Acushnet (US:GOLF)2025-11-05 21:12Financial Performance - Net sales for Q3 2025 reached $657.7 million, a 6.0% increase from $620.5 million in Q3 2024[20] - Gross profit for Q3 2025 was $319.1 million, compared to $304.2 million in Q3 2024, reflecting a gross margin improvement[20] - Net income attributable to Acushnet Holdings Corp. for Q3 2025 was $48.5 million, down from $56.2 million in Q3 2024, resulting in a diluted earnings per share of $0.81[20] - Comprehensive income attributable to Acushnet Holdings Corp. for Q3 2025 was $50,087,000, down from $71,163,000 in Q3 2024, reflecting a decline of 29.6%[23] - Net income for Q3 2025 was $48,031,000, a decrease of 12.5% compared to $55,275,000 in Q3 2024[23] - Cash flows provided by operating activities for the nine months ended September 30, 2025, were $194,708,000, compared to $246,228,000 for the same period in 2024, a decrease of 21%[26] - The company reported a net income of $222,135,000 for the nine months ended September 30, 2025, an increase of 5.4% from $209,998,000 in the same period of 2024[26] - Net income for the nine months ended September 30, 2025, was $223.3 million, compared to $215.4 million for the same period in 2024, reflecting a year-over-year increase of approximately 3.9%[31] Assets and Liabilities - Total assets increased to $2.35 billion as of September 30, 2025, up from $2.18 billion at the end of 2024[18] - Current liabilities decreased slightly to $461.0 million from $472.7 million at the end of 2024[18] - Long-term debt increased to $878.3 million as of September 30, 2025, compared to $753.1 million at the end of 2024, indicating potential leverage for growth initiatives[18] - The total shareholders' equity as of September 30, 2025, was $852,275,000, compared to $898,602,000 as of September 30, 2024[28] - As of September 30, 2025, total shareholders' equity was $852.3 million, a decrease from $898.6 million as of December 31, 2024[31] Expenses - Research and development expenses for the nine months ended September 30, 2025, were $56.4 million, compared to $51.5 million for the same period in 2024, indicating a focus on innovation[20] - Advertising and promotion expenses increased to $61.4 million for the three months ended September 30, 2025, compared to $57.2 million in 2024, marking a 7.4% increase[105][106] - The net periodic benefit cost for pension benefits increased to $3,702,000 for the three months ended September 30, 2025, compared to $2,360,000 for the same period in 2024, representing an increase of approximately 56.8%[77] - The company reported restructuring costs of $2.8 million for the three months ended September 30, 2025, compared to $0.4 million in 2024[105][106] Cash and Investments - Cash, cash equivalents, and restricted cash at the end of Q3 2025 were $89,481,000, a decrease from $99,062,000 at the end of Q3 2024[26] - The company declared dividends totaling $43.3 million for the nine months ended September 30, 2025[31] - The Company had $264.7 million remaining under the current share repurchase authorization as of September 30, 2025[86] Market and Economic Conditions - The company anticipates continued challenges in consumer spending and macroeconomic factors affecting golf participation rates[11] - Acushnet Holdings Corp. is focused on expanding its presence in international markets while managing risks associated with global operations[15] - The company is exposed to commodity price risks for materials such as polybutadiene and titanium, which may impact operating results[204] - Inflation in raw materials and input costs has historically affected the company's financial performance and may continue to do so in the future[205] Share Repurchase and Stock Options - As of September 30, 2025, the company had authorized a share repurchase program of up to $1.25 billion since its establishment in 2018[82] - The Company repurchased a total of 2,842,719 shares of common stock with an aggregate value of $187.5 million[86] - The average repurchase price for shares repurchased from the open market was $65.96, while the average price for shares repurchased from Magnus was $66.17[86] - The Amended and Restated 2015 Omnibus Incentive Plan was approved, increasing the number of shares available for grant by 1,266,000 shares and extending the term through June 2, 2035[89] Foreign Exchange and Derivatives - The gross U.S. dollar equivalent notional amount of foreign exchange forward contracts was $218.1 million as of September 30, 2025, up from $192.2 million as of December 31, 2024[64] - The company expects to reclassify a net loss of $2.3 million related to foreign exchange derivative instruments from accumulated other comprehensive loss into cost of goods sold within the next 12 months[66] - The fair value of foreign exchange derivative instruments as of September 30, 2025, was $1,307,000, while liabilities for the same instruments were $2,842,000[70] Segment Performance - Segment operating income for Titleist Golf Equipment was $83.7 million for the three months ended September 30, 2025, compared to $81.1 million in 2024, reflecting a 3.2% increase[105][106] - Total net sales for the nine months ended September 30, 2025, were $2.08 billion, a 3.4% increase from $2.01 billion in 2024[107][109] - The United States market generated $397.0 million in sales for the three months ended September 30, 2025, compared to $374.2 million in 2024, reflecting a 6.0% growth[111]