Acushnet Holdings Corp. (GOLF) Q2 2025 Earnings Call Transcript
Worldwide Net Sales (Q2 2025) $720 million, a 5% increase year-over-year. This growth was driven by the strength of the Golf Equipment and Gear segments.
Adjusted EBITDA (Q2 2025) $143 million, up $12 million (9%) year-over-year. This increase was attributed to higher sales volumes and improved operational efficiencies.
Worldwide Net Sales (First Half 2025) $1.42 billion, up 3% year-over-year. Growth was supported by investments in golf equipment innovation and technology platforms.
Adjusted EBITDA (First Half 2025) $282 million, down 1% year-over-year. The decline was in line with expectations due to investments in business operations.
Gross Profit (Q2 2025) $354 million, up $21 million year-over-year. The increase was driven by higher sales volumes, higher average selling prices, and lower manufacturing costs in certain segments.
Gross Margin (Q2 2025) 49.2%, up 40 basis points year-over-year. This improvement was due to favorable product mix and reduced closeout sales.
SG&A Expense (Q2 2025) $222 million, up $14 million year-over-year. The increase was due to investments in IT systems, fitting networks, and new product launches.
Interest Expense (Q2 2025) $15 million, up $1 million year-over-year. This was due to increased borrowings, partially offset by lower interest rates.
Effective Tax Rate (Q2 2025) 19.9%, down from 23.2% year-over-year. The decrease was driven by a shift in jurisdictional mix of earnings.
Inventories (Q2 2025) Up 11% year-over-year. This increase was due to advancing inventory ahead of tariff deadlines and the impact of the iron launch.
Capital Expenditures (First Half 2025) $25 million. Full-year CapEx is now expected to be $70 million, reduced from the previously stated $85 million.
Shareholder Returns (First Half 2025) $154 million returned, including $125 million in share repurchases and $29 million in cash dividends.
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Amer Sports Sees 22% Yearly EPS Growth Driven by Strong Demand
- Strong Demand: Amer Sports is benefiting from robust demand for its premium brands, particularly the exceptional performance of Salomon footwear, which has allowed it to gain market share in the global sports and outdoor markets.
- Earnings Outlook: The company is expected to see a 22% year-over-year growth in earnings per share for 2026, reflecting analysts' confidence in its earnings growth potential.
- Golf Market Recovery: Acushnet is driving growth across all segments through strong demand for Titleist golf balls and the successful launch of new T-Series irons, with 2026 earnings expected to increase by 7.1%.
- Digital Transformation: Pool Corp is enhancing its digital capabilities through the widespread adoption of the POOL360 platform, with 2026 earnings projected to grow by 6.6% year-over-year, indicating sustained growth momentum in maintenance and remodeling activities.
Validea's Leading Consumer Discretionary Stocks Inspired by Warren Buffett - 12/18/2025
Top Rated Consumer Discretionary Stock: Acushnet Holdings Corp (GOLF) is highlighted as a mid-cap growth stock in the Recreational Products industry, receiving a 61% rating based on Warren Buffett's investment strategy, which favors firms with predictable profitability and low debt.
Company Overview: Acushnet specializes in designing, manufacturing, and distributing golf products, including Titleist golf equipment and FootJoy golf wear, with a diverse range of offerings from golf balls to apparel and accessories.
Warren Buffett's Investment Philosophy: Warren Buffett, known as one of the greatest investors, emphasizes long-term value and has a modest lifestyle despite his wealth, with a net worth estimated at $37 billion.
Validea's Investment Research: Validea provides investment research based on the strategies of renowned investors like Buffett, offering stock analysis and model portfolios aimed at outperforming the market over time.
Upcoming Ex-Dividend Dates for Aramark, Churchill Downs, and Acushnet Holdings
Upcoming Ex-Dividend Dates: Aramark (ARMK), Churchill Downs, Inc. (CHDN), and Acushnet Holdings Corp (GOLF) will trade ex-dividend on 12/5/25, with respective dividends of $0.12, $0.438, and $0.235 scheduled for payment on 12/17/25, 1/6/26, and 12/19/25.
