Earnings per Common Share
The Company calculates basic and diluted earnings per share using the two class method. Under the two class method, earnings are allocated to common stock and participating securities (non-vested restricted shares and units that receive non-forfeitable dividends) according to their participation rights in dividends and undistributed earnings. The earnings available to each class of stock are divided by the weighted average number of outstanding shares for the period in each class. Diluted earnings per share assumes the issuance of common stock for all potentially dilutive share equivalents outstanding.
The calculations of basic and diluted earnings per common share for the years ended June 30, 2025, 2024 and 2023 were as follows:
| | | | | | | | | | | | | | | | | | | | |
| | | Years Ended June 30, |
| (in millions, except per share data) | | 2025 | | 2024 | | 2023 |
| Net income | | $ | 376.0 | | | $ | 186.5 | | | $ | 56.4 | |
| Dividends allocated to participating securities | | (0.2) | | | (0.3) | | | (0.4) | |
| | | | | | |
| Earnings available for common stockholders used in calculation of basic earnings per common share | | $ | 375.8 | | | $ | 186.2 | | | $ | 56.0 | |
| | | | | | |
| Weighted average number of common shares outstanding, basic | | 50.2 | | | 49.7 | | | 48.8 | |
| | | | | | |
| Basic earnings per common share | | $ | 7.50 | | | $ | 3.75 | | | $ | 1.15 | |
| | | | | | |
| Net income | | $ | 376.0 | | | $ | 186.5 | | | $ | 56.4 | |
| Dividends allocated to participating securities | | (0.2) | | | (0.3) | | | (0.4) | |
| | | | | | |
| Earnings available for common stockholders used in calculation of diluted earnings per common share | | $ | 375.8 | | | $ | 186.2 | | | $ | 56.0 | |
| | | | | | |
| Weighted average number of common shares outstanding, basic | | 50.2 | | | 49.7 | | | 48.8 | |
| Effect of shares issuable under share-based compensation plans | | 0.5 | | | 0.6 | | | 0.4 | |
| | | | | | |
| Weighted average number of common shares outstanding, diluted | | 50.7 | | | 50.3 | | | 49.2 | |
| | | | | | |
| Diluted earnings per common share | | $ | 7.42 | | | $ | 3.70 | | | $ | 1.14 | |
The following awards issued under share-based compensation plans were excluded from the calculations of diluted earnings per share above because their effects were anti-dilutive:
| | | | | | | | | | | | | | | | | | | | |
| | | Years Ended June 30, |
| (in millions) | | 2025 | | 2024 | | 2023 |
| Stock options | | — | | | — | | | 0.7 | |
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.