Acushnet (GOLF) Q4 2024 earnings summary

Executive summary

• Full-year 2024 net sales reached $2.46 billion, up 3.2% year-over-year, with Q4 sales of $445.2 million, up 7.8%; adjusted EBITDA for the year was $404.4 million, up 7.5%, and Q4 adjusted EBITDA was $12.4 million.

• Net income attributable to Acushnet Holdings for FY 2024 was $214.3 million, up 8.0% year-over-year.

• Growth was driven by strong performance in Titleist golf equipment, double-digit gains in gear, and robust U.S. market demand.

• Ongoing investments in product innovation, fitting networks, and digital capabilities are prioritized, alongside increased capital returns to shareholders.

• Increased quarterly cash dividend by 9.3% to $0.235 per share and expanded share repurchase authorization.

Financial highlights

• Gross margin for the year improved to 48.3%, up 130 basis points year-over-year.

• SG&A expense for the year was $801.6 million, up 6.1%, including $18 million in restructuring costs for footwear manufacturing relocation.

• Adjusted EBITDA margin for FY 2024 was 16.5%, up from 15.8% in FY 2023.

• Inventory levels decreased to $576 million at year-end 2024, down $40 million (6%) from prior year.

• Operating cash flow for the year was $245.1 million.

Outlook and guidance

• 2025 net sales projected at $2,485–$2,535 million, with 2.2% growth at midpoint and 2.6%–4.6% constant-currency growth expected.

• Adjusted EBITDA forecasted at $405–$420 million, with a midpoint margin of 16.4%.

• Guidance excludes potential impacts from new U.S. tariffs; a 10% China tariff would represent a $7 million headwind.

• First half 2025 net sales expected to be up low single digits, led by new product launches.

• SG&A growth in 2025 will outpace sales due to strategic investments; capital expenditures planned at $85 million plus $15–$20 million for ERP implementation.