ICF International, Inc. Earnings Per Share Disclosure
NOTE 16 - EARNINGS PER SHARE
EPS is computed by dividing reported net income by the weighted-average number of shares outstanding. Diluted EPS considers the potential dilution that could occur if common stock equivalents of stock options, RSUs, and PSAs were exercised or converted into stock. PSAs are included in the computation of diluted shares only to the extent that the underlying performance conditions: (i) are satisfied as of the end of the reporting period or (ii) would be considered satisfied if the end of the reporting period were the end of the related performance period and the result would be dilutive under the treasury stock method.
As of December 31, 2025, the PSAs granted during the year ended December 31, 2023 and 2024 met the related performance conditions for the initial performance period and were included in the calculation of diluted EPS; however, the PSAs granted during the year ended December 31, 2025 have not yet completed their initial two-year performance period and therefore were excluded in the calculation of diluted EPS.
There were 32,629, 518, and 1,925 of potentially dilutive shares of stock awards that were excluded from the calculation of weighted-average diluted share computations for the years ended December 31, 2025, 2024, and 2023, respectively, because they were anti-dilutive.
EPS, including the dilutive effect of stock awards for each period reported, is summarized below:
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2025 |
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2024 |
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2023 |
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Net Income |
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$ |
91,588 |
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$ |
110,170 |
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$ |
82,612 |
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Weighted-average number of basic shares outstanding during the period |
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18,414 |
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|
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18,747 |
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|
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18,802 |
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Dilutive effect of stock options, RSUs, and performance shares |
|
|
102 |
|
|
|
178 |
|
|
|
192 |
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Weighted-average number of diluted shares outstanding during the period |
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18,516 |
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18,925 |
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18,994 |
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Basic earnings per share |
|
$ |
4.97 |
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$ |
5.88 |
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$ |
4.39 |
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Diluted earnings per share |
|
$ |
4.95 |
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|
$ |
5.82 |
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|
$ |
4.35 |
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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.