EARNINGS PER SHARE
Basic earnings per share is based on the average number of shares of common stock outstanding during the year. Diluted earnings per share is based on the average number of shares of common stock used for the basic earnings per share calculation, adjusted for the dilutive effect of stock options and restricted stock units using the “treasury stock” method.
The following table sets forth the computation of basic and diluted earnings per share.
 Year Ended September 30,
202520242023
Net earnings
$216.2 $246.5 $165.5 
shares in millions
Weighted-average shares for basic earnings per share126.9 130.3 133.0 
Effect of dilutive securities:
    Stock options0.2 0.2 0.1 
    Restricted stock units0.3 0.3 0.3 
    Performance-based restricted stock units1.1 1.5 0.7 
Weighted-average shares for diluted earnings per share128.5 132.3 134.1 
Basic earnings per share
$1.70 $1.89 $1.24 
Diluted earnings per share
$1.68 $1.86 $1.23 
The following table details the securities that have been excluded from the calculation of weighted-average shares for diluted earnings per share as they were anti-dilutive.
 Year Ended September 30,
shares in millions202520242023
Restricted stock units0.1 — 0.1 
Performance-based restricted stock units— — 0.1 

Historical Timeline

Fiscal YearFiled
2025Nov 18, 2025Showing above
2024Nov 19, 2024
2023Nov 21, 2023
2022Nov 17, 2022
2021Nov 19, 2021

About Earnings Per Share Disclosures

The earnings per share disclosure breaks down the calculation from net income to both basic and diluted EPS, revealing the full impact of a company's capital structure on per-share economics. The reconciliation between basic and diluted share counts exposes how many stock options, RSUs, convertible securities, and warrants are potentially dilutive to existing shareholders.

Key signals: a widening gap between basic and diluted shares indicates growing dilution from equity compensation or convertible instruments. Anti-dilutive securities excluded from the diluted calculation deserve attention — they represent latent dilution that will materialize if the stock price rises. Watch for the effect of share buybacks on per-share metrics: EPS growth driven primarily by repurchases rather than income growth signals weakening fundamentals. Compare year-over-year changes in the diluted share count against equity compensation expense to assess whether management is effectively managing dilution.