Scotts Miracle-Gro (SMG)
NYSE:SMG
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Earnings Data
Report Date
Jul 29, 2026After Close (Confirmed)
Period Ending
2026 (Q3)Consensus EPS Forecast
2.55Last Year’s EPS
2.59Same Quarter Last Year
Moderate Buy
Based on 6 Analysts Ratings
Earnings Call Summary
Earnings Call Sentiment|Positive
The call conveyed strong operational and financial progress: revenue growth, meaningful gross margin expansion (200+ bps YTD), robust e-commerce acceleration (+22% YTD), improved EBITDA and net income, deleveraging to 3.71x, and material free cash flow improvement (> $100M YTD). Management announced strategic initiatives (SMG 2.0), portfolio innovation (83 new SKUs / $41M revenue), a disciplined SKU rationalization plan, AI/automation investments, and a multi-year share repurchase program. Key risks are manageable but notable: commodity cost volatility from geopolitical events creating fiscal '27 uncertainty, higher SG&A from marketing investments, an e-commerce margin gap, and near-term planning/line-review timing. Overall, positives materially outweigh the challenges, which management frames as controllable or hedged.Company Guidance
Revenue Growth
Total company net sales increased 5% in Q2 to $1.46 billion and increased 3% for the first 6 months to $1.81 billion, in line with full-year net sales guidance for low single-digit growth in U.S. consumer business.
Branded Product Momentum
Sales of branded products grew 8% through the first half, with branded soils and grass seed showing year-over-year growth and helping drive favorable mix.
E-commerce Acceleration
E-commerce POS dollars were up 22% year-to-date, showing double-digit e-com sales increase for multiple quarters and cited as a key growth engine under SMG 2.0.
Gross Margin Expansion
Quarter GAAP gross margin was 41.8% (up 280 basis points year-over-year) and non-GAAP gross margin improved ~240 basis points; year-to-date GAAP gross margin was 38.5% (up 260 basis points) and adjusted 38.6% (up 230 basis points).
Profitability and EBITDA Improvement
Quarter adjusted EBITDA rose to $437.4 million from $401.6 million a year ago; year-to-date adjusted EBITDA was $440.2 million versus $402.5 million prior year (~$38 million improvement).
Net Income and EPS Strength
Q2 GAAP net income from continuing operations was $263.3 million ($4.46/share) vs $220.7 million ($3.78/share) prior year; adjusted Q2 net income was $267.8 million ($4.53/share) vs $233.7 million ($4.00). Year-to-date GAAP net income was $215.6 million ($3.65) vs $154.7 million ($2.64).
Leverage and Interest Expense Improvement
Leverage improved to 3.71x debt-to-EBITDA (first time below 4x in four years), a 0.7x improvement vs prior year; interest expense declined to $31.3 million in the quarter (from $36.6M) and $58.5M YTD (from $70.5M).
Strong Cash Flow and Deleveraging
Year-to-date free cash flow was favorable by more than $100 million vs prior year due to higher net income and disciplined working capital/inventory management; management has begun a multi-year share repurchase program with a target to repurchase at least one-third of outstanding shares while keeping leverage in the 3s.
Portfolio and Innovation Progress
Introduced 83 new SKUs in fiscal '26 generating $41 million in revenue; quick product development examples (Ortho mosquito and flying insect traps launched within ~6 months) and plan to eliminate ~30% of lowest-performing SKUs by next fiscal year to improve margins and simplify assortment.
Operational and Technology Investments
Investing in automation, SAP S/4HANA, data lake and AI (about 40 use cases underway); AI-enabled production (3 commercials) saved roughly $0.5 million; supply chain savings target of at least 1% annually (~$35 million).
Strategic Milestones
Completed divestiture of Hawthorne (discontinued operation) and announced hiring of a Chief Brand Officer and internal realignment (Chris Hagedorn focusing on core business/strategy) to support SMG 2.0 growth plan toward 2030 targets.
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 |
|---|---|---|---|
Apr 29, 2026 | $65.38 | $62.42 | -4.53% |
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% |
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 (SMG) report earnings?
Scotts Miracle-Gro (SMG) is schdueled to report earning on Jul 29, 2026, After Close (Confirmed).
What is Scotts Miracle-Gro (SMG) earnings time?
Scotts Miracle-Gro (SMG) earnings time is at Jul 29, 2026, After Close (Confirmed).
Where can I see when companies are reporting earnings?
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What companies are reporting earnings today?
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What is SMG EPS forecast?
SMG EPS forecast for the fiscal quarter 2026 (Q3) is 2.55.