Acushnet (GOLF) Q1 2025 earnings summary

Executive summary

• Q1 2025 net sales were $703.4 million, down 0.6% year-over-year but up 1.2% in constant currency, driven by growth in Titleist golf equipment and gear, offset by declines in FootJoy golf wear.

• Net income attributable to Acushnet rose 13.2% to $99.4 million, aided by a $20.9 million non-cash gain from the deconsolidation of the FootJoy JV.

• Adjusted EBITDA was $138.9 million (19.7% margin), down 9.6% year-over-year, reflecting lower operating income and higher costs.

• Gross margin declined to 47.9% from 48.4% in Q1 2024, mainly due to higher manufacturing costs.

• The company repurchased 1,476,851 shares for $99.1 million and paid $14.8 million in dividends during the quarter.

Financial highlights

• Titleist golf equipment net sales rose 2.2% (3.8% constant currency), led by new Pro V1/Pro V1x balls and GT drivers.

• FootJoy golf wear net sales fell 6.6% (4.9% constant currency), mainly due to lower footwear and apparel volumes.

• Golf gear net sales increased 2.2% (3.9% constant currency), with higher average selling prices.

• U.S. net sales grew 1.4%, while EMEA and Rest of World were up, but Korea and Japan declined.

• Diluted EPS was $1.62, up from $1.35 year-over-year.

Outlook and guidance

• No updates to the previously issued full-year 2025 outlook due to macroeconomic uncertainty.

• Full-year 2025 gross tariff impact expected to be ~$75 million, with mitigation actions offsetting over 50%.

• First-half 2025 sales expected to be up low single digits versus 2024; adjusted EBITDA expected to be down low single digits.

• Most tariff impact anticipated in the second half of 2025 due to inventory levels.

• Management expects full-year capital expenditures of ~$85 million and $15–$20 million in ERP implementation costs.