Scotts Miracle-Gro Co.: Q2 FY2026 earnings call

What management said about Q2 FY2026, from the documents filed with the SEC on 29 April 2026: press release. Guidance figures: 6 kept. The quarter’s numbers.

Key takeaways

Net sales rose 5% to $1.46 billion: Net sales were $1.46 billion for the quarter ended March 28, 2026, an increase of 5% on the prior-year quarter. Source
Adjusted EPS up 13% to $4.53: Non-GAAP adjusted net income from continuing operations was $4.53 per share, up 13%. GAAP net income from continuing operations was $4.46 per share, up 18%. Source
Gross margin rate up 240 basis points: GAAP and non-GAAP adjusted gross margin rate was 41.8%, up 280 and 240 basis points on the prior year respectively. Source
POS momentum continued into April: The CFO said sales and POS momentum continued in April, adding to confidence in the full-year view. Source
Net leverage down to 3.71x: Net leverage was 3.71x, improved 0.70x on last year, down from 4.41x in the prior year. Source
Share repurchase program previously announced: The CEO said leverage progress puts the company in position for more shareholder friendly actions, including the previously announced multi-year share repurchase program. Source
Fiscal 2026 guidance reaffirmed: The company reaffirmed fiscal 2026 guidance and lists the figures without stating any change to them. Source

“Our performance reflects progress on all our financial imperatives,”
Jim Hagedorn, chairman and CEO

Guidance

Area	Period	Figure	Against last quarter
U.S. Consumer net sales Source	Fiscal 2026	low single-digit growth	Kept
Non-GAAP adjusted gross margin rate Source	Fiscal 2026	at least 32%	Kept
Non-GAAP adjusted EPS from continuing operations Source	Fiscal 2026	$4.15 to $4.35	Kept
Non-GAAP adjusted EBITDA Source	Fiscal 2026	mid single-digit growth	Kept
Free cash flow Source	Fiscal 2026	$275 million	Kept
Net leverage ratio Source	Fiscal 2026	high 3’s	Kept

What changed from last quarter

Guidance kept: Fiscal 2026 guidance was reaffirmed. The release lists the same guidance figures and gives no prior figures for comparison. Source
Ended: Prior-period results were recast to present the Hawthorne business as a discontinued operation under GAAP.

Second quarter results

Net sales rose 5% to $1.46 billion: Net sales were $1.46 billion for the quarter ended March 28, 2026, an increase of 5% on the prior-year quarter. Source
Adjusted EPS up 13% to $4.53: Non-GAAP adjusted net income from continuing operations was $4.53 per share, up 13%. GAAP net income from continuing operations was $4.46 per share, up 18%. Source
Adjusted EBITDA up 9% to $437.4 million: Non-GAAP adjusted EBITDA was $437.4 million, improved 9 percent over the prior year. Source

Gross margin and cost

Gross margin rate up 240 basis points: GAAP and non-GAAP adjusted gross margin rate was 41.8%, up 280 and 240 basis points on the prior year respectively. Source
Margin gain credited for EPS growth: The release headline ties EPS growth to the sales increase and the gross margin improvement. Source

“Strong sales and POS momentum continued in April, further boosting our confidence in the full-year outlook.”
Mark Scheiwer, chief financial officer and chief accounting officer

Sales momentum and demand

POS momentum continued into April: The CFO said sales and POS momentum continued in April, adding to confidence in the full-year view. Source
Growth trajectory continued: The CEO said the company continued its growth trajectory and delivered leverage ratio improvement in the quarter. Source

Leverage, cash and capital returns

Net leverage down to 3.71x: Net leverage was 3.71x, improved 0.70x on last year, down from 4.41x in the prior year. Source
Share repurchase program previously announced: The CEO said leverage progress puts the company in position for more shareholder friendly actions, including the previously announced multi-year share repurchase program. Source
Leverage target in high 3s: Free cash flow of $275 million is guided to drive the leverage ratio down to the high 3s for fiscal 2026. Source

“We are driving profitability growth and improved free cash flow while making incremental investments in consumer activation and return-generating capital expenditures.”
Mark Scheiwer, chief financial officer and chief accounting officer

