Acushnet Holdings Corp. 10-Q Summary: Q1 2026
Business Context and Reporting Period
This summary covers the quarterly period ended March 31, 2026. Acushnet Holdings Corp. is the global leader in performance-driven golf products, operating through three primary segments: Titleist Golf Equipment, FootJoy Golf Wear, and Golf Gear. The company reported strong sales growth in equipment and gear, partially offset by a decline in footwear sales on a constant currency basis.
Key Financial Metrics
| Metric | Q1 2026 | Q1 2025 |
|---|---|---|
| Net Sales | $752.98 million | $703.37 million |
| Gross Profit | $355.26 million | $337.16 million |
| Gross Margin | 47.2% | 47.9% |
| Operating Income | $120.15 million | $114.55 million |
| Net Income (Attributable to Acushnet) | $81.42 million | $99.37 million |
| Diluted EPS | $1.36 | $1.62 |
| Adjusted EBITDA | $144.56 million | $138.86 million |
| Adjusted EBITDA Margin | 19.2% | 19.7% |
| Cash from Operations | ($143.66 million) used | ($120.25 million) used |
| Total Debt (Short + Long Term) | $1.15 billion | $942.91 million |
| Cash & Equivalents | $51.68 million | $50.09 million |
Material Changes vs. Prior Period
- Revenue Growth: Net sales increased 7.1% year-over-year (4.8% on a constant currency basis). Growth was driven by Titleist Golf Equipment (+8.9%) and Golf Gear (+10.8%), while FootJoy Golf Wear declined 1.3% on a constant currency basis due to lower footwear volumes.
- Profitability Decline: Net income decreased 18.1% to $81.42 million. This decline is primarily attributable to a $20.9 million non-cash gain recorded in Q1 2025 from the deconsolidation of the Lionscore joint venture, which is not present in the current period.
- Margin Pressure: Gross margin contracted 70 basis points to 47.2%, impacted by higher tariff costs and increased raw material expenses, partially offset by favorable product mix and pricing.
- Working Capital: Cash used in operating activities increased to $143.7 million, driven by seasonal increases in accounts receivable and inventory build-up to meet demand.
- Debt Levels: Total debt increased by approximately $207 million, reflecting higher borrowings under the revolving credit facility to fund working capital needs.
Guidance, Outlook, and Risks
- Capital Expenditures: The company expects to invest approximately $95.0 million in capital expenditures for the full year 2026. Additionally, it anticipates spending $25.0 million on capitalized costs for its new global ERP platform implementation.
- Shareholder Returns: A quarterly dividend of $0.255 per share was declared for Q2 2026. The company repurchased 106,008 shares in Q1 2026, with $230.7 million remaining under its current share repurchase authorization.
- Tariff and Geopolitical Risks: Management highlighted ongoing volatility from U.S. tariffs and retaliatory measures. While a U.S. Supreme Court ruling in February 2026 invalidated certain IEEPA tariffs, the company has not yet recognized potential refunds as assets pending further regulatory clarity.
- Supply Chain: The company continues to optimize its supply chain, including a new joint venture (ACL FootJoy) formed in January 2026 to source and manufacture footwear in Vietnam.
- ERP Implementation: The multi-year global ERP rollout is ongoing, with $3.0 million in operating expenses and $5.7 million in capitalized costs incurred in Q1 2026.
Investor Verification Checklist
- Non-Recurring Items: Verify the impact of the $20.9 million gain in Q1 2025 to accurately assess year-over-year operational performance.
- Tariff Exposure: Monitor the status of IEEPA tariff refund requests and the potential impact of new trade policies on gross margins.
- Footwear Volume: Investigate the drivers behind the 1.3% constant currency sales decline in the FootJoy segment, specifically regarding footwear volume trends.
- Working Capital Cycle: Review the seasonal timing of receivables and inventory build-up to understand the negative operating cash flow.
- ERP Costs: Track the total spend on the new ERP platform against the projected $30-$35 million annual budget to ensure no cost overruns.