Earnings Per Share

12 Months Ended

Dec. 31, 2025

Basic net income per share is calculated by dividing net income by the weighted average number of shares of common stock outstanding during the period. Diluted net income per share assumes the conversion of all potentially dilutive securities and is calculated by dividing net income by the sum of the weighted average number of shares of common stock outstanding plus all potentially dilutive securities. Dilutive common shares consist primarily of stock options and restricted stock awards.

The following table sets forth the computation of basic and diluted earnings per share:



	Years Ended December 31,

	2025		2024		2023
Numerator:	(in thousands, except share and per share data)
Net income	$	107,593	$	168,559	$	177,623
Denominator:
Basic weighted average shares	81,529,140		81,473,131		81,156,114
Effect of dilutive shares related to stock based compensation1	1,576,398		2,109,206		1,972,380
Effect of dilutive shares related to contingent consideration2	—		47,165		166,796
Diluted weighted average shares	83,105,538		83,629,502		83,295,290
Earnings per share:
Basic	$	1.32	$	2.07	$	2.19
Diluted	$	1.29	$	2.02	$	2.13
Anti-dilutive shares:
Shares	523,387		235,188		314,108

1 Dilutive shares related to stock options, restricted stock, PSUs and Key Employee Awards (Note 15)

2 Dilutive shares related to contingent shares issued to the former owners of BASX (Note 18)

AAON, INC. 10-K