Acushnet Holdings Corp (GOLF) (Q2 2026) Earnings Call Highlights: Strong Q2 Results and Raised …

This article first appeared on GuruFocus.

Release Date: August 06, 2026

For the complete transcript of the earnings call, please refer to the full earnings call transcript.

Positive Points

• Strong Q2 2026 results with net sales up 14% and adjusted EBITDA up 46%, driven by robust demand in Titleist golf equipment.

• Successful early launch of GTS metals line, shifting sales into Q2 and contributing to a 43% increase in golf club sales for the quarter.

• Continued momentum in golf balls with Pro V1 growth, supported by 22 PGA Tour wins, far ahead of competitors.

• Healthy industry fundamentals with rounds of play up low single-digits, including growth in the US, Japan, and Korea.

• Improved FootJoy operating margin by 100-170 basis points, driven by a favorable premium product mix shift.

• Strong balance sheet with net leverage below 2x, and increased full-year guidance for sales and adjusted EBITDA.

• Receipt of $38 million in tariff refunds, boosting cash flow and enabling continued investment in capacity and shareholder returns.

Negative Points

• Second half net sales expected to decline low single-digits due to the timing shift of GTS launch into Q2, creating challenging comparisons.

• Ongoing softness in wearables, particularly in Asia (Japan and Korea), impacting overall segment growth.

• Higher tariff expenses of approximately $54 million in 2026, partially offset by refunds but still a headwind.

• Increased product and freight costs, including synthetic rubber and tungsten, are expected to offset some tariff benefits.

• First half gross margin declined 50 basis points excluding tariff refunds, reflecting cost pressures.

• SG&A expenses increased due to investments in fitting network, IT systems, and higher incentive compensation, pressuring margins.

• Uncertainty in material costs and freight rates persists, with potential volatility in the second half.

Q & A Highlights

Q: Can you quantify how much of the Q2 golf club growth of $82 million was due to the pulled-up launch timing, and how should we think about the rest of the business in that regard? A: David Marr (President and CEO) and Sean Sullivan (CFO) noted they did not quantify the exact amount but highlighted that the growth was better than expected. The accelerated GTS metals launch shifted a meaningful amount of sales from Q3 and Q4 into Q2. For the back half, clubs will see continued performance in Q3, but the more pronounced comp will be in Q4 against the 24 GT launch.

Q: Can you help bridge the $38 million of net IEPA tariff refunds in Q2 to the $30 million guided for the full year? A: Sean Sullivan (CFO) explained that the $38 million reflects what was booked in Q2, and the remaining $8 million to reach the $30 million net benefit will flow through in the second half. This is because the company will book incremental incentive compensation expense over the back half of the year, tied to the higher adjusted EBITDA outlook. All tariff refunds have been submitted and received, so no incremental refunds are expected in the back half.

Q: Following the GTS launch, how would you characterize channel inventory today? A: David Marr (President and CEO) stated that channel inventories tend to run pretty steady state due to the custom fitting model. The larger focus is on meeting custom demand, which is in good shape, though lead times are a bit longer than typical due to demand. The team is doing a nice job meeting demand from global fitters.

Q: Can you provide perspective on FootJoy’s margins, where they’ve peaked or troughed, and the opportunity to continue the quality theme of improving out-the-door selling prices? A: David Marr (President and CEO) highlighted a favorable mix shift towards premium performance in both footwear and apparel, with fewer closeouts, delivering healthy margin trends, with the caveat of tariffs. Sean Sullivan (CFO) added that on a reported basis, FootJoy’s operating margin improved by 100 basis points year-over-year in the first half, and by 170 basis points when normalizing for the net tariff refund.

Q: Can you give a refresher on international markets, particularly Korea and Japan, and what you see ahead? A: David Marr (President and CEO) noted that rounds of play are up in Korea and Japan, which is positive. The equipment segment (balls and clubs) has done quite well, while challenges remain in wearables (apparel, footwear, and gear). Korea has historically had an outsized apparel market that is correcting. Europe had a strong year last year with mild weather, but rounds are down this year, though the business remains healthy with growth across segments.

Q: How have material costs trended relative to your prior expectations? A: Sean Sullivan (CFO) stated that synthetic rubber remains slightly volatile in light of oil markets, while tungsten costs have moderated slightly relative to 90 days ago. Distribution and freight costs remain slightly elevated. Overall, the situation is marginally better than 90 days ago, but there is still a lot of uncertainty in the macro environment.

Q: Can you provide an update on CapEx and plant utilization, given that ball plants are running at very high capacity levels? A: David Marr (President and CEO) confirmed that plants are running at near full capacity. The company has been adding capacity over the last 4-5 years, notably in cast urethane and converting lines. Over the next year or two, continued expansion is planned within cast urethane in both Massachusetts and Thailand ball plants. Capacity is not a constraint today, but adding new lines takes 12-18 months from a machinery standpoint.

Q: Can you speak to the larger picture health of the golf industry versus company-specific execution, and any changes to your underlying plan in the back half across segments? A: David Marr (President and CEO) highlighted that rounds of play are up low single-digits, with the US up 4% and every region in the country up year-to-date, which is unusual. Public play is up at a greater rate than private play, indicating broad-based health. The cost of public play is up about 4% to roughly $47 per round, still affordable. For the company, ball sales are up 6% on a year following a Pro V1 launch, which is positive. The team’s ability to move the GTS launch from Q3 into Q2 was a significant execution highlight. For the back half, the outlier is clubs due to the timing shift, while balls, FootJoy, and gear should be fairly similar to last year.

Q: Outside of launch timing, is there anything else that has changed in your plan for the golf equipment segment in the back half of the year? A: Sean Sullivan (CFO) confirmed that it is largely as describeda shift from Q3 into Q2 for the clubs business. Everything else is as expected.

For the complete transcript of the earnings call, please refer to the full earnings call transcript.