Acushnet Holdings Corp.

Hello and welcome to the Cushnet Company fourth quarter 2025 earnings call. My name is Josh and I will be the moderator for today's call. All lines will be muted during the presentation portions of the call with an opportunity for questions and answers at the end. At this time, I'd like to introduce your host, Mr. Cameron Walma, Director of Investor Relations. Cameron, you may proceed.

Good morning, everyone. Thank you for joining us today for a Cushnet Holding Corp's fourth quarter and full year 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 make 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 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're referring to the 12-month period ended December 31, 2025, and the comparable 12-month period in 2024. With that, I'll turn the call over to David.

Good morning, everyone. Cameron has been with our team for a while, and it is my pleasure to welcome him to his first quarterly earnings call. We appreciate your interest in Accushnet and look forward to sharing our 2025 results and future outlook today. As a starting point, we are pleased with our fourth quarter performance as our teams executed our year-end plans and did good work preparing for the 2026 season and several product launches. As Sean will outline, revenues were up 7% for the period, and we generated nice momentum in our operating segments. Turning to slide four, for the full year, Acushnet achieved net sales of $2.56 billion and adjusted EBITDA of $410 million in 2025, growth of 4% and 1.5% respectively. These results were made possible thanks to the talented and dedicated associates who make up Acushnet and our committed trade partners who are on the front lines wherever golf is played. There are several highlights within these operating results led by the Titleist golf equipment segment, which grew 6% on the year as investments in product development, precision manufacturing, and fitting paid dividends across our golf ball and golf club businesses. As you will note from our revenue growth, the company is benefiting from recent capacity expansion projects, which will continue with a focus on cast urethane golf ball production and custom golf club assembly. In 2025, new Pro V1 posted gains across all regions, contributing to a 4% increase in golf ball net sales on the year, with EMEA, Japan, and the U.S. our fastest growing markets. We are pleased with increasing demand for our AIM, or alignment integrated marking golf balls, and operationally, we continue to benefit from the expansion of our automated custom imprinting capabilities, which is driving efficiencies and reducing lead times. Within equipment, 2025 was a strong year for Titleist Golf Clubs, which grew more than 7% led by the successful launch of new T-Series irons and steady growth in metals and Scotty Cameron putters. Our Vokey Wedge franchise also posted strong results in year two of the SM-TEM product cycle. Ongoing investments in product development and our global club fitting network frame how we characterize the Titleist Golf Club opportunity. A CUSHNESS GEAR BUSINESS INCREASED 6% ON THE YEAR WITH ESPECIALLY STRONG INCREASES BY TIDELESS GEAR IN EMEA AND THE U.S. AND GROWING MOMENTUM FOR CLUB GLOVE TRAVEL PRODUCTS. NOW MOVING TO FOOTJOY, WE ARE PLEASED WITH THE DIRECTION THIS BUSINESS HAS POINTED. SALES WERE DOWN 1%, MAINLY DUE TO REDUCED DISCOUNTED SALES VERSUS LAST YEAR. ON THE STRENGTH OF PRODUCTS LIKE PREMIER AND HYPERFLEX, WE ARE SEEING A FAVORABLE MIX SHIFT TOWARDS OUR PREMIUM. high-performance footwear franchises, and the FJ Mobile Fit Lab program is delivering a value-added fitting experience which helps golfers select the best footwear performance and comfort option for their games. And growth in gloves and apparel added to Foot Choice momentum and improved profitability for the year. Rounding out our portfolio, we continue to generate strong growth, with our shoes brand up 9% on the year, led by double-digit gains in the U.S. Titleist Apparel also delivered a promising year, led by growth in China and our business in Korea. As to Acushnet's regional performances, the full-year 2025 results affirm our previous commentary about the Titleist equipment segment, posting gains in all major regions, led by the U.S. and EMEA, and softer conditions in Japan and Korea, where our equipment gains have been offset by declines in the correcting apparel and footwear categories. A cushioned strong financial performance in 2025 supported ongoing investment across our business and the company's commitment to returning capital to shareholders. For the year, dividend and share repurchases totaled $268 million, bringing our total return over the past four years to more than $1.1 billion. And furthering the Cushnet's commitment to our shareholders, I am pleased to announce that our Board of Directors has approved an 8.5% increase to our quarterly dividend payout in 2026 to 25.5 cents per share. This marks the ninth consecutive annual dividend increase since the program was initiated in 2017. These actions reflect the board's confidence in Accushion's ability to execute and their positive outlook towards the company's leading positions within the structurally healthy golf industry. As you will note, the company remains focused on investing to position the company for future growth while also returning capital to shareholders as appropriate. Now looking ahead, we start by pointing to the game's global momentum with worldwide rounds projected to have increased about 2% in 2025 with growth in the MEA, the U.S., and Japan, and a flat year in Korea. In the U.S., our largest market, the number of golfers again increased, contributing to this rounds-of-play momentum. The global golf industry, as defined by golf courses, teaching centers, and golf retailers, continues to be healthy with strong financials supporting ongoing investments as the industry adapts to meet ever-evolving golfer preferences. Within Acushtit, we are enthused by our new product pipelines and sustaining momentum our brands carry into 2026. As is customary in even-numbered years, we successfully launched a comprehensive lineup of new Titleist golf balls in this first quarter, including Pro V1X Left Dash and new AVX Toursoft and Velocity models. It's also a busy year for Titleist golf clubs with new Vokey SM11 wedges and a new lineup of Scotty Cameron Mallet putters launching in Q1. Both products debuted on worldwide tours earlier this year and initial responses have met our very high expectations. Plans are well underway for our new driver launch in late June earlier than our customary Q3 timing. Titleist drivers are number one on the PGA Tour. and we are enthused by the great work from our product development and operations teams to provide added flexibility around launch timing. We will share more details about this product on our May call. One of our key narratives in recent years has been our focused investments in golf equipment R&D, operational efficiencies, and capacity expansion, and point to these investments as drivers to our recent growth and confidence in our ability to deliver enhanced innovation, product development, and best-in-class golfer experiences, core attributes to the long-term success of Titleist golf equipment. A Cushton's gear business is well-positioned, coming off a strong 2025, and we are planning for growth led by gains in the U.S. and the MEA. Within gear, we pursue exceptional performance and quality, to differentiate our products with discerning core golfers. The FJ brand continues to move forward in 2026 as we leverage high performance Premier and Pro SL franchises to strengthen our position as the number one shoe in golf. And we continually evolve our outerwear and apparel offerings with a focus on our premium segments as we position FJ for the future and manage near-term tariff headwinds. As to our investments in 2026, in support of Acushnet's priorities and our longer-term growth opportunities, we will prioritize strategic capacity expansion and the build-out of our global fitting networks for golf equipment and footwear, expand our B2B and D2C capabilities to new regions, and invest in the future of the Titleist Performance Institute, where demand for TPI's golf-specific health, fitness, and swing expertise is outpacing our available capacity. Collectively, we expect these investments will support our future growth plans and enable operating leverage over the long term. In summary, we are optimistic about the structural health of the golf industry and are focused on expanding our momentum in the Titleist Golf equipment segment, strengthening our gear and FJ wearables business, and investing in key initiatives that we believe will pay dividends over the next several years. I have confidence in the Accushnet team and their ability to provide dedicated golfers with leading products and services as we seek to build long-term value for shareholders. Thanks for your attention this morning. I will now pass the call over to Sean.