EARNINGS PER SHARE
The Company’s non-vested restricted stock contains rights to receive non-forfeitable dividends, and thus are participating securities requiring the two-class method of computing earnings per share. The calculation of earnings per share for common stock excludes the income attributable to the non-vested restricted stock from the numerator, which results in approximately 0.3% of Net income attributable to Wabtec shareholders being allocated to non-vested restricted stock in all periods presented. Additionally, the dilutive impact of the assumed conversion of non-vested restricted stock is excluded from the denominator of the diluted weighted average shares outstanding. The computation of basic and diluted earnings per common share for Net income attributable to Wabtec shareholders is as follows:
For the year ended
December 31,
In millions, except per share data202520242023
Numerator
Net income attributable to Wabtec shareholders$1,170 $1,056 $815 
Less: Net income allocated to non-vested restricted stock(3)(3)(2)
Numerator for basic and diluted earnings per common share$1,167 $1,053 $813 
Denominator
Weighted average shares outstanding - basic170.5 174.1 178.8 
Effect of dilutive securities:
Assumed conversion of dilutive stock-based compensation plans excluding non-vested restricted stock0.4 0.3 0.4 
Assumed conversion of dilutive non-vested restricted stock0.2 0.4 0.3 
Weighted average shares outstanding - diluted171.1 174.8 179.5 
Earnings per common share attributable to Wabtec shareholders
Basic$6.84 $6.05 $4.54 
Diluted$6.83 $6.04 $4.53 

Historical Timeline

Fiscal YearFiled
2025Feb 13, 2026Showing above
2024Feb 12, 2025
2023Feb 14, 2024
2022Feb 15, 2023
2021Feb 17, 2022
2020Feb 19, 2021
2019Feb 24, 2020
2018Feb 27, 2019
2017Feb 26, 2018
2016Feb 28, 2017
2015Feb 19, 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.