Acushnet Holdings Corp.

Second quarter net sales were $820 million, up 14% year over year on a constant-currency basis. Adjusted EBITDA was $209 million, up $66 million from last year’s second quarter, including an approximately $38 million benefit from net IEEPA tariff refunds. Gross profit was $446 million, up $92 million, and gross margin was 54.4%, up 520 basis points year over year. First-half net sales were $1.57 billion, up 10%, and adjusted EBITDA was $353 million, up 25%; excluding the net refund benefit, adjusted EBITDA increased 12%. First-half gross margin was 50.9%, up 230 basis points, and excluding tariff refund benefit it was 48.1%, down 50 basis points year over year. For the full year, management raised guidance to sales of $2.65 billion to $2.675 billion and adjusted EBITDA of $450 million to $470 million, with roughly $30 million of net IEEPA tariff refund benefit included. They now expect approximately $54 million of tariff expense in 2026, down from the original $70 million estimate, and second-half sales to be down low single digits with second-half adjusted EBITDA down versus 2025, more pronounced in Q4.

David Maher emphasized that the company is benefiting from durable golf participation, healthy industry fundamentals, and strong execution in Titleist Golf Equipment. He highlighted the accelerated GTS metals launch, strong ball momentum, and continued investment in manufacturing capacity, customization, automation, and technology platforms. His tone was upbeat but measured, repeatedly noting that the back half will face tougher comparisons because of launch timing and the 2027 Pro V1 inventory build.

Sean Sullivan focused on the quality of earnings, tariff mechanics, margins, and capital allocation. He said Q2 adjusted EBITDA was $209 million, up $66 million, and gross margin was 54.4%, while first-half gross margin was 50.9%; excluding the tariff refund benefit, first-half gross margin was 48.1%. He also noted $37 million of capex in the first half, net leverage slightly below 2x, first-half CFO up $76 million, and roughly $57 million returned to shareholders through $31 million of dividends and $26 million of buybacks. He said full-year free cash flow should meaningfully improve year over year and convert at roughly 40% to 50% of adjusted EBITDA.

Analysts focused on how much of club growth was pulled forward into Q2, and management said it did not quantify the timing benefit but confirmed the launch arrived a bit better than expected and would create a tougher Q4 comparison against the 2024 GT launch. Questions also probed the $38 million tariff refund versus the $30 million full-year net benefit; Sean explained the difference is mainly the timing of incentive compensation expense, with no meaningful additional refunds expected in the second half. On FootJoy, management said margins are improving thanks to a more premium mix and fewer closeouts, while in Asia they highlighted continued softness in wearables even as equipment remains strong.