What Management Said
Read the full Q1 2026 transcript ↗Throughout this discussion, we will make reference to non-GAAP financial measures, including items such as net sales on a constant currency basis and adjusted EBITDA. Acushnet delivered worldwide net sales of $753 million, a 5% constant currency increase over last year. Adjusted EBITDA was $145 million in the first quarter, an increase of $6 million year-over-year. Titleist golf clubs also delivered a strong first quarter, led by the successful launch of new Vokey SM11 wedges and healthy demand for GT drivers and fairway metals in their second year.
The Titleist equipment segment continues to benefit from our ongoing work at the Titleist Performance Institute. Our FootJoy segment is off to a good start as we operate an increasingly productive business with greater focus on premium franchises and fewer offerings at lower price points. In the quarter, net sales of products not allocated to a reportable segment were up slightly, with continued momentum and growth from KJUS' U.S. EMEA was up 8%, reflecting gains from all reportable segments led by double-digit growth from Titleist equipment and gear as we continue to generate nice momentum across the region.
As highlighted, we started 2026 with an increase in net sales of 5% over last year's first quarter. Adjusted EBITDA was $144.6 million, an increase of 4% from the first quarter of 2025. Net sales growth in the quarter was driven by continued momentum of our Titleist brand, with golf equipment growing 7% and golf gear growing 8%, while FootJoy net sales declined 1% in the quarter. Gross margin was 47.2% in the quarter, down 70 basis points from last year, primarily due to the tariff cost headwind of 220 basis points just mentioned.
What went well
- Worldwide net sales of $753 million, up 5% on a constant currency basis, characterized as a strong 'product selling quarter'
- Adjusted EBITDA of $144.6 million, up $6 million (about 4%) year-over-year
- Titleist golf equipment sales up 7%, with golf ball volumes increasing in ALL regions despite comping an even-year, non-Pro V1 launch calendar (successful launches of Pro V1x Left Dash, AVX, Tour Soft, Velocity balls and Vokey SM11 wedges)
- Golf gear up 8%, driven by higher golf bag volumes and double-digit gains in the U.S. and EMEA
- Strong regional breadth: U.S. +5% (rounds of play +5% through March, Sun Belt-led), EMEA +8%, Japan +6%, rest of world +9%
- Returned roughly $26 million to shareholders ($16M dividends + $10M buybacks); declared $0.255 quarterly dividend; $231 million remaining on repurchase authorization
What went wrong
- Gross margin fell 70 basis points to 47.2%, driven by a 220 bps tariff cost headwind ($17 million higher tariff costs year-over-year)
- FootJoy net sales declined 1% in the quarter (profitability still burdened by incremental tariffs, though on internal plan)
- Korea net sales off 7% due to a golf club launch calendar timing difference versus other regions
- SG&A expense rose $13 million to $214 million on higher selling costs, fitting-network expansion, IT and A&P for new launches; effective tax rate jumped to 22.9% from 17.9%
- Free cash flow down $31 million versus prior year and total inventories up 7%, both tied to building golf-equipment inventory for the accelerated GTS metals launch
Guidance Changes
| Metric | Period | Current guidance |
|---|---|---|
| FY2026 net sales | FY2026 | $2,625M-$2,675M (maintained) |
| FY2026 adjusted EBITDA | FY2026 | $415M-$435M (maintained; excludes any potential IEEPA tariff refunds) |
| First-half net sales & adjusted EBITDA calendarization | 1H2026 | now expected closer to the high end of that range, reflecting Q1 results |
| Tariff impact | FY2026 | reaffirmed $70M full-year / $40M YoY incremental (hopeful for offset if tariffs come in lower) |
| Capital expenditures | FY2026 | approximately $95 million |
| Free cash flow | FY2026 | expected to meaningfully improve versus 2025, mainly in the second half |
Performance Breakdown
| Metric | YoY | Note |
|---|---|---|
| Consolidated net sales | +5% constant currency ($753 million) | Titleist golf equipment and golf gear strength; broad-based new product launches |
| Titleist golf equipment (balls + clubs) | +7% | Golf ball volumes up in all regions (Pro V1x Left Dash, AVX, Tour Soft, Velocity) plus successful Vokey SM11 wedges and healthy second-year GT driver/fairway demand |
| Golf gear | +8% | Higher golf bag sales volumes and double-digit gains in the U.S. and EMEA |
| FootJoy | -1% | Deliberate shift toward premium franchises/fewer low-price offerings; new Pro/SL and Premiere shoes and spring apparel well received |
| Net sales not allocated to a reportable segment | up slightly | KJUS U.S. golf momentum and modest Titleist apparel gains in Asia |
| Regional net sales (constant currency) | U.S. +5%, EMEA +8%, Japan +6%, Korea -7%, rest of world +9% | U.S./EMEA led by Titleist equipment and gear; Japan led by equipment; Korea down on club launch timing; rest of world up across all segments |
| Gross profit / gross margin | Gross profit $355M, up $18M; gross margin 47.2%, down 70 bps | Higher net sales partially offset by $17M higher tariff costs (220 bps headwind) |
| Adjusted EBITDA | +4% (+$6M) to $144.6 million | Higher net sales and product-development/supply-chain synergies, partly offset by tariffs and SG&A investment |
| Net leverage ratio | 2.3x (average trailing net debt at quarter-end) | Seasonal build; target remains at or below 2.25x on average |
Earnings Call Themes & Trends
| Topic | Previous mention | Current period | Trend |
|---|---|---|---|
| GTS driver/fairway launch cadence shift (Q3 to Q2) | Historical Q3 launch window | Accelerated to June 11 global launch to hit the May-June-July peak selling window; running a couple months ahead of schedule with strong tour adoption; expected to be accretive to the full year (more months of driver sales in 2026) | — |
| Golf ball portfolio depth / participation | Even years typically down slightly versus Pro V1 odd years | Bucked the even-year trend again with volume growth in all regions; broader diversified lineup (AIM alignment customization, performance models) plus rounds-of-play growth; global rounds up low-single-digits, U.S. +5%, Korea rounds +10% | — |
| Tariffs and input-cost management | $70M full-year / $40M YoY incremental headwind guide | Reaffirmed; $17M hit and 220 bps margin drag in Q1; hopeful tariffs land lower with some offset from raw-material/freight costs; guide excludes any IEEPA refunds | — |
| Capital investment for long-term operating leverage | Multi-year investment phase (capacity, fitting network, ERP/DTC technology) | CapEx at a ~$95M high-water mark in 2026, expected to moderate toward a ~$70M run rate in the next few years; more than half funding golf ball and club-assembly capacity; management expects operating leverage over the long term | — |
| International markets (Japan / Korea) | Multi-year investment in Japan; wearables repositioning | Japan +6% on equipment momentum (lowest fit-club penetration in the world = runway) with a conservative wearables stance; Korea -7% on club launch timing expected to normalize in coming months | — |
Q&A Summary
On the shape of the year: with tariff uncertainty and modest EBITDA margin expansion ahead, does it feel like more upward than downward pressure, especially in the back half as tariffs lap?
