP). In January 2025, the Utilities developed and filed with the PUC a 2025-2027 WMP (formerly referred to as Wildfire Safety Strategy), which identifies risk mitigation strategies to perform over thethree years across their service territories. The strategies and actions include additional operational changes, grid hardening work, enhanced inspections and vegetation management, and risk modeling to inform and prioritize hardening work and operational actions. On December 31, 2025, the PUC approved the Utilities’ 2025-2027 WMP. On June 25, 2026, the PUC approved the Utilities’ request for EPRM cost recovery up to $350 million in project costs for 2025-2027. The PUC will condition recovery, among other things, on that the Utilities are not allowed to effectuate cost recovery for any of the approved 2025-2027 WMP project costs through the EPRM until the PUC has issued an order addressing the Utilities’ forthcoming securitization application for a financing order pursuant to Hawaii Revised Statutes Section 269G-2. All project costs that are approved for cost recovery through securitization shall not be recoverable through the EPRM. Any approved project costs that may be deemed ineligible for recovery through securitization may be recovered through the EPRM. Project costs incurred as of September 30, 2026, amount to approximately $125 million.

Regulatory proceedings.

Performance-based regulation framework (PBR Framework). The PUC issued a decision and order (PBR D&O) establishing the PBR Framework to govern the Utilities. The PBR Framework implemented afive-year multi-year rate period (MRP), during which there will be no general rate case applications. The first MRP ended on May 31, 2026, and the next MRP (MRP2) is scheduled to commence in 2027. The period between the end of the first MRP and the beginning of MRP2 is intended to be a transition period (see Phase 7 discussed below). PBR working group meetings started in 2024 to consider potential PBR changes for MRP2. The PBR Framework Review will continue with the following: (i) Phase 6: consideration and development of proposals for modifications to the PBR Framework, which focuses on the inflation factor, customer dividend, Earnings Sharing Mechanism (ESM), revenue opportunities afforded by the X-Factor and the EPRM guidelines, and Performance Incentive Mechanisms (PIMs) portfolio, and (ii) Phase 7: the finalization and documentation of approved PBR Framework modifications prior to MRP2 commencement. Regarding Phase 6, on October 23, 2026, the PUC issued an order that introduced a proposal prepared by PUC staff, which identified possible modifications of certain PBR mechanisms in preparation for MRP2 (Staff Proposal). The PUC stated that the Staff Proposal is intended to be a starting point for discussion among the PBR parties, which may result in further modification(s) of mechanisms or development of entirely different mechanism structures. To facilitate an open discussion, the PUC instructed the PBR parties to file initial comments regarding the Staff Proposal by November 13, 2026, and that these initial comments will not be construed as a party’s statement of position. Following consideration of the PBR parties’ initial comments on the Staff Proposal, the PUC anticipates issuing an order by early January 2027, outlining its inclinations on some or all of the PBR mechanisms discussed in the Staff Proposal to provide guidance regarding the PUC’s priorities for the remainder of these proceedings. The PUC then plans to host a workshop with the PBR parties, followed by parties filing statements of position, a discovery period, a second workshop, an evidentiary hearing, and a briefing period. The dates for these procedural steps will be determined by the PUC.

Alternative re-basing. In an order issued on February 27, 2025, the PUC concluded that the Utilities’ target revenues should be re-based for MRP2 and allowed the Utilities to file a single, consolidated application that presents their requested adjustment to target revenues. The proceeding to re-base the Utilities’ target revenues for MRP2 shall be bifurcated into two tracks, with the first track focused on reaching a decision on the Utilities’ revenue requirements prior to the commencement of MRP2, and the second track focused on making a final determination on the revenue requirement and addressing the rate design component. On March 6, 2026, the Utilities filed a joint alternative re-basing proposal with Ulupono Initiative, requesting an increase of $170 million over annual target revenues at current effective rates, with $125 million phased into revenues in the first year of MRP2 and the remaining $45 million implemented in the second year of MRP2. In an order issued on June 15, 2026, the PUC directed the Utilities to re-submit their request for an increase in their revenue requirement, with supporting materials, in the form of a new application, and established a tentative procedural schedule for the new proceeding, with a final decision anticipated in mid to late April 2027. On June 25, 2026, the Utilities filed a motion for reconsideration of the PUC’s order on the Utilities’ alternative re-basing proposal. Specifically, the Utilities requested reconsideration of the PUC’s rejection of the Utilities’ reservation of rights provision and the procedural schedule established in the order. The Utilities are awaiting a decision from the PUC on the motion.

