MKS INC Earnings Per Share Disclosure
The following table sets forth the computation of basic and diluted net income (loss) per share:
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Years Ended December 31, |
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Numerator: |
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2025 |
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2024 |
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2023 |
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Net income (loss) |
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$ |
295 |
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$ |
190 |
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|
$ |
(1,841 |
) |
Denominator: |
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Shares used in net income (loss) per common share - basic |
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67.3 |
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67.3 |
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66.8 |
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Effect of dilutive securities |
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0.4 |
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|
|
0.3 |
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|
|
— |
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Shares used in net income (loss) per common share - diluted |
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67.7 |
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|
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67.6 |
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|
|
66.8 |
|
Net income (loss) per common share: |
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Basic |
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$ |
4.39 |
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$ |
2.82 |
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|
$ |
(27.54 |
) |
Diluted |
|
$ |
4.37 |
|
|
$ |
2.81 |
|
|
$ |
(27.54 |
) |
Basic earnings per share is computed by dividing net income (loss) available to common stockholders by the weighted-average number of common shares outstanding during the period.
Diluted net income (loss) per common share is computed by dividing the diluted net income (loss) available to common stockholders by the weighted-average number of shares of common stock and potentially dilutive shares of common stock outstanding during the period. The dilutive effect of equity awards is calculated based on the average stock price for the relevant period, using the treasury stock method. In periods in which a net loss is recognized, the impact of RSUs is not included as they are antidilutive. The dilutive effect of the Convertible Notes is calculated under the if-converted method.
In 2025 and 2024, the Company had an immaterial quantity of RSUs that were antidilutive and excluded from the computation of diluted weighted-average shares. Shares of common stock that would have been issued if the Convertible Notes had been converted are not included in the calculation of diluted net income per common share as the Company’s average share price during these periods was below the initial conversion price and inclusion would be antidilutive.
Historical Timeline
| Fiscal Year | Filed | |
|---|---|---|
| 2025 | Feb 24, 2026 | Showing above |
| 2024 | Feb 25, 2025 | |
| 2023 | Feb 27, 2024 | |
| 2022 | Mar 14, 2023 | |
| 2021 | Feb 28, 2022 | |
| 2020 | Feb 23, 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.