Acushnet Holdings reported Q2 2025 worldwide net sales of $720 million, a 5% increase year-over-year, driven by strength in Golf Equipment and Gear segments.
Adjusted EBITDA for Q2 was $143 million, up $12 million from the prior year, reflecting a 9% year-over-year increase.
Capital expenditures for the first half were $25 million, with full-year guidance lowered to approximately $70 million from $85 million.
Effective tax rate improved to 19.9% in Q2 from 23.2% last year, driven by jurisdictional mix changes.
For the first half of 2025, net sales increased 3% to $1.42 billion, while adjusted EBITDA decreased 1% to $282 million, in line with expectations due to investments in innovation and technology.
Gross profit in Q2 was $354 million, up $21 million from 2024, with gross margin improving by 40 basis points to 49.2%.
Interest expense rose to $15 million in Q2, up $1 million due to increased borrowings.
Inventories increased 11% compared to Q2 2024, reflecting inventory build ahead of tariff deadlines and new product launches.
Returned $154 million to shareholders through $125 million in share repurchases and $29 million in dividends.
SG&A expenses increased by $14 million in Q2, including $6.4 million in restructuring costs related to a voluntary bridge to retirement program.
A significant recall affecting 4% of the Americas fleet, including high RPD segments like transit vans and mini vans, has negatively impacted vehicle sales and fleet management.
Despite challenges, the company maintains a target of at least $1 billion EBITDA in normalized years.
Gains on depreciation were smaller than the previous quarter and are expected to be minimal for the full year.
Pricing per day (RPD) has been challenged throughout the year, with volume stronger than pricing.
The quarter's financial results met expectations with consistent execution and minimal need for interpretation.
Used car gains have been impacted by tariffs causing delays in new model year vehicle deliveries, affecting fleet rotation and depreciation.
For Q3, the company expects 4-6% revenue growth and 19-21% adjusted EBITDA margin, with specific growth expectations for Viator, Tripadvisor, and TheFork.
Viator anticipates high single-digit revenue growth and a 16-18% EBITDA margin, with bookings improving sequentially in July.
The company remains confident about revenue reacceleration in Q4 despite tough comps, driven by healthy booking trends and ongoing product enhancements.
Dafinchi
