What are your expectations for the U.S. market in 2026, and how should we think about volume versus price for different categories?

The U.S. market is healthy with strong consumer base and participation momentum, driven by increased rounds of play and golfer numbers. Inventories are where they should be. Pricing actions are taken carefully due to input costs and tariffs, with equipment price increases expected in H1 2026, particularly for new club products and Pro V1 in the U.S./Canada. “We like the fundamentals, industry participants, whether it's golf courses or teaching centers or golf specialty retailers are financially sound. So structurally, the U.S. market is probably our healthiest around the world.”

Can you elaborate on the improved FootJoy business, particularly the shift to premium products, and provide an update on Japan and Korea, especially regarding apparel and footwear?

FootJoy is improving by focusing on premium performance products, leading to better profitability despite slightly lower sales due to reduced closeouts. The FitLab program is also adding value. In Japan and Korea, equipment sales were strong in 2025, but wearables (footwear and apparel) have been softer, leading to tempered expectations for these categories in 2026, while equipment is expected to grow. “We're really leaning into our premium performance products, and we're rationalizing the product line down at some lower price points and raising the floor, if you will, on some of the lower price points.”

Q4 club growth was 19%, exceeding expectations. What drove this, and why didn't it flow through to the EBITDA line?

The strong club growth was due to excellent execution and continued demand for T-Series irons and SM10 wedges. The EBITDA conversion was impacted by $15 million in tariff costs in Q4, which was the largest quarterly impact of the $30 million total for the year. “As it relates to the conversion rate, again, we had the impact of tariffs in Q4, as you know, was $15 million, the largest quarter of the year against the total of $30 million.”

GOLF

Acushnet (GOLF) Q4 FY25 earnings call: guidance and Q&A

Earnings call· Dec 2025 (Q4 FY25)· Consumer Discretionary· Feb 26, 2026

Source: earnings call transcript

Executive summary

Acushnet Q4 FY25 — Strong Equipment Sales and Dividend Increase Offset Tariff Headwinds

Acushnet delivered solid Q4 and full-year 2025 results, primarily driven by robust performance in its Titleist Golf Equipment segment and strategic investments in product development and capacity. Despite facing significant tariff headwinds and increased operational expenses related to ERP implementation, the company maintained its commitment to shareholder returns through a dividend increase and share repurchases. Management remains optimistic about the structural health of the golf industry and its ability to drive long-term growth through continued innovation and market expansion.

Highlights

Full year 2025 net sales reached $2.56 billion, a 4% increase year-over-year.
Titleist Golf Equipment segment grew 6% for the full year and 10% in Q4 2025, driven by strong demand for irons and wedges.
Board approved an 8.5% increase to the quarterly dividend payout for 2026, marking the ninth consecutive annual increase.
FootJoy net sales grew 4.5% in Q4 2025, driven by favorable mix shift and higher average selling prices in footwear.
The company returned $268 million to shareholders in 2025 through dividends and share repurchases.

Concerns

Adjusted EBITDA for Q4 2025 was $9.8 million, lower than $12.4 million in Q4 2024.
Full year 2025 gross margin fell to 47.7%, down 60 basis points, primarily due to $30 million in incremental tariff costs.
Inventory levels increased $33 million or 6% from year-end 2024, partly due to higher tariff costs and accelerated product launches.
Free cash flow totaled $120 million in 2025, down from $170 million in 2024, impacted by increased inventory, ERP implementation, and a voluntary retirement program.
Expected $70 million in tariff costs for 2026, reflecting a $40 million incremental impact from IEPA tariffs.

Guidance & targets

Category	Target	Timeline	Confidence
Full Year 2026 Net Sales	$2.625 billion - $2.675 billion high materiality	FY26	High
Full Year 2026 Net Sales Growth (Constant Currency)	2.5% - 4.5% high materiality	FY26	High
Full Year 2026 Adjusted EBITDA	$415 million - $435 million high materiality	FY26	High
Full Year 2026 Adjusted EBITDA Margin	16% medium materiality	FY26	High
Full Year 2026 Tariff Costs	$70 million high materiality	FY26	High
Full Year 2026 SG&A Growth (excluding ERP)	In line with sales growth projections medium materiality	FY26	Medium
Full Year 2026 Capital Expenditures	$95 million medium materiality	FY26	High
Full Year 2026 Capitalized ERP Costs	$25 million low materiality	FY26	High
First Half 2026 Net Sales Growth	Mid- to high single digits medium materiality	H1 2026 · FY26	Medium
First Half 2026 Adjusted EBITDA Growth	Mid- to high single digits medium materiality	H1 2026 · FY26	Medium
First Quarter 2026 Net Sales Growth	Low single digits medium materiality	Q1 · FY26	Medium

Segment performance

Segment	Revenue	YoY	QoQ	Margin
Titleist Golf Equipment Full year growth driven by investments in product development, manufacturing, and fitting. Q4 growth due to higher sales volumes of T-Series irons and SM10 wedges. New Pro V1 posted gains across all regions, with EMEA, Japan, and U.S. as fastest-growing markets. Strong year for Titleist Golf Clubs, led by T-Series irons, metals, and Scotty Cameron putters. Vokey wedge franchise also performed strongly. Golf ball net sales growth (FY25): 4%Golf club net sales growth (FY25): >7%	—	6%	10%	—
FootJoy Full year sales decline mainly due to reduced discounted sales. Q4 growth driven by favorable mix shift and higher average selling prices in footwear, particularly Premiere and HyperFlex. Growth in gloves and apparel also contributed to improved profitability. The FJ mobile FitLab program is delivering value-added fitting experiences.	—	-1%	4.5%	Improved profitability for the year
Golf Gear Full year growth with strong increases by Titleist Gear in EMEA and the U.S., and growing momentum for Club Glove travel products. Q4 net sales decreased.	—	6%	-5%	—
TravisMathew (Shoes brand) Strong growth for the full year, led by double-digit gains in the U.S.	—	9%	—	—