On July 17, 2026, the Utilities filed their application for approval of their re-basing proposal, which retained the March 6, 2026 joint alternative re-basing proposal’s requested $170 million revenue increase. The Utilities proposed to implement the requested increase in two phases: (1) an increase in annual revenues by approximately $125 million effective January 1, 2027 and (2) an increase in annual revenues by an additional approximately $45 million effective January 1, 2028. The requested increase consists primarily of adjustments for the difference between forecasted and actual inflation during the current performance-based regulation period, previously approved depreciation rates for certain steam generating units, increased insurance expenses, and a reduction to certain operating and maintenance expense increases. The Utilities requested an interim decision by December 18, 2026. The PUC held public hearings regarding the Utilities’ application on September 22, 2026, in Kona on Hawaii Island; September 29, 2026, on Maui; September 30, 2026, on Lanai; October 1, 2026, on Molokai, October 2, 2026, on Oahu; and November 4, 2026, in Hilo on Hawaii Island.

Earnings Sharing Mechanism. The PBR Framework established a symmetrical ESM for achieved rate-making return on average common equity (ROACE) outside of a 300 basis points deadband above or below the current authorized ROACE of 9.5% for each of the Utilities (i.e., above 12.5% or below 6.5%). There is a 50/50 sharing between customers and Utilities for the achieved rate-making ROACE falling within 150 basis points outside of the deadband in either direction, and a 90/10 sharing for any further difference. A reopening or review of the PBR terms may be triggered if the Utilities’ credit rating outlook indicates a potential credit downgrade below investment grade status, or if its achieved rate-making ROACE enters the outer most tier of the ESM.

On August 31, 2023, the PUC issued an order temporarily suspending the ESM until further notice. The intent of the order is to address the unintended consequence of customers potentially bearing the costs associated with the Maui windstorm and wildfires through the operation of the ESM without prior PUC review.

Exceptional Project Recovery Mechanism. The established EPRM Guidelines, formerly known as Major Project Interim Recovery (MPIR), permit the Utilities to include the full amount of approved costs in the EPRM for recovery in the first year the project goes into service, pro-rated for the portion of the year the project is in service. Deferred and other operation and maintenance (O&M) expense projects are also eligible for EPRM recovery under the EPRM Guidelines. EPRM recoverable costs are limited to the lesser of actual incurred project costs or the PUC‑approved amounts, net of savings. The recovery of the project costs previously approved under the MPIR continues within the PBR Framework.

As of September 30, 2026, the Utilities’ annualized MPIR and EPRM revenue amounts totaled $39.3 million, including revenue taxes. The PUC approved the Utilities’ recovery of the annualized MPIR and EPRM revenues effective June 1, 2026, through the Revenue Balancing Account (RBA) rate adjustment.

As of September 30, 2026, the PUC approved the recovery ofsix EPRM projects with an estimated amount of $1.40 billion in capital costs to the extent the project costs are not included in rates. See “Utility projects” section above. Currently, the Utilities are seeking EPRM recovery fortwo additional projects subject to PUC approval.

Performance Incentive Mechanisms. On December 18, 2024, and clarified on January 15, 2025, the PUC issued orders granting the Utilities’ request to suspend the Transmission and Distribution (T&D) System Average Interruption Duration Index (SAIDI) and T&D System Average Interruption Frequency Index (SAIFI) PIMs for wildfire risk circuits from January 1, 2024 to December 31, 2025. Separately, the Utilities submitted a request on December 16, 2025 to expand the suspension of T&D SAIDI and T&D SAIFI PIMs (T&D PIMs) to all circuits and extend the suspension to December 31, 2026, to consider modifications to the T&D PIMs. On April 21, 2026, the PUC issued an order denying the Utilities’ request to expand suspension of T&D PIMs to all circuits, but, on its own motion, extended the current suspension of the T&D PIMs for wildfire risk circuits through December 31, 2026. Consistent with the current suspension, this shall include continued exclusion of all Public Safety Power Shutoff (PSPS) program events from PIM performance metrics and targets. On October 1, 2026, the Utilities requested that the PUC continue the suspension of the T&D PIMs for wildfire risk circuits and exclusions of all PSPS program events from the performance metrics and targets across the Utilities’ service territories, to the extent necessary beyond December 31, 2026, while the PUC considers the Utilities’ revised T&D PIMs proposal that will be submitted by November 17, 2026. Absent PUC approval of any further extension, the T&D PIMs suspension will expire and no exclusions on any circuits will be valid after December 31, 2026.

