Acushnet Holdings Corp.

Hello, everyone. Thank you for joining us and welcome to Akashnet Company's first quarter 2026 earnings call. After today's prepared remarks, we will host a question and answer session. If you would like to ask a question, please press star one to raise your hand. To withdraw your question, press star one again. I will now hand the conference over to Cameron Volmuth, Director of Investor Relations. Cameron, please go ahead.

Good morning, everyone. Thank you for joining us today for a Cushnet Holding Corp's first quarter 2026 earnings conference call. Joining me this morning are David Marr, our president and chief executive officer, and Sean Sullivan, our chief financial officer. Before turning the call over to David, I would like to remind everyone that we will make forward-looking statements on the call today. These forward-looking statements are based on a Cushnet's current expectations and are subject to uncertainty and changes in circumstances. Actual results may differ materially from these expectations. For a list of factors that could cause actual results to differ, please see today's press release, the slides that accompany our presentation, and our filings with the U.S. Securities and Exchange Commission. 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. Explanations of how and why we use these measures and reconciliations of these items to the most directly comparable gap measures can be found in the schedules in today's press release, the slides that accompany this presentation, and in our filings with the U.S. Securities and Exchange Commission. Please also note that references throughout this presentation to year-on-year net sales increases and decreases are on a constant currency basis unless otherwise stated. as we feel this measurement best provides context as to the performance and trends of our business. And when referring to year-to-date results or comparisons, we are referring to the three-month period ended March 31, 2026, and the comparable three-month period in 2025. With that, I'll turn the call over to David.

Thanks, Cameron, and good morning, everyone. As always, we appreciate your interest in Acushnet Holdings. I am pleased to report on a positive start to the year for Acushnet, highlighted by a wide range of new product launches and early season growth in our Titleist golf equipment and golf gear segments. 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. These results reflect solid execution and synergies across our product development and supply chain teams and a Cushnitz continued investment to drive future growth and operational excellence. Now getting to segment results, you see Titleist golf equipment sales increase 7% in the quarter as our Titleist golf ball and golf club business continue to generate positive momentum. Titleist balls and clubs are helping players excel at the highest levels of the game, which affirms Titleist's 72% ball count across worldwide tours, more than seven times the nearest competitor, and number one driver positioning on the PGA and DP World Tours. In the quarter, golf ball volumes increased in all regions as our team successfully launched new Pro V1X Left Dash, AVX, Toursoft, and Velocity models. We typically expect modest volume declines in the first quarter of even years when comping against a prior year's Pro V1 launch. And this year's volume growth is commentary on our team's ability to innovate and the overall strength of the Titleist golf ball lineup heading into Q2. 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 medals in their second year. The Titleist equipment segment continues to benefit from our ongoing work at the Titleist Performance Institute. TPI, led by Dr. Greg Rose and Dave Phillips, is a powerful force within a Cushnet which informs our understanding of golfer biomechanics, is at the center of our commitment to help golfers play their best, and shapes our R&D visions across golf balls, clubs, and footwear. As we have talked about on recent calls, we continue to invest in and develop our capabilities across our TPI platform. Now to golf gear, Q1 sales were up 8% driven by higher sales volumes in golf bags and double digit gains in the US and EMEA. And our foot choice 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. FJ sales were down 1% in the quarter as our teams successfully launched new Pro SL and Premier golf shoes, and our spring apparel collections have been well received. Footjoy profitability, while still burdened with incremental tariffs, is on track with our internal plans. Also in the quarter, net sales of products not allocated to a reportable segment were up slightly, with continued momentum and growth from Schuss' U.S. golf business and modest gains from Titleist apparel in Asia. Now looking at the quarter by region, you see the U.S. market was up 5% on the strength of the Titleist golf equipment and golf gear segments. Rounds of play in the U.S. were up 5% through March, with gains in key Sunbelt states Arizona, California, Florida, and Texas. The MEA 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. Japan also delivered a solid start to the year, up 6% led by gains in golf equipment. And Korea was in line with our expectations, yet off 7% as the timing of their first quarter golf club launch calendar differs from other regions, which we expect to normalize in the coming months. And the rest of world region was up 9% with increased sales across all segments. Now looking forward, and as we shared on the Q4 call, we will be launching new Titleist GTS drivers and fairway metals in the second quarter, which we see as a favorable transition from our customary Q3 launch window. New GTS metals debuted across professional tours in late March, and we are very pleased with the initial response and enthusiasm. Golfer fittings begin next week, and we are preparing for the global market launch on June 11th. As you would expect, the shift from Q3 to Q2 will impact the cadence of our business in 2026, and Sean will share greater details during his remarks. In summary, we are pleased with our start to the year in what is best characterized as a product selling quarter. Industry fundamentals and the overall state of the game are healthy, and we point to global rounds growth in the quarter as an indicator of golf's durability and popularity. The Acosta team is focused on providing exceptional product, fitting, and service experiences to avid golfers and our trade partners as we seek to generate long-term value for our shareholders. Thanks for your attention this morning. I will now pass the call over to Sean.