Note 6 - Earnings Per Share
The following table sets forth the reconciliation of the numerator and the denominator of basic earnings per share and diluted earnings per share for the years ended December 31, 2025, 2024 and 2023: 
202520242023
Numerator:
Net income attributable to The Timken Company$288.4 $352.7 $394.1 
Denominator:
Weighted average number of shares outstanding - basic69,766,557 70,198,067 71,377,656 
Effect of dilutive securities:
Stock options and awards - based on the treasury stock method465,149 552,415 704,228 
Weighted average number of shares outstanding, assuming dilution of stock options and awards70,231,706 70,750,482 72,081,884 
Basic earnings per share$4.13 $5.02 $5.52 
Diluted earnings per share$4.11 $4.99 $5.47 
The dilutive effect of performance-based restricted stock units is taken into account once they have met minimum performance thresholds. The dilutive effect of stock options includes all outstanding stock options except stock options that are considered antidilutive. Stock options are antidilutive when the exercise price exceeds the average market price of the Company’s common shares during the periods presented. There were no antidilutive stock options outstanding during 2025, 2024 and 2023. In addition, there were 54,135 antidilutive stock awards, including performance-based restricted stock units and restricted stock units, outstanding during 2025.

Historical Timeline

Fiscal YearFiled
2025Feb 13, 2026Showing above
2024Feb 20, 2025
2023Feb 26, 2024
2022Feb 16, 2023
2021Feb 15, 2022
2020Feb 16, 2021
2019Feb 14, 2020
2018Feb 15, 2019
2017Feb 15, 2018
2016Feb 21, 2017
2015Feb 24, 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.