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    GOLF
    Earnings call· Jun 2026(Q2 FY26)

    Acushnet Holdings Q2 FY26 earnings call GOLF

    Aug 6, 2026 Source

    Executive summary

    Acushnet Q2 FY26 — Strong Equipment Sales and Tariff Refunds Drive Earnings Beat

    Acushnet delivered a strong second quarter, driven by robust Titleist Golf Equipment sales, particularly from the accelerated GTS metals launch, and a significant benefit from tariff refunds. While industry fundamentals remain healthy with growing golf participation, the company anticipates a challenging second half due to the timing shift of product launches and continued softness in international wearables. Management is focused on strategic investments and disciplined capital allocation.

    Highlights

    5

    • Worldwide net sales increased 14% to $820 million in Q2 FY26, driven by Titleist Golf Equipment, FootJoy, and Golf Gear.

    • Adjusted EBITDA increased 46% in Q2 FY26, reaching $209 million, significantly benefiting from $38 million in IEEPA tariff refunds.

    • Titleist Golf Equipment sales grew 14% in H1 FY26, with Golf Club sales up 43% in Q2 and 24% in H1, led by the successful, accelerated GTS metals launch.

    • First half net sales of $1.57 billion are up 10% over last year, with growth across all segments and regions.

    • Net leverage ratio improved to slightly below 2x at Q2 end, lower than the 2.3x in Q1 and below the stated target of 2.25x.

    Concerns

    4

    • Second half net sales are expected to be down low single digits and adjusted EBITDA to decline compared to H2 FY25, primarily due to the timing shift of the GTS metals launch into Q2.

    • Softness in wearables (apparel, footwear, gear) in Japan and Korea continues to be a challenge, offsetting some growth.

    • Incremental tariff expense of approximately $11 million in Q2 FY26 versus prior year, and $29 million more in H1 FY26.

    • Expected full-year SG&A growth, excluding incremental ERP expenses, to be generally in line with sales growth, partly due to investments in fitting network, IT systems, and A&P.

    Guidance & targets

    7
    CategoryTargetConfidence
    Full year net sales
    $2.65B to $2.675B
    high materiality
    High
    Full year adjusted EBITDA
    $450M to $470M
    high materiality
    High
    Full year SG&A growth (excluding incremental ERP expenses)
    generally in line with sales growth
    medium materiality
    Medium
    Full year tariff expense
    $54M
    medium materiality
    High
    Second half net sales
    down low single digits
    high materiality
    High
    Second half adjusted EBITDA
    decline
    high materiality
    High
    Full year free cash flow conversion
    roughly 40% to 50%
    medium materiality
    High

    Segment performance

    10
    SegmentRevenueYoYQoQMargin
    Worldwide Net Sales
    Q2 FY26 net sales on a constant currency basis. First half net sales of $1.57 billion, up 10% YoY constant currency.
    		$820M+14%——
    Titleist Golf Equipment
    H1 FY26 growth. Golf Club growth led by successful launch of new GTS line of metals, Vokey SM11 wedges, and Titleist irons. Golf Ball growth led by Pro V1.
    Golf Club H1 Growth: +24% YoYGolf Club Q2 Growth: +43% YoYTitleist Golf Balls H1 Growth: +6% YoY
    		—+14%——
    Acushnet's Golf Gear
    H1 FY26 growth, led by double-digit gains in Titleist gloves, bags, and Club Glove travel brand.
    		—+6%——
    FootJoy
    Q2 FY26 growth, led by strong footwear sales. H1 growth was +1%. Underlying fundamentals strengthening with increased focus on premium performance franchises (Premier, HyperFlex, Pro SL) and similar trends in apparel, helping to offset softness in Japan and Korea.
    		—+3%—Operating margin improved 100 bps YoY (reported), 170 bps YoY (normalized for refunds/tariffs) in H1
    Products not allocated to a reportable segment
    Continued momentum and growth from shoes in the U.S. and GB&I.
    		—Up——
    U.S.
    Q2 FY26 sales on a constant currency basis, driven by growth in Titleist Golf Equipment and benefits from healthy rounds of play and strong engagement from core dedicated golfer base.
    		—+15%——
    EMEA
    Q2 FY26 sales on a constant currency basis, reflecting growth in Titleist Golf Equipment and golf gear.
    		—+12%——
    Japan
    Q2 FY26 sales on a constant currency basis, driven by Titleist Golf Equipment, notably golf clubs and continued strength in golf balls.
    		—+31%——
    Korea
    Q2 FY26 sales on a constant currency basis, driven by Golf Equipment and the accelerated GTS metals launch and double-digit footwear gains.
    		—+7%——
    Rest of World
    Q2 FY26 sales on a constant currency basis, led by outsized growth in Australia, New Zealand, Southeast Asia, and China.
    		—+15%——