Expected Price Adjustments: Following the ex-dividend date, shares of Aramark are expected to open 0.32% lower, Churchill Downs 0.39% lower, and Acushnet 0.28% lower, based on their recent stock prices.
Dividend Yield Estimates: The estimated annualized yields for the upcoming dividends are 1.30% for Aramark, 0.39% for Churchill Downs, and 1.13% for Acushnet, reflecting their historical dividend stability.
Current Trading Performance: As of Wednesday trading, Aramark shares are down 0.1%, Churchill Downs shares are up 0.1%, and Acushnet shares are down 0.2%.
Callaway Golf is offloading the majority of Topgolf at a low price and rebranding.
Sale of Topgolf: Callaway is selling 60% of its stake in Topgolf to private equity at a discounted valuation after nearly five years of challenges for investors.
Rebranding: Following the sale, the company will revert to its original name, Callaway Golf Company, and change its stock ticker symbol to “CALY.”
Previous Name Change: The company had changed its name to Topgolf Callaway Brands Corp. in September 2022, 18 months after the merger with Topgolf was finalized in March 2021.
Impact on Investors: The decision to sell and rebrand reflects ongoing struggles and a shift in strategy for Callaway, aiming to distance itself from the Topgolf acquisition.
Assessing PTON's Free Cash Flow Momentum as FY26 Approaches
Peloton's Financial Outlook: Peloton is entering fiscal 2026 with a stronger pathway to sustained free cash flow, raising its full-year free cash flow target to at least $250 million, driven by cost restructuring and improved hardware mix.
First Quarter Performance: In Q1 of fiscal 2026, Peloton generated $67 million in free cash flow, significantly up from $10 million the previous year, aided by improved operating profitability and lower tariff rates.
Challenges Ahead: Despite positive trends, Peloton faces challenges such as a recall of 833,000 Bike+ units and a contracting Connected Fitness market, which may lead to temporary subscription pauses and higher churn rates.
Stock Valuation and Growth Projections: Peloton shares are trading at a discount compared to industry averages, with a projected 136.7% increase in earnings per share for fiscal 2026, outpacing competitors like Planet Fitness and Acushnet Holdings.
Acushnet Holdings Corp. Reveals Pricing for Senior Notes Offering
Notes Offering Announcement: Acushnet Holdings Corp. announced a $500 million offering of senior notes, with proceeds aimed at redeeming existing debt, repaying credit facility amounts, and covering offering expenses.
Interest and Maturity Details: The notes will have a 5.625% interest rate, payable semi-annually starting June 1, 2026, and will mature on December 1, 2033, subject to customary closing conditions.
Forward-Looking Statements: The press release includes forward-looking statements that carry risks and uncertainties, including the potential failure to complete the notes offering.
Company Overview: Acushnet Holdings Corp. is a leading global manufacturer of golf products, known for its brands Titleist and FootJoy, and aims to maintain its reputation for quality and performance in the golf industry.
Amer Sports Sees 22% Yearly EPS Growth Driven by Strong Demand
- Strong Demand: Amer Sports is benefiting from robust demand for its premium brands, particularly the exceptional performance of Salomon footwear, which has allowed it to gain market share in the global sports and outdoor markets.
- Earnings Outlook: The company is expected to see a 22% year-over-year growth in earnings per share for 2026, reflecting analysts' confidence in its earnings growth potential.
- Golf Market Recovery: Acushnet is driving growth across all segments through strong demand for Titleist golf balls and the successful launch of new T-Series irons, with 2026 earnings expected to increase by 7.1%.
- Digital Transformation: Pool Corp is enhancing its digital capabilities through the widespread adoption of the POOL360 platform, with 2026 earnings projected to grow by 6.6% year-over-year, indicating sustained growth momentum in maintenance and remodeling activities.
Validea's Leading Consumer Discretionary Stocks Inspired by Warren Buffett - 12/18/2025
Top Rated Consumer Discretionary Stock: Acushnet Holdings Corp (GOLF) is highlighted as a mid-cap growth stock in the Recreational Products industry, receiving a 61% rating based on Warren Buffett's investment strategy, which favors firms with predictable profitability and low debt.
