Acushnet Holdings Corp. 10-Q Summary: Q2 2026
Business Context and Reporting Period
This summary covers the quarterly period ended June 30, 2026, for Acushnet Holdings Corp. (NYSE: GOLF), a global leader in performance-driven golf products. The company operates through three reportable segments: Titleist golf equipment, FootJoy golf wear, and Golf gear. The reporting period reflects strong demand for golf clubs and balls, alongside significant financial benefits from tariff refunds.
Key Financial Metrics
| Metric (in millions) | Q2 2026 | Q2 2025 | YTD 2026 | YTD 2025 |
|---|---|---|---|---|
| Net Sales | $819.95 | $720.48 | $1,572.93 | $1,423.85 |
| Gross Profit | $445.83 | $354.32 | $801.09 | $691.48 |
| Gross Margin | 54.4% | 49.2% | 50.9% | 48.6% |
| Operating Income | $176.59 | $109.87 | $296.74 | $224.42 |
| Net Income (Attributable to Acushnet) | $124.83 | $75.56 | $206.25 | $174.94 |
| Diluted EPS | $2.08 | $1.25 | $3.44 | $2.87 |
| Operating Cash Flow (YTD) | $107.44 | $31.61 | — | — |
| Adjusted EBITDA (YTD) | $353.14 | $282.00 | — | — |
| Debt (Total) | $960.07 | $942.91 | — | — |
| Cash & Equivalents | $67.94 | $50.09 | — | — |
Material Changes vs. Prior Period
- Revenue Growth: Net sales increased 13.8% in Q2 2026 compared to Q2 2025, driven by a 20.3% increase in Titleist golf equipment sales (primarily golf clubs and Pro V1 balls) and growth in FootJoy and Golf gear segments.
- Margin Expansion: Gross margin expanded to 54.4% in Q2 2026 from 49.2% in the prior year. This was significantly aided by $44.5 million in IEEPA tariff refunds recognized in Cost of Goods Sold.
- Profitability: Operating income surged 60.7% year-over-year in Q2, reaching $176.6 million. Net income attributable to Acushnet increased 65.2% to $124.8 million.
- Expense Increases: Selling, General, and Administrative (SG&A) expenses rose $24.2 million, largely due to increased advertising for new product launches, higher incentive compensation, and IT optimization costs ($6.9 million in Q2).
- One-Time Items: The prior year (Q2 2025) included $6.4 million in restructuring costs related to a Voluntary Bridge to Retirement (VBR) program, which were absent in the current period.
Guidance, Outlook, and Risks
- Outlook: Management expects continued investment in a new global cloud-based ERP platform, with total spending estimated at $35 million to $40 million for the full year 2026. Capital expenditures are projected at approximately $95.0 million for the full year.
- Tariff Refunds: The company recognized significant benefits from IEEPA tariff refunds in Q2. While evaluating additional opportunities, management does not expect future recoveries to have a significant impact on results.
- Risks: Key risks include geopolitical developments affecting supply chains and tariffs, inflationary pressures on raw materials and freight, foreign currency fluctuations, and the successful implementation of the new ERP system.
- Liquidity: The company maintains $504.4 million in available borrowing capacity under its revolving credit facility and $28.9 million under local facilities. It remains compliant with all debt covenants.
Investor Verification Checklist
- Tariff Refund Sustainability: Verify the extent to which the $44.5 million IEEPA tariff refund is a recurring benefit versus a one-time adjustment to gross margin.
- ERP Implementation Costs: Monitor the $35M-$40M projected spend on the new ERP platform and its impact on operating expenses and potential operational disruptions.
- Share Repurchase Activity: Note the $214.7 million remaining under the current share repurchase authorization and the new $52.5 million agreement with Magnus Holdings.
- Product Mix Shift: Confirm the durability of the 42% year-over-year growth in golf club sales, which drove the Titleist segment performance.
- Working Capital Trends: Review the significant increase in accounts receivable ($489.4M vs $217.5M at year-end 2025) and its impact on cash flow conversion.