Metallus Inc. Earnings Per Share Disclosure
Note 8 - Earnings (Loss) Per Share
Basic earnings (loss) per share is computed based upon the weighted average number of common shares outstanding. Diluted earnings (loss) per share is computed based upon the weighted average number of common shares outstanding plus the dilutive effect of common share equivalents calculated using the treasury stock method or if-converted method. For the Convertible Notes, the Company utilizes the if-converted method to calculate diluted earnings (loss) per share. Under the if-converted method, the Company adjusts net earnings to add back interest expense (including amortization of debt issuance costs) recognized on the Convertible Notes and includes the number of shares potentially issuable related to the Convertible Notes in the weighted average shares outstanding. Treasury stock, if any, is excluded from the denominator in calculating both basic and diluted earnings (loss) per share.
Equity-based Awards
Common share equivalents for shares issuable for equity-based awards were excluded in the computation of diluted earnings (loss) per share for the year ended December 31, 2025 as these shares would be anti-dilutive.
Common share equivalents for shares issuable for equity-based awards amounted to 2.6 million shares for the year ended December 31, 2024. For the year ended December 31, 2024, 0.8 million shares were excluded from the computation of diluted earnings (loss) per share, primarily related to options with exercise prices above the average market price of our common shares (i.e., “underwater” options), because the effect of their inclusion would have been anti-dilutive. The difference between the remaining 1.8 million shares and 0.7 million shares assumed purchased with potential proceeds for the year ended December 31, 2024, were included in the denominator of the diluted earnings (loss) per share calculation.
Common share equivalents for shares issuable for equity-based awards amounted to 3.4 million shares for the year ended December 31, 2023. For the year ended December 31, 2023, 0.4 million shares were excluded from the computation of diluted earnings (loss) per share, primarily related to options with exercise prices above the average market price of our common shares (i.e., “underwater” options), because the effect of their inclusion would have been anti-dilutive. The difference between the remaining 3.0 million shares and 0.9 million shares assumed purchased with potential proceeds for the year ended December 31, 2023, were included in the denominator of the diluted earnings (loss) per share calculation.
Convertible Notes
Common share equivalents for shares issuable upon the conversion of outstanding Convertible Notes were excluded in the computation of diluted earnings (loss) per share for the year ended December 31, 2025 as these shares would be anti-dilutive.
The reduction in the dilutive effect on convertible notes from 2023 to 2025 is attributable to the settlement of Convertible Notes during that period. For additional details regarding the Convertible Notes please refer to "Note 12 - Financing Arrangements.
The following table sets forth the reconciliation of the numerator and the denominator of basic and diluted earnings (loss) per share for the years ended December 31, 2025, 2024 and 2023:
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Year Ended December 31, |
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2025 |
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2024 |
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2023 |
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Numerator: |
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Net income (loss), basic |
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$ |
(1.2 |
) |
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$ |
1.3 |
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$ |
69.4 |
|
Add convertible notes interest |
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— |
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— |
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1.0 |
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Net income (loss), diluted |
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$ |
(1.2 |
) |
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$ |
1.3 |
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|
$ |
70.4 |
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Denominator: |
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Weighted average shares outstanding, basic |
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41.9 |
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43.2 |
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|
43.8 |
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Dilutive effect of equity-based awards |
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|
— |
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|
1.1 |
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|
2.1 |
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Dilutive effect of convertible notes |
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— |
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— |
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1.9 |
|
Weighted average shares outstanding, diluted |
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41.9 |
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44.3 |
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47.8 |
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Basic earnings (loss) per share |
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$ |
(0.03 |
) |
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$ |
0.03 |
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$ |
1.58 |
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Diluted earnings (loss) per share |
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$ |
(0.03 |
) |
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$ |
0.03 |
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$ |
1.47 |
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Historical Timeline
| Fiscal Year | Filed | |
|---|---|---|
| 2025 | Feb 20, 2026 | Showing above |
| 2023 | Feb 28, 2024 | |
| 2022 | Feb 24, 2023 | |
| 2021 | Feb 24, 2022 | |
| 2020 | Feb 25, 2021 | |
| 2018 | Feb 20, 2019 | |
| 2017 | Feb 20, 2018 | |
| 2016 | Mar 16, 2017 | |
| 2015 | Feb 29, 2016 | |
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.