COMMERCIAL METALS CoCMC

COMMERCIAL METALS Co Earnings Per Share Disclosure

10-KFiled Oct 16, 20251 min read
NOTE 16. EARNINGS PER SHARE

Basic earnings per share ("EPS") is computed using the weighted average shares of common stock outstanding during the period. Restricted stock is included in the number of shares of common stock issued and outstanding, but excluded from the basic EPS calculation until the shares vest. Diluted EPS is computed based on the weighted average shares of common stock and the effect of dilutive securities outstanding during the period using the treasury stock method. The effect of dilutive securities includes the impact of outstanding stock-based incentive awards and shares purchased by employees through participation in the Company's employee stock purchase plan.

The calculations of basic and diluted EPS were as follows: 
Year Ended August 31,
(in thousands, except share and per share data)202520242023
Net earnings$84,662 $485,491 $859,760 
Average basic shares outstanding112,994,381 115,844,977 117,077,703 
Effect of dilutive securities1,092,369 1,307,575 1,528,568 
Average diluted shares outstanding114,086,750 117,152,552 118,606,271 
Earnings per share:
 
Basic$0.75 $4.19 $7.34 
Diluted0.74 4.14 7.25 

Anti-dilutive shares not included in the table above were immaterial for all periods presented.

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.

Other Available Disclosures

Income TaxesRevenueFair ValuePP&EGoodwill & IntangiblesLeasesSegmentsDebtCommitmentsStock CompensationNew Standards