Note 11. Earnings per Share

Net earnings per basic share is calculated by dividing net earnings by the weighted-average number of common shares outstanding for the period. Net earnings per diluted share is computed using the weighted-average number of common and potentially dilutive shares outstanding during the period, including stock options, RSUs, PSUs and restricted stock, using the treasury stock method.

The reconciliation of the numerator and denominator of the net earnings per basic and diluted share calculations for the years ended December 31, 2025, 2024 and 2023 were as follows:

 

 

Year Ended December 31,

 

 

 

2025

 

 

2024

 

 

2023

 

Net earnings per share:

 

 

 

 

 

 

 

 

 

Basic

 

$

1.18

 

 

$

3.16

 

 

$

2.81

 

Diluted

 

$

1.15

 

 

$

3.06

 

 

$

2.69

 

Numerator:

 

 

 

 

 

 

 

 

 

Net earnings

 

$

32.4

 

 

$

92.4

 

 

$

82.2

 

Denominator:

 

 

 

 

 

 

 

 

 

Weighted-average number of common shares outstanding

 

 

27.5

 

 

 

29.2

 

 

 

29.3

 

Dilutive awards

 

 

0.7

 

 

 

1.0

 

 

 

1.3

 

Diluted weighted-average number of common shares outstanding

 

 

28.2

 

 

 

30.2

 

 

 

30.6

 

Historical Timeline

Fiscal YearFiled
2025Feb 17, 2026Showing above
2024Feb 18, 2025
2023Feb 20, 2024
2021Feb 22, 2022
2020Feb 25, 2021
2019Feb 26, 2020
2018Feb 27, 2019
2017Feb 28, 2018
2016Feb 28, 2017

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.