Net Income per Common Share

Basic net income per common share is computed by dividing net income by the weighted average number of common shares outstanding during each period. Diluted net income per common share is computed by dividing net income by the weighted average number of common shares and common share equivalents outstanding (if dilutive) during each period. The number of common share equivalents, which includes options and both restricted and performance stock units, is computed using the treasury stock method. With regard to the performance stock units, we assume that the associated performance targets will be met at the target level of performance for purposes of calculating diluted net income per common share until such time that it is probable that the performance target will not be met.

The reconciliations of the denominators used to calculate basic net income per common share and diluted net income per common share for fiscal 2025, 2024, and 2023, respectively, is as follows:


	Year Ended March 31, 2025		Year Ended March 31, 2024		Year Ended March 31, 2023
Basic net income per common share
Net income	$	53,515	$	51,588	$	33,666
Weighted-average common shares outstanding	33,707,804		33,670,861		33,468,632
Basic net income per common share	$	1.59	$	1.53	$	1.01


	Year Ended March 31, 2025		Year Ended March 31, 2024		Year Ended March 31, 2023
Diluted net income per common share
Net income	$	53,515	$	51,588	$	33,666
Weighted-average common shares outstanding	33,707,804		33,670,861		33,468,632
Common share equivalents:
Stock options issued	27,784		29,295		7,512
Restricted and performance stock units issued	322,651		366,831		269,792
Weighted average shares outstanding – dilutive	34,058,239		34,066,987		33,745,936
Diluted net income per common share	$	1.57	$	1.51	$	1.00

For the year ended March 31, 2025, 2024, and 2023, zero, 4,706 and 53,911 equity awards, respectively, were not included in the calculation of diluted net income per common share since they would have had an anti-dilutive effect.

Share Repurchase Program

In fiscal 2024, we announced the authorization of a share repurchase program by the Company’s board of directors of up to $50,000 of the Company’s outstanding shares of common stock, exclusive of any fees, commissions or other expenses related to such repurchases (the "Repurchase Program"). On May 22, 2025, the Company announced that the board of directors had authorized an additional $24.4 million. The Repurchase Program does not include a specific timetable or price targets, except for the expiration of the Repurchase Program by May 15, 2027, and may be suspended or terminated at any time. Shares under the current repurchase program may be purchased through open market or privately negotiated transactions at the discretion of management, including through the use of trading plans intended to qualify under Rule 10b5-1 and Rule 10b-18 under the Securities Exchange Act of 1934, as amended.

During fiscal 2025, we purchased 694,025 shares at a weighted average price of $28.99. During fiscal 2024, we purchased 8,018 shares at a weighted average price of $31.20. At March 31, 2025, $29,603 remained authorized under the repurchase program. We record shares of common stock repurchased at cost in treasury stock, resulting in a reduction of stockholders’ equity in the consolidated balance sheets.

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.

Thermon Group Holdings, Inc. Earnings Per Share Disclosure

About Earnings Per Share Disclosures

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