For the 2025 evaluation period, the Utilities earned $7.5 million (nil for Hawaiian Electric, $5.4 million for Hawaii Electric Light and $2.1 million for Maui Electric) in rewards net of penalties. The net rewards related to 2025 were reflected in the 2026 PIMs annual report and 2026 spring revenue report filings with the exception of the Phase 1 Request for Proposal (RFP) PIM, which was reflected in the 2025 fall revenue report filing. For the 2026 evaluation period, the Utilities accrued $2.3 million in rewards for the Interconnection Requirements Study PIM (for Hawaiian Electric and Hawaii Electric Light), which were reflected in the 2026 fall revenue report filing.

Annual review cycle. Under the PBR Framework, target revenues are adjusted according to an index-driven annual revenue adjustment (ARA) based on: (i) an inflation factor, (ii) a predetermined X-factor to encompass productivity, which is set at zero, (iii) a Z-factor to account for exceptional circumstances not in the Utilities’ control and (iv) a customer dividend consisting of a negative adjustment of 0.22% of adjusted revenue requirements compounded annually and a flow through of the “pre-PBR” savings commitment from the management audit recommendations developed in a prior docket at a rate of $6.6 million per year from 2021 until the rate resets.

PBR D&O also established an annual review cycle for revenue adjustments under the PBR Framework, including the biannual submission of the revenue reports. The Utilities’ 2026 fall revenue report was filed on October 30, 2026, which is subject to PUC approval. The proposed net incremental amounts between the 2026 spring and 2026 fall revenue reports are shown in the following table. The amounts are to be collected (refunded) from January 1, 2027, through December 31, 2027, under the RBA rate tariffs, which were proposed in the 2026 fall revenue report filing.

Note: Columns may not foot due to rounding.

Regulatory assets and liabilities.

Regulatory assets for Maui windstorm and wildfires related costs. The PUC has issued orders authorizing deferred accounting treatment for certain incremental non-labor expenses related to the Maui windstorm and wildfires incurred from August 8, 2023 through December 31, 2025. The approval pertains only to deferred cost treatment for expenses that are not already part of base rates; any actual recovery of deferred costs will be the subject of a separate application.

As of September 30, 2026, the Utilities have recorded $79.1 million in regulatory assets for the incremental costs incurred during the aforementioned period related to the Maui windstorm and wildfires event.

Requests for cost recovery of deferred costs will be the subject of a separate application at which time the PUC will evaluate whether such costs were prudently incurred and reasonable and determine the extent to which such costs will be eligible for recovery, and the period over which recovery will occur. If the PUC denies recovery of any deferred costs, such costs would be charged to expense in the period that those costs are no longer considered probable of recovery.

Regulatory assets for Wildfire Mitigation Plan (WMP). On December 31, 2025, the PUC approved the Utilities’ 2025-2027 WMP (formerly referred to as Wildfire Safety Strategy). The Utilities’ 2025-2027 WMP is athree-year action plan that targets a material reduction in wildfire risk associated with utility infrastructure. The PUC also directed the Utilities to provide a WMP update bi-annually. On June 25, 2026, the PUC issued a decision and order approving cost recovery of the Utilities’ 2025-2027 WMP project costs through the EPRM. As of September 30, 2026, the Utilities have recorded a regulatory asset of $27.8 million. See “Utility projects—Wildfire Mitigation Plan” section above.

