Acushnet Holdings Corp. Q4 FY2025 earnings call

• David mentioned being pleased with fourth quarter performance and full - year results. Titleist golf equipment segment led growth with investments in product development, etc. Cushness Gear business had strong growth. Footjoy's direction was positive with favorable mix shift. Acushnet has new product pipelines for 2026 including new golf balls, wedges, putters, and a driver launch. They plan to prioritize strategic capacity expansion, build global fitting networks, expand B2B and D2C capabilities, and invest in the Titleist Performance Institute. - Sean discussed 2025 financial results: fourth quarter net sales up 7%, adjusted EBITDA lower than last year's quarter. Segments: Titleist golf equipment up 10% in quarter, Footjoy net sales grew 4.5% in quarter, Golf gear net sales decreased 5% in quarter. Full - year gross profit up, SG&A expense changed, effective tax rate increased. Balance sheet and cash flow highlights: strengthened balance sheet, inventory levels increased, capital expenditures in line with 2024, free cash flow down in 2025 but expected to improve in 2026.

For the full year 2025, Accushnet achieved net sales of $2.56 billion and adjusted EBITDA of $410 million, growth of 4% and 1.5% respectively. Titleist golf equipment segment grew 6% on the year. Golf ball net sales increased 4% in 2025, with EMEA, Japan, and the U.S. as fastest - growing markets. Titleist Golf Clubs grew more than 7% in 2025. Cushness Gear business increased 6% on the year. Footjoy sales were down 1% mainly due to reduced discounted sales. Shoes brand was up 9% on the year. Titleist Apparel had growth in China and Korea.

• Full year 2026 net sales projected to be between $2.625 billion and $2.675 billion on reported basis, constant currency net sales expected up 2.5% - 4.5% compared to 2025. - Adjusted EBITDA expected between $415 and $435 million. - 2026 capital expenditures expected to be approximately $95 million, with step up in investment in golf ball manufacturing capacity and club production. - First half 2026 net sales expected up mid to high single digits, adjusted EBITDA also expected to increase mid to high single digits, first half growth heavily weighted towards second quarter.

Tariff environment is uncertain. The Supreme Court's February 20th ruling impacts certain tariff programs, and the timing, implementation, and durability of changes are uncertain. Also, economic uncertainty could impact the business.

Q: Get more color on the 2026 product calendar, specifically innovation pipeline for new driver and new wedge launches.

A: David said they accelerated the new driver launch to late June earlier than customary Q3 timing, new Titleist golf balls launched in first quarter, new Vokey SM11 wedges and Scotty Cameron Mallet putters launched in Q1.

Q: Color on US market in 2026, volume vs price for categories.

A: US market has strong consumer base with rounds of play up, structurally healthy. Golf equipment focus, 26 not Pro V1 launch year, club business expected to have good growth.

Q: Deeper on Foot Joy business and update on Japan and Korea.

A: Foot Joy's team focused on premium products, Fit Lab paying off. Japan expected to have growth in equipment, Korea flat but improvement from down, apparel and footwear still softer in those markets.

Q: Top priorities to capture additional market share in equipment category and feedback on new launches.

A: Priorities are get product right and invest in fitting experience. Early days for new product launches in 2026, but early response to new launches is positive.

Q: Expectations for gross margins in 2026.

A: Gross margins expected to be relatively flat to 2025.

Q: Competitors' pricing and positioning.

A: Early pricing moves in gear and wearables, now seeing price increases in equipment. Accushnet is premium position, believes in products and experience.

Q: Resilience of rounds of golf and drivers of increased rounds.

A: Rounds of golf resilient, driven by weather, and fastest - growing segments are women and juniors.

Q: Consumer behavior in ecosystem.

A: Dedicated golfers are avid, middle class plus, recession resistant, and the company focuses on premium performance products.