TENNANT CO Earnings Per Share Disclosure
| 2025 | 2024 | 2023 | |||||||||||||||
| Numerator: | |||||||||||||||||
| Net income | $ | 43.8 | $ | 83.7 | $ | 109.5 | |||||||||||
| Denominator: | |||||||||||||||||
| Basic - weighted average shares outstanding | 18,366,216 | 18,786,871 | 18,509,523 | ||||||||||||||
| Effect of dilutive securities | 213,491 | 309,267 | 274,110 | ||||||||||||||
| Diluted - weighted average shares outstanding | 18,579,707 | 19,096,138 | 18,783,633 | ||||||||||||||
| Basic earnings per share | $ | 2.38 | $ | 4.46 | $ | 5.92 | |||||||||||
| Diluted earnings per share | $ | 2.36 | $ | 4.38 | $ | 5.83 | |||||||||||
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.