to the high single digits in terms of revenue growth. So, you know, obviously it delivered better than that on the top line for the company. So again, the timing was slightly better than expected. As we look at the back half of the year, again, we feel very good about the full year outlook in terms of 4.1% at the midpoint, almost 4% constant currency. and how that converts. So very pleased. Again, we gave you as much as we thought we could at the time on the first quarter call relative to first half. So to your point, it's just a timing shift where I think the street consensus had more of a club number in Q3 than what ultimately delivered in Q2 for us. Hopefully that's helpful.

Yep, very clear. Thanks, guys. Good luck.

Your next question comes from the line of Joe Altabello with Raymond James. Your line is open. Please go ahead.

Hey, everyone. This is Mitch Ingles on for Joe Altabello. My first question is on the $38 million of net IPA, i.e., tariff refunds in 2Q. You're guiding $30 million for the year. So can you help bridge us between those two figures?

Sure, happy to, Mitch. It's just a function of our updated outlook. If we take the 460 at the midpoint in terms of EBITDA, our incentive plans are tied to adjusted EBITDA. So based on the new outlook for the year, we'll be expensing the incremental incentive comp over the nine-month period. So the 38 reflects what was booked in Q2, the remaining eight that nets us to 30. will flow through in the second half. The good news is all of the tariff refunds were submitted. They've all been received. So I don't expect any incremental refunds in the back half of the year to be material at all. And again, that's a credit to the team in terms of our ability to submit quickly and receive those refunds on a timely basis. But More than you asked, but we will ratably book that incentive comp expense over the back half of the year, which causes the net down to $30 million.

Got it. That's helpful. And then my follow-up is on the GTS launch. How would you characterize the channel inventory today? Do you still say you like where they are right now?

Yeah, I'll take that, Mitch. So it's a good opportunity for us to sort of lean into our Our custom fitting efforts, so much of what we do in golf clubs nowadays is through custom fitting. And so the idea of channel inventories, they tend to run pretty steady state. The larger question that we think about often is our ability to meet at once custom demand, which is in good shape. I will say lead times are a little bit longer than our typical lead times, but I think that's just a function of demand. So where we are inventory-wise in the channels, feel very good about it. And again, part two of that is our team's doing a nice job meeting at-once demand from our global fitters. Thanks, Mitch. Next question, please.

Your next question comes from the line of Randy Connick with Jefferies. Your line is open. Please go ahead.

Thanks, guys. Good morning. I guess I'm a quality over quantity theme on FootJoy, continued improvement on ASPs. Just can you give us some perspective on kind of where we are with margins in that business, just kind of where they've kind of peaked out, where they troughed out, where we are today, kind of any opportunity to continue this quality theme of improving outdoor selling price and just managing the inventories better and better to provide a more profitable segment going forward as you've done in the last few quarters. Just curious on where we are there.

Yeah, Randy, maybe Sean and I will come at this two ways. First off, my comments is much about favorable mix shift towards premium performance both in footwear and apparel, fewer closeouts, and just an overall More premium favorable mix within the segment, which is delivering healthy margin trends with the caveat of tariffs. And if you look at our business and what was hit the hardest, it would clearly be foot choice. So that's the overall theme when we talk about the structure is improving, and it is. We've got a bit of a headwind that we've dealt with vis-a-vis tariffs. But the team is doing a nice job moving through that. Again, if there's a common theme within foot joy, we're seeing a continued trend and shift towards the more premium end of the line.

Yeah, and just, Randy, to add to that, and you'll see it when we file the queue, on a reported basis, foot joy's operating margin improved year over year by, I think, 100 basis points in the first half. If you normalize for the refunds and the The net tariff refund, I think it actually improved by 170 basis points, so certainly pleased with the operating income margin profile of FootJoy and its improvement.

That's great. And then we all know that the United States is super strong. I think I saw in the release that Korea was slightly positive. I think that that area of the world has been down previously. So can you just give us a refresher on international markets, just what you see out there and what you see ahead?

Yeah, so I would say Korea, Japan, first off, starting with rounds of play, total rounds are up in those markets, which is obviously a positive. The theme we're seeing in 26 mirrors largely what we've seen the last year or two. In our case, balls and clubs, the equipment segment has done quite well. Where we've seen challenges are wearables, apparel, footwear, and also gear. So it's a little bit of a tale of two markets in the sense that equipment, strong, healthy, vibrant, growing, and we've seen some challenges across the wearables line. That played out last year. That continues to play out this year. And just by... By way of calling out Korea, Korea's historically had an outsized apparel market. It's one of the largest apparel markets in the world. So when it rode up, it was a great thing, and it's been correcting for the last year or so. But moving around the board, Europe, and for us, you may recall a year ago, rounds of play were up dramatically in the first half and for the year. They had a very mild spring, got off to a fast start, so Europe had a very strong year last year. Rounds it down across the UK and the mainland, but again, net-net up over its normalized run rate. That said, we're pleased with our business in the region. You saw the numbers and healthy growth. Thanks guys. Thanks, Randy. Thanks. Operator, next question, please.

Your next question comes from a line of Gregory Miller with Truist Securities. Your line is open. Please go ahead.

