Acushnet (GOLF) - 2025 Q2 - Quarterly Results

Financial Highlights and Management Commentary Acushnet Holdings Corp. achieved strong Q2 and year-to-date 2025 financial results, driven by growth in Titleist golf equipment and Golf gear Overall Performance Summary Acushnet Holdings Corp. reported strong Q2 and year-to-date 2025 net sales and income growth, primarily from Titleist golf equipment and Golf gear | Metric | Q2 2025 | Q2 YoY Change | YTD 2025 | YTD YoY Change | | :--- | :--- | :--- | :--- | :--- | | Net Sales | $720.5M | +5.4% | $1,423.8M | +2.3% | | Net Sales (Constant Currency) | - | +4.7% | - | +2.9% | | Net Income | $75.6M | +5.9% | $174.9M | +9.9% | | Adjusted EBITDA | $143.1M | +9.2% | $282.0M | -0.9% | - Year-to-date constant currency net sales increased by 3%, driven by growth in Titleist golf equipment and Golf gear. The company noted a positive response to new Pro V1 models and continued growth in Titleist GT drivers and fairways[4] Management Commentary CEO David Maher highlighted the company's strong performance despite a dynamic environment and poor spring weather, with positive golf industry fundamentals - The U.S. golfer base continued its growth for the seventh straight year in 2024, and global participation is described as healthy and resilient[5] - Upcoming product launches for the second half of 2025 include new Titleist T-series irons, Scotty Cameron putters, and extensions to the FJ Hyperflex and Quantum golf shoe lines[5] Detailed Financial Performance This section details Acushnet's financial performance for Q2 and the first six months of 2025, analyzing results by segment and geography Second Quarter 2025 Financial Results In Q2 2025, consolidated net sales grew 5.4% to $720.5 million, driven by Titleist golf equipment and Golf gear, with net income increasing 5.9% to $75.6 million Q2 Performance Overview A summary of Acushnet's key financial metrics for the second quarter of 2025, including net sales, net income, and Adjusted EBITDA | Financial Metric | Q2 2025 | Q2 2024 | % Change | | :--- | :--- | :--- | :--- | | Net Sales | $720.5M | $683.9M | +5.4% | | Net Income | $75.6M | $71.4M | +5.9% | | Adjusted EBITDA | $143.1M | $131.0M | +9.2% | - The increase in net sales was primarily driven by higher average selling prices in golf clubs and higher sales volumes in golf balls within the Titleist segment, along with growth in Golf gear[7] - Adjusted EBITDA margin improved to 19.9% from 19.2% in the prior year period[13] Q2 Performance by Segment An overview of Acushnet's second-quarter 2025 net sales performance across its Titleist, FootJoy, and Golf gear segments | Segment | Net Sales Change (YoY) | Constant Currency Change (YoY) | Key Drivers | | :--- | :--- | :--- | :--- | | Titleist golf equipment | +6.8% | +6.1% | Higher ASP in clubs, higher volume in 2025 Pro V1 balls | | FootJoy golf wear | -1.3% | -2.0% | Lower sales volumes in footwear | | Golf gear | +7.9% | +7.2% | Higher sales volumes in bags and gloves, higher ASP | Q2 Performance by Geography A geographical breakdown of Acushnet's second-quarter 2025 net sales, highlighting performance in the U.S. and international markets - Net sales in the United States grew, driven by Titleist golf equipment (+$20.7M) and Golf gear (+$4.8M), partially offset by a decrease in FootJoy golf wear (-$1.6M)[8] - Net sales in regions outside the U.S. increased by 3.8% (2.3% constant currency), with growth in EMEA and Rest of World, offset by declines in Korea and Japan[9] Year-to-Date (First Six Months) 2025 Financial Results For the first six months of 2025, net sales increased 2.3% to $1,423.8 million, with net income growing 9.9% to $174.9 million due to a one-time gain YTD Performance Overview A summary of Acushnet's key financial metrics for the first six months of 2025, including net sales, net income, and Adjusted EBITDA | Financial Metric | YTD 2025 | YTD 2024 | % Change | | :--- | :--- | :--- | :--- | | Net Sales | $1,423.8M | $1,391.4M | +2.3% | | Net Income | $174.9M | $159.2M | +9.9% | | Adjusted EBITDA | $282.0M | $284.7M | -0.9% | - The 9.9% increase in net income was primarily due to a non-cash pre-tax gain of $20.9 million related to the deconsolidation of the FootJoy golf shoe joint venture and lower income tax expense[19] - Adjusted EBITDA margin for the first six months was 19.8%, compared to 20.5% in the prior year period[20] YTD Performance by Segment An overview of Acushnet's year-to-date 2025 net sales performance across its Titleist, FootJoy, and Golf gear segments | Segment | Net Sales Change (YoY) | Constant Currency Change (YoY) | Key Drivers | | :--- | :--- | :--- | :--- | | Titleist golf equipment | +4.5% | +4.9% | Higher volume in 2025 Pro V1 balls, higher ASP in clubs | | FootJoy golf wear | -4.2% | -3.6% | Lower sales volumes in footwear and apparel | | Golf gear | +5.0% | +5.5% | Higher ASP and higher volumes in gloves and bags | YTD Performance by Geography A geographical breakdown of Acushnet's year-to-date 2025 net sales, highlighting performance in the U.S. and international markets - Net sales in the United States grew, driven by Titleist golf equipment (+$31.0M) and Golf