WARRIOR MET COAL, INC. Earnings Per Share Disclosure
Note 20—Net Income per Share
The computation of basic net income per share is based on the number of weighted average common shares outstanding during the period. The computation of diluted net income per share is based on the weighted average number of shares outstanding plus the incremental shares that would be outstanding assuming issuance of restricted stock. The number of incremental shares is calculated by applying the treasury stock method. Basic and diluted net income per share was calculated as follows (in thousands, except per share data):
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For the year ended December 31, |
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2025 |
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2024 |
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2023 |
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Numerator: |
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Net income |
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$ |
56,998 |
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$ |
250,603 |
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$ |
478,629 |
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Denominator: |
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Weighted-average shares used to compute net income per share—basic |
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52,560 |
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52,287 |
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51,973 |
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Dilutive restricted stock awards and units |
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43 |
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58 |
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72 |
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Weighted-average shares used to compute net income per share—diluted |
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52,603 |
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52,345 |
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52,045 |
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Net income per share—basic |
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$ |
1.08 |
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$ |
4.79 |
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$ |
9.21 |
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Net income per share—diluted |
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$ |
1.08 |
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$ |
4.79 |
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$ |
9.20 |
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As of December 31, 2025, there were 180,546 restricted stock unit awards for which the service-based vesting conditions for these awards were not met as of the measurement date. As such, these awards were excluded from basic earnings per share. These awards had a 43,446 share impact on dilutive weighted average shares for the year ended December 31, 2025.
As of December 31, 2025, there were 312,304 shares granted under the 2017 Equity Plan to employees, for which neither the service based nor performance based vesting conditions were met as of the measurement date. As such, these shares have been excluded from basic and diluted earnings per share.
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.