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 Holdings reported a 7% increase in fourth-quarter 2025 revenues, driven by higher net sales in Titleist Golf Equipment. For the full year, the company achieved net sales of $2.56 billion and adjusted EBITDA of $410 million, representing growth of 4% and 1.5%, respectively. The company's earnings per share (EPS) came in at -$0.3, slightly below estimates of -$0.27. The Titleist Golf Equipment segment grew 6% on the year, driven by investments in product development, precision manufacturing, and fitting. Adjusted EBITDA for the fourth quarter was $9.8 million, lower than last year's $12.4 million.
Publication Date: Mar -01
The Titleist Golf Club business grew more than 7%, led by the successful launch of new T-Series irons and steady growth in metals and Scotty Cameron putters. Acushnet's gear business increased 6% on the year, while FootJoy sales were down 1% mainly due to reduced discounted sales. The company's shoes brand was up 9% on the year, and Titleist Apparel delivered a promising year, led by growth in China and Korea.
Looking ahead to 2026, Acushnet expects net sales between $2.625 billion and $2.675 billion, representing growth across all reportable segments. The company anticipates adjusted EBITDA to be between $415 million and $435 million. David Maher emphasized the importance of getting the product right and investing in the fitting experience, stating that the company is reserving commentary until later in the year, but noted that the market is healthy when the weather is okay.
With a P/E Ratio of 32.49 and an EV/EBITDA of 1.92, the market appears to be pricing in moderate growth expectations. The company's dividend yield stands at 0.92%, indicating a relatively stable return for shareholders. Analysts estimate next year's revenue growth at 3.4%, which is slightly higher than the company's historical growth rate. The company's strong financial performance in 2025 supported ongoing investment across its business and its commitment to returning capital to shareholders.
Sean Sullivan discussed the impact of tariffs, which were $15 million in Q4, and noted that the company is taking pricing actions to mitigate higher input costs and tariffs. He expects gross margins in 2026 to be relatively flat to 2025. David Maher observed that the company is trying to be thoughtful and strategic with pricing, taking it case by case, and maintaining its premium product position.
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Acushnet Holdings Corp. (GOLF) Q4 2025 Earnings Call Transcript
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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: 3.1
Growth: 5.8
Quality: 5.7
Yield: 2.0
Momentum: 7.0
Volatility: 7.3
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Value: 6.1
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Volatility: 4.3
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Value: 8.0
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Value: 7.8
Growth: 2.2
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Value: 7.8
Growth: 2.2
Quality: 2.6
Yield: 1.0
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Volatility: 3.0
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