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Scotts Miracle-Gro Company (SMG)
NYSE:SMG
Earnings Data
Report Date
Apr 29, 2026After Close (Confirmed)
Period Ending
2026 (Q2)Consensus EPS Forecast
3.96Last Year’s EPS
3.98Same Quarter Last Year
Strong Buy
Based on 6 Analysts Ratings
Earnings Call Summary
Earnings Call Sentiment|Positive
The call emphasized multiple clear operational and financial improvements (gross margin expansion, reduced interest expense, stronger free cash flow, improved leverage, e-commerce growth, and a new disciplined $500M share repurchase program) and laid out an ambitious long-term growth target through 2030. There are notable near-term negatives — a $105M Hawthorne impairment, ongoing first-quarter losses, seasonality/timing risks, and elevated CapEx — but management presented a coherent plan to address leverage, focus the portfolio, and invest behind high-margin branded growth. On balance, the positive operational trends, cash generation, investor-friendly capital actions, and clear long-term strategy outweigh the lowlights.Company Guidance
Share Repurchase Program and Capital Allocation
Board approved a multi-year $500 million share repurchase program beginning in late 2026, targeted long-term share count of ~40 million shares; repurchases to be disciplined and tied to leverage targets (will begin once leverage is comfortably below 4x) and funded by free cash flow.
Hawthorne Divestiture and Strategic Focus
Hawthorne classified as discontinued operation with pending sale to Vireo Growth; divestiture is intended to refocus Scotts on lawn & garden and provided an immediate ~40 basis point improvement to gross margin on a full-year basis; Scotts will hold a minority equity investment in Vireo and continue commercial arrangements.
Top-Line and POS Performance (Selected Categories)
Q1 total company net sales (ex-Hawthorne) were $354.4 million; U.S. consumer sales $328.5 million (ahead of expectations due to earlier seasonal load-in). Q1 POS was slightly down ~1% in dollars and units vs prior year, but FY2025 POS (recast, branded-focused) was up 2%. Category bright spots: indoor gardening POS +7.7% dollars / +9% units; Roundup POS +24% dollars / +27% units.
E-commerce Momentum
Branded e-commerce POS dollars grew +12% and units +17% in Q1; e-commerce comprised 14% of overall branded POS (up 150 basis points YoY). Company sees e-commerce as a major future growth driver and notes margin delta vs brick-and-mortar is shrinking (less than ~5 percentage points).
Gross Margin and Cost Efficiency Gains
GAAP gross margin for Q1 was 25.0%, up 90 basis points YoY; non-GAAP adjusted gross margin was 25.4% vs 24.5% a year ago (+90 bps). Management cited ongoing supply chain optimization, pricing actions, and planned investments (automation, plant upgrades) supporting further margin improvement toward guidance.
Improved Leverage, Interest Expense and Free Cash Flow
Net debt to adjusted EBITDA decreased to 4.03x from 4.52x a year ago (down ~0.49 turn). Interest expense fell 20% YoY to $27.2 million. Free cash flow was favorable by $78 million in Q1. Company reiterated fiscal 2026 free cash flow target of $275 million to further reduce leverage to the high threes.
Profitability Trajectory and Near-Term Guidance
Non-GAAP adjusted EBITDA came in $3 million ahead of expectations in Q1. Q1 GAAP net loss from continuing operations improved to $47.8 million ($0.83/sh) from $66.1 million ($1.15/sh) prior year; non-GAAP adjusted loss improved to $44.6 million ($0.77/sh) from $50.2 million ($0.88/sh). Fiscal 2026 guidance includes low single-digit U.S. consumer sales growth, non-GAAP adjusted gross margin of at least 32%, non-GAAP adjusted EPS $4.15–$4.35, mid-single-digit EBITDA growth, and $275M free cash flow.
Strategic Growth Plan to 2030
Management announced long-term targets to add ~$1 billion in top-line sales and ~$1 billion in EBITDA by ~2030, driven by a ~5% annual top-line growth algorithm (innovation, pricing, volume, e-commerce, margin-accretive tuck-in M&A) and a greater focus on branded, high-margin products.
SMG Earnings History
The table shows recent earnings report dates and whether the forecast was beat or missed. See the change in forecast and EPS from the previous year.
Beat
Missed
SMG Earnings-Related Price Changes
Report Date | Price 1 Day Before | Price 1 Day After | Percentage Change |
|---|---|---|---|
Jan 28, 2026 | $62.63 | $62.21 | -0.68% |
Nov 05, 2025 | $53.27 | $54.80 | +2.86% |
Jul 30, 2025 | $65.66 | $60.08 | -8.50% |
Apr 30, 2025 | $51.24 | $48.22 | -5.90% |
Earnings announcements can affect a stock’s price. This table shows the stock's price the day before and the day after recent earnings reports, including the percentage change.
FAQ
When does Scotts Miracle-Gro Company (SMG) report earnings?
Scotts Miracle-Gro Company (SMG) is schdueled to report earning on Apr 29, 2026, After Close (Confirmed).
What is Scotts Miracle-Gro Company (SMG) earnings time?
Scotts Miracle-Gro Company (SMG) earnings time is at Apr 29, 2026, After Close (Confirmed).
Where can I see when companies are reporting earnings?
You can see which companies are reporting today on our designated earnings calendar.
What companies are reporting earnings today?
You can see a list of the companies which are reporting today on TipRanks earnings calendar.
What is SMG EPS forecast?
SMG EPS forecast for the fiscal quarter 2026 (Q2) is 3.96.