Acushnet (NYSE:GOLF) reported third-quarter sales of $649 million, down 1% on a constant-currency basis, as demand for Titleist golf equipment was offset by lower sales at FootJoy and in golf gear.
Adjusted EBITDA fell 3% to $115 million. President and Chief Executive Officer David Maher said the company’s core golf equipment business remained strong and that FootJoy profitability was improving, even as its sales declined.
For the first nine months of 2026, net sales rose 6% on a constant-currency basis to $2.22 billion, while adjusted EBITDA increased 17% to $468 million. Excluding the net benefit from tariff refunds, adjusted EBITDA rose 8%, Chief Financial Officer Sean Sullivan said.
Titleist Growth Offset by FootJoy and Gear
Titleist golf equipment sales increased 1% in the quarter and 10% year to date. Maher said golf ball demand grew in all regions, led by Pro V1, while the club business benefited from the second-quarter launch of GTS metal woods and demand for Vokey wedges and Scotty Cameron putters.
Maher said the company was pleased with the decision to introduce GTS earlier in the year, citing sell-through and shipments. Acushnet is considering a similar approach for irons, he said.
FootJoy sales fell 7% in the quarter and 2% for the first nine months. Maher said a focus on premium performance products was helping raise average selling prices and margins, with historically low levels of closeout footwear sales contributing to improved profitability.
Golf gear revenue declined 9% in the quarter but remained up 2% year to date. Maher attributed part of the quarterly decline to timing ahead of new Titleist golf bag and glove offerings in the fourth quarter.
Sullivan said an enterprise resource planning system rollout went live in North America and at golf ball manufacturing operations in Thailand during the quarter. Although the system cutover proceeded smoothly, temporary disruption to custom embroidery operations affected FootJoy and golf gear, he said.
Margins Improve; Fourth Quarter Expected to Be Seasonal Low
Third-quarter gross profit rose $3 million to $322 million, and gross margin expanded 110 basis points to 49.6%. Sullivan credited improved FootJoy profitability and higher sales volumes in the company’s shoes business, partly offset by higher Titleist equipment costs.
Year-to-date gross margin was 50.5%, up 190 basis points. On a normalized basis, it was 48.6%, flat from a year earlier despite approximately $29 million in higher tariff expense, Sullivan said.
Acushnet maintained its full-year sales outlook of $2.65 billion to $2.675 billion, with constant-currency growth expected between 3.3% and 4.2%. It now expects adjusted EBITDA of $455 million to $470 million, including an approximately $30 million full-year net tariff refund benefit.
At the guidance midpoint, Sullivan said, the outlook implies approximately $440 million in fourth-quarter sales and an adjusted EBITDA loss of about $5 million. He attributed the expected result to the company’s seasonal earnings pattern, the earlier GTS launch and the transition to the next Pro V1 product. Acushnet also plans to continue investing in research and development, fitting networks and its TPI performance platform.
Consumer Demand and 2027 Pipeline
Maher described golf demand as healthy despite a choppy third quarter for rounds played, which he attributed largely to weather. U.S. rounds were tracking at or slightly above the prior year, he said, while rounds outside the U.S. were slightly lower overall, with variations by market.
Asked about rising green fees, Maher said Acushnet had not seen evidence of a significant backlash in rounds played. He also said the company had not observed golfers extending their equipment replacement cycles.
For 2027, Acushnet is preparing a new Pro V1 launch along with new irons and putters. Sullivan said the company faces higher input costs, including tungsten and oil-based materials, as well as labor and benefit costs. Pricing decisions have not been finalized across all launches, he said, adding that the company’s goal is to maintain or expand gross margin.
Maher identified Japan as Acushnet’s largest opportunity for market-share gains, supported by an expansion of fitting capabilities. He remained cautious about apparel in Japan and Korea, where the category has been soft.
Through September, Acushnet generated $319 million in operating cash flow and returned roughly $127 million to shareholders through dividends and share repurchases. Its board declared a quarterly dividend of $0.255 per share, payable December 18 to shareholders of record December 4.
About Acushnet (NYSE:GOLF)
Acushnet Holdings Corp. is a golf equipment and performance-wear company headquartered in Fairhaven, Massachusetts. Through a portfolio of recognized brands, the company develops, manufactures and markets products used by golfers and golf facilities worldwide.
Its principal brands include Titleist, which offers golf balls, clubs, golf bags, gloves and accessories; FootJoy, which specializes in golf footwear, apparel and gloves; Scotty Cameron, known for premium putters and related accessories; and KJUS, which produces high-performance golf and outdoor apparel.
