Acushnet Holdings Corp. Q1 FY2026 earnings call

• David mentioned positive start to the year with new product launches, Titleist golf equipment and gear growth, and TPI's role in informing golfer biomechanics and R&D. - Sean discussed net sales growth, adjusted EBITDA, gross profit, margin, SG&A expense, balance sheet and cash flow, including net leverage ratio, inventory, capital expenditures, free cash flow, and 2026 financial outlook with net sales and adjusted EBITDA ranges, and tariff and raw material cost impacts.

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 equipment sales increased 7% in the quarter. Golf ball volumes increased in all regions with new model launches. Titleist golf clubs also had a strong first quarter led by new Vokey SM11 wedges and GT drivers. Golf gear sales were up 8% driven by higher sales volumes in golf bags and double digit gains in the US and EMEA. Footjoy sales were down 1% but new shoes launched. Products not allocated to a reportable segment had slight gains. Revenue contribution: Titleist golf equipment likely a significant portion, golf gear, Footjoy, and other segments contribute respective percentages.

Maintains full year 2026 net sales in the range of $2,625 and $2,675 million and adjusted EBITDA in the range of $415 to $435 million. Excludes potential IEPA tariff refunds. Now expects reported first half net sales and adjusted EBITDA to be closer to the high end of previous range. Tariff environment has changes but uncertainty remains, and potential benefits may be offset by higher product costs due to rising commodity prices and freight costs.

• Macro-economic and geopolitical uncertainty. - Uncertainty around the structure and duration of tariffs. - Higher product costs due to rising commodity prices and related raw material input and freight costs associated with the current geopolitical environment.

Q: On the shape of the year and margin headwind, and adjusted EBITDA margin expansion.

A: David said it's a reasonable view, pleased with Q1, guiding to higher end for Q2, noting tariff headwinds in Q2 but pleased with consumer and demand.

Q: On GTS driver launch, timing and competitive set.

A: David said new timing, moved to Q2, excited about product, early success on tour, starting fittings next week, launching in mid-June, hitting peak window.

Q: On participation and engagement, impact of macro backdrop and pricing.

A: David said watched game durability, rounds up in some markets, early season, generally in line with expectations, golf industry outlook clearer in Q2.

Q: On GTS launch and full year impact, balls growth.

A: Sean and David said GTS launch pulled forward, expected accretive to full year, balls growth due to diversified portfolio, innovation, and rounds of play growth.

Q: On competitors' price increases, channel inventories, Japan market.

A: David said comfortable at premium, channel inventories healthy, Japan has momentum in equipment, cautious on wearables.

Q: On CapEx and working capital.

A: David said CapEx elevated for equipment investments, expected to moderate, working capital use last year not repeated, free cash flow to improve this year versus 2025