Regulatory assets for suspension of disconnections related costs. Based on circumstances related to the Maui windstorm and wildfires, on August 31, 2023 and subsequently on October 13, 2023, the PUC issued orders directing all regulated utilities located on, or providing utility service on Maui, among other things, (i) to suspend disconnections of services and associated disconnection fees beginning from August 8, 2023, through the end of the emergency relief period established by the Governor’s Emergency Proclamations related to the Maui windstorm and wildfires, which currently continues through December 15, 2026 (Suspension Period); (ii) to suspend any and all rules and provisions of individual utility tariffs that prevent or condition re-connection of disconnected customers during the Suspension Period; (iii) not to charge customers interest on past due payments or impose any late payment fees through the Suspension Period; (iv) to establish regulatory assets to record costs directly related to the suspension of disconnections, and to record receipt of governmental aid and donation-based aid, loans or grants, and/or all other assistance measures, and any cost savings realized; and (v) to file a notice with the PUC regarding any upcoming application or other request pursuant to Hawaii Revised Statutes Sections 269-16.3, -17, -17.5, -18, -19, or -19.5 and/or regarding any significant financial change to the Maui utility, at least 60 days prior to filing such application or other request with the PUC. The orders also discourage the filing of emergency or general rate increases in response to the emergency situation. On December 23, 2025, the PUC revised the notice of financial change reporting requirement (item v above) to apply only to the Utilities.

In future proceedings, the PUC will assess the utility’s request for recovery of these regulatory assets including whether it is reasonable and necessary, the appropriate period of recovery for the approved amount of regulatory assets, any amount of carrying costs thereon, any savings directly attributable to suspension of disconnects, and other related matters. As of September 30, 2026, the Utilities have recorded $8.0 million in regulatory assets for the incremental costs incurred due to the suspension of disconnections.

Condensed consolidating financial information. Condensed consolidating financial information for Hawaiian Electric and its subsidiaries are presented for the three and nine months ended September 30, 2026 and 2025, and as of September 30, 2026 and December 31, 2025.

Hawaiian Electric unconditionally guarantees Hawaii Electric Light’s and Maui Electric’s obligations (a) to the State of Hawaii for the repayment of principal and interest on Special Purpose Revenue Bonds issued for the benefit of Hawaii Electric Light and Maui Electric and (b) under their respective private placement note agreements and the Hawaii Electric Light notes and Maui Electric notes issued thereunder.

Three months ended September 30, 2026

Three months ended September 30, 2026

Three months ended September 30, 2025

Three months ended September 30, 2025

Condensed Consolidating Balance Sheet

September 30, 2026

Condensed Consolidating Balance Sheet (continued)

September 30, 2026

Condensed Consolidating Balance Sheet

December 31, 2025

Condensed Consolidating Balance Sheet (continued)

December 31, 2025

Condensed Consolidating Statement of Changes in Common Stock Equity

Condensed Consolidating Statement of Changes in Common Stock Equity

Condensed Consolidating Statement of Cash Flows

Condensed Consolidating Statement of Cash Flows

Note 5 ·Credit agreements and long-term debt

Credit agreements. The following table provides the credit agreement capacity, outstanding and undrawn components as of September 30, 2026 and December 31, 2025.

1 Borrowing capacity is calculated based on eligible customer accounts receivable balance at the end of each period.

2 $75 million borrowing from HEI - standing commitment letter is eliminated in total consolidated HEI amounts.

Syndicated credit agreements. On September 5, 2025, HEI and Hawaiian Electric each entered into a fourth amended and restated senior unsecured revolving credit facility (the HEI Facility and the Hawaiian Electric Facility, respectively) with a syndicate ofeight financial institutions. The aggregate amount of revolving commitments under the HEI Facility was increased to $300 million from $175 million and includes a $25 million letter of credit sub-facility and a $30 million swingline sub-facility. The HEI Facility’s commitment termination date was extended to September 5, 2030 from May 14, 2027. The aggregate amount of revolving commitments available under the Hawaiian Electric Facility was increased to $300 million from $200 million and includes a $40 million letter of credit sub-facility and a $30 million swingline sub-facility. On May 8, 2026, the PUC issued an order extending the term of the Hawaiian Electric Facility to September 5, 2030. The Hawaiian Electric Facility also allows for commitment increases of up to an additional $75 million, subject to customary conditions. None of the facilities are collateralized. As of September 30, 2026, HEI and Hawaiian Electric each had no draws on their revolving facilities.

