Acushnet (NYSE:GOLF) reported fourth-quarter and full-year 2025 results that management said reflected solid execution across the company’s year-end plans and positioned the business for multiple product launches in 2026. Net sales rose 7% in the fourth quarter versus the prior year period, driven primarily by Titleist Golf Equipment, while full-year 2025 net sales reached $2.56 billion and adjusted EBITDA totaled $410 million.
2025 results driven by Titleist equipment momentum
President and CEO David Maher said the company’s 2025 performance was led by the Titleist Golf Equipment segment, which grew 6% for the year. Maher attributed the gains to investments in product development, precision manufacturing, and fitting, as well as capacity expansion projects that are continuing with a focus on cast urethane golf ball production and custom golf club assembly.
In golf clubs, management described 2025 as a strong year for Titleist Golf Clubs, which grew more than 7% for the year, led by the launch of new T-Series irons along with steady growth in metals and Scotty Cameron putters. Maher said the Vokey wedge franchise posted strong results in the second year of the SM10 product cycle, and he highlighted ongoing investments in both product development and the company’s global club fitting network.
Acushnet’s gear business increased 6% for the full year, with Maher citing strong increases by Titleist Gear in EMEA and the U.S., as well as growing momentum for Club Glove travel products.
FootJoy trends: premium mix shift and focus on profitability
Maher said FootJoy sales declined 1% for the full year, mainly due to reduced discounted sales compared to the prior year, but he emphasized a “favorable mix shift” toward premium high-performance footwear franchises such as Premiere and HyperFlex. He also cited the FootJoy Mobile Fit Lab program as a value-added fitting experience that helps golfers choose footwear based on performance and comfort.
During the Q&A, Maher expanded on the FootJoy business, saying the footwear industry experienced an inventory correction after the pandemic surge and that FootJoy has moved through that period. He described a deliberate strategy to be “more focused on the bottom line than the top line,” including leaning into premium performance products, rationalizing some lower-price offerings, and “raising the floor” on lower price points. He added that tariffs weigh on FootJoy more than some other parts of the portfolio, and said the company is working to mitigate those costs.
Fourth-quarter financial details and tariff impact
Chief Financial Officer Sean Sullivan said fourth-quarter net sales were up 7% year over year, while adjusted EBITDA fell to $9.8 million from $12.4 million a year earlier. He noted that Titleist Golf Equipment net sales rose 10% in the quarter, driven by higher sales volumes of T-Series irons and SM10 wedges, partially offset by lower GT driver sales as the company lapped the prior year’s launch. FootJoy net sales increased 4.5% in the quarter due to favorable mix and higher average selling prices in footwear, while golf gear net sales declined 5%.
Fourth-quarter gross profit was $211 million, up $3 million from the prior year, though Sullivan reminded investors that the prior-year quarter included a one-time benefit from a PTO policy change that positively impacted gross profit by about $7 million. For the full year, gross profit was $1.2 billion, up 3%, while gross margin declined 60 basis points to 47.7%, which Sullivan attributed primarily to incremental tariff costs of about $30 million in 2025.
SG&A expense rose to $206 million in the fourth quarter, up $13 million, with Sullivan again noting that the prior-year quarter included a one-time PTO policy change benefit of about $9 million. For the full year, SG&A increased 4% to $833 million; excluding the one-time benefit, Sullivan said the increase was driven by higher employee expenses (including support for fitting initiatives), higher advertising and promotion tied to product launches, and higher IT-related expenses.
Sullivan also said full-year interest expense increased by about $6 million due to higher borrowings, and the company recorded a $17 million charge from debt extinguishment related to a fourth-quarter refinancing. The effective tax rate was 21.9%, up from 19.2%, driven by changes in the jurisdictional mix of earnings and a reduced benefit related to the U.S. deduction of foreign-derived intangible income.
