Acushnet (GOLF) Q2 FY26 earnings call: guidance and Q&A

How much of the $82M Q2 golf club growth was due to the pulled-up launch, and how does this affect the rest of the business?

Management confirmed the launch timing significantly boosted Q2, leading to better-than-expected performance. They did not quantify the exact amount but noted the impact on Q4 comps would be more pronounced.

“Again, obviously, very pleased with north of 40% growth in the quarter, certainly a little better than we expected in terms of timing. And as we look into the back half, hopefully, with the guide we've provided, you can understand that at least for clubs, we'll see continued performance in Q3, but the more pronounced comp on clubs will be in Q4, given the accelerated timing if you're comping against the '24 GT launch.”

asked by Simeon Gutman · answered by Sean Sullivan

Clarify the sequencing of the year, especially H2 vs H1, given Q2 sales were much better than expected, implying Street modeling issues due to launch timing.

Management reiterated that the strong Q2 performance was due to the timing shift of the club launch, which was better than anticipated. The full-year outlook remains strong, and the H2 guidance reflects this shift, not a change in underlying business health.

“As we look at the back half of the year, again, we feel very good about the full year outlook in terms of 4.1% at the midpoint, almost 4% constant currency and how that converts. So very pleased. Again, we gave you as much as we thought we could at the time on the first quarter call relative to first half. So to your point, it's just a timing shift where I think the Street consensus had more of a club number in Q3 than what ultimately delivered in Q2 for us.”

asked by Simeon Gutman · answered by Sean Sullivan

Explain why the $38 million net IEEPA tariff refunds in Q2 is higher than the $30 million guided for the full year.

The $38 million was booked in Q2. The full-year net benefit is $30 million because the remaining $8 million will be offset by incremental incentive compensation expense, which will be ratably booked over the remaining 9-month period based on the updated EBITDA outlook. All refunds have been received.

“It's just a function of our updated outlook. If we take the $460 million at the midpoint in terms of EBITDA, our incentive plans are tied to adjusted EBITDA. So based on the new outlook for the year, expensing the incremental incentive comp over the 9-month period. So the $38 million reflects what was booked in Q2. The remaining $8 million that nets us to $30 million will flow through in the second half.”

asked by Mitchell Ingles · answered by Sean Sullivan

How would management characterize the channel inventory for GTS metals, and are they comfortable with it?

Management is comfortable with channel inventories, noting that much of their golf club business is custom fitting, which tends to keep inventories steady. Lead times are slightly longer due to high demand, but they are meeting at-once custom demand.

“So much of what we do in golf clubs nowadays is through custom fitting. And so the idea of channel inventories, they tend to run pretty steady state. The larger question that we think about often is our ability to meet at once's custom demand, which is in good shape. I will say lead times are a little bit longer than our typical lead times, but I think that's just a function of demand.”

asked by Mitchell Ingles · answered by David Maher

Provide perspective on FootJoy margins, where they've peaked/troughed, current status, and opportunities. Also, an update on international markets, especially Korea, and what's ahead.

FootJoy is seeing favorable mix shift towards premium products, improving margin trends despite tariff headwinds. Operating margin improved 100 bps YoY (170 bps normalized for refunds) in H1. International markets like Korea and Japan show strong equipment sales but continued softness in wearables. Europe's rounds are down YoY but up vs. normalized.

“On a reported basis, FootJoy's operating margin improved year-over-year by, I think, 100 basis points in the first half. If you normalize for the refunds and the net tariff refund, I think it actually improved by 170 basis points. So certainly pleased with the operating income margin profile of FootJoy and its improvement.”

asked by Randal Konik · answered by Sean Sullivan

Update on material costs relative to prior expectations and progress on CapEx spend for plant utilization, especially given high ball plant capacity.

Material costs (synthetic rubber, tungsten) have moderated slightly from 90 days ago, but distribution/freight costs remain elevated. The company is running at near full capacity in ball plants and is continuing capacity expansion, mainly in cast urethane, in Massachusetts and Thailand, with Wave 2 in flight.

“They've moderated a bit, Greg. I think we -- in terms of synthetic rubber, again, still slightly volatile in light of the oil markets. I think the cost of tungsten has moderated slightly. relative to where we were maybe 90 days ago. We continue to see slightly elevated distribution freight in, freight out, et cetera. So continuing to monitor, continuing to manage supply as best we can in light of the macro environment. So it's marginally better than maybe where it was 90 days ago, but still a lot of uncertainty.”

asked by Gregory Miller · answered by David Maher