Intercompany borrowing agreement. Under the HEI and Hawaiian Electric Intercompany Borrowing and Investment Policy effective October 3, 2025 (the Intercompany Borrowing Policy), HEI has committed to make revolving short-term loans to Hawaiian Electric pursuant to the terms set forth in the standing commitment letter dated December 5, 2025 (the 2025 Commitment Letter). For loans that mature on or before December 4, 2026, the 2025 Commitment Letter provides a borrowing limit of $75 million outstanding at any time and the applicable interest rate. Hawaiian Electric currently hasno borrowings under the Intercompany Borrowing Policy and the 2025 Commitment Letter.

Asset-based lending facility credit agreement. On May 17, 2024, Hawaiian Electric, through a special-purpose subsidiary, entered into an ABL Facility credit agreement (ABL Credit Facility Agreement) with several banks, which, subject to the limitations and conditions set forth in such agreement, allows borrowings of up to $250 million on a revolving basis using certain accounts receivable as collateral. The ABL Facility was approved by the PUC, became effective on July 24, 2024 and will expire on July 24, 2027. As of September 30, 2026, total available capacity under the ABL Facility was $250 million and remains undrawn.

Long-term debt. As of September 30, 2026, the Company and Hawaiian Electric were in compliance with all applicable financial covenants. The following table summarizes the long-term debt, net for the Company and Hawaiian Electric as of September 30, 2026 and December 31, 2025.

1 HEI’s revolving credit facility’s term benchmark margin was 2.25% and 2.50%, as of September 30, 2026 and December 31, 2025, respectively, reduced in July 2026 as a result of improved credit ratings. As of December 31, 2025, the HEI revolving credit facility’s weighted-average interest rate was 6.32%. See “Syndicated credit agreements” above.

2 As of December 31, 2025, excludes Mahipapa’s non-recourse loans amounting to $54.0 million which were classified as “Liabilities held for sale” on the Company’s Condensed Consolidated Balance Sheets. See “Assets held for sale-Mahipapa” in Note 3.

Note 6 ·Shareholders' equity

Accumulated other comprehensive income/(loss). Changes in the balances of each component of accumulated other comprehensive income/(loss) (AOCI) were as follows:

Reclassifications out of AOCI were as follows:

Note 7 ·Revenues

The following tables disaggregate revenues by major source, timing of revenue recognition, and segment:

There are no material contract assets or liabilities associated with revenues from contracts with customers existing at September 30, 2026 or December 31, 2025. Accounts receivable and unbilled revenues related to contracts with customers represent an unconditional right to consideration since all performance obligations have been satisfied. These amounts are disclosed as “Accounts receivable and unbilled revenues, net” on HEI’s Condensed Consolidated Balance Sheets and “Customer accounts receivable, net” and “Accrued unbilled revenues, net” on Hawaiian Electric’s Condensed Consolidated Balance Sheets.

As of September 30, 2026, the Company had no material remaining performance obligations due to the nature of the Company’s contracts with its customers. For the Utilities, performance obligations are fulfilled as electricity is delivered to customers.

Note 8 · Retirement benefits

Defined benefit pension and other postretirement benefit plans information. The Company contributed $10 million ($10 million by the Utilities) to its pension and other postretirement benefit plans during the first nine months of 2026, compared to $6 million ($6 million by the Utilities) during the first nine months of 2025. The Company’s current estimate of total contributions to its pension and other postretirement benefit plans in 2026 is $15 million ($15 million by the Utilities), compared to $12 million ($11 million by the Utilities) in 2025. In addition, the Company expects to pay directly $3 million ($1 million by the Utilities) of benefits in 2026, compared to $2 million ($1 million by the Utilities) paid in 2025.

The components of net periodic pension costs and net periodic benefit costs for HEI consolidated and Hawaiian Electric consolidated were as follows:

HEI consolidated recorded retirement benefits expense of $33 million ($32 million by the Utilities) in the first nine months of 2026 and $35 million ($34 million by the Utilities) in the first nine months of 2025, and charged the remaining net periodic benefit cost primarily to electric utility plant.

