HEMEDIUM SIGNALFINANCIAL10-K

Hawaiian Electric Industries experienced substantially higher interest expenses alongside declining cash reserves and reduced operating cash flow generation.

The dramatic increase in interest costs suggests either higher debt service rates or timing differences in debt structure, which pressures profitability and cash flow generation. The combination of reduced operating cash flow and lower cash balances indicates tightening liquidity conditions that warrant investor attention, particularly for a regulated utility where stable cash generation is typically expected.

Comparing 2026-02-27 vs 2025-02-24View on EDGAR →
FINANCIAL ANALYSIS

HEI's financial position shows mixed signals with interest expenses substantially higher year-over-year, while total debt actually declined by 15%. Operating cash flow generation weakened by nearly 20%, and cash reserves dropped by one-third to $502 million. The disconnect between rising interest costs and falling debt levels suggests potential refinancing at higher rates or changes in debt composition, creating earnings pressure despite some deleveraging progress.

FINANCIAL STATEMENT CHANGES
Interest Expense
P&L
+78.5%
$116.7M$208.3M

Interest expense surged 78.5% — significant debt increase or rising rates materially impacting earnings.

Cash & Equivalents
Balance Sheet
-33.1%
$750.5M$501.8M

Cash declined 33.1% — significant cash burn or deployment; verify adequacy of remaining liquidity runway.

Operating Cash Flow
Cash Flow
-19.8%
$487.5M$391.1M

Operating cash flow softened — monitor whether temporary working capital timing or structural deterioration.

Total Debt
Balance Sheet
-15.1%
$2.7B$2.3B

Debt reduced 15.1% — deleveraging strengthens balance sheet and reduces financial risk.

Current Assets
Balance Sheet
-11.7%
$2.1B$1.9B

Current assets declined 11.7% — monitor working capital adequacy and short-term liquidity.

LANGUAGE CHANGES
NEW — 2026-02-27
PRIOR — 2025-02-24
ADDED
(Without Par Value) $ 1,834,863,997 172,611,853 172,620,476 Hawaiian Electric Company, Inc.
($6-2/3 Par Value) None 17,854,278 17,854,278 HAWAIIAN ELECTRIC COMPANY, INC.
MEETS THE CONDITIONS SET FORTH IN GENERAL INSTRUCTIONS (I)(1)(a) AND (b) OF FORM 10-K AND IS THEREFORE FILING THIS FORM WITH THE REDUCED DISCLOSURE FORMAT.
ASB Hawaii ASB Hawaii, Inc., a wholly owned subsidiary of Hawaiian Electric Industries, Inc.
ASC Accounting Standards Codification ASU Accounting Standards Update ATR Affiliate transaction requirements BESS Battery Energy Storage System Btu British thermal unit CBRE Community-based renewable energy CERCLA Comprehensive Environmental Response, Compensation and Liability Act Company When used in Hawaiian Electric Industries, Inc.
Government FERC Federal Energy Regulatory Commission Fitch Fitch Ratings, Inc.
GAAP Accounting principles generally accepted in the United States of America GHG Greenhouse gas ii GLOSSARY OF TERMS (continued) Terms Definitions GLST1 GLST1, LLC, a wholly owned subsidiary of Hawaiian Electric Industries, Inc.
GWh Gigawatt-hour/s (as applicable) Hamakua Energy Hamakua Energy, LLC, previously an indirect subsidiary of Pacific Current.
On March 10, 2025, Hamakua Holdings, LLC was sold and as a result, its wholly owned subsidiary, Hamakua Energy, LLC is no longer owned by Pacific Current as of such closing.
Hamakua Holdings Hamakua Holdings, LLC, previously a direct subsidiary of Pacific Current and parent company of Hamakua Energy, LLC and HAESP, LLC.
REMOVED
(Without Par Value) $ 994,937,083 110,303,446 172,465,608 Hawaiian Electric Company, Inc.
ASB Hawaii ASB Hawaii, Inc., a wholly-owned subsidiary of Hawaiian Electric Industries, Inc.
ASC Accounting Standards Codification ASU Accounting Standards Update ATF Bureau of Alcohol, Tobacco, Firearms and Explosives ATM At-the-market BESS Battery Energy Storage System Btu British thermal unit CAT Climate Advisory Team CBRE Community-based renewable energy CERCLA Comprehensive Environmental Response, Compensation and Liability Act Company When used in Hawaiian Electric Industries, Inc.
Government FERC Federal Energy Regulatory Commission ii GLOSSARY OF TERMS (continued) Terms Definitions Fitch Fitch Ratings, Inc.
GAAP Accounting principles generally accepted in the United States of America GCOD Guaranteed commercial operation date GHG Greenhouse gas GLST1 GLST1, LLC, a wholly-owned subsidiary of Hawaiian Electric Industries, Inc.
Gramm Act Gramm-Leach-Bliley Act of 1999 GSPA Grid Services Purchase Agreement GWh Gigawatt-hour/s (as applicable) Hamakua Energy Hamakua Energy, LLC, an indirect subsidiary of Pacific Current Hawaii Electric Light Hawaii Electric Light Company, Inc., an electric utility subsidiary of Hawaiian Electric Company, Inc.
kW Kilowatt/s (as applicable) kWh Kilowatt-hour/s (as applicable) LIBOR London Inter-Bank Offered Rate LMI Low-to-moderate income LSFO Low sulfur fuel oil LTIP Long-term incentive plan Mahipapa Mahipapa, LLC, a subsidiary of Pacific Current Maui Electric Maui Electric Company, Limited, an electric utility subsidiary of Hawaiian Electric Company, Inc.
RFPs Request for proposals RHI Renewable Hawaii, Inc., a wholly-owned nonregulated subsidiary of Hawaiian Electric Company, Inc.
and Maui Electric Company, Limited VIE Variable interest entity iv Cautionary Note Regarding Forward-Looking Statements This report and other presentations made by Hawaiian Electric Industries, Inc.
As a holding company with no significant operations of its own, HEI s sources of funds are dividends or other distributions from its operating subsidiaries, borrowings, and sales of equity.
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