Acushnet Holdings Corp. reported sales grew 4.1 percent in the first quarter on a currency-neutral basis, led by strength in Titleist golf balls and clubs and higher prices across many categories. On a quarterly analyst call, David Maher, Acushnet’s president and CEO, called out a promising launch to Titleist’s GTS drivers and indicated the overall golf season is off to a healthy start globally.
“Industry fundamentals and the overall state of the game are healthy, and we point to global rounds growth in the quarter as an indicator of golf’s durability and popularity,” said Maher. Acushnet maintained its outlook for the year
Sales in the first quarter on a reported basis climbed 7.1 percent to $753.0 million, surpassing analysts’ consensus target of $721.54 million.
Adjusted EBITDA reached $144.6 million, up 4.1 percent year over year
First quarter net income attributable to Acushnet Holdings Corp. of $81.4 million, down 18.1 percent year over year, primarily due to the first quarter 2025 non-cash pre-tax gain of $20.9 million related to its FootJoy golf shoe joint venture. EPS of $1.36 was shy of analysts’ consensus forecast of $1.39.
Gross profit in the first quarter of $355 million was up $18 million compared to the first quarter of 2025, mainly due to higher net sales, which were partially offset by higher tariff costs of $17 million year-over-year. Gross margin was 47.2 percent in the quarter, down 70 basis points from last year, primarily due to higher tariff costs of $17 million year-over-year that represented a headwind of 220 basis points.
SG&A expense of $214 million in the quarter increased $13 million from the first quarter of 2025 due to higher selling expenses incurred in connection with the higher sales volumes, costs related to the expansion of product fitting networks, higher IT-related expenses, and additional expenses to support new product launches.
Titleist golf equipment grew 7.1 percent on a currency-neutral basis with balls ahead 8.2 percent to $234.5 million and club up 5.9 percent to $224.0 million.
Maher said the company maintained its strong position in the golf marketplace with Titleist’s 72 percent ball count across worldwide tours, more than seven times the nearest competitor. Titleist also ranked as the number 1 driver positioning on the PGA and DP World Tours.
Maher noted that golf ball volumes increased in all regions due to the successful launches of the new Pro V1x Left Dash, AVX, Tour Soft, and Velocity models. The gains also reflect higher average selling prices of its Pro V1 golf ball models. The CEO noted that the growth came despite the golf ball category going against the launch of its Pro V1 flagship ball in the year ago quarter. He said, “his year’s volume growth is commentary on our team’s ability to innovate and the overall strength of the Titleist golf ball lineup heading into Q2.”
Titleist club sales were boosted by the successful launch of Vokey SM-11 wedges and healthy demand for GT drivers and fairway metals in their second year. Said Maher, “The Titleist equipment segment continues to benefit from our ongoing work at the Titleist Performance Institute. TPI, led by Dr. Greg Rose and Dave Phillips, is a powerful force within Acushnet, which informs our understanding of golfer biomechanics, is at the center of our commitment to help golfers play their best, and shapes our R&D visions across golf balls, clubs, and footwear. As we have talked about on recent calls, we continue to invest in and develop our capabilities across our TPI platform.”
Golf gear sales rose 8.3 percent on a currency-neutral basis to $78.7 million, driven by higher sales volumes in golf bags and double-digit gains in the U.S. and EMEA. The increase also benefited from higher average selling prices across all product categories.
FootJoy golf wear sales were down 1.3 percent on a currency-neutral basis to $181.5 million. Lower sales volumes in footwear were partially offset by higher average selling prices across all product categories. Said Maher, “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. FJ sales were down 1 percent in the quarter as our teams successfully launched new Pro/SL and Premiere golf shoes, and our spring apparel collections have been well received. FootJoy profitability, while still burdened with incremental tariffs, is on track with our internal plans.”
Net sales of products not allocated to a reportable segment were up slightly, with continued momentum and growth from KJUS’ U.S. golf business and modest gains from Titleist apparel in Asia.