Thanks. Good morning. First question, I'd like to ask you about material costs and how they've trended relative to your prior expectations.

You know, they've moderated a bit, Greg. I think we... In terms of synthetic rubber, again, still slightly volatile in light of the oil markets. I think the cost of tungsten has moderated slightly relative to where we were maybe 90 days ago. We continue to see slightly elevated distribution, frayed in, frayed out, etc. So continuing to monitor, continuing to manage supply as best we can in light of the macro environment. You know, so it's, you know, marginally better than maybe where it was 90 days ago, but still a lot of uncertainty.

Okay, thanks. My second question, I wanted to ask for an update in terms of your CapEx spend as it relates to the plant utilization, given that your evolved plants are running at very high capacity levels at this point. I'm just curious if you could provide us the latest in terms of your progress in that front.

Yeah, yeah, and you're right. We are running at near full capacity in our plants. We've been in the midst over, really started four or five years ago, of adding capacity, notably in cast urethane and converting lines into more cast urethane capacity. So we feel very good about the work we've done the last four or five years that have allowed us to deliver the results we're delivering today. but we see in the next year or two continued expansion mainly within cast urethane in both our Massachusetts and Thailand ball plants. So I don't see our capacity as a constraint today and we're optimistic on the good work that's happening. I will just add it takes a while, right? So when you make the decision to add capacity It can take 12 to 18 months to get new lines up and running just from a machinery standpoint. So we're far down field on wave one and we're in flight on wave two in terms of managing and adjusting our capacity with a shift and tilt more towards cast urethane, which in our case is the broader Pro-V1 lines.

Great. Thank you very much.

Thanks, Greg. Operator, next question, please.

Your next question comes from a line of Matthew Boss with J.P. Morgan. Your line is open. Please go ahead.

Great, thanks. So, David, could you speak to larger picture health of the golf industry versus company-specific execution, meaning on the 20% growth in total golf equipment, if there's a way to elaborate on underlying demand and reception to the GTS Metals launches? and performance on the ball side relative to initial plan. I think that that would be helpful just to pull out any launch timing benefit. And then secondly, any changes at all to your underlying plan in the back half across segments, again, outside of any launch timing shifts.

Yeah. Hi, Matt. Here we go. So I'll start with high level view of the game. We talked about Rounds of Play, up low single digits, up 4% in the U.S., far and away the largest market. A couple of call-outs that I found interesting vis-a-vis Rounds of Play would be the National Golf Foundation carves up the country into eight regions, and every region is up year-to-date, which is unusual because typically you've got an outlier weather pattern that's going to affect one region over another. So I think that speaks to the structural health of the game. The other piece I'd add is they track public and private access, public play, which is about 75 or so percent of total rounds in the U.S. is up at a greater rate than private play. Again, I think a sign of broad-based health of the game. And then we always track and we pay close attention to just the cost of public play. And you can imagine it's a wide range of It's up about 4% year-to-date. NGF has it at about $47 per round. So while up, there's still affordable golf out there. So high level, and that's a U.S.-centric comment. Game is healthy. Now to our business, Matt, obviously very pleased on many fronts, and I would say the highlights would be in the equipment segment, right? Anytime we can grow our ball business on a year following a Pro V1 launch, that's a positive. That's happened this year. Ball sales up 6%. We feel great about that. Really, I called it out on my remarks, the ability and good work of our team to move a launch from Q3 into Q2, on one hand, it sounds simple. It's anything but because it affects product development timelines, supply chains, and Assembly, et cetera, et cetera. So our team did a really nice job. So very pleased on the ball side of the house, very pleased on the club launch side of the house and the early response. And then separate from that, if I look at our wearables business around the world, Foot Joy, Titleist Apparel in Asia, shoes around the world, and gear business steady with some pockets of softness that I called out. Matt, that's a very high-level view of our business, and I would lean into we're particularly pleased with the strength and early success of balls and clubs equipment in the first half of the year. Now, in terms of what maybe has changed for back half of the year, you know, I think Sean called it out, and we're trying to be very prescriptive to help you do the modeling around what really is the outlier, and that's going to be clubs, right, I think. Balls, Footjoy, Gear, etc. should be fairly similar to last year's in terms of their modeling and their growth. The outlier for us in the second half is really a club story, and that's a function of we moved a lot of volume from Q3, Q4 last year into Q2 of this year. So really high level, gave you a lot of information there. I realize Any follow-ons to that? Did I get at your question, Matt?

Yeah, you did. The only follow-on is just outside of any timing launches. If we're looking at that golf equipment segment in the back half of the year, just wanted to make sure there wasn't anything outside of launch timing that's changed in your plan.

No. Matt, this is Sean. It's largely as we described. It's a shift from... Q3 into Q2 for the club's business. Everything else is as expected.

Great caller. Best of luck.

Thank you. There are no further questions at this time. I will now turn the call back to David Maher for closing remarks.

Thanks, everybody. As always, we appreciate your interest in a Kushnet and look forward to following up in following the third quarter. Have a great rest of summer.

This concludes today's call. Thank you for attending. You may now disconnect.