8. Earnings Per Share

The following are the computations for basic and diluted earnings per share (in millions, except share and per share amounts):

 

 

Year Ended December 31,

 

 

2025

 

 

2024

 

 

2023

 

Net income

 

$

647.0

 

 

$

681.4

 

 

$

598.0

 

 

 

 

 

 

 

 

 

 

Weighted-average common shares outstanding:

 

 

 

 

 

 

 

 

 

Basic

 

 

64,180,293

 

 

 

65,458,797

 

 

 

65,382,275

 

Dilutive equity-based compensation awards

 

 

373,800

 

 

 

370,667

 

 

 

481,688

 

Diluted

 

 

64,554,093

 

 

 

65,829,464

 

 

 

65,863,963

 

 

 

 

 

 

 

 

 

 

Earnings per common share:

 

 

 

 

 

 

 

 

 

Basic

 

$

10.08

 

 

$

10.41

 

 

$

9.15

 

Diluted

 

 

10.02

 

 

 

10.35

 

 

 

9.08

 

Shares not included in the computation of diluted earnings per share attributable to common shareholders because they would have been anti-dilutive were 98,767, 23,798 and 50,337 in 2025, 2024 and 2023, respectively.

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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.