Acushnet (GOLF) Q3 2024 earnings summary

Executive summary

• Q3 2024 net sales increased 4.6% year-over-year to $620.5 million, with year-to-date net sales at $2,011.9 million, up 2.2% from last year.

• Adjusted EBITDA for Q3 was $107.4 million, up 8.7% year-over-year; year-to-date Adjusted EBITDA reached $392.1 million, up 3.8%.

• Gross margin improved to 54.4% in Q3 from 52.0% last year, driven by strong Titleist golf club sales and favorable product mix.

• Net income for Q3 was $56.2 million, slightly down from $57.3 million last year; year-to-date net income was $215.4 million.

• Growth was led by Titleist golf clubs, especially new GT drivers and fairway metals, while FootJoy golf wear declined.

Financial highlights

• Q3 Adjusted EBITDA margin improved to 17.3% from 16.6% a year ago; year-to-date margin at 19.5%.

• Gross profit in Q3 was $337.4 million, up $28.9 million year-over-year.

• Operating income for Q3 was $82.1 million, up from $78.6 million last year.

• Effective tax rate in Q3 was 19.3%, up from 16.5% last year; year-to-date rate at 21.6%.

• Operating cash flow for the first nine months was $246.2 million; year-to-date CapEx was $43 million.

Outlook and guidance

• Full-year 2024 net sales guidance reaffirmed at $2,450–$2,500 million, with growth expected at 3.2%–5.3%.

• Full-year Adjusted EBITDA guidance narrowed to $395–$405 million, toward the high end of prior guidance.

• Q4 expected to see sales growth in all segments except golf balls, with further restructuring costs related to footwear supply chain transition.

• Company highlights strong balance sheet, sufficient liquidity, and preparations for major product launches in 2025.

• Reportable segments to be updated in 2024 annual report, combining golf balls and clubs.