The Utilities have implemented pension and OPEB tracking mechanisms under which all of their retirement benefit expenses (except for executive life and nonqualified pension plan expenses) determined in accordance with GAAP are recovered over time. Under the tracking mechanisms, any actual costs determined in accordance with GAAP that are over/under amounts allowed in rates are charged/credited to a regulatory asset/liability. The regulatory asset/liability for each utility will then be amortized over five years beginning with the respective utility’s next rate case.

Defined contribution plans information. For the first nine months of 2026 and 2025, the Company’s expenses and cash contributions for its defined contribution plans under the Hawaiian Electric Industries Retirement Savings Plan (HEIRSP) were $8.3 million and $6.2 million, respectively. For the first nine months of 2026 and 2025, the Utilities’ expenses and cash contributions for its defined contribution plan under the HEIRSP were $8.1 million and $5.9 million, respectively.

Note 9 · Share-based compensation

Under the 2010 Equity and Incentive Plan, as amended and restated effective February 9, 2024 (EIP), HEI can issue shares of common stock as incentive compensation to nonemployee directors and selected employees and consultants in the form of stock options, stock appreciation rights, restricted shares, restricted stock units, performance shares and other share-based and cash-based awards.

As of September 30, 2026, approximately 2.4 million shares remained available for future issuance under the terms of the EIP, assuming recycling of shares withheld to satisfy statutory tax liabilities relating to EIP awards, including an estimated 1.6 million shares that could be issued upon the vesting of outstanding restricted stock units and the achievement of performance goals for awards outstanding under long-term incentive plans (assuming that such performance goals are achieved at maximum levels).

Under the 2011 Nonemployee Director Stock Plan (2011 Director Plan), HEI can issue shares of common stock as compensation to nonemployee directors of HEI and its principal subsidiaries. As of September 30, 2026, there wereno shares remaining available for future issuance under the 2011 Director Plan. After all of the shares remaining under the 2011 Director Plan were issued, shares for nonemployee director grants of common stock were, and going forward will be, made from available shares under the EIP, which was amended in 2024 to provide for nonemployee director grants.

Share-based compensation expense and the related income taxes were as follows:

1 For the three and nine months ended September 30, 2026 and 2025, the Company has not capitalized any share-based compensation.

Stock awards. HEI granted HEI common stock to nonemployee directors under the 2011 Director Plan and EIP as follows:

The number of shares issued to each nonemployee director of HEI and Hawaiian Electric is determined based on the closing price of HEI common stock on the grant date.

Restricted stock units. Information about HEI’s grants of restricted stock units was as follows:

(1) Weighted-average grant-date fair value per share based on the average price of HEI common stock on the date of grant.

For the nine months ended September 30, 2026 and 2025, total restricted stock units and related dividends that vested had a fair value of $0.4 million and $0.5 million, respectively, and the related tax benefits werenil and $0.1 million, respectively.

As of September 30, 2026, there wasno unrecognized compensation cost related to restricted stock units.

Long-term incentive plan payable in stock. The 2024-26, 2025-27 and 2026-28 long-term incentive plans (LTIP) provide for performance awards under the EIP of shares of HEI common stock based on the satisfaction of performance goals. The number of shares of HEI common stock that may be awarded is fixed on the date the grants are made, subject to the achievement of specified performance levels and calculated dividend equivalents. The potential payout varies from 0% to 220% of the number of target shares, depending on the achievement of the goals. The 2024-26 LTIP performance goals include a market condition goal. The market condition goal is based on HEI’s total shareholder return (TSR) compared to the Peer Group (the Company’s compensation peer group consisting of companies in the EEI Index and approved by the Company’s Compensation & Human Capital Management Committee), in each case over the relevant three-year period. The other performance condition goals relate to Hawaiian Electric’s credit rating, public safety, funds from operations to total adjusted debt ratio and customer experience. The 2025-27 and 2026-28 LTIPs include other performance goals (described above) and a relative TSR payout modifier, which may adjust the payout shares based on the relative TSR result. The relative TSR modifier is based on HEI’s TSR compared to the Peer Group.

LTIP linked to TSR. Information about HEI’s LTIP grants linked to TSR was as follows:

(1) Weighted-average grant-date fair value per share determined using a Monte Carlo simulation model.

