Acushnet Q2 Earnings Call Highlights

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Acushnet (NYSE:GOLF) reported higher second-quarter sales and adjusted EBITDA, citing continued momentum in Titleist golf equipment, an accelerated launch of its GTS metals line and a benefit from tariff refunds. The company also raised its full-year outlook, though it expects second-half comparisons to be affected by the timing of golf-club shipments and preparation for a 2027 Pro V1 launch.

Worldwide net sales rose 14% year over year to $820 million in the second quarter, while adjusted EBITDA increased 46% to $209 million. For the first six months of 2026, sales increased 10% to $1.57 billion and adjusted EBITDA rose 25% to $353 million, the company said.

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Chief Financial Officer Sean Sullivan said second-quarter adjusted EBITDA included approximately $38 million in net refunds related to IEEPA tariffs, after accounting for the impact on incentive compensation. Excluding the net refund benefit, first-half adjusted EBITDA increased 12%, ahead of the company’s expectations for high-single-digit growth in sales and EBITDA during the period.

Golf Equipment Drives Growth

President and Chief Executive Officer David Maher said Titleist Golf Equipment remained the primary growth driver. The segment grew 14% in the first half, with golf clubs up 43% in the second quarter and 24% for the first half.

The growth was led by the launch of the GTS line of metals, which Acushnet moved from a planned third-quarter launch into the seasonally stronger second quarter. Maher said the shift required changes to product-development, supply-chain and assembly timelines. New Vokey Design SM11 wedges and Titleist irons also contributed to first-half growth.

Titleist golf-ball revenue rose 6% in the first half, led by Pro V1 sales despite what Maher described as a challenging comparison with the prior-year product launch. He said Titleist golf balls had recorded 22 PGA Tour wins to date, 18 more than the nearest competitor.

Golf Gear sales increased 6% in the first half, led by double-digit gains in Titleist gloves, bags and the Club Glove travel brand. FootJoy sales rose 3% in the second quarter and 1% in the first half, supported by footwear demand. Maher said the FootJoy business has been shifting toward premium-performance footwear franchises including Premiere, HyperFlex and Pro/SL, as well as a more premium apparel mix.

Sullivan said FootJoy’s reported operating margin improved by about 100 basis points year over year in the first half. Normalizing for tariff refunds, he said the improvement was about 170 basis points.

Regional Results and Industry Conditions

All regions posted constant-currency growth in the second quarter and first half. U.S. sales rose 15% in the quarter, while sales in Europe, the Middle East and Africa increased 12%. Japan sales rose 31%, Korea sales increased 7%, and rest-of-world sales grew 15%, led by Australia, New Zealand, Southeast Asia and China.

Maher said first-half rounds played were projected to increase by low single digits globally. He cited growth in the U.S., Japan and Korea, partly offset by modest declines in Europe following a weather-driven increase in European rounds during 2025.

In the U.S., rounds played were up 4% year to date, Maher said. He noted that all eight regions tracked by the National Golf Foundation showed growth, while public-course play was growing faster than private-course activity. Japan and Korea continued to show strength in golf equipment, though wearables such as apparel, footwear and gear remained softer, particularly in Asia.

Margins, Investments and Capital Returns

Second-quarter gross profit rose $92 million to $446 million, and gross margin increased 520 basis points to 54.4%. The increase reflected a portion of the tariff-refund benefit, higher Titleist Golf Equipment volumes and higher average selling prices, partly offset by approximately $11 million in incremental tariff expense compared with the prior year.

First-half gross margin was 50.9%, up 230 basis points. Excluding the net tariff-refund benefit, first-half gross margin was 48.1%, down 50 basis points from a year earlier. Acushnet incurred approximately $29 million more in tariff expense in the first half than in the comparable 2025 period.

Second-quarter selling, general and administrative expense rose $24 million to $246 million as the company invested in its fitting network, information-technology systems and advertising and promotion around product launches. Capital expenditures totaled $37 million in the first half, up $12 million from a year earlier, including investments in golf-ball manufacturing capacity and club assembly.

Maher said the company’s ball plants are operating near full capacity, but capacity is not currently a constraint. Acushnet has been expanding cast-urethane capacity in Massachusetts and Thailand, with additional expansion expected over the next one to two years. He said new production lines can take 12 to 18 months to become operational.

Through June, Acushnet returned approximately $57 million to shareholders, including $31 million in cash dividends and $26 million in repurchases. The board declared a quarterly dividend of $0.255 per share, payable Sept. 18 to shareholders of record Sept. 4.

Outlook Raised, but Second Half Faces Timing Effects

Acushnet raised its 2026 sales outlook to a range of $2.65 billion to $2.675 billion, representing 4.1% growth at the midpoint. On a constant-currency basis, the company expects sales growth of 3.4% to 4.3%.

The company now expects adjusted EBITDA of $450 million to $470 million for the full year, including an estimated $30 million net benefit from IEEPA tariff refunds. It expects about $54 million of tariff expense for 2026, down from its prior estimate of $70 million, though Sullivan said the benefit is expected to be largely offset by higher product and freight costs, including synthetic-rubber and tungsten costs.

Acushnet expects second-half sales to decline by low single digits and adjusted EBITDA to fall compared with the second half of 2025. The company said the impact will be more pronounced in the fourth quarter because a meaningful amount of GTS club sales and earnings shifted into the second quarter. Sullivan said that, aside from the launch timing, the company’s underlying outlook for its other businesses remained largely unchanged.

About Acushnet (NYSE:GOLF)

Acushnet Holdings Corp., traded on the NYSE under the symbol GOLF, is a leading designer, manufacturer and marketer of golf equipment, footwear, apparel and accessories. The company's portfolio encompasses a range of golf lifestyle products, with a focus on innovation, performance and quality for players of all skill levels.

At the core of Acushnet's product lineup is the Titleist brand, globally recognized for its Tour-level golf balls and precision-engineered clubs. FootJoy offers golf shoes, gloves and apparel that blend comfort, style and technical performance, while Scotty Cameron putters and Vokey design wedges cater to players seeking exacting standards in feel and accuracy.

This instant news alert was generated by narrative science technology and financial data from MarketBeat in order to provide readers with the fastest reporting and unbiased coverage. Please send any questions or comments about this story to [email protected].

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