Acushnet Holdings Corp.

If you would like to ask a question, then please press Start Load by 1 on your telephone keypad. I'll now hand to our host, Saundra Lennon, Vice President, FP&A and Investor Relations to begin. Please go ahead.

Good morning, everyone. Thank you for joining us today for a Cushnet Holding Corp second quarter 2025 earnings conference call. Joining me this morning are David Marr, our President and Chief Executive Officer, and Sean Sullivan, our Chief Financial Officer. Before turning the call over to David, I would like to remind everyone that we will be making forward-looking statements on the call today. These forward-looking statements are based on a Cushnet's current expectations and are subject to uncertainty and changes in circumstances. Actual results may differ materially from these expectations. For a list of factors that could cause actual results to differ, please see today's press release, the slides that accompany our presentation and our filings with the US Securities and Exchange Commission. 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. Explanations of how and why we use these measures and reconciliations of these items to the most directly comparable GAAP measures can be found in the schedules in today's press release the slides that accompany this presentation, and in our filings with the U.S. Securities and Exchange Commission. Please also note that references throughout this presentation to year-on-year net sales increases and decreases are on a constant currency basis unless otherwise stated, as we feel this measurement best provides context as to the performance and trends of our business. And when referring to year-to-date results or comparisons, We are referring to the six-month period ended June 30, 2025, and the comparable six-month period in 2024. With that, I'll turn the call over to David.

Thanks, Sandra, and good morning, everyone. We appreciate your interest in Acoustic Holdings. The sport and business of golf continue to be vibrant and healthy. Per the National Golf Foundation's read on the U.S. market, 1.5 million new golfers entered the sport in 2024, marking the seventh consecutive year-on-year increase. These gains contributed to resilient participation results with worldwide rounds of play in the first half projected to be up 2% despite some of the weather-related volatility we have experienced in the U.S. Acushnet continues to benefit from our focus on the game's dedicated golfer, whose healthy demographic and deep commitment to the sport help to offset some of the macro uncertainties consumers are facing. 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. and EMEA regions. Moving to slide four, You see our second quarter and first half results. For the quarter, Acushnet 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. For the half, net sales of $1.42 billion were up 3%, while adjusted EBITDA of $282 million was down 1%, in line with our expectations as we make several investments across our business with a long-term focus on golf equipment innovation and our technology and golfer connection platforms. Getting to our segment results, golf equipment sales were up mid-single digits in the quarter and first half, led by the success of new Pro V1 golf ball models and strength within our GT Metals and Hybrid franchise. Titleist golf equipment sales were up in all regions for the half, led by the U.S. and EMEA. And compared with the first half of 2023 and a similar product launch cycle, equipment revenues are up 10%. 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. On the club side, we're excited about our new T-Series irons, which were launched last month. This innovative new product lineup delivers enhanced performance and feel, and while early, initial response is meeting our high expectations. Within our golf equipment business, we are confident in the strength and diversity across our supply chain, with golf balls benefiting from our two production facilities in the US and third in Thailand. Our ability to assemble golf clubs in most major regions also provides flexibility as we navigate evolving tariff policies. Moving to gear, this business is healthy with sales increasing 7% in the second quarter and 6% for the first half. The core Titleist bag, glove, and headwear categories grew mid-single digits, while our travel brands led by Club Glove grew more than 20%. Our foot joy business was off 2% in the quarter and 4% in the half. These results were in line with our expectations as we shift towards a higher concentration of premium performance footwear led by Premier, Hyperflex, and Quantum golf shoes. At the same time, We have reduced discounted closeout volumes and elevated our entry-level price points across the brand. We are pleased with FJ's market positioning, product lineup, and sell-through trends. And as you will see in our financials, these are positively impacting FJ's operating results. 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. Now looking at our regional results, you see ongoing strength from our U.S. business, despite rounds of play being down slightly due to unfavorable weather. The MEA was up 6% in the first half, reflecting gains in Titleist golf equipment, primarily golf balls, as well as golf gear. The region is benefiting from outsized growth in the UK, where rounds of play are up 20% through June. Revenues in Japan and Korea are off 4% and 3.5%, respectively. 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. We expect our business in these regions to stabilize in the back half of the year. In summary, golf industry fundamentals are in good shape and we are pleased with our new product pipelines and the overall health of our business as we look to the future. As always, we appreciate the good work of our associates and supportive partners. And while Acushnet is not immune to macro uncertainties, we are confident in our ability to effectively manage all that is in our control as we seek to deliver the highest quality products and services to dedicated golfers and in turn grow, invest in our future, and return capital to shareholders. Thanks for your interest this morning. I will now pass the call over to Sean.