Equity

9 Months Ended

Feb. 28, 2026

Equity

Equity

7. Equity

Common Stock Offering

During the second quarter of fiscal 2026, we sold 3,450,000 shares of our common stock at $83.00 per share in a registered underwritten offering. After deducting underwriting fees and other offering expenses, we received $273.9 million in net proceeds.

Stock-Based Compensation

In July 2025, as part of our annual long-term stock incentive compensation, we granted 85,605 shares of performance-based restricted stock and 64,795 shares of time-based restricted stock to eligible employees. The grant date fair value per share for these shares was $79.45 (the closing price per share of our common stock on the grant date). We also granted 24,178 shares of time-based restricted stock to members of the Board of Directors with a grant date fair value per share of $61.41 (the closing price per share of our common stock on the grant date).

Expenses charged to operations for restricted stock during the three-month periods ended February 28, 2026 and 2025 were $2.9 million and $4.8 million, respectively, and during the nine-month periods ended February 28, 2026 and 2025 were $10.4 million and $13.0 million, respectively.

In July 2025, as part of our annual long-term stock incentive compensation, we granted 154,185 stock options to eligible employees at an exercise price per share of $79.45 and grant date fair value per share of $28.71. The fair value of stock options was estimated using the Black-Scholes option pricing model with the following assumptions:

Risk-free interest rate	3.9	%
Expected volatility of common stock	34.1	%
Dividend yield	0.0	%
Expected option term in years	4.8

The total intrinsic value of stock options exercised during the nine-month periods ended February 28, 2026 and 2025 was $18.4 million and $7.7 million, respectively. Expenses charged to operations for stock options during the three-month periods ended February 28, 2026 and 2025 were $0.8 million and $0.8 million, respectively, and during the nine-month periods ended February 28, 2026 and 2025 were $2.9 million and $2.6 million, respectively.

Stock-based compensation expense is recognized on a straight-line basis over the requisite service period based on the equity’s grant date fair value. For participants who are or become retirement-eligible during the service period, stock-based compensation expense is recognized over the period ending on the date the participant becomes retirement-eligible.

Earnings per Share

The potential dilutive effect of approximately 5,000 shares relating to stock options was excluded from the computation of weighted average common shares outstanding – diluted for the three- and nine-month periods ended February 28, 2026 as the shares would have been anti-dilutive.