Throughout this discussion, we will make reference to non-GAAP financial measures, including items such as net sales on a constant currency basis and adjusted EBITDA. 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 clubs also delivered a strong first quarter, led by the successful launch of new Vokey SM11 wedges and healthy demand for GT drivers and fairway metals in their second year.
The Titleist equipment segment continues to benefit from our ongoing work at the Titleist Performance Institute. 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. In the quarter, net sales of products not allocated to a reportable segment were up slightly, with continued momentum and growth from KJUS' U.S. EMEA was up 8%, reflecting gains from all reportable segments led by double-digit growth from Titleist equipment and gear as we continue to generate nice momentum across the region.
As highlighted, we started 2026 with an increase in net sales of 5% over last year's first quarter. Adjusted EBITDA was $144.6 million, an increase of 4% from the first quarter of 2025. Net sales growth in the quarter was driven by continued momentum of our Titleist brand, with golf equipment growing 7% and golf gear growing 8%, while FootJoy net sales declined 1% in the quarter. Gross margin was 47.2% in the quarter, down 70 basis points from last year, primarily due to the tariff cost headwind of 220 basis points just mentioned.
| Metric | Period | Current guidance |
|---|---|---|
| FY2026 net sales | FY2026 | $2,625M-$2,675M (maintained) |
| FY2026 adjusted EBITDA | FY2026 | $415M-$435M (maintained; excludes any potential IEEPA tariff refunds) |
| First-half net sales & adjusted EBITDA calendarization | 1H2026 | now expected closer to the high end of that range, reflecting Q1 results |
| Tariff impact | FY2026 | reaffirmed $70M full-year / $40M YoY incremental (hopeful for offset if tariffs come in lower) |
| Capital expenditures | FY2026 | approximately $95 million |
| Free cash flow | FY2026 | expected to meaningfully improve versus 2025, mainly in the second half |
| Metric | YoY | Note |
|---|---|---|
| Consolidated net sales | +5% constant currency ($753 million) | Titleist golf equipment and golf gear strength; broad-based new product launches |
| Titleist golf equipment (balls + clubs) | +7% | Golf ball volumes up in all regions (Pro V1x Left Dash, AVX, Tour Soft, Velocity) plus successful Vokey SM11 wedges and healthy second-year GT driver/fairway demand |
| Golf gear | +8% | Higher golf bag sales volumes and double-digit gains in the U.S. and EMEA |
| FootJoy | -1% | Deliberate shift toward premium franchises/fewer low-price offerings; new Pro/SL and Premiere shoes and spring apparel well received |
| Net sales not allocated to a reportable segment | up slightly | KJUS U.S. golf momentum and modest Titleist apparel gains in Asia |
| Regional net sales (constant currency) | U.S. +5%, EMEA +8%, Japan +6%, Korea -7%, rest of world +9% | U.S./EMEA led by Titleist equipment and gear; Japan led by equipment; Korea down on club launch timing; rest of world up across all segments |
| Gross profit / gross margin | Gross profit $355M, up $18M; gross margin 47.2%, down 70 bps | Higher net sales partially offset by $17M higher tariff costs (220 bps headwind) |
| Adjusted EBITDA | +4% (+$6M) to $144.6 million | Higher net sales and product-development/supply-chain synergies, partly offset by tariffs and SG&A investment |
| Net leverage ratio | 2.3x (average trailing net debt at quarter-end) | Seasonal build; target remains at or below 2.25x on average |
| Topic | Previous mention | Current period | Trend |
|---|---|---|---|
| GTS driver/fairway launch cadence shift (Q3 to Q2) | Historical Q3 launch window | Accelerated to June 11 global launch to hit the May-June-July peak selling window; running a couple months ahead of schedule with strong tour adoption; expected to be accretive to the full year (more months of driver sales in 2026) | — |
| Golf ball portfolio depth / participation | Even years typically down slightly versus Pro V1 odd years | Bucked the even-year trend again with volume growth in all regions; broader diversified lineup (AIM alignment customization, performance models) plus rounds-of-play growth; global rounds up low-single-digits, U.S. +5%, Korea rounds +10% | — |
| Tariffs and input-cost management | $70M full-year / $40M YoY incremental headwind guide | Reaffirmed; $17M hit and 220 bps margin drag in Q1; hopeful tariffs land lower with some offset from raw-material/freight costs; guide excludes any IEEPA refunds | — |
| Capital investment for long-term operating leverage | Multi-year investment phase (capacity, fitting network, ERP/DTC technology) | CapEx at a ~$95M high-water mark in 2026, expected to moderate toward a ~$70M run rate in the next few years; more than half funding golf ball and club-assembly capacity; management expects operating leverage over the long term | — |
| International markets (Japan / Korea) | Multi-year investment in Japan; wearables repositioning | Japan +6% on equipment momentum (lowest fit-club penetration in the world = runway) with a conservative wearables stance; Korea -7% on club launch timing expected to normalize in coming months | — |