Acushnet NYSE: GOLF reported a positive start to 2026, with first-quarter sales and adjusted earnings growth driven by strength in Titleist golf equipment and golf gear, while management maintained its full-year outlook amid tariff and macroeconomic uncertainty.
The golf products company said worldwide net sales rose 5% on a constant currency basis to $753 million in the first quarter. Adjusted EBITDA increased 4% year-over-year to $144.6 million, up $6 million from the prior-year period.
President and Chief Executive Officer David Maher said the quarter was “highlighted by a wide range of new product launches and early season growth” in the company’s Titleist golf equipment and golf gear segments. He described the period as “a product selling quarter” and said industry fundamentals and the overall state of golf remain healthy.
Titleist equipment leads first-quarter growth
Titleist golf equipment sales rose 7% in the quarter, supported by gains in both golf balls and clubs. Maher said golf ball volumes increased in all regions as the company launched new Pro V1x Left Dash, AVX, Tour Soft and Velocity models.
Maher noted that Acushnet typically expects modest first-quarter volume declines in even years because they compare against the prior year’s Pro V1 launch. He said this year’s growth reflected the company’s product innovation and the strength of the Titleist ball lineup entering the second quarter.
Titleist golf clubs also posted a strong quarter, led by the launch of new Vokey SM11 wedges and demand for GT drivers and fairway metals in their second year. Maher highlighted the role of the Titleist Performance Institute, led by Dr. Greg Rose and Dave Phillips, in informing the company’s research and development across balls, clubs and footwear.
Golf gear sales increased 8%, driven by higher golf bag volumes and double-digit gains in the U.S. and EMEA. FootJoy sales declined 1% as the business continued to focus on premium franchises and reduce lower-priced offerings. Maher said new Pro/SL and Premiere golf shoes launched successfully and spring apparel collections were well received.
Regional results show gains in most markets
In the U.S., net sales increased 5%, supported by Titleist golf equipment and golf gear. Maher said U.S. rounds of play were up 5% through March, with gains in Arizona, California, Florida and Texas.
EMEA sales rose 8%, led by double-digit growth in Titleist equipment and gear. Japan was up 6%, driven by golf equipment. Korea declined 7%, which Maher attributed to the timing of its first-quarter golf club launch calendar, which the company expects to normalize in coming months. The rest-of-world region grew 9%, with increased sales across all segments.
During the question-and-answer session, Maher said global rounds were up low single digits and described that as evidence of the game’s health and the “durability” of Acushnet’s consumer. He said the company was generally tracking in line with expectations, while noting that the golf industry’s outlook typically becomes clearer in the second quarter as more markets enter the core playing season.
Tariffs weigh on gross margin
Chief Financial Officer Sean Sullivan said gross profit increased $18 million to $355 million, primarily because of higher net sales. That increase was partly offset by $17 million in higher year-over-year tariff costs.
Gross margin declined 70 basis points to 47.2%, which Sullivan said was primarily due to a 220-basis-point tariff headwind. SG&A expense rose $13 million to $214 million, reflecting higher selling expenses tied to sales volumes, expansion of product fitting networks, higher IT expenses and additional advertising and promotion spending to support new launches.
Sullivan said the company’s effective tax rate rose to 22.9% from 17.9%, mainly because of changes in jurisdictional earnings mix and a reduced income tax benefit related to the U.S. deduction for foreign-derived intangible income.
Asked about the balance of risks to the outlook, Sullivan said management was pleased with the first quarter and with demand, but remained cautious about raw material input costs, freight and other headwinds. He said potential tariff benefits could be offset by higher product costs tied to rising commodity prices and geopolitical conditions.
GTS metals launch moves into second quarter
Acushnet is preparing to launch new Titleist GTS drivers and fairway metals globally on June 11, shifting the product introduction from its typical third-quarter window into the second quarter.
Maher said the company was “very enthused” about the earlier timing, noting that the launch will occur during a peak golf window in May, June and July rather than later in the season. He said the product has seen strong early adoption on professional tours and golfer fittings were set to begin the following week.
In response to an analyst question, Sullivan said the earlier GTS launch is expected to be accretive to the full year. He pointed analysts to the third quarter of 2024, when the company launched GT, as a useful reference point for thinking about club growth rates, while noting that the 2026 launch is being pulled forward.
Outlook maintained as cash returns continue
Acushnet maintained its full-year 2026 outlook, expecting net sales of $2.625 billion to $2.675 billion and adjusted EBITDA of $415 million to $435 million. The outlook excludes any potential IEEPA tariff refunds.
Reflecting first-quarter results, Sullivan said the company now expects first-half reported net sales and adjusted EBITDA to be closer to the high end of its prior range of mid- to high-single-digit growth.
Inventory increased 7% overall as Acushnet built golf equipment inventory to support the accelerated GTS launch. Sullivan said FootJoy and golf gear inventories were down year-over-year, and management remains comfortable with inventory quality and positioning.
Capital expenditures totaled $19 million in the quarter, up $8 million from last year. The company continues to expect full-year capital spending of about $95 million, with investments focused on golf equipment capacity, club assembly, technology and facilities. Sullivan said capital spending should moderate over the next few years.
Free cash flow declined $31 million from the prior year, partly because of higher inventory tied to the GTS launch. Sullivan said the company still expects free cash flow to improve meaningfully versus 2025, mainly in the second half of the year.
Through March, Acushnet returned about $26 million to shareholders, including $16 million in dividends and $10 million in share repurchases. The board declared a quarterly cash dividend of $0.255 per share, payable June 22 to shareholders of record on June 5. As of March 31, the company had $231 million remaining under its share repurchase authorization.
About Acushnet NYSE: GOLF
Acushnet Holdings Corp., traded on the NYSE under the symbol GOLF, is a leading designer, manufacturer and marketer of golf equipment, footwear, apparel and accessories. The company's portfolio encompasses a range of golf lifestyle products, with a focus on innovation, performance and quality for players of all skill levels.
At the core of Acushnet's product lineup is the Titleist brand, globally recognized for its Tour-level golf balls and precision-engineered clubs. FootJoy offers golf shoes, gloves and apparel that blend comfort, style and technical performance, while Scotty Cameron putters and Vokey design wedges cater to players seeking exacting standards in feel and accuracy.
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