Earnings Per Share

3 Months Ended

Nov. 30, 2024

Note 10 – Earnings Per Share

The shares used in the computation of basic and diluted earnings per common share are reconciled as follows:


	Three months ended November 30,
(In thousands)	2024		2023
Weighted average basic common shares outstanding		31,246		31,025
Dilutive effect of 2.875% convertible notes due 2024 (1)	N/A			826
Dilutive effect of 2.875% convertible notes due 2028 (2)		43		—
Dilutive effect of restricted stock units (3)		934		931
Weighted average diluted common shares outstanding		32,223		32,782

(1) The dilutive effect of the 2.875% Convertible notes due 2024 was included for the three months ended November 30, 2023 under the “if converted” method as further discussed below. These notes were retired on February 1, 2024.

(2) The dilutive effect of the 2.875% Convertible notes due 2028 was excluded for the three months ended November 30, 2023 as the average stock price was less than the applicable conversion price and therefore was considered anti-dilutive. As these notes require cash settlement for the principal, only a premium is potentially dilutive under the "if converted" method as further discussed below.

(3) Restricted stock units and restricted stock units subject to performance criteria, for which actual levels of performance above target have been achieved, are included in weighted average diluted common shares outstanding when the Company is in a net earnings position.

Basic earnings per common share (EPS) is computed by dividing Net earnings attributable to Greenbrier by weighted average basic common shares outstanding.

For the three months ended November 30, 2024 and November 30, 2023, diluted EPS was calculated using the more dilutive of two methods. The first method includes the dilutive effect, using the treasury stock method, associated with restricted stock units and performance based restricted stock units subject to performance criteria, for which actual levels of performance above target have been achieved. The second method supplements the first by also including the “if converted” effect of the 2.875% Convertible notes due 2024, during the periods in which they were outstanding, and shares underlying the 2.875% Convertible notes due 2028, when there is a conversion premium. Under the “if converted” method, debt issuance and interest costs, both net of tax, associated with the convertible notes due 2024 are added back to net earnings and the share count is increased by the shares underlying the convertible notes.


	Three months ended November 30,
(in millions, except number of shares which are reflected in thousands, and per share amounts)	2024		2023
Net earnings attributable to Greenbrier	$	55.3	$	31.2
Weighted average basic common shares outstanding		31,246		31,025
Basic earnings per share	$	1.77	$	1.00

Net earnings attributable to Greenbrier	$	55.3	$	31.2
Add back:
Interest and debt issuance costs on the 2.875% convertible notes due 2024, net of tax		—		0.3
Earnings before interest and debt issuance costs on the 2.875% convertible notes due 2024	$	55.3	$	31.5
Weighted average diluted common shares outstanding		32,223		32,782
Diluted earnings per share	$	1.72	$	0.96	(1)

(1) Diluted earnings per share was calculated as follows:

Earnings before interest and debt issuance costs on the 2.875% convertible notes due 2024

Weighted average diluted common shares outstanding