HEXCEL CORP /DE/ Earnings Per Share Disclosure
Note 14 — Net Income Per Common Share
Computations of basic and diluted net income per common share for the years ended December 31, 2025, 2024 and 2023, are as follows:
(In millions, except per share data) |
|
2025 |
|
|
2024 |
|
|
2023 |
|
|||
Basic net income per common share: |
|
|
|
|
|
|
|
|
|
|||
Net income |
|
$ |
109.4 |
|
|
$ |
132.1 |
|
|
$ |
105.7 |
|
Weighted average common shares outstanding |
|
|
79.5 |
|
|
|
82.3 |
|
|
|
84.6 |
|
Basic net income per common share |
|
$ |
1.38 |
|
|
$ |
1.61 |
|
|
$ |
1.25 |
|
|
|
|
|
|
|
|
|
|
|
|||
Diluted net income per common share: |
|
|
|
|
|
|
|
|
|
|||
Weighted average common shares outstanding — Basic |
|
|
79.5 |
|
|
|
82.3 |
|
|
|
84.6 |
|
Plus incremental shares from assumed conversions: |
|
|
|
|
|
|
|
|
|
|||
Restricted stock units |
|
|
0.4 |
|
|
|
0.4 |
|
|
|
0.5 |
|
Stock options |
|
|
0.2 |
|
|
|
0.3 |
|
|
|
0.4 |
|
Weighted average common shares outstanding — Dilutive |
|
|
80.0 |
|
|
|
83.0 |
|
|
|
85.5 |
|
Dilutive net income per common share |
|
$ |
1.37 |
|
|
$ |
1.59 |
|
|
$ |
1.24 |
|
|
|
|
|
|
|
|
|
|
|
|||
Anti-dilutive shares outstanding, excluded from computation |
|
|
1.0 |
|
|
|
0.9 |
|
|
|
0.3 |
|
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.