The grant date fair values of the LTIP awards linked to TSR were determined using a Monte Carlo simulation model utilizing actual information for the common shares of HEI and the Peer Group for the period from the beginning of the performance period to the grant date and estimated future stock volatility of HEI and the Peer Group over the remaining three-year performance period. The expected stock volatility assumptions for HEI and the Peer Group were based on thethree-year historic stock volatility. A dividend assumption is not required for the Monte Carlo simulation because the grant payout includes dividend equivalents and projected returns include the value of reinvested dividends.

The following table summarizes the assumptions used to determine the fair value of the LTIP awards linked to TSR and the resulting fair value of LTIP awards granted:

There wereno share-based LTIP awards linked to TSR with a vesting date in 2026 and 2025.

As of September 30, 2026, there was $6.3 million of total unrecognized compensation cost related to the nonvested performance awards payable in shares linked to TSR. The cost is expected to be recognized over a weighted-average period of 1.6 years.

LTIP awards linked to other performance conditions. Information about HEI’s LTIP awards payable in shares linked to other performance conditions was as follows:

(1) Weighted-average grant-date fair value per share based on the average price of HEI common stock on the date of grant.

There wereno share-based LTIP awards linked to other performance conditions with a vesting date in 2026 and 2025.

As of September 30, 2026, there was $0.6 million of total unrecognized compensation cost related to the nonvested shares linked to performance conditions other than TSR. The cost is expected to be recognized over a weighted-average period of 0.3 years.

Note 10 ·Income taxes

The Company’s effective tax rate (combined federal and state income tax rates) for the nine months ended September 30, 2026 was 15%. This rate differs from the combined statutory rates, primarily due to the Utilities’ amortization of excess deferred income taxes related to the 2017 Tax Cuts and Jobs Act reduction in tax rate from 35% to 21%, valuation allowance release related to the gains on the ASB investment and research and development tax credit claims recognized in 2026; partially offset by higher executive compensation limitations and substantially higher pretax income related to the remeasurement of the wildfire tort-related settlement liability to present value (net of accretion) and investment in ASB to fair market value, net of the impairment of Pacific Current assets.

For the nine months ended September 30, 2025, the Company’s effective tax rate was 25%.

The Company’s effective tax rate was lower for the first nine months of 2026, compared to 2025, primarily due to discrete tax benefits recognized in 2026 from the valuation allowance release related to the gains on the ASB investment and research and development tax credit claims recognized; partially offset by the substantially higher pretax income related to the remeasurement of the wildfire tort-related settlement liability to present value (net of accretion) and investment in ASB to fair market value, net of the impairment of Pacific Current assets. The primary discrete tax item affecting the 2025 period was the recapture of investment tax credits.

The Utilities’ effective tax rate (combined federal and state income tax rates) for the nine months ended September 30, 2026 was 23%. This rate differs from the combined statutory rates, primarily due to the Utilities’ amortization of excess deferred income taxes related to the 2017 Tax Cuts and Jobs Act reduction in tax rate from 35% to 21%, and research and development tax credit claims recognized in 2026; partially offset by higher executive compensation limitations and substantially higher pretax income related to the remeasurement of the wildfire tort-related settlement liability to present value (net of accretion).

For the nine months ended September 30, 2025, the Utilities’ effective tax rate was 22%.

The Utilities’ effective tax rate was higher for the first nine months of 2026, compared to 2025, primarily due to a discrete tax expense recognized in 2026 resulting from the remeasurement of the Utilities’ remaining wildfire tort-related settlement liability at present value, partially offset by research and development credit claims recognized in 2026.

The Company regularly assesses the need for a valuation allowance on its deferred tax assets. In making this assessment, the Company considers both positive and negative evidence related to the likelihood of realization of its deferred tax assets to determine, based on the weight of all available evidence, whether it is more likely than not that some or all of the deferred tax assets will not be realized. A valuation allowance release indicates that it is more likely than not that the deferred tax assets will be realized.

As of September 30, 2026, the Company released $15.9 million of valuation allowances recorded against its beginning-of-year deferred tax assets, representing a tax benefit of approximately 7%. Based on its analysis of all positive and negative evidence, the Company concluded that it is more likely than not that a portion of its U.S. federal and state deferred tax assets will be realized based on current and anticipated future earnings. When a change in a valuation allowance is recognized during an interim period, the portion resulting from current-year income is included in the annual effective tax rate, while the portion supported by projections of future taxable income is recognized as a discrete tax benefit in the interim period. The release of these valuation allowances resulted in a discrete tax benefit of $15.9 million for the quarter and nine months ended September 30, 2026.

