Financial Data and Key Metrics Changes - For the fourth quarter of 2025, revenues increased by 7% compared to the same period in 2024, with adjusted EBITDA at $9.8 million, down from $12.4 million in the previous year [5][17]. - Full year net sales reached $2.56 billion, representing a growth of 4%, while adjusted EBITDA grew by 1.5% to $410 million [5][10]. - Gross profit for the full year was $1.2 billion, up 3% or $34 million, but gross margin fell to 47.7%, down 60 basis points due to increased tariff costs [18][20]. Business Line Data and Key Metrics Changes - Titleist Golf Equipment segment saw a 10% increase in net sales during Q4, driven by higher sales volumes of T-Series irons and SM10 wedges [17]. - FootJoy's net sales decreased by 1% for the year, primarily due to reduced discounted sales, although there was a favorable mix shift towards premium footwear [9][17]. - Golf gear net sales decreased by 5% in Q4, indicating challenges in that segment [17]. Market Data and Key Metrics Changes - The U.S. market remains the healthiest, with rounds of play increasing by 25% over the last 5-6 years, contributing to a growing golfer base [11][39]. - EMEA and Japan were noted as the fastest-growing markets for golf balls, while Japan and Korea experienced softer conditions in equipment sales [10][52]. - The global golf industry is projected to remain healthy, with worldwide rounds of golf expected to increase by about 2% in 2025 [11][12]. Company Strategy and Development Direction - Acushnet is focused on expanding its product pipeline and enhancing operational efficiencies, with significant investments in R&D and capacity expansion [13][15]. - The company plans to prioritize strategic capacity expansion and build out global fitting networks for golf equipment and footwear [15][26]. - Acushnet aims to maintain a strong balance sheet while returning capital to shareholders, with an 8.5% increase in quarterly dividend payout approved for 2026 [10][11]. Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about the structural health of the golf industry and the company's ability to capture market share through product innovation and fitting experiences [16][72]. - The company anticipates continued growth in 2026, with projected net sales between $2.625 billion and $2.675 billion, reflecting a constant currency growth of 2.5% to 4.5% [23][24]. - Management acknowledged the impact of tariffs on costs but remains confident in the ability to pass some of these costs onto consumers [56][64]. Other Important Information - Acushnet returned $268 million to shareholders in 2025, consisting of $56 million in cash dividends and $212 million in share repurchases [23]. - The company expects capital expenditures in 2026 to be approximately $95 million, reflecting investments in golf ball manufacturing capacity and club production [27]. Q&A Session Summary Question: Can you provide more details on the 2026 product calendar and innovation pipeline? - Management indicated that the new driver launch has been accelerated to late June, differing from the typical August timing, and emphasized the importance of product validation and fitting experiences [32][34]. Question: What are the expectations for the U.S. market in 2026 regarding volume versus price? - Management noted that the U.S. market is healthy, with a strong consumer base and increasing rounds of play, while also highlighting the importance of pricing strategies in response to input costs [39][43]. Question: Can you provide an update on the FootJoy business and its performance? - Management acknowledged a shift towards premium products in FootJoy, with a focus on high-performance footwear, while also addressing challenges related to tariffs [48][50]. Question: What is the current pricing environment across the industry? - Management observed that while there are price increases across the industry, Acushnet remains cautious and strategic in its pricing approach, ensuring value is communicated to consumers [54][86].