Acushnet Q3 Sales Fall 1.3%; 2026 EBITDA Outlook Includes Tariff Refunds

Acushnet Holdings Corp. (NYSE: GOLF) reported lower third-quarter sales and adjusted EBITDA as declines in golf clubs, FootJoy golf wear and golf gear outweighed growth in golf balls. Nine-month results remained higher, and the company projected full-year 2026 adjusted EBITDA of $455 million to $470 million, including about $30 million of expected net IEEPA tariff refunds.

Third-quarter net sales fell 1.3% year over year to $649.2 million, or 0.6% on a constant-currency basis. Adjusted EBITDA declined 3.3% to $114.7 million, while adjusted EBITDA margin narrowed to 17.7% from 18.0%.

GAAP net income attributable to Acushnet rose to $49.2 million from $48.5 million. Gross profit increased to $322.0 million from $319.1 million, with gross margin expanding to 49.6% from 48.5%. However, operating income fell to $80.3 million from $92.9 million as selling, general and administrative expenses rose to $217.3 million and research and development spending increased to $19.4 million.

Golf balls offset weakness in other categories

Third-quarter golf ball sales increased 3.3% to $209.1 million, or 4.0% in constant currency. Golf club sales declined 2.0% to $220.7 million, leaving the combined Titleist golf equipment segment up 0.5% at $429.8 million.

FootJoy golf wear sales decreased 7.5% to $126.2 million, while golf gear revenue fell 9.5% to $55.4 million. The declines were 7.1% and 9.0%, respectively, on a constant-currency basis.

By region, U.S. third-quarter sales declined 1.4% to $391.6 million. EMEA revenue rose 4.0% to $94.7 million, while Japan sales fell 7.6% as reported but increased 0.5% in constant currency. Korea declined 5.3% to $64.1 million, and the rest of the world was down 0.5% at $64.7 million.

For the first nine months of 2026, net sales rose 6.8% to $2.22 billion, or 6.3% in constant currency. Adjusted EBITDA increased 16.8% to $467.8 million, lifting the adjusted EBITDA margin to 21.1% from 19.2%. Nine-month adjusted EBITDA included approximately $33.8 million of net IEEPA tariff refunds.

Titleist golf equipment led the year-to-date expansion, with sales rising 10.1% to $1.43 billion. Golf clubs increased 14.7% to $716.7 million, while golf balls advanced 5.8% to $717.5 million. Management attributed continued strength in the equipment business to Pro V1 golf balls and new GTS metals. FootJoy golf wear declined 0.5% to $465.6 million, while golf gear grew 2.3% to $213.7 million.

Cash flow rises as leverage declines

Cash flow from operations reached $319 million during the first nine months, up from $195 million a year earlier. Capital expenditures totaled $57 million, dividends paid were $45 million and share repurchases amounted to $81 million.

Acushnet had $107 million of unrestricted cash and $877 million of total debt at Sept. 30. Its net leverage ratio decreased to 1.9 times from 2.2 times at the end of 2025, while inventory declined to $572 million from $609 million.

For 2026, the company expects net sales of $2.65 billion to $2.675 billion, representing growth of about 4.1% at the midpoint. Constant-currency sales are projected to increase between 3.3% and 4.2%. Adjusted EBITDA is expected to range from $455 million to $470 million, up about 12.7% at the midpoint, including the anticipated tariff refunds.

Management described golf participation and the dedicated golfer consumer base as resilient. The company is also preparing for a Pro V1 launch in early 2027.

Acushnet cautioned that its outlook remains exposed to changes in golf participation, weather, consumer spending, tariffs and trade policy, currency movements, product launch cycles, sourcing and supply-chain disruption. Other uncertainties include competition, demand forecasting, cybersecurity, ERP implementation, leverage and the company’s ability to protect its brands and intellectual property.