15. Net Income Per Share

Basic net income per share is computed by dividing distributed and undistributed net income allocable to common shares by the weighted-average number of common shares outstanding during the applicable period. The basic weighted-average number of common shares outstanding during the period excludes non-vested share-based payment awards. Basic and diluted net income per share was calculated under the two-class method for the years ended December 31, 2025, 2024, and 2023.

The following table sets forth the computation of basic and diluted net income per share (in millions of dollars, except share and per share amounts):

 

 

 

Year Ended December 31,

 

 

 

2025

 

 

2024
As Adjusted
1

 

 

2023
As Adjusted
1

 

Numerator:

 

 

 

 

 

 

 

 

 

Net income

 

 

112.5

 

 

 

65.7

 

 

 

67.8

 

Less: earnings attributable to participating securities2

 

 

 

 

 

 

 

 

(0.1

)

Net income available to common shareholders

 

 

112.5

 

 

 

65.7

 

 

 

67.7

 

Denominator – Weighted-average common shares
   outstanding (in thousands):

 

 

 

 

 

 

 

 

 

Basic

 

 

16,169

 

 

 

16,069

 

 

 

15,991

 

Add: dilutive effect of non-vested common shares,
   restricted stock units and performance shares
3

 

 

453

 

 

 

250

 

 

 

140

 

Diluted

 

 

16,622

 

 

 

16,319

 

 

 

16,131

 

 

 

 

 

 

 

 

 

 

Net income per common share, Basic

 

$

6.96

 

 

$

4.08

 

 

$

4.25

 

Net income per common share, Diluted

 

$

6.77

 

 

$

4.02

 

 

$

4.21

 

 

1.
Adjusted to reflect the retrospective change in inventory valuation methodology from LIFO to WAC. See Note 18 for further discussion.
2.
Represents distributed and undistributed earnings allocated to non-vested RSAs that contain non-forfeitable rights to dividends.
3.
Quantities in the following discussion are denoted in whole shares. For the years ended December 31, 2025, 2024, and 2023, approximately 200, 1,100, and 35,000 shares, respectively, were excluded from the weighted-average diluted shares computation as their inclusion would have been anti-dilutive.

Historical Timeline

Fiscal YearFiled
2025Feb 19, 2026Showing above
2024Feb 20, 2025
2023Feb 23, 2024
2022Feb 24, 2023

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.