Callaway Golf Company "Meeting with Management: UBS Virtual Fitness Day"

研报英文原文证据摘录

Callaway Golf Company "Meeting with Management: UBS Virtual Fitness Day"

H2 would have implied CALY perhaps growing more in line with the market for the year.

SG&A base could be lower

CALY is still supporting Topgolf under a TSA agreement through end of the year. So for

2027, it sounds as if CALY could see lower baseline SG&A. We estimate this opportunity

in single digit millions.

Market share

CALY has seen challenges particularly in Iron over the past 2 years and it sounds as if this

is the bigger opportunity for improvement they see in '26. Their latest share in iron is

around 18% vs. peak of 25%, so significant share loss. Putters share last year was 22%

vs. high 20s share previously.

CALY views growth in balls as a margin enhancer given fixed cost leverage in that

business and that margin differential currently between CALY and Acushnet in golf balls

is primarily $400M of higher volume for Acushnet. We note that longer term CALY is

targeting return to historical profitability levels of low to mid teens % company-wide

EBITDA margins. CALY reached 24.5% greengrass share in balls in Q1.

TravisMathew improving further?

TravisMathew performance is improving, with the consumer seeing momentum over the

past 3-4 months, driven by, CALY says, product/merchandising refocus and clearer

segmentation into sport and active lifestyle.

Capital Allocation Priorities

Capital allocation strategy is: 1) reinvesting into the business (R&D and capex; 2) healthy

balance sheet with net cash position (though this isn’t longer term target); 3) return

capital to shareholders.

Capex run rate of $35-$40M vs. R&D spend of $60M/year.

CALY repurchased 5.6 million shares of its common stock at an average cost of $14.08

per share through end of April.