SOMNIGROUP INTERNATIONAL INC.SGI

SOMNIGROUP INTERNATIONAL INC. Earnings Per Share Disclosure

10-KFiled Feb 27, 20261 min read
Earnings Per Common Share
The following table sets forth the components of the numerator and denominator for the computation of basic and diluted earnings per share for net income attributable to Somnigroup:
Year Ended December 31,
(in millions, except per common share amounts)202520242023
Numerator:
Net income attributable to Somnigroup International Inc.$384.1 $384.3 $368.1 
Denominator:
Denominator for basic earnings per common share-weighted average shares206.0 173.6 172.2 
Effect of dilutive securities:
Employee stock-based compensation3.2 4.6 5.1 
Denominator for diluted earnings per common share-adjusted weighted average shares209.2 178.2 177.3 
Basic earnings per common share$1.86 $2.21 $2.14 
Diluted earnings per common share$1.84 $2.16 $2.08 

For the year ended December 31, 2025, the Company excluded 0.6 million shares from the diluted earnings per common share computation because their exercise price was greater than the average market price of Somnigroup's common stock or they were otherwise anti-dilutive. For the years ended December 31, 2024 and 2023, the Company excluded an insignificant number of shares from the diluted earnings per common share computation because their exercise price was greater than the average market price of Somnigroup's common stock or they were otherwise anti-dilutive. Holders of non-vested stock-based compensation awards do not have voting rights but do participate in dividend equivalents distributed upon award vesting.

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.

Other Available Disclosures

Income TaxesRevenueFair ValuePP&EGoodwill & IntangiblesLeasesSegmentsDebtCommitmentsStock CompensationNew StandardsPay vs Performance