gear (+$5.4M), partially offset by a decrease in FootJoy golf wear (-$7.3M)[15] - Net sales in regions outside the U.S. increased by 0.1% (1.5% constant currency), with growth in EMEA and Rest of World offset by declines in Korea and Japan[16] Shareholder Returns and Outlook This section outlines Acushnet's capital allocation strategies, including dividends and share repurchases, and provides an update on the 2025 financial outlook Cash Dividend and Share Repurchase The company demonstrated its commitment to shareholder returns by declaring a quarterly cash dividend of $0.235 per share and repurchasing 1.35 million shares for $88.4 million during the second quarter - The Board of Directors declared a quarterly cash dividend of $0.235 per share, payable on September 19, 2025[21] - During Q2, the Company repurchased 1,348,369 shares of common stock for an aggregate of $88.4 million, including repurchases from Magnus Holdings Co., Ltd[22] 2025 Outlook Acushnet will provide its financial outlook for the second half of 2025 during its upcoming second-quarter earnings conference call - Information regarding the outlook for the second half of 2025 will be shared during the upcoming Q2 2025 earnings conference call and webcast[23] Consolidated Financial Statements (Unaudited) This section presents Acushnet's unaudited condensed consolidated financial statements, including statements of operations, balance sheets, and cash flows Condensed Consolidated Statements of Operations The income statement shows year-over-year growth in net sales and gross profit for both the second quarter and first six months of 2025, with diluted EPS of $1.25 and $2.87 respectively | (in thousands) | Three months ended June 30, 2025 | Six months ended June 30, 2025 | | :--- | :--- | :--- | | Net sales | $720,476 | $1,423,848 | | Gross profit | $354,316 | $691,478 | | Income from operations | $109,868 | $224,415 | | Net income attributable to Acushnet | $75,563 | $174,935 | | Diluted EPS | $1.25 | $2.87 | Condensed Consolidated Balance Sheets As of June 30, 2025, total assets increased to $2.40 billion, driven by higher accounts receivable, while total liabilities rose to $1.58 billion due to increased long-term debt | (in thousands) | June 30, 2025 | December 31, 2024 | | :--- | :--- | :--- | | Total current assets | $1,157,838 | $973,873 | | Total assets | $2,395,571 | $2,180,206 | | Total current liabilities | $515,262 | $472,707 | | Long-term debt | $911,001 | $753,081 | | Total liabilities | $1,582,210 | $1,383,042 | | Total shareholders' equity | $808,519 | $793,136 | Condensed Consolidated Statements of Cash Flows For the six months ended June 30, 2025, cash provided by operating activities decreased to $31.6 million, resulting in a net increase in cash of $7.0 million for the period | (in thousands) | Six months ended June 30, 2025 | Six months ended June 30, 2024 | | :--- | :--- | :--- | | Cash flows provided by operating activities | $31,608 | $102,117 | | Cash flows used in investing activities | ($25,792) | ($22,110) | | Cash flows used in financing activities | ($2,132) | ($63,019) | | Net increase in cash | $6,996 | $14,851 | Supplemental and Non-GAAP Information This section provides additional details on net sales by segment and geography, along with a reconciliation of GAAP to non-GAAP financial measures Supplemental Net Sales Information This section provides a detailed breakdown of net sales by product segment and geographic region for Q2 and the first six months of 2025, showing Titleist golf equipment and the United States as largest contributors Q2 2025 Net Sales by Segment (in millions) | Segment | Q2 2025 Net Sales | % Change (YoY) | | :--- | :--- | :--- | | Titleist golf equipment | $453.8 | +6.8% | | FootJoy golf wear | $153.0 | -1.3% | | Golf gear | $76.7 | +7.9% | YTD 2025 Net Sales by Segment (in millions) | Segment | YTD 2025 Net Sales | % Change (YoY) | | :--- | :--- | :--- | | Titleist golf equipment | $874.9 | +4.5% | | FootJoy golf wear | $331.4 | -4.2% | | Golf gear | $147.6 | +5.0% | Q2 2025 Net Sales by Region (in millions) | Region | Q2 2025 Net Sales | % Change (YoY) | | :--- | :--- | :--- | | United States | $434.5 | +6.4% | | EMEA | $98.6 | +13.7% | | Japan | $30.2 | +1.3% | | Korea | $80.1 | -4.4% | | Rest of World | $77.1 | +2.7% | Reconciliation of GAAP to Non-GAAP Measures The company provides a reconciliation from GAAP Net Income to Adjusted EBITDA, adjusting for items not indicative of ongoing operating performance - The company uses non-GAAP measures such as net sales on a constant currency basis and Adjusted EBITDA to evaluate business performance, as management believes they exclude items not indicative of ongoing operating performance[40][43] Reconciliation of Net Income to Adjusted EBITDA (in thousands) | | Q2 2025 | Q2 2024 | YTD 2025 | YTD 2024 | | :--- | :--- | :--- | :--- | :--- | | Net income attributable to Acushnet | $75,563 | $71,428 | $174,935 | $159,190 | | Adjustments (Interest, Taxes, D&A, etc.) | $67,582 | $59,585 | $107,066 | $125,514 | | Adjusted EBITDA | $143,145 | $131,013 | $282,001 | $284,704 | | Adjusted EBITDA margin | 19.9% | 19.2% | 19.8% | 20.5% |