Acushnet Holdings Corp. (GOLF) Q3 2025 Earnings Call Transcript
Written by Emily J. Thompson, Senior Investment Analyst
Updated: Nov 05 2025
0mins
Should l Buy GOLF?
Source: SeekingAlpha
Worldwide Net Sales (Q3) $658 million, a 5% constant currency increase year-over-year. Gains were across all segments.
Adjusted EBITDA (Q3) $119 million, a 10% increase year-over-year. Growth attributed to overall sales gains.
Year-to-Date Net Sales $2.08 billion, up 4% year-over-year. Growth driven by product launches and segment performance.
Year-to-Date Adjusted EBITDA $401 million, up 2% year-over-year. Growth attributed to segment performance and operational improvements.
Titleist Golf Equipment (Q3 and Year-to-Date) 5% growth in both periods. Driven by Pro V1 franchise growth, new T-Series irons, and Vokey SM10 wedges.
Golf Gear Segment (Q3) 13% growth, up 8% year-to-date. Growth driven by new product launches and improved supply chain.
FootJoy Business (Q3) 3% revenue growth. Growth attributed to Premiere and HyperFlex footwear models and steady glove growth.
Gross Profit (Q3) $319 million, up $15 million year-over-year. Driven by higher selling prices, sales volumes, and favorable mix shift in FootJoy.
Gross Margin (Q3) 48.5%, down 50 basis points year-over-year. Decline due to $10 million in incremental tariff costs.
SG&A Expense (Q3) $205 million, up $5 million year-over-year. Increase due to investments in A&P, IT systems, and restructuring costs.
Interest Expense (Q3) $14.5 million, up $1 million year-over-year. Increase due to higher borrowings.
Effective Tax Rate (Q3) 37.3%, up from 19.3% year-over-year. Increase due to jurisdictional earnings mix and reduced tax benefits.
Inventory Levels (Q3) Up 3% year-over-year. Increase due to tariff deadlines and product launches.
Year-to-Date Cash Flow from Operations Decreased year-over-year. Decline due to increased investments in IT systems and working capital.
Capital Expenditures (Year-to-Date) $51 million. Investments in strategic initiatives, with full-year CapEx expected to be $75 million.
Shareholder Returns (Year-to-Date) $230 million returned, including $188 million in share repurchases and $42 million in dividends.
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Analyst Views on GOLF
Wall Street analysts forecast GOLF stock price to fall
4 Analyst Rating
0 Buy
3 Hold
1 Sell
Hold
Current: 92.160
Low
74.00
Averages
78.25
High
85.00
Current: 92.160
Low
74.00
Averages
78.25
High
85.00
About GOLF
Acushnet Holdings Corp. is engaged in the design, development, manufacture and distribution of performance-driven golf products. The Company’s segments include Titleist golf equipment, FootJoy golf wear and Golf gear. The Titleist golf equipment segment includes Titleist and Pinnacle branded golf balls; PG Golf recycled golf balls; Titleist branded golf clubs, including drivers, fairways, hybrids and irons; Vokey Design wedges; Scotty Cameron putters and Titleist Performance Institute. The FootJoy golf wear segment includes FootJoy branded golf shoes, golf gloves, golf outerwear and golf apparel. The Golf gear segment includes Titleist branded golf bags, headwear, golf gloves, travel gear and other golf accessories, as well as Club Glove travel products and Links & Kings luxury leather golf goods. It designs, manufactures and markets a range of products under the Titleist, FootJoy, KJUS and other brands.
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
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Acushnet (GOLF) Q4 2025 Earnings Call Transcript
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- Low Free Cash Flow Margin: With an average free cash flow margin of 5.8% over the last two years, Acushnet's performance lags behind industry expectations, limiting its ability to return capital to shareholders and potentially undermining investor confidence.
- Declining Return on Invested Capital: Acushnet's ROIC has decreased by 1.2 percentage points annually in recent years, and coupled with its already low returns, this trend suggests limited profitable growth opportunities, which could negatively impact future stock performance.
- High Market Valuation: Despite Acushnet's recent strong stock performance, trading at a forward P/E of 24.2 indicates that optimistic expectations are already priced in, leading analysts to suggest that there are more attractive investment options available at this time.
See More
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- Dividend Yield: The forward yield of 0.99% reflects the company's ability to maintain an attractive dividend return in the current market environment, which enhances investor confidence.
- Sales Target Setting: Acushnet has outlined a sales target of $2.625 billion to $2.675 billion for 2026, demonstrating strategic decisions to accelerate product launches and expand capacity, aimed at increasing market share and competitiveness.
- Financial Performance Overview: Although the GAAP EPS of -$0.58 missed expectations by $0.28, the revenue of $477.22 million exceeded forecasts by $23.63 million, showcasing resilience in revenue growth despite earnings challenges.
See More
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- Adjusted EBITDA: The adjusted EBITDA for 2025 was $410 million, showing a modest 1.5% growth year-over-year; however, Q4 EBITDA fell to $9.8 million, highlighting the pressure from tariff costs, with an anticipated $70 million in tariffs expected for 2026.
- Dividend Increase: The company announced an 8.5% increase in its quarterly dividend to $0.255 per share for 2026, marking the ninth consecutive annual dividend increase, reflecting the Board's confidence in future growth and commitment to shareholder returns.
- 2026 Outlook: Full-year net sales for 2026 are projected to range between $2.625 billion and $2.675 billion, with adjusted EBITDA expected between $415 million and $435 million, indicating ongoing growth potential in global markets despite tariff and market challenges.
See More
Acushnet (GOLF) Q4 2025 Earnings Call Transcript
See More
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- Future Outlook: The company projects net sales for 2026 to be between $2.625 billion and $2.675 billion, with adjusted EBITDA expected to range from $415 million to $435 million, indicating management's optimistic view on future growth, particularly amid stable market demand.
- Dividend Increase: Acushnet raised its quarterly cash dividend by 8.5% to $0.255 per share, showcasing strong cash flow and a commitment to shareholder returns, which further bolsters investor confidence.
- Market Reaction: Despite the revenue growth reported, analysts from Seeking Alpha suggest that the recent price increase in Acushnet's stock may not justify new investments, advising investors to carefully evaluate future opportunities.
See More
