EARNINGS PER SHARE

6 Months Ended

Jun. 30, 2025

Earnings per basic and diluted share are calculated under the treasury stock method. Basic net income per common share is calculated by dividing net income by the basic weighted-average common shares outstanding for the respective period. Diluted net income per common share is calculated by dividing net income by the diluted weighted-average common shares outstanding, which includes the effect of potentially dilutive securities. Potentially dilutive securities consist of unvested RSUs, DSUs, PSUs as well as outstanding in-the-money stock options and warrants. When we recognize a loss from continuing operations, all potentially dilutive shares are anti-dilutive and are consequently excluded from the calculation of diluted earnings per share.

As discussed in Note 7 - Stock-Based Compensation, PSUs represent the right to receive a number of shares of the Company’s common stock ranging from zero to 225% of PSUs granted based on the performance achievement over the applicable performance period. The number of potentially dilutive shares related to PSUs is based on the number of shares, if any, that would be issuable at the end of the respective reporting period, assuming that date was the end of the performance period applicable to such awards.

We have also issued warrants, which represent the right to purchase our common stock at a specified exercise price. The number of potentially dilutive shares related to the warrants is based on the number of shares, if any, that would be exercisable at the end of the respective reporting period, assuming that date was the end of such warrants’ term. Warrants are only dilutive when the average price of the common stock during the period exceeds the exercise price. The exercise price of our warrants was in excess of our stock price during the three and six months ended June 30, 2025 and 2024; therefore, they were excluded from the earnings per share calculation.

The following table sets forth the calculations of basic and diluted net earnings per common share (in millions, except share and per share amounts):


	Three Months Ended June 30,				Six Months Ended June 30,
	2025		2024		2025		2024
Net income	$	124	$	216	$	310	$	392

Basic earnings per common share	$	1.34	$	2.17	$	3.33	$	3.92
Diluted earnings per common share	$	1.34	$	2.15	$	3.33	$	3.88

Weighted-average shares outstanding - basic	92,588,030		99,425,524		93,107,102		100,061,694
Add: dilutive effect of stock awards	82,884		819,354		110,939		803,000
Weighted-average shares outstanding - diluted	92,670,914		100,244,878		93,218,041		100,864,694

There were 821,952 and 5,507 unvested awards that were anti-dilutive for the three months ended June 30, 2025 and 2024, respectively. There were 676,142 and 206,285 unvested awards that were anti-dilutive for the six months ended June 30, 2025 and 2024, respectively.