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Introduction & Market Context
Acushnet Holdings Corp (NYSE:GOLF), the parent company of premium golf brands including Titleist and FootJoy, presented its second quarter 2025 earnings results on August 7, 2025, showcasing solid sales growth amid ongoing tariff challenges. The company’s stock was trading at $80.14 in premarket, up 0.55% from the previous close of $79.70.
The golf equipment manufacturer reported continued healthy participation levels and resilience in the golf market, building on its strong first quarter performance when it beat analyst expectations with an EPS of $1.62 against a forecasted $1.32.
Quarterly Performance Highlights
Acushnet reported Q2 2025 net sales of $720.5 million, representing a 5.4% increase year-over-year, while first-half 2025 sales reached $1,423.8 million, up 2.3% compared to the same period last year.
As shown in the following income statement highlights:
Despite the sales growth, Adjusted EBITDA remained relatively flat at $143.1 million for Q2 2025, a slight decrease of 0.9% compared to the prior year. The company maintained a healthy Adjusted EBITDA margin of 19.9% for the quarter and 19.8% for the first half of 2025.
Net income attributable to Acushnet Holdings Corp. was $75.6 million for Q2 2025 and $174.9 million for the first half of the year, as detailed in the comprehensive reconciliation:
Segment and Regional Analysis
The company’s performance varied across product segments, with most categories showing healthy growth. The following breakdown illustrates segment performance:
Golf Balls and Golf Clubs led the growth with increases of 5.9% and 7.9% respectively. Overall Titleist Golf Equipment sales grew by 6.8% to $453.8 million. FootJoy Golf Wear was the only segment to decline, with sales down 1.3% to $153.0 million, while Golf Gear showed strong growth of 7.9% to $76.7 million.
Regionally, Acushnet’s performance showed significant variation, with particularly strong results in EMEA and continued challenges in Korea:
The United States, Acushnet’s largest market, delivered 6.4% growth to $434.5 million in Q2. EMEA stood out with 13.7% growth to $98.6 million, while Korea experienced a 4.4% decline to $80.1 million.
Balance Sheet and Capital Allocation
Acushnet’s balance sheet as of June 30, 2025, showed some changes from the end of 2024, with increased debt levels but also strong capital returns to shareholders:
Total (EPA:TTEF) debt outstanding increased to $933 million from $764 million at the end of 2024, resulting in a net leverage ratio of 2.0x, up from 1.8x. Inventory levels decreased to $534 million from $576 million, suggesting improved inventory management.
The company’s capital allocation strategy included significant share repurchases totaling $125 million in the first half of 2025, substantially higher than the $73 million repurchased in the same period of 2024. Dividend payments increased slightly to $29 million from $28 million in the prior year.
Cash flows from operations decreased to $32 million for the first half of 2025, compared to $102 million in the same period of 2024, potentially reflecting working capital changes and operational challenges.
2025 Outlook and Tariff Management
Looking ahead, Acushnet provided the following outlook for the remainder of 2025:
The company expects second-half sales to increase in the low-single digits compared to 2024. A key focus remains on managing the impact of tariffs, which are projected to have a gross impact of approximately $35 million for the full year 2025. This represents a reduction from the $75 million tariff impact projected in the Q1 earnings report, suggesting successful mitigation efforts or revised estimates.
Management anticipates that mitigation actions will offset more than 50% of the $30 million tariff impact expected in the second half of the year. The company also reduced its capital expenditure forecast to approximately $70 million for 2025, down from the previous estimate of $85 million.
Strategic Initiatives
Acushnet highlighted several strategic initiatives and product launches planned for the coming months:
The company is preparing to launch new Titleist T-Series irons, line extensions to FootJoy Hyperflex and Quantum golf shoes, and new Scotty Cameron limited-release putters. These product introductions are expected to drive continued interest and sales in the second half of the year.
Additionally, Acushnet emphasized its efforts to mitigate tariff risk through a "durable and regionally diverse supply chain," underscoring the company’s proactive approach to navigating trade challenges. The company continues to invest for long-term growth across its business, maintaining its focus on premium positioning in the golf equipment market.
As the golf industry continues to show resilience, Acushnet appears well-positioned to leverage its strong brand portfolio and strategic initiatives to navigate ongoing economic uncertainties and tariff challenges while delivering value to shareholders.
Full presentation:
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