Company Overview: Acushnet specializes in designing, manufacturing, and distributing golf products, including Titleist golf equipment and FootJoy golf wear, with a diverse range of offerings from golf balls to apparel and accessories.
Warren Buffett's Investment Philosophy: Warren Buffett, known as one of the greatest investors, emphasizes long-term value and has a modest lifestyle despite his wealth, with a net worth estimated at $37 billion.
Validea's Investment Research: Validea provides investment research based on the strategies of renowned investors like Buffett, offering stock analysis and model portfolios aimed at outperforming the market over time.
Upcoming Ex-Dividend Dates for Aramark, Churchill Downs, and Acushnet Holdings
Upcoming Ex-Dividend Dates: Aramark (ARMK), Churchill Downs, Inc. (CHDN), and Acushnet Holdings Corp (GOLF) will trade ex-dividend on 12/5/25, with respective dividends of $0.12, $0.438, and $0.235 scheduled for payment on 12/17/25, 1/6/26, and 12/19/25.
Expected Price Adjustments: Following the ex-dividend date, shares of Aramark are expected to open 0.32% lower, Churchill Downs 0.39% lower, and Acushnet 0.28% lower, based on their recent stock prices.
Dividend Yield Estimates: The estimated annualized yields for the upcoming dividends are 1.30% for Aramark, 0.39% for Churchill Downs, and 1.13% for Acushnet, reflecting their historical dividend stability.
Current Trading Performance: As of Wednesday trading, Aramark shares are down 0.1%, Churchill Downs shares are up 0.1%, and Acushnet shares are down 0.2%.
Callaway Golf is offloading the majority of Topgolf at a low price and rebranding.
Sale of Topgolf: Callaway is selling 60% of its stake in Topgolf to private equity at a discounted valuation after nearly five years of challenges for investors.
Rebranding: Following the sale, the company will revert to its original name, Callaway Golf Company, and change its stock ticker symbol to “CALY.”
Previous Name Change: The company had changed its name to Topgolf Callaway Brands Corp. in September 2022, 18 months after the merger with Topgolf was finalized in March 2021.
Impact on Investors: The decision to sell and rebrand reflects ongoing struggles and a shift in strategy for Callaway, aiming to distance itself from the Topgolf acquisition.
Assessing PTON's Free Cash Flow Momentum as FY26 Approaches
Peloton's Financial Outlook: Peloton is entering fiscal 2026 with a stronger pathway to sustained free cash flow, raising its full-year free cash flow target to at least $250 million, driven by cost restructuring and improved hardware mix.
First Quarter Performance: In Q1 of fiscal 2026, Peloton generated $67 million in free cash flow, significantly up from $10 million the previous year, aided by improved operating profitability and lower tariff rates.
Challenges Ahead: Despite positive trends, Peloton faces challenges such as a recall of 833,000 Bike+ units and a contracting Connected Fitness market, which may lead to temporary subscription pauses and higher churn rates.
Stock Valuation and Growth Projections: Peloton shares are trading at a discount compared to industry averages, with a projected 136.7% increase in earnings per share for fiscal 2026, outpacing competitors like Planet Fitness and Acushnet Holdings.
Acushnet Holdings Corp. Reveals Pricing for Senior Notes Offering
Notes Offering Announcement: Acushnet Holdings Corp. announced a $500 million offering of senior notes, with proceeds aimed at redeeming existing debt, repaying credit facility amounts, and covering offering expenses.
Interest and Maturity Details: The notes will have a 5.625% interest rate, payable semi-annually starting June 1, 2026, and will mature on December 1, 2033, subject to customary closing conditions.
Forward-Looking Statements: The press release includes forward-looking statements that carry risks and uncertainties, including the potential failure to complete the notes offering.
Company Overview: Acushnet Holdings Corp. is a leading global manufacturer of golf products, known for its brands Titleist and FootJoy, and aims to maintain its reputation for quality and performance in the golf industry.
