GICS Sector : Consumer Cyclical
Acushnet Holdings Corp.designs, develops, manufactures, and distributes golf products in the United States, Europe, the Middle East, Africa, Japan, Korea, and internationally.The company operates through four segments: Titleist Golf Balls, Titleist Golf Clubs, Titleist Golf Gear, and FootJoy Golf Wear.
Acushnet reported a robust third-quarter performance, with worldwide net sales reaching $658 million, a 5% constant currency increase over the previous year. Adjusted EBITDA of $119 million grew by 10%, driven by gains across all segments. The company's gross margin stood at 48.5%, down 50 basis points from the prior year, primarily due to higher tariff costs. Earnings per share (EPS) came in at $0.8, slightly below estimates of $0.85. For the first nine months of 2025, net sales increased 4% to $2.08 billion, while adjusted EBITDA rose 2% to $401 million.
Publication Date: Nov -06
Titleist Golf Equipment grew 5% in both the quarter and year-to-date, driven by the successful launch of new Titleist T-Series irons and limited-edition Vokey SM10 wedges in Q3. The Pro V1 franchise continued to perform well, with David Maher noting that the golf ball business had a strong year, both in terms of sell-in and sell-through, and growth in all regions. As Maher stated, "We've had a good year in clubs as well in terms of both volume and price."
For the full year 2025, Acushnet expects revenue to be in the range of $2.52 billion to $2.54 billion, representing reported and constant currency growth of 2.6% to 3.4%. Adjusted EBITDA is projected to be between $405 million and $415 million. Analysts estimate next year's revenue growth at 2.3%, indicating a relatively stable outlook.
With a P/E Ratio of 21.29 and an EV/EBITDA of 2181.14, the market appears to be pricing in a certain level of growth and profitability. The Dividend Yield stands at 1.17%, indicating a relatively attractive return for income investors. The Net Debt / EBITDA ratio of 2168.87 suggests a significant debt burden, which may be a concern for investors.
The company's strong balance sheet and consistent cash flow generation continue to support its capital allocation strategy, with a focus on investing in the business while returning capital to shareholders through dividends and share repurchases. Inventories were up 3% compared to the previous year's third quarter, reflecting some advancement of inventory ahead of tariff deadlines and the impact of the iron launch.
Acushnet $GOLF Shares Acquired by Fisher Asset Management LLC
Dec -04
Amer Sports (NYSE:AS) versus Acushnet (NYSE:GOLF) Head-To-Head Survey
Nov -25
Bank of New York Mellon Corp Cuts Stock Position in Acushnet $GOLF
Nov -16
Acushnet Holdings Corp. Announces Pricing of Offering of Senior Notes
Nov -12
Acushnet Holdings Corp. Announces Offering of Senior Notes
Nov -12
Acushnet Holdings Corp. (GOLF) Q3 2025 Earnings Call Transcript
Nov -05
Acushnet (GOLF) Reports Q3 Earnings: What Key Metrics Have to Say
Nov -05
Acushnet (GOLF) Q3 Earnings Lag Estimates
Nov -05
Titleist Golf Balls' 3.2% growth is driven by increasing popularity of golf globally, particularly among millennials and women. Innovation in product design, such as the Pro V1 and AVX models, has enhanced performance and appeal. Strategic partnerships with professional golfers and tournaments, like the PGA Tour, have boosted brand visibility. Additionally, expanding distribution channels and e-commerce platforms have improved accessibility and convenience for consumers.
Titleist Golf Clubs' 2.8% growth is driven by increasing popularity of golf among millennials, rising disposable income, and strategic partnerships with professional golfers. Additionally, Acushnet's focus on innovation, quality, and customization has led to premium pricing and market share gains.
FootJoy Golf Wear's 3.5% growth is driven by increasing popularity of golf globally, rising disposable income, and a growing demand for high-quality, comfortable, and stylish golf apparel. Additionally, Acushnet's strong brand reputation, innovative products, and strategic partnerships with professional golfers and tournaments contribute to the segment's growth.
Titleist Golf Gear's 3.1% growth is driven by increasing popularity of golf among millennials, rising disposable income, and strategic partnerships with professional golfers. Additionally, Acushnet's focus on innovation, quality, and customization has led to premium pricing and market share gains in the golf equipment industry.
Acushnet Holdings Corp.'s 2.5% growth in 'Other' segment is driven by increasing demand for golf balls and gear, particularly in Asia, as well as strategic partnerships and investments in digital platforms, enhancing customer engagement and experience.
High-performance golf balls designed for professional and amateur golfers, offering superior distance, accuracy, and control.
High-quality golf shoes designed for comfort, stability, and style, featuring advanced technology and waterproofing.
Premium putters crafted for precision, feel, and style, featuring advanced materials and designs.
Affordable golf balls designed for recreational golfers, offering a balance of distance and accuracy.
High-performance golf apparel designed for comfort, flexibility, and style, featuring advanced fabrics and designs.
The threat of substitutes for Acushnet Holdings Corp. is medium, as there are some alternatives available in the market, but they are not very attractive to customers.
The bargaining power of customers for Acushnet Holdings Corp. is low, as customers have limited options and the company has a strong brand presence.
The bargaining power of suppliers for Acushnet Holdings Corp. is medium, as the company relies on a few key suppliers, but has some flexibility in its supply chain.
The threat of new entrants for Acushnet Holdings Corp. is high, as the golf industry is attractive and there are low barriers to entry.
The intensity of rivalry for Acushnet Holdings Corp. is high, as the golf industry is highly competitive and there are several established players.
| Value | |
|---|---|
| Debt Weight | 45.42% |
| Debt Cost | 6.68% |
| Equity Weight | 54.58% |
| Equity Cost | 8.39% |
| WACC | 7.61% |
| Leverage | 83.22% |
Value: 7.6
Growth: 6.9
Quality: 6.3
Yield: 0.0
Momentum: 6.0
Volatility: 5.3
1-Year Total Return ->
Value: 4.1
Growth: 5.7
Quality: 3.4
Yield: 2.0
Momentum: 8.0
Volatility: 7.3
1-Year Total Return ->
Value: 5.1
Growth: 8.1
Quality: 7.6
Yield: 0.0
Momentum: 2.5
Volatility: 4.0
1-Year Total Return ->
Value: 6.0
Growth: 5.1
Quality: 6.3
Yield: 0.0
Momentum: 3.5
Volatility: 5.3
1-Year Total Return ->
Value: 7.5
Growth: 2.2
Quality: 3.4
Yield: 1.0
Momentum: 5.0
Volatility: 2.3
1-Year Total Return ->
Value: 7.5
Growth: 2.2
Quality: 2.1
Yield: 1.0
Momentum: 0.5
Volatility: 3.3
1-Year Total Return ->