Product announcements

Product	Type	Timeline
New Titleist Golf Balls	launch	Q1 2026
New Vokey SM11 Wedges	launch	Q1 2026
New Scotty Cameron Mallet Putters	launch	Q1 2026
New Titleist Driver	launch	Late June 2026

Risks & headwinds

Incremental Tariff Costs FY25, FY26

$30 million (FY25), $70 million (FY26)

Mitigation:Pricing actions, monitoring market for refund opportunities, continued investment in business to drive growth.

Increased Inventory Levels End of FY25

$33 million or 6% increase from year-end 2024

Mitigation:Partially attributed to higher tariff costs and increased inventory to support accelerated metals launch.

Reduced Free Cash Flow FY25

$120 million in FY25, down from $170 million in FY24

Mitigation:Expected to improve meaningfully in FY26 due to absence of one-time cash outflows (increased inventory, ERP implementation, voluntary retirement program).

Softer Wearables Market in Asia FY25, expected FY26

Declines in apparel and footwear categories in Japan and Korea offsetting equipment gains

Mitigation:Tempered, measured, conservative outlook for wearables and footwear in these markets; focusing on premium segments and mitigating tariff headwinds for FJ apparel.

Economic Uncertainty FY26

Unquantified

Mitigation:Focus on execution and necessary investments to deliver long-term growth.

What to watch in Q1 FY26

New Driver Launch Details

May call

Current Launch accelerated to late June

Target More details on product and timing

Why it matters

The new driver launch is a significant product introduction, and its details and market reception will be key for H2 performance.

We will share more details about this product on our May call.

Find out whether GOLF delivers this. Inve re-checks your case every morning.

Q&A highlights

Can you provide more color on the 2026 product calendar, especially for the new driver and wedge launches, and your innovation pipeline?

Management noted that 2026 is an even-numbered year, similar to 2024 for product timing, with new golf balls, wedges, and putters launching as planned. The key difference is the acceleration of the new driver launch to late June from the customary early August, with more details to follow in May.

“What's different, and we did call it out, is that we've elected to accelerate the launch of our new driver into late June. Typically, that happens in early August.”

asked by Lauren Ng · answered by David Maher

2 min read 6 chapters

Detailed narrative

Strong Performance in Titleist Golf Equipment

The Titleist Golf Equipment segment was a key driver of growth, with full-year net sales increasing 6% and Q4 sales up 10%. This performance was attributed to investments in product development, precision manufacturing, and fitting. New Pro V1 golf balls saw gains across all regions, contributing to a 4% increase in golf ball net sales.

Titleist Golf Clubs grew over 7%, led by successful launches of new T-Series irons and steady growth in metals and Scotty Cameron putters, alongside strong results from Vokey wedges.

FootJoy's Strategic Shift and Improved Profitability

FootJoy's sales were down 1% for the full year, primarily due to reduced discounted sales, reflecting a strategic shift towards premium, high-performance footwear franchises like Premiere and HyperFlex. The brand saw a 4.5% net sales increase in Q4, driven by favorable mix and higher average selling prices.

Growth in gloves and apparel also contributed to improved profitability for the year, with the FJ mobile FitLab program enhancing the customer experience.

Global Golf Industry Health and Participation Trends

The global golf industry is described as structurally healthy, with worldwide rounds projected to have increased about 2% in 2025, driven by growth in EMEA, the U.S., and Japan. The U.S. market, in particular, saw an increase in golfers for the seventh or eighth consecutive year.

Since 2019, global rounds of golf played have increased by approximately 23%, representing 180 million to 190 million more rounds, with women and juniors being the fastest-growing segments.

Tariff Headwinds and Mitigation Efforts

Tariffs posed a significant challenge, with approximately $30 million in incremental tariff costs impacting gross profit in 2025, leading to a 60 basis point decline in gross margin. The company anticipates $70 million in tariff costs for 2026, including an incremental $40 million from IEPA tariffs.

Management is actively monitoring the situation and assessing options for refunds, while also implementing pricing actions and other mitigation strategies to offset these costs.

Strategic Investments and Capital Allocation

Acushnet continues to prioritize investments in strategic capacity expansion, global fitting networks for golf equipment and footwear, and enhanced B2B and D2C capabilities. The company is also implementing a new global cloud-based ERP system, expecting $6 million in incremental operating expense and $25 million in capitalized costs in 2026.

Capital expenditures are projected to be $95 million in 2026, a high watermark, reflecting investments in manufacturing capacity. The capital allocation strategy also includes returning capital to shareholders, with $268 million returned in 2025 and a commitment to maintaining net leverage at or below 2.25x.

Product Launch Calendar and Innovation

The company has a robust product pipeline for 2026, including new Titleist golf balls (Pro V1x Left Dash, AVX, TourSoft, Velocity), Vokey SM11 wedges, and Scotty Cameron mallet putters launched in Q1. Notably, the launch of a new driver has been accelerated to late June, earlier than the customary Q3 timing, to provide added flexibility.

These launches are expected to drive first-half sales growth, particularly in Titleist Golf Equipment.

Summary of the company's earnings call; see how call summaries are prepared. Not investment advice.