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The Scotts Miracle-Gro (SMG) investor relations material
The Scotts Miracle-Gro Q1 2026 earnings summary
Complete event summary combining all related documents: earnings call transcript, report, and slide presentation.Executive summary
Strategic focus on long-term value creation, with new financial priorities through 2030, including $1B in incremental sales and EBITDA, and a $500M share repurchase program to begin in late 2026.
Major investments in innovation, advertising, digital marketing, automation, and technology to drive growth and efficiency.
Hawthorne business divestiture to Vireo Growth, classified as discontinued operation, with closing expected in fiscal Q2 2026 and a significant non-cash charge.
Reaffirmed fiscal 2026 guidance, stating Hawthorne's reclassification does not impact the full-year outlook.
Retailers are building healthy inventory levels ahead of the 2026 lawn and garden season.
Financial highlights
Q1 2026 net sales (excluding Hawthorne) were $354.4M; U.S. Consumer sales reached $328.5M, down 3–4% year-over-year.
GAAP gross margin rate for the quarter was 25%, up 90 bps year-over-year; adjusted gross margin was 25.4%.
Adjusted EBITDA for the quarter was $3M, up from $0.9M year-over-year.
GAAP net loss from continuing operations was $47.8M ($0.83/share); adjusted net loss was $44.6M ($0.