On a geographic basis, higher net sales in the U.S. grew 5.0 percent on a currency-neutral basis to $445.2 million. The gains were largely driven by increases in Titleist golf equipment of $17.9 million and Golf gear of $4.7 million, partially offset by a decrease in FootJoy golf wear of $2.4 million. The increase in Titleist golf equipment was primarily driven by higher average selling prices of its Pro V1 golf ball models, as well as higher sales volumes of its newly introduced SM11 wedges, latest generation T-Series irons, and performance model golf balls, partially offset by lower sales volumes of its second model year hybrids, drivers, fairways, and Scotty Cameron putters. The increase in Golf gear was primarily driven by higher average selling prices across all product categories and higher sales volumes in golf bags. The decrease in FootJoy golf wear was primarily due to lower sales volumes, partially offset by higher average selling prices in apparel.
Net sales in regions outside the U.S. climbed 4.5 percent on a constant currency basis, to $305.2 million. driven by increases in EMEA, Rest of World and Japan, partially offset by a decrease in Korea. In EMEA and Rest of World, the increases were primarily driven by higher sales across all reportable segments. In Japan, the increase was driven by higher net sales in Titleist golf equipment, mainly golf clubs. In Korea, the decrease was primarily due to lower net sales in all reportable segments, as well as products that are not allocated to one of its three reportable segments.
Looking to the current quarter, Maher said that as noted on its fourth-quarter analyst call, Titleist will be launching new GTS drivers and fairway metals in the second quarter in shift that’s seen as a “favorable transition from our customary Q3 launch window.”
The new GTS metals debuted across professional tours in late March to a positive response. Maher said, “We are very pleased with the initial response and enthusiasm. Golfer fittings begin next week, and we are preparing for the global market launch on June eleventh. As you would expect, the shift from Q3 to Q2 will impact the cadence of our business in 2026.
Tariff Update
On the call, Sean Sullivan, CFO, said Acushnet, noted that several changes to the tariff rate environment “could be favorable” in 2026, citing the recent Supreme Court ruling on IEEPA tariffs, the implementation of Section 122 tariffs, and changes to the application of Section 232 tariffs.
Acushnet previously predicted a $70 million full-year impact from tariffs, or $40 million year-over-year incremental headwind in 2026 versus 2025.
“That said, uncertainty around the structure and duration of tariffs remains high, making it difficult to quantify the total impact at this time,” said Sullivan. “In addition, we expect that the potential benefits from these tariff rate changes will be largely offset by higher product costs due to rising commodity prices and related raw material input and freight costs associated with the current geopolitical environment. We’re monitoring these dynamics closely and taking actions where possible to mitigate impacts on the business.”
Outlook
Sullivan said that due to first-quarter results, it now expects reported first half net sales and adjusted EBITDA to be closer to the high end of its previous range of up mid to high single digits. However, he said that as usual, Acushnet is maintaining its full year outlook and continue to expect 2026 sales to be in the range of $2,625 million-$2,675 million and adjusted EBITDA to be in the range of $415 million-$435 million.
Asked in the Q&A session about competitor price increases, Maher said the golf industry saw upticks in footwear and apparel last year and pricing actions are more evident in clubs and balls in 2026. Maher added, “I think it’s been a fairly consistent pricing scheme in 2026 from key competitors. You know, we’re comfortable at a premium. Whether it’s balls or clubs, we’re comfortable at a premium to the pack, and that’s where we are. We’re either at parity or premium to the pack, number 1.”
He also said he’s not seeing much carryover inventory in the marketplace that could drive margin pressures. Maher said, “I think generally speaking, inventories are healthy. Again, that’s code word for full, as they should be at this time of year on the eve of the golf season really taking full flight. It’s a different answer three months from now, when you see…which products sold through, and which maybe didn’t quite sell through to expectations.”
Asked about the health of the industry and the golf consumer, Maher noted that rounds played is healthy so far this year in most regions, including 5 percent in the U.S., up 10 percent in Korea and gains being seen in the UK. He added, “Here in New England, we’re slow out of the gates, but frankly, we’re always slow out of the gates given just weather realities.”
On the consumer, Maher said, “Like everybody else, we’re paying close attention to consumer spending and how their just their overall behavior in light of this macro uncertainty, and certainly some of the challenges vis-a-vis oil pricing pressures. The best way to frame it would be, you know, we’re generally in line with where we think we ought to be for this time of year. I’ve said before that the golf industry, the crystal ball gets a lot clearer in Q2, as the season unfolds in the Northeast and Midwest and around the world. But here we are early May. We like the trends. We like the state of our consumer.”
Image courtesy Titleist