    Operational metrics

    16
    Adjusted EBITDA
    $209M+46% YoY
    Q2 FY26

    Includes $38 million IEEPA tariff refund benefit in Q2. H1 ex-refund benefit was ahead of expectations of high single-digit growth.

    IEEPA tariff refunds (net benefit to adjusted EBITDA)
    $38M
    Q2 FY26

    All tariff refunds have been received. The full-year net benefit is lower due to incremental incentive compensation expense booked over the remaining 9-month period.

    Gross profit
    $446MUp $92M YoY
    Q2 FY26

    Increase reflected portion of net IEEPA tariff refund, higher sales volumes, and average selling prices in Titleist Golf Equipment, partially offset by incremental tariff expense.

    Incremental tariff expense
    $11Mvs prior year
    Q2 FY26

    Partially offset gross profit increase.

    SG&A expense
    $246MIncreased $24M YoY
    Q2 FY26

    Due to investments in fitting network, IT systems, A&P to support new product launches and future growth, and higher incentive compensation expense related to tariff refunds.

    Interest expense
    $12MDown $3M YoY
    Q2 FY26

    Due to decrease in interest rates and interest income on tariff refunds, partially offset by increase in borrowings.

    Effective tax rate
    23.6%Up from 19.9% YoY
    Q2 FY26

    Primarily driven by changes in jurisdictional mix of earnings and reduced income tax benefit related to U.S. deduction on foreign-derived intangible income.

    Net leverage ratio
    Slightly below 2xLower than 2.3x in Q1
    Q2 FY26

    Using average trailing net debt.

    Capital expenditures
    $37MUp $12M YoY
    H1 FY26

    Strategic investments in additional golf ball manufacturing capacity and increased club assembly.

    Cash dividends
    $31M
    H1 FY26

    Part of $57M returned to shareholders.

    Quarterly cash dividend per share
    $0.255
    Q3 FY26

    Declared by Board of Directors, payable on September 18 to shareholders of record on September 4, 2026.

    Rounds of play
    up low single digits
    H1 FY26

    Growth in U.S., Japan, and Korea, offset by modest declines in Europe. U.S. public play up at greater rate than private play. All 8 U.S. regions up year-to-date.

    Cost of public play
    $47up ~4% YoY
    YTD

    Average cost per round, still considered affordable.

    Material costs (synthetic rubber, tungsten)
    moderated slightlyvs 90 days ago
    Q2 FY26

    Still slightly volatile for synthetic rubber. Distribution and freight costs remain elevated.

    Golf ball manufacturing capacity
    —
    Current

    Running at near full capacity. Continued expansion mainly within cast urethane in Massachusetts and Thailand ball plants over the next year or two. Wave 1 expansion completed, Wave 2 in flight. Not seen as a constraint today.

    PGA Tour wins (Titleist golf balls)
    2218 more than nearest competitor
    YTD

    Pyramid of influence validation and success fuels golf ball momentum.

    Industry KPIs

    6
    MetricValueDetails
    Revenue$820MUSD
    InventoryFlatYoY
    Gross margin54.4%%
    Adjusted EBITDA ebita$209MUSD
    Tariff impact mitigation$38MUSD
    Share buyback capital return$26MUSD

    Product announcements

    2
    ProductTypeDetails
    GTS Line of Metalslaunch
    Pro V1 Golf Ballsroadmap

    Risks & headwinds

    5
    Timing Shift of GTS Metals LaunchSecond half of FY26, especially Q4

    Second half net sales down low single digits; adjusted EBITDA to decline compared to H2 FY25, more pronounced in Q4.

    Mitigation: Management has provided updated guidance reflecting this shift.

