PHINIA INC. Earnings Per Share Disclosure
| Year Ended December 31, | |||||||||||||||||
| (in millions, except per share amounts) | 2025 | 2024 | 2023 | ||||||||||||||
| Basic earnings per share: | |||||||||||||||||
| Net earnings attributable to PHINIA Inc. | $ | 130 | $ | 79 | $ | 102 | |||||||||||
| Weighted average shares of common stock outstanding | 39.3 | 44.0 | 46.9 | ||||||||||||||
| Basic earnings per share of common stock | $ | 3.31 | $ | 1.80 | $ | 2.17 | |||||||||||
| Diluted earnings per share: | |||||||||||||||||
| Net earnings attributable to PHINIA Inc. | $ | 130 | $ | 79 | $ | 102 | |||||||||||
| Weighted average shares of common stock outstanding | 39.3 | 44.0 | 46.9 | ||||||||||||||
| Effect of stock-based compensation | 0.8 | 0.8 | 0.1 | ||||||||||||||
| Weighted average shares of common stock outstanding including dilutive shares | 40.1 | 44.8 | 47.0 | ||||||||||||||
| Diluted earnings per share of common stock | $ | 3.24 | $ | 1.76 | $ | 2.17 | |||||||||||
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.