Sullivan called it a reasonable view; pleased with Q1 and guiding Q2 to the high end. But stressed balance and discipline: still a Section 122 tariff headwind in Q2, plus oil-linked raw-material, club-material and freight costs. Any tariff relief versus the $70M assumption, and any refunds, would be upside not yet in the outlook.
On the GTS driver launch in a more competitive release year, how does early tour success translate given timing/sell-in/sell-through?
Maher: moving from a typical Q3 launch to Q2 is meaningful and they're a couple months ahead of historical schedule. Very enthused about the product with strong early tour adoption/validation; fitting starts next week, in-market mid-June. Key differentiator is launching into the peak May-June-July window rather than the less-than-peak Q3; competition is nothing new.
On participation/engagement of the dedicated golfer and any macro or pricing pushback across regions?
Maher: pleased with the game's durability and resilience. U.S. rounds up 5% (CA/AZ/TX/FL), Korea rounds up 10%, Japan flat to down slightly, U.K. down (winter quarter off an outlier weather year). Global rounds up low-single-digits. Watching consumer spending amid macro/oil pressures but tracking right where they'd like to be; five-to-seven years into industry growth.
With EBITDA dollar growth roughly in line with sales, what drives EBITDA margin expansion over the multi-year horizon?
Sullivan: currently in a heavy investment phase (golf ball/club capacity, fitting network, ERP and DTC technology). Won't give a multi-year outlook, but sees clear operating leverage over the long term as those investments are realized; considers current EBITDA growth and margins very healthy.
Is the GTS launch a pull-forward, and is it accretive to the full year given seven months of sales versus roughly five in a normal year?
Maher: yes, more months of driver sales in 2026 than usual and a real positive. Sullivan added it is expected to be accretive to the full year; for modeling Q2/first half he pointed to Q3 2024 (the prior GT launch) as instructive, with momentum in volume and price and no comping irons launch.
On golf ball growth in a non-Pro V1 (even) year, is the ball business now more diversified and broad beyond Pro V1?
Maher: partly catch-up in 2024, but for 2026 it's strong execution on performance models plus capital investment in expanded customization (AIM alignment marking), the new Pro V1x Left Dash, and rounds-of-play growth. Long-term they still expect even years slightly down versus Pro V1 odd years, but have bucked that trend recently on innovation.
What are you seeing on competitor price increases and where do you stack up, plus current channel inventory health?
Maher: last year's pricing upticks were mostly in footwear/apparel; this year more in clubs and balls, a consistent scheme from key competitors. Acushnet is comfortable at parity or a premium, supported by fitting investment. Channel inventories are healthy/'full' as they should be pre-season, with no meaningful carryover clog; a clearer read comes in three months.
Update on Japan and the opportunity there after a couple quarters of growth?
Maher: pleased with the team and recent investments; growth led by equipment (balls and clubs) while they deliberately pulled back Titleist apparel/wearables. Tour and amateur counts improving. Japan has the lowest fit-club penetration in the world, giving a long runway that benefits both balls and clubs.
CapEx is elevated at $95M; what's being invested this year that won't recur, and does it return to ~$70M afterward?
Sullivan: expects CapEx to moderate toward that midterm run rate. This year focuses on golf ball capacity (domestic and abroad) and club-assembly capacity to meet demand, plus facilities and technology; more than half the spend is capacity. 2026 is a high-water mark that should moderate to a more reasonable run rate over the next few years.
On working capital after last year's substantial ~$87M use, should that improve too?
Sullivan: free cash flow will meaningfully improve over 2025, mostly in the back half. Q1 saw significant working-capital investment from the GTS golf-equipment inventory build, and AR was up on more end-of-quarter-weighted sales timing. Feels very good about full-year free cash flow given seasonality.
More on Acushnet Holdings Corp.
Reported 2026-05-06 · figures from the Acushnet Holdings Corp. Q1 2026 earnings call.
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