Throughout this discussion, we will make reference to non-GAAP financial measures, including items such as net sales on a constant currency basis and adjusted EBITDA. market, 1.5 million new golfers entered the sport in 2024, marking the seventh consecutive year-on-year increase. With that, I am pleased to report on a solid quarter and first half for Acushnet., led by our momentum in Titleist golf equipment and steady growth in the U.S. delivered worldwide net sales of $720 million, a 5% increase over last year, driven by the strength of our golf equipment and gear segments, which contributed to a 9% year-over-year increase in adjusted EBITDA.
The Titleist golf ball business is well-positioned for the back half of the year as our team keeps pace with healthy demand and activates our golf ball fitting initiatives in all markets. The core Titleist bag, glove, and headwear categories grew mid-single digits, while our travel brands, led by Club Glove, grew more than 20%. Lastly, products not allocated to a reportable segment also posted steady growth in the half, led by double-digit gains from our shoes, outerwear, and apparel business, which continues to build nice momentum. The region is benefiting from outsized growth in the U.K., where rounds of play are up 20% through June.
As noted on our last call, we are pleased with our equipment growth in these countries, but the markets for apparel, footwear, and gear have been relatively soft. Second quarter net sales were up 5%, and adjusted EBITDA was $143 million, up $12 million from last year's second quarter. For the first half of 2025, net sales increased 3%, and adjusted EBITDA decreased 1%, in line with our expectations. The increase in Titleist golf equipment was primarily driven by higher sales volumes and higher average selling prices, partially offset by mix.
| Metric | Period | Current guidance |
|---|---|---|
| Full-year guidance | FY2025 | Not formally updating full-year guidance; providing second-half color only given tariff and consumer uncertainty |
| Net sales | 2H 2025 | Up low single digits, with growth anticipated across all segments led by golf equipment |
| FX headwind | FY2025 | Approximately $5 million full-year FX headwind versus last year |
| Tariff cost impact | 2H 2025 | Estimated ~$3 million in 2H (on top of $5 million in 1H); expect to mitigate greater than 50% of the 2H tariff impact |
| Capital expenditures | FY2025 | Approximately $70 million |
| Bridge-to-retirement restructuring charges | 2H 2025 | Approximately $7 million of additional charges expected |
| Second-half quarterly cadence | 2H 2025 | Expected to align with historical seasonality across Q3 and Q4 |
| Metric | YoY | Note |
|---|---|---|
| Consolidated net sales (Q2) | +5% (cc) | Strength in Titleist golf equipment and golf gear segments |
| Consolidated net sales (1H) | +3% (cc), $1.42 billion | Golf equipment momentum, partly offset by FootJoy and Asia softness |
| Titleist golf equipment net sales | +6% Q2; mid-single digits Q2 and 1H | New Pro V1 golf ball models and GT Metals and Hybrid franchise strength; up in all regions for the half |
| Golf gear net sales | +7% Q2; +6% 1H | Core Titleist bag/glove/headwear up mid-single digits; travel brands (Club Glove) up more than 20% |
| FootJoy golfwear net sales | -2% Q2; -4% 1H | Planned shift to premium performance footwear (Premier, HyperFlex, Quantum), reduced discounted closeouts and elevated entry-level price points |
| US region | Ongoing strength / growth | Steady demand despite rounds of play down slightly on unfavorable weather |
| EMEA region | +6% 1H | Gains in Titleist golf equipment (mainly golf balls) and gear; UK rounds of play up 20% through June |
| Japan / Korea regions | -4% / -3.5% | Soft apparel, footwear and gear markets even as equipment stayed steady |
| Q2 adjusted EBITDA | $143 million, +$12 million (~9%) | Higher net sales and gross profit across equipment, gear and FootJoy |
| Q2 gross margin | 49.2%, +40 bps | Higher volumes and ASPs, lower distribution and manufacturing costs, less closeout; partly offset by ~$5 million tariff costs and mix |
| Q2 SG&A expense | $222 million, +$14 million | Investment in fitting network, IT systems and A&P, plus $6.4 million restructuring from bridge-to-retirement program |
| Topic | Previous mention | Current period | Trend |
|---|---|---|---|
| Pro V1 launch and golf equipment innovation | Pro V1 launched in Q1 2025 | Golf ball business well-positioned for the back half; new T Series irons launched in July meeting high expectations, and GT Metals driver momentum from a 2H 2024 launch continuing | — |
| Golf participation and rounds of play | Seven consecutive years of new-golfer gains; 1.5 million new US golfers in 2024 | Worldwide 1H rounds of play projected up 2% despite US weather volatility; UK rounds up 20% through June | — |
| FootJoy premium performance strategy | Sales declining as closeouts reduced | Top line down slightly but improved profitability and operating results; confidence in premium positioning and new product line extensions | — |
| Tariffs and supply-chain mitigation | ~$5 million tariff impact in 1H | ~$3 million estimated 2H impact; mitigating >50% via supply-chain footprint optimization, vendor sharing, selective pricing and cost cuts (bridge-to-retirement); ball manufacturing largely US-based provides insulation | — |
| Capital return to shareholders | — | ~$154 million returned through June ($125M buybacks, $29M dividends); quarterly dividend declared payable Sept 19; repurchased ~953,000 shares from Magnus for $62.5 million on July 10 | — |