Acushnet Company (GOLF) Q2 2026 Earnings Call Summary

1Key Financial Results and Metrics

Net Sales: $820 million for Q2 2026, a 14% increase year-over-year; first half net sales reached $1.57 billion, up 10%.

Adjusted EBITDA: $209 million in Q2, up 46% from the previous year; first half adjusted EBITDA totaled $353 million, a 25% increase.

Gross Profit: $446 million in Q2, reflecting a gross margin of 54.4%, up 520 basis points year-over-year; first half gross margin was 50.9%, up 230 basis points.

Tariff Refunds: Q2 results included a $38 million benefit from IEEPA tariff refunds, with a full-year expectation of $30 million.

Cash Flow: First half cash flow from operations increased by $76 million compared to the same period in 2025.

2Strategic Updates and Business Highlights

Product Performance: Titleist Golf Equipment grew 14% in the first half, with golf clubs up 43% in Q2 driven by the successful GTS line launch. Titleist golf balls saw a 6% revenue increase.

Regional Growth: All regions reported growth on a constant currency basis, with notable increases in the U.S. (15%), Japan (31%), and Rest of World (15%).

Investments: Continued investments in golf ball manufacturing, club assembly capacity, and enhanced technology platforms to support future growth.

Focus on Custom Fitting: Emphasis on custom fitting to meet consumer demand, particularly in golf clubs.

3Forward Guidance and Outlook

Full-Year Sales Projection: Raised to $2.65 billion to $2.675 billion, reflecting a 4.1% increase at the midpoint; adjusted EBITDA expected between $450 million to $470 million.

Second Half Expectations: Anticipate low single-digit decline in net sales and adjusted EBITDA compared to the second half of 2025 due to the timing shift of the GTS launch.

4Bad News, Challenges, or Points of Concern

Comparative Sales Challenges: The timing shift of the GTS launch into Q2 creates a challenging comparison for the second half, particularly in Q4.

Softness in Wearables: Notable softness in wearables and apparel, especially in Asia, which could impact overall segment performance.

Tariff Expenses: Increased tariff expenses anticipated, with a projected $54 million for 2026, $16 million lower than previous estimates, but still a concern for margins.

5Notable Q&A Insights

Launch Timing Impact: The significant growth in golf clubs was partly attributed to the accelerated GTS launch, which shifted expected sales from Q3 to Q2.

Channel Inventory: Management expressed confidence in channel inventory levels, noting that custom fitting efforts are well-aligned with current demand.

Material Costs: Some moderation in material costs was noted, particularly for synthetic rubber and tungsten, but uncertainty remains in the macro environment.

International Market Dynamics: While equipment sales are strong, challenges persist in wearables and apparel, particularly in Korea and Japan, where the apparel market has been correcting. Overall, Acushnet reported strong financial performance in Q2 2026, driven by robust sales in golf equipment, while also navigating challenges related to product timing and softness in certain segments. The company remains optimistic about its strategic investments and the overall health of the golf industry.