Acushnet Holdings Corp.

If you would like to ask a question during the Q&A session, please press star 1 on your telephone keypad. If you would like to withdraw from the queue, please press star 2. I will now hand the floor to Sondra Lennon, Vice President, FP&A and Investor Relations. Please go ahead.

Good morning, everyone. Thank you for joining us today for a Cushnet Holding Corp's third quarter 2025 earnings conference call. Stephanie Falkers, Joining me this morning are David mar our President and chief executive officer and Sean Sullivan our chief financial officer. Stephanie Falkers, Before I turn the call over to David, I would like to remind everyone that we will make forward looking statements on the call today. Stephanie Falkers, These forward looking statements are based on a cushion current expectations and are subject to uncertainty and changes and 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 U.S. 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 nine-month period ended September 30th, 2025, and the comparable nine-month period in 2024. With that, I'll turn the call over to David.

Good morning, everyone, and thanks to Sandra, who last month started her 28th year with our company. As always, we appreciate your interest in Acushnet Holdings. As the golf world exits peak season in many regions and begins primetime across the Sun Belt, the sport and business of golf continue to be vibrant, with an increased number of golfers playing an increased number of rounds globally. After a weather-induced slow start to the year in the U.S., rounds of play accelerated in the third quarter, which is the largest participation period of the year, and we now expect worldwide rounds in 2025 to match or exceed that. what was a record 2024. Cushman's trade partners are, by and large, healthy and investing to enhance their facilities and ultimately their value propositions to best meet the evolving preferences of tomorrow's golfers. The global golf market is structurally sound, with momentum in the U.S. and EMEA offsetting softness mainly from footwear and apparel across Japan and Korea. And within a CushNet, our team is relentlessly focused on exceeding dedicated golfer expectations, developing great products, burning the trust and endorsement of the Pyramid of Influence and our partners, and executing a wide range of fitting and golfer connection initiatives. Tying this together is the company's unwavering commitment to product quality, best exemplified by every Pro V1 golf ball, which passes more than 100 quality checks throughout the production process. As a result of this commitment, our return rate is one golf ball out of every 16 million Pro V1s produced. This operating model, Cushnet's blueprint for success, is continually refined and improved upon by our team as we strive to provide great products and services to golfers, execute our capital allocation strategy, and create shareholder value for our investors. With this as background, I now point to slide four and our third quarter and year-to-date results. First for the quarter, Acushnet delivered worldwide net sales of $658 million, a 5% constant currency increase over last year, with gains across all segments. Adjusted EBITDA of $119 million grew by 10%. Year-to-date, sales of $2.08 billion, were up 4%, and adjusted EBITDA of $401 million was up 2% compared to last year. Getting to our segment results, you see the continued global momentum within Titleist golf equipment, which has grown 5% in both the quarter and year-to-date. Key drivers have been the year-to-date growth of our Pro V1 franchise in all regions and the very successful launch of new Titleist T-Series irons, and limited edition Vokey SM10 wedges in Q3. We have spoken in recent years about the investments we have made to strengthen our golf equipment product development and enhance manufacturing capabilities. Our growth and momentum today are byproducts of these investments. The Kushnitz Golf Gear segment also had a strong quarter, posting a 13 percent gain and is up 8% year-to-date as our team brings a steady flow of compelling products to market and leverages our expanding custom capabilities and strengthening supply chain. Within GEAR, the company's travel brands have increased 20% year-to-date with especially strong growth from our links and kings and club glove brands. And our foot joy business continues to build momentum and delivered another positive quarter with revenues up 3%. FootJoy is benefiting from the success of our Premier and HyperFlex footwear models, fewer footwear closeouts, and steady glove growth. FJ's apparel business adds to the brand's story, showing resilience with quarterly and year-to-date gains. As we have discussed throughout the year, these trends are positively affecting FJ's market momentum and financial performance in 2025. And finally, net sales of products not allocated to a reportable segment were up nicely in the quarter, with continued momentum and double-digit growth from Schuss, led by outsized gains across their golf business. Now, looking at our business by region on slide 5, you see the U.S. market continues to be strong, up 6% with growth across all segments, led by Titleist Golf Equipment. EMEA posted a 14% gain in the quarter and is now up 8% year-to-date. Rounds of play are up high single digits as the region benefits from favorable weather comps versus last year. Korea was up 3% in the quarter with strength and Titleist golf equipment led by golf balls, while Japan was off 13% in the quarter and 7% year to date. And as you see, our revenues and rest of world were up 5% in the quarter and 3% year to date. In summary, we are pleased with Acushna's performance in the quarter and the overall health of our consumer. The company's product lines are in great shape. Inventory positions, both owned and at retail, are in line for this time of the year, and we are confident in our team's ability to execute against our strategies. Thanks for your attention this morning. I will now pass the call over to Sean.