Earnings Per Share

9 Months Ended

Sep. 30, 2025

EARNINGS PER SHARE

Basic earnings per share (“EPS”) is computed by dividing net income by the weighted average number of common shares outstanding for the period, including vested restricted stock unit (“RSU”) awards. Diluted EPS is calculated using the treasury stock method by dividing net income by the weighted average number of shares outstanding, noted above, including the dilutive effect of unvested RSU awards.

The following table presents the calculation of basic and diluted EPS:


	Three Months Ended				Nine Months Ended
	September 30,				September 30,
	2025		2024		2025		2024


Net Income	$	215.1	$	185.8	$	477.0	$	506.1

Basic weighted average common shares outstanding	37.6		39.9		38.2		40.8
Dilutive effect of unvested RSUs	0.5		0.4		0.4		0.3
Diluted weighted average common shares outstanding	38.1		40.3		38.6		41.1




Basic EPS	$	5.72	$	4.66	$	12.49	$	12.40




Diluted EPS	$	5.65	$	4.61	$	12.36	$	12.31

Earnings per share for the nine months ended September 30, 2025, was adversely impacted by non-cash goodwill and franchise rights impairments. See Notes 8 and 14 of the Notes to Unaudited Condensed Consolidated Financial Statements for more information.

In June 2024, our business was impacted by an outage of our dealer management system provided by CDK Global, which is used to support our dealership operations, including our sales, service, inventory, customer relationship management, and accounting functions. Access to core functions of this system was restored by the end of June 2024, and certain ancillary systems and integrations were restored by the end of July 2024, with residual impacts resolved by the end of the third quarter of 2024. As a result, our results of operations and earnings per share were negatively impacted by one-time compensation costs paid to commission-based associates to ensure business continuity in the second quarter of 2024 and by lost income from the disruption to our operations in the second and third quarters of 2024.