Balance sheet actions and capital returns
Management highlighted balance sheet activity in the fourth quarter, including extending the revolving credit agreement to 2030 and refinancing senior notes into a 2033 maturity at a more favorable interest rate. Net leverage ended 2025 at 2.2x, according to Sullivan.
Inventory increased $33 million, or about 6%, from year-end 2024, driven by higher tariff costs and additional inventory to support an accelerated metals launch in the second quarter of 2026. Capital expenditures were $74 million in 2025, and free cash flow totaled $120 million, down from $170 million in 2024, which Sullivan said reflected higher inventory, additional ERP implementation spending, and the company’s 2025 voluntary retirement program.
Acushnet returned $268 million to shareholders in 2025, including $56 million in dividends and $212 million in share repurchases (about 3.1 million shares). Maher said dividend and share repurchases over the past four years total more than $1.1 billion. The company also announced an 8.5% increase to the quarterly dividend in 2026 to $0.255 per share, which Maher said would mark the ninth consecutive annual dividend increase since the program began in 2017. As of Feb. 21, 2026, Sullivan said approximately $241 million remained on the company’s repurchase authorization.
2026 outlook: sales growth expected; tariffs remain key uncertainty
For 2026, Sullivan guided to full-year net sales of $2.625 billion to $2.675 billion on a reported basis. On a constant currency basis, Acushnet expects net sales growth of 2.5% to 4.5% versus 2025, with growth across all reportable segments and both domestic and international markets, including strength in EMEA and “rest of world” markets. Adjusted EBITDA is expected to be $415 million to $435 million, with the midpoint implying an adjusted EBITDA margin of about 16%, flat with 2025.
Tariffs were a central theme in the outlook. Sullivan said the company expects approximately $70 million of tariff costs in 2026, based on the tariff environment in place prior to a Feb. 20 Supreme Court ruling. While the decision affects certain tariff programs, he said timing and durability remain uncertain, so guidance continues to assume the $70 million level. In Q&A, Sullivan said the incremental increase versus 2025 is tied to IEEPA tariffs and said the company had not yet filed for a refund, while it continues to assess options with advisors.
Maher and Sullivan also outlined key investment priorities for 2026, including capacity expansion, build-out of global fitting networks for equipment and footwear, expansion of B2B and D2C capabilities to new regions, and investment in the Titleist Performance Institute as demand exceeds capacity. The company expects about $6 million of incremental operating expense in 2026 related to ERP implementation, along with approximately $25 million in capitalized ERP costs. Capital expenditures are projected to be about $95 million in 2026, which Sullivan called a “high watermark,” reflecting investments in golf ball manufacturing capacity and increased club production globally.
On product cadence, Maher said Acushnet launched a comprehensive lineup of new Titleist golf balls in the first quarter, including Pro V1x Left Dash and new AVX, Tour Soft, and Velocity models. The company is also launching Vokey SM11 wedges and a new lineup of Scotty Cameron mallet putters in Q1. Maher said the company plans to accelerate its new driver launch to late June—earlier than the customary early August timing—and said more details would be shared on the company’s May call.
Discussing market conditions, Maher said worldwide rounds are projected to have increased about 2% in 2025, with growth in EMEA, the U.S., and Japan, and a flat year in Korea. In the U.S., he said the golfer population increased again, supporting the rounds trend. In response to questions about participation, Maher cited National Golf Foundation data and said the fastest-growing segments over the last several years have been women and juniors.
About Acushnet (NYSE:GOLF)
Acushnet Holdings Corp., traded on the NYSE under the symbol GOLF, is a leading designer, manufacturer and marketer of golf equipment, footwear, apparel and accessories. The company’s portfolio encompasses a range of golf lifestyle products, with a focus on innovation, performance and quality for players of all skill levels.
At the core of Acushnet’s product lineup is the Titleist brand, globally recognized for its Tour-level golf balls and precision-engineered clubs. FootJoy offers golf shoes, gloves and apparel that blend comfort, style and technical performance, while Scotty Cameron putters and Vokey design wedges cater to players seeking exacting standards in feel and accuracy.