The Company continues to maintain a valuation allowance against the remaining deferred tax assets that do not meet the more-likely-than-not realization criterion and assesses the need for a valuation allowance on a quarterly basis.

On July 4, 2025, federal tax legislation, commonly referred to as the One Big Beautiful Bill Act (OBBBA), which includes a broad range of tax reform provisions, was signed into law in the United States. The Company recognized the impact of OBBBA. The Company will continue to assess the legislation’s impact on future reporting periods; however, the legislation is not anticipated to have a material impact on the Company’s financial statements.

Currently, there are no active Internal Revenue Service income tax examinations. In January 2026, the Company was notified that the State of Hawaii would audit the Company’s income tax returns for tax years 2022 through 2024. In June 2026, the Company received a schedule of proposed income tax assessments from the Hawaii Department of Taxation. The proposed assessment relates to the capital goods excise tax credit claimed on the 2022 Hawaii State tax return, which the Company does not plan to dispute.

The Company recorded an additional $0.3 million of tax expense as a discrete item during the second quarter of 2026 related to this proposed assessment. No interest expense was recorded since the Company has sufficient tax credit carryforwards on its 2022 Hawaii State tax return and intends to use those carryforward credits to satisfy the proposed tax assessment.

As of September 2026, the tax auditor concurred that the proposed adjustment may be offset by available tax credit carryforwards. No other audit issues remain outstanding, and the filing of the amended returns for 2022 through 2024 represents the final step necessary to close the audit. The Company expects to file the amended returns by December 2026.

Note 11 · Cash flows

1 The amounts shown represent the market value of common stock issued for nonemployee director and executive/management compensation and withheld to satisfy statutory tax liabilities.

2 Included in Hawaiian Electric change in additional paid-in capital. Change in additional paid-in capital represents the noncash capital contribution from parent related to installment payments of the tort-related settlement, net of noncash capital distribution from former unconsolidated affiliate, noncash capital distribution to parent and noncash transfer of operating liabilities from the parent of $12 million.

Note 12 · Fair value measurements

Fair value measurement and disclosure valuation methodology. The following are descriptions of the valuation methodologies used for assets and liabilities recorded at fair value and for estimating fair value for financial instruments not carried at fair value:

Money market mutual funds. The Company considers all liquid investments purchased with an initial maturity of three months or less and deposits in money market mutual funds that are readily convertible into cash to be cash equivalents. The carrying value of cash and cash equivalents approximates fair value due to the short-term nature of these instruments.

Marketable equity securities. Upon ASB becoming publicly traded in September 2026, the Company’s remaining investment in ASB no longer qualified for the measurement alternative for equity securities without readily determinable fair values and is measured at fair value on a recurring basis based on quoted market prices in an active market, a Level 1 input.

Long-term debt. Fair value of fixed-rate long-term debt was obtained from third-party financial services providers based on the current rates offered for debt of the same or similar remaining maturities and from discounting the future cash flows using the current rates offered for debt of the same or similar risks, terms, and remaining maturities. The carrying amount of floating rate long-term debt approximated fair value because of the short-term interest reset periods. Long-term debt is classified in Level 2 of the valuation hierarchy.

The following table presents the carrying or notional amount, fair value and placement in the fair value hierarchy of the Company’s financial instruments.

1 Included in “Other current assets” in HEI’s Condensed Consolidated Balance Sheets as of September 30, 2026.

2 Carrying or notional amount does not include $52 million related to Mahipapa long term debt, net which is included in “Liabilities held for sale” in HEI’s Condensed Consolidated Balance Sheets as of December 31, 2025. See Note 3 for more information.

Assets and liabilities measured at fair value on a recurring basis include money market mutual funds. Money market mutual funds are included in “Cash and cash equivalents” and “Restricted cash” in HEI’s Condensed Consolidated Balance Sheets.

There were no Level 3 assets or liabilities as of September 30, 2026 and December 31, 2025.