Earnings Per Share

9 Months Ended

Sep. 30, 2025

Earnings Per Share

Earnings Per Share

Note 24—Earnings Per Share

Basic earnings per share is determined by dividing net income by the weighted average number of shares of common stock outstanding during the quarter. Diluted earnings per share is determined by dividing net income by the weighted average number of shares of common stock outstanding, assuming all dilutive securities were issued.

The Company’s potentially dilutive securities are stock-based compensation awards. The Company applies the treasury stock method to determine the diluted weighted average number of shares of common stock outstanding based on the outstanding stock-based compensation awards.

The following table summarizes the basic and diluted earnings per share calculations:

	Quarter ended September 30,				Nine months ended September 30,
	2025		2024		2025		2024
	(in thousands, except per share amounts)
Net income	$	181,503	$	69,368	$	394,246	$	206,934
Weighted average shares of common stock outstanding		51,730		51,180		51,635		50,895
Effect of dilutive securities - shares issuable under stock-based compensation plan		2,149		2,315		2,099		2,379
Weighted average diluted shares of common stock outstanding		53,879		53,495		53,734		53,274
Basic earnings per share	$	3.51	$	1.36	$	7.64	$	4.07
Diluted earnings per share	$	3.37	$	1.30	$	7.34	$	3.88

Calculations of diluted earnings per share require certain potentially dilutive shares to be excluded when their inclusion in the diluted earnings per share calculation would be anti-dilutive. The following table summarizes the weighted-average number of anti-dilutive outstanding RSUs and stock options excluded from the calculation of diluted earnings per share:

	Quarter ended September 30,				Nine months ended September 30,
	2025		2024		2025		2024
	(in thousands except for weighted average exercise price)
Performance-based RSUs (1)		200		809		171		772
Time-based RSUs		—		1		67		23
Stock options (2)		177		184		181		145
Total anti-dilutive units and options		377		994		419		940
Weighted average exercise price of anti-dilutive stock options (2)	$	101.76	$	84.93	$	99.50	$	84.93

(1) Certain performance-based RSUs were outstanding but not included in the computation of earnings per share because the performance thresholds included in such RSUs have not been achieved.

(2) Certain stock options were outstanding but not included in the computation of diluted earnings per share because the combination of the weighted-average exercise prices and average unamortized stock compensation cost exceeded the average market price of the outstanding stock options for the period.