8-K: Acushnet Holdings Corp. Reports Strong 2024 Results, Announces Dividend Increase and Share Repurchase Program

Acushnet Holdings Corp. announces positive full year and fourth quarter 2024 financial results, highlighted by increased net sales, adjusted EBITDA, and an increased quarterly cash dividend, along with a new share repurchase authorization.

Summary

• Acushnet Holdings Corp. reported full year net sales of $2.46 billion, a 3.2% increase year over year, or 3.9% in constant currency.
• The full year gross margin was 48.3%, up 130 basis points year over year.
• Net income attributable to Acushnet Holdings Corp. for the full year was $214.3 million, up $15.9 million year over year.
• Adjusted EBITDA for the full year reached $404.4 million, a 7.5% increase year over year.
• Fourth quarter net sales were $445.2 million, up 7.8% year over year, or 7.9% in constant currency.
• The company reported a fourth quarter net loss attributable to Acushnet Holdings Corp. of $1.1 million, an improvement of $25.7 million year over year.
• Fourth quarter Adjusted EBITDA was $12.4 million, up $13.9 million year over year.
• The quarterly cash dividend was increased by 9.3% to $0.235 per share.
• The company provided its full year 2025 Outlook, with expected net sales of $2,485 to $2,535 million and Adjusted EBITDA of $405 to $420 million.

Sentiment

Score: 8

Explanation: The document presents a positive outlook with strong financial results, increased dividend, and share repurchase program, indicating confidence in the company's future performance.

Positives

• Net sales in the United States were higher primarily due to increases of $74.9 million in Titleist golf equipment, $13.5 million in Golf gear and $6.8 million in FootJoy golf wear.
• Titleist golf equipment sales increased due to higher sales volumes of SM10 wedges, GT drivers and fairways, and Pro V1 and Pro V1x golf balls.
• Golf gear sales increased due to higher sales volumes in travel product categories.
• FootJoy golf wear sales increased due to higher sales volumes in footwear and higher average selling prices in apparel.
• Net income attributable to Acushnet Holdings Corp. improved $15.9 million to $214.3 million, up 8.0% year over year.
• Adjusted EBITDA margin was 16.5% versus 15.8% for the prior year period.
• Net loss attributable to Acushnet Holdings Corp. for the quarter was $1.1 million, compared to $26.8 million for the same period in 2023.
• Adjusted EBITDA was $12.4 million, compared to a loss of $1.5 million in the prior year.
• Adjusted EBITDA margin was 2.8% for the fourth quarter versus (0.4)% for the prior year period.

Negatives

• Net sales in regions outside of the United States were down 2.1%, or 0.3% on a constant currency basis, primarily due to a net sales decrease in Japan.
• FootJoy golf wear net sales decreased 2.6% (2.0% on a constant currency basis) primarily due to lower sales volumes across all product categories.
• The company reported a net loss attributable to Acushnet Holdings Corp. of $1.1 million for the fourth quarter.

Risks

• The 2025 outlook does not reflect the impact of any imposition of import tariffs by the U.S. and potential retaliatory actions taken by other countries.
• The company's forward-looking statements are subject to uncertainty and changes in circumstances, and actual results may differ materially due to various factors, many of which are beyond their control.

Future Outlook

The company expects full year 2025 consolidated net sales to be approximately $2,485 to $2,535 million and Adjusted EBITDA to be approximately $405 to $420 million.

Management Comments

• Acushnet experienced another positive year in 2024, delivering 4% full year constant currency sales growth and adjusted EBITDA growth of 7.5%, said David Maher, Acushnet Companys President and Chief Executive Officer.
• Titleist golf equipment posted healthy gains, driven by the successful introduction of GT metals and SM10 wedges and continued golf ball success led by Pro V1, Pro V1x and AVX models.
• During the year, we remained committed to investing in strategic initiatives, enhancing our operational and service capabilities, and returning capital to shareholders.
• Looking to 2025, we are excited about the launch of new Titleist Pro V1 and Pro V1x golf balls, and celebrating our first twenty five years of Pro V1 innovation.
• The golf industry is healthy, with record rounds of play in the U.S. in 2024 and worldwide rounds of play up almost 20% over the past five years.
• We are confident in our ability to successfully execute our strategy in 2025 and beyond as we seek to create long-term value for our shareholders.

Industry Context

The announcement highlights the continued health of the golf industry, with record rounds of play in the U.S. and a significant increase in worldwide rounds, suggesting a favorable environment for Acushnet's products.

Comparison to Industry Standards

• Acushnet's performance can be compared to other major players in the golf equipment and apparel industry, such as Callaway Golf Company and PUMA.
• Acushnet's focus on premium, performance-driven products aligns with a segment of the market that prioritizes quality and innovation, similar to brands like TaylorMade.
• The company's growth in adjusted EBITDA and net sales reflects a positive trend compared to industry averages, indicating effective management and market positioning.

Stakeholder Impact

• Shareholders will benefit from the increased dividend and share repurchase program.
• Employees are recognized for their commitment to developing industry-leading products.
• Customers can anticipate new product launches and continued innovation across all segments.

Next Steps

• The company plans to share additional details of the 2025 Outlook during its investor conference call.
• The company will continue to execute its share repurchase program.

Key Dates