    Softness in Wearables (Japan and Korea)Ongoing in FY26

    Not explicitly quantified in dollars, but noted as 'softness' and 'challenges' in apparel, footwear, and gear.

    Mitigation: FootJoy's focus on premium performance franchises and favorable product mix shift.

    Incremental Tariff ExpenseQ2 and H1 FY26

    $11M more in Q2 FY26 vs prior year; $29M more in H1 FY26 vs prior year.

    Mitigation: IEEPA tariff refunds partially offset this; full-year tariff expense expected to be $54M, $16M lower than original estimate.

    Elevated Product and Freight CostsOngoing

    Higher product costs and freight costs, primarily driven by energy-related supplier cost increases (synthetic rubber, tungsten).

    Mitigation: Material costs have moderated slightly, but distribution/freight costs remain elevated; management continues to monitor and manage supply.

    ERP Implementation ExpensesFull year FY26

    SG&A growth, excluding incremental ERP expenses, expected to be generally in line with sales growth.

    Mitigation: Strategic investment for future growth; management expects SG&A growth to be in line with sales growth excluding these expenses.

    What to watch in Q3 FY26

    5

    Second Half Net Sales Performance

    Next quarter (Q3 FY26 results)
    CurrentQ2 net sales up 14% YoY
    TargetDown low single digits in H2 FY26

    Why it matters

    Verifies the impact of the accelerated GTS metals launch on H2 sales and the accuracy of management's revised outlook.

    As a result, we expect second half net sales to be down low single digits and adjusted EBITDA to decline when compared to second half of 2025 with the impact more pronounced in the fourth quarter.

    Q&A highlights

    6

    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

    2 min read6 chapters

    Detailed Narrative

    01

    Strong Q2 Performance Driven by Equipment and Tariff Refunds

    Acushnet reported worldwide net sales of $820 million in Q2 FY26, a 14% increase year-over-year, and first-half net sales of $1.57 billion, up 10%. This growth was primarily fueled by the Titleist Golf Equipment segment, particularly the successful and accelerated launch of the new GTS line of metals. Adjusted EBITDA saw a significant boost, increasing 46% in Q2 to $209 million, largely due to a $38 million benefit from IEEPA tariff refunds.

    02

    Strategic Product Launches and Pipeline

    The company successfully accelerated the launch of its GTS metals line from Q3 to Q2, capitalizing on the seasonal peak and driving Golf Club sales up 43% in the quarter. This strategic timing, while beneficial for Q2, will create tougher year-over-year comparisons in the second half. Additionally, Titleist golf balls posted strong 6% revenue growth in H1, and the company is preparing for the 2027 Pro V1 launch, which will involve inventory build-up in the latter half of 2026.

    03

    Regional Performance and Wearables Softness

    All regions showed constant currency growth in Q2 and H1, with U.S. sales up 15% in Q2, EMEA up 12%, Japan up 31%, Korea up 7%, and Rest of World up 15%. However, the company continues to face softness in wearables (apparel, footwear, gear) across Japan and Korea, which partially offsets strong equipment sales in these markets. Management noted that the Korean apparel market, historically outsized, has been correcting.

    04

    Investments in Capacity and Technology

    Acushnet is making strategic investments to strengthen its future capabilities, focusing on expanding golf ball manufacturing and golf club assembly capacity, enhancing customization and automation, and upgrading global technology platforms. Capital expenditures were $37 million in H1 FY26, up $12 million from last year, reflecting these ongoing investments.

    05

    Industry Fundamentals and Consumer Health

    The golf industry remains healthy, with first-half rounds of play projected to be up low single digits globally, including a 4% increase in the U.S. The National Golf Foundation reports growth across all eight U.S. regions and a greater rate of increase in public play, indicating broad-based health. The average cost of public play in the U.S. is up about 4% to $47 per round, still considered affordable.

    06

    Capital Allocation and Financial Strength

    The company maintains a disciplined capital allocation strategy, prioritizing investments in the business and returning capital to shareholders. Net leverage improved to slightly below 2x, below the target of 2.25x. In the first half, $57 million was returned to shareholders through $31 million in cash dividends and $26 million in share repurchases. The Board declared a quarterly dividend of $0.255 per share.

    AI-generated summary of the company’s earnings call. Not investment advice.