Mayville Engineering Company, Inc. Earnings Per Share Disclosure
Note 16. Earnings per share
The Company computes earnings per share in accordance with ASC Topic 260, Earnings per Share. In accordance with ASC 260, outstanding options will be considered to have been exercised and outstanding as of the beginning of the period if the average market price of the common stock during the period exceeds the exercise price of the options (they are “in the money”), and the assumed exercise of the options do not have an anti-dilutive impact on earnings per share.
A reconciliation of basic and diluted net income per share attributable to the Company were as follows:
Twelve Months Ended December 31, | |||||||||
2025 | 2024 | 2023 | |||||||
Net income (loss) attributable to MEC | $ | (8,110) | $ | 25,968 | $ | 7,844 | |||
Weighted average shares outstanding | 20,471,356 | 20,611,192 | 20,415,157 | ||||||
Basic income (loss) per share | $ | (0.40) | $ | 1.26 | $ | 0.38 | |||
Weighted average shares outstanding | 20,471,356 | 20,611,192 | 20,415,157 | ||||||
Effect of dilutive stock-based compensation | - | 361,000 | 283,813 | ||||||
Total potential shares outstanding | 20,471,356 | 20,972,192 | 20,698,970 | ||||||
Diluted income (loss) per share | $ | (0.40) | $ | 1.24 | $ | 0.38 | |||
There were no options in the money that were excluded in the computation of diluted earnings per share for the twelve months ended December 31, 2025, 2024 and 2023 that had an anti-dilutive impact on earnings per share.
Historical Timeline
| Fiscal Year | Filed | |
|---|---|---|
| 2025 | Mar 4, 2026 | Showing above |
| 2024 | Mar 6, 2025 | |
| 2023 | Mar 6, 2024 | |
| 2022 | Mar 1, 2023 | |
| 2021 | Mar 2, 2022 | |
| 2020 | Mar 5, 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.