Reinvestment and consumer spending

Reinvesting in consumer franchise: The CEO said the company is reinvesting in its consumer franchise with a focus on fiscal 2026 guidance, which it calls foundational to longer-range targets. Source
Incremental consumer activation investment: The CFO cited incremental investments in consumer activation and return-generating capital expenditures. Source

Fiscal 2026 guidance

Fiscal 2026 guidance reaffirmed: The company reaffirmed fiscal 2026 guidance and lists the figures without stating any change to them. Source
Adjusted EPS guidance $4.15 to $4.35: Non-GAAP adjusted net income per share from continuing operations is guided at $4.15 to $4.35 for fiscal 2026. Source
Adjusted EBITDA and cash flow guided: Non-GAAP adjusted EBITDA is guided to mid single-digit growth, with free cash flow of $275 million for fiscal 2026. Source

Prior-year comparatives and recast

Revised prior-year Q2 net sales: Net sales for the prior-year second quarter are shown as $1,389.7 million, against $1,421.0 million previously reported, after the Hawthorne recast.
Revised prior-year Q2 adjusted EBITDA: Adjusted EBITDA for the prior-year second quarter is shown as $401.6 million, the comparison base for the 9 percent increase reported.
Revised fiscal 2025 net sales: Revised fiscal 2025 net sales were $3,255.8 million, against $3,413.1 million previously reported.

Earlier plans management reported on

Not stated: Management referred to the previously announced multi-year share repurchase program as a planned shareholder action. Source
Not stated: Management said it is focused on achieving fiscal 2026 guidance, which it describes as foundational to longer-range financial targets. Source

Other quarters

Summarised with AI from the documents the company filed with the SEC. Every point is checked against the filing before it is shown: management’s own words word for word, figures against the line or table row they come from. A point that fails the check is left out. Source opens the filing at that line.

As filed with the SEC

Open the filing on EDGAR

The Scotts Miracle-Gro Company

ScottsMiracle-Gro Reports Strong Second Quarter Results;

Increase in Sales and Gross Margin Improvement Drive EPS Growth

Net sales increased by 5%

Gross margin rate improved by over 200 basis points

Net leverage at 3.71x, down from prior year of 4.41x

MARYSVILLE, Ohio, April 29, 2026 - The Scotts Miracle-Gro Company (NYSE: SMG), the leading marketer of branded consumer lawn and garden products in North America, today reported results for the second quarter ended March 28, 2026.

“Our performance reflects progress on all our financial imperatives,” said Jim Hagedorn, chairman and CEO. “We continued our growth trajectory and delivered meaningful leverage ratio improvement, putting us in position for more shareholder friendly actions including the previously announced multi-year share repurchase program. At the same time, we are reinvesting in our consumer franchise with a focus on achieving our fiscal 2026 guidance that is foundational to our longer-range financial targets.”

Mark Scheiwer, chief financial officer and chief accounting officer, added, “We delivered a strong second quarter, executing on net sales growth, gross margin expansion and other key financial priorities. We are driving profitability growth and improved free cash flow while making incremental investments in consumer activation and return-generating capital expenditures. Strong sales and POS momentum continued in April, further boosting our confidence in the full-year outlook.”

Fiscal 2026 Second Quarter Highlights

Net sales were $1.46 billion, an increase of 5% versus prior year.
GAAP and non-GAAP adjusted gross margin rate of 41.8% improved by 280 and 240 basis points over prior year, respectively.
GAAP net income from continuing operations of $4.46 per share and non-GAAP adjusted net income from continuing operations of $4.53 per share improved by 18 percent and 13 percent over prior year, respectively.
Non-GAAP adjusted EBITDA of $437.4 million improved by 9 percent over prior year.
Net leverage of 3.71x improved 0.70x versus last year.

Fiscal 2026 Outlook

The fiscal 2026 guidance that has been reaffirmed by the Company includes:

U.S. Consumer net sales low single-digit growth
Non-GAAP adjusted gross margin rate of at least 32%
Non-GAAP adjusted net income per share from continuing operations of $4.15 to $4.35
Non-GAAP adjusted EBITDA mid single-digit growth
Free cash flow of $275 million, driving leverage ratio down to the high 3’s

The Company will file a Form 8-K prior to the start of the conference call that will include financial results for the three and six months ended March 28, 2026. In addition the Company will also upload these financial results to its investor relations website at https://scottsmiraclegro.gcs-web.com/financial-information/quarterly-results prior to the call.

Conference Call and Webcast Scheduled for 8:15 a.m. ET Today, April 29, 2026

The Company will discuss results during a video presentation via webcast today at 8:15 a.m. ET. To watch the Company presentation and listen to the question-and-answer session, please register in advance at this webcast link. For those planning to participate in the question-and-answer session that follows the video presentation, please register for the webcast to view the presentation in addition to registering in advance via this audio link to receive call-in details and a unique PIN. A replay of the conference call will also be available on the Company’s investor website, where an archive of the press release and any accompanying information will remain available for at least a 12-month period.

About ScottsMiracle-Gro

With approximately $3.3 billion in sales, the Company is the leading marketer of branded consumer lawn and garden products in North America. The Company’s brands are among the most recognized in the industry. The Company’s Scotts®, Miracle-Gro®, Ortho® and Tomcat® brands are market-leading in their categories. For additional information, visit us at www.scottsmiraclegro.com.

Cautionary Note Regarding Forward-Looking Statements

Statements contained in this press release, other than statements of historical fact, which address activities, events and developments that the Company expects or anticipates will or may occur in the future, including, but not limited to, information regarding the future economic performance and financial condition of the Company, the plans and objectives of the Company’s management, and the Company’s assumptions regarding such performance and plans are “forward-looking statements” within the meaning of the U.S. federal securities laws that are subject to risks and uncertainties. These forward-looking statements generally can be identified as statements that include phrases such as “guidance,” “outlook,” “projected,” “believe,” “target,” “predict,” “estimate,” “forecast,” “strategy,” “may,” “goal,” “expect,” “anticipate,” “intend,” “plan,” “foresee,” “likely,” “will,” “should” or other similar words or phrases. Actual results could differ materially from the forward-looking information in this release due to a variety of factors, including, but not limited to:

An economic downturn and economic uncertainty may adversely affect demand for the Company’s products;
The Company’s operations, financial condition or reputation may be impaired if its information or operational technology systems fail to perform adequately or if the Company is the subject of a data breach or cyber attack;
The highly competitive nature of the Company’s markets could adversely affect its ability to maintain or grow revenues;
In the event of a disaster, the Company’s disaster recovery and business continuity plans may fail, which could adversely interrupt its operations;
Climate change and unfavorable weather conditions could adversely impact financial results;
The Company may not successfully develop new product lines and products or improve existing product lines and products;
The Company’s indebtedness could limit its flexibility and adversely affect its financial condition;
Compliance with environmental and other public health regulations or changes in such regulations or regulatory enforcement priorities could increase the Company’s costs of doing business or limit its ability to market certain products;
Because of the concentration of the Company’s sales to a small number of retail customers, the loss of one or more of, or significant reduction in orders from, any of its top customers, or a material reduction in the inventory of the Company’s products that they carry, could adversely affect the Company’s financial results;
If the perception of the Company’s brands or organizational reputation are damaged, its consumers, distributors and retailers may react negatively, which could materially and adversely affect the Company’s business, financial condition and results of operations;
The Company’s success depends on the retention and availability of key personnel and the effective succession of senior management; and
The Company is involved in a number of legal proceedings and, while it cannot predict the outcomes of such proceedings and other contingencies with certainty, some of these outcomes could adversely affect the Company’s financial condition, results of operations and cash flows.

Additional detailed information concerning a number of the important factors that could cause actual results to differ materially from the forward-looking information contained in this release is readily available in the Company’s publicly filed quarterly, annual and other reports. The Company disclaims any obligation to update developments of these risk factors or to announce publicly any revision to any of the forward-looking statements contained in this release, or to make corrections to reflect future events or developments.

For investor inquiries:

Brad Chelton

Vice President

Treasury, Tax and Investor Relations

brad.chelton@scotts.com

(937) 309-2503

For media inquiries:

Tom Matthews

Chief Communications Officer

tom.matthews@scotts.com

(937) 844-3864