EARNINGS PER SHARE
The following is a reconciliation of net earnings of Flowserve Corporation and weighted average shares for calculating net earnings per common share. Earnings per weighted average common share outstanding was calculated as follows:
Year Ended December 31,
202520242023
(Amounts in thousands, except per share data)
Net earnings of Flowserve Corporation$346,247 $282,759 $186,743 
Earnings attributable to common and participating shareholders$346,247 $282,759 $186,743 
Weighted average shares:
Common stock129,976 131,450 131,074 
Participating securities29 38 43 
Denominator for basic earnings per common share130,005 131,488 131,117 
Effect of potentially dilutive securities974 868 814 
Denominator for diluted earnings per common share130,979 132,356 131,931 
Net earnings per share attributable to Flowserve Corporation common shareholders:
Basic$2.66 $2.15 $1.42 
Diluted2.64 2.14 1.42 
Diluted earnings per share is based upon the weighted average number of shares as determined for basic earnings per share plus shares potentially issuable in conjunction with stock options and Restricted Shares. Participating securities include unvested restricted shares.
For the years ended December 31, 2025, 2024 and 2023, unvested restricted shares of 8,315, 12,840 and 118,781, respectively, were excluded from the computation of diluted earnings per share because the effect of their exercise would be anti-dilutive.

Historical Timeline

Fiscal YearFiled
2025Feb 17, 2026Showing above
2024Feb 26, 2025
2023Feb 20, 2024
2022Mar 7, 2023
2021Feb 23, 2022
2020Feb 23, 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.