CSW INDUSTRIALS, INC. Earnings Per Share Disclosure
| Year Ended March 31, | ||||||||||||||||||||
| (amounts in thousands, except per share data) | 2025 | 2024 | 2023 | |||||||||||||||||
| Net income | $ | 137,484 | $ | 102,539 | $ | 96,574 | ||||||||||||||
| Income attributable to redeemable noncontrolling interest | (832) | (891) | (139) | |||||||||||||||||
| Net income attributable to CSW Industrials, Inc. | $ | 136,652 | $ | 101,648 | $ | 96,435 | ||||||||||||||
| Weighted average shares: | ||||||||||||||||||||
| Common stock | 16,148 | 15,427 | 15,401 | |||||||||||||||||
| Participating securities | 94 | 106 | 108 | |||||||||||||||||
| Denominator for basic earnings per common share | 16,242 | 15,533 | 15,509 | |||||||||||||||||
| Potentially dilutive securities | 72 | 48 | 37 | |||||||||||||||||
| Denominator for diluted earnings per common share | 16,314 | 15,581 | 15,546 | |||||||||||||||||
| Basic earnings per common share: | $ | 8.41 | $ | 6.54 | $ | 6.22 | ||||||||||||||
| Diluted earnings per common share: | $ | 8.38 | $ | 6.52 | $ | 6.20 | ||||||||||||||
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.