POOL CORP Earnings Per Share Disclosure
Note 8 - Earnings Per Share
We calculate basic and diluted earnings per share using the two-class method. Earnings per share under the two-class method is calculated using net income attributable to common stockholders, which is net income reduced by the earnings allocated to participating securities. Our participating securities include share-based awards that contain a non-forfeitable right to receive dividends and are considered to participate in undistributed earnings with common shareholders. Participating securities excluded from weighted average common shares outstanding were 182,000 for the year ended December 31, 2025, 206,000 for the year ended December 31, 2024 and 207,000 for the year ended December 31, 2023.
The table below presents the computation of earnings per share, including the reconciliation of basic and diluted weighted average shares outstanding (in thousands, except per share data):
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|
Year Ended December 31, |
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|
|
2025 |
|
|
2024 |
|
|
2023 |
|
|||
Net income |
|
$ |
406,404 |
|
|
$ |
434,325 |
|
|
$ |
523,229 |
|
Amounts allocated to participating securities |
|
|
(1,980 |
) |
|
|
(2,250 |
) |
|
|
(2,771 |
) |
Net income attributable to common stockholders |
|
$ |
404,424 |
|
|
$ |
432,075 |
|
|
$ |
520,458 |
|
|
|
|
|
|
|
|
|
|
|
|||
Weighted average common shares outstanding: |
|
|
|
|
|
|
|
|
|
|||
Basic |
|
|
37,149 |
|
|
|
38,007 |
|
|
|
38,704 |
|
Effect of dilutive securities: |
|
|
|
|
|
|
|
|
|
|||
Stock options and employee stock purchase plan |
|
|
139 |
|
|
|
221 |
|
|
|
293 |
|
Diluted |
|
|
37,288 |
|
|
|
38,228 |
|
|
|
38,997 |
|
|
|
|
|
|
|
|
|
|
|
|||
Earnings per share attributable to common stockholders: |
|
|
|
|
|
|
|
|
|
|||
Basic |
|
$ |
10.89 |
|
|
$ |
11.37 |
|
|
$ |
13.45 |
|
Diluted |
|
$ |
10.85 |
|
|
$ |
11.30 |
|
|
$ |
13.35 |
|
Anti-dilutive stock options excluded from diluted earnings |
|
|
190 |
|
|
|
57 |
|
|
|
64 |
|
Historical Timeline
| Fiscal Year | Filed | |
|---|---|---|
| 2025 | Feb 26, 2026 | Showing above |
| 2024 | Feb 27, 2025 | |
| 2023 | Feb 27, 2024 | |
| 2022 | Feb 24, 2023 | |
| 2021 | Feb 25, 2022 | |
| 2020 | Feb 25, 2021 | |
| 2019 | Feb 27, 2020 | |
| 2018 | Feb 27, 2019 | |
| 2017 | Feb 28, 2018 | |
| 2016 | Feb 24, 2017 | |
| 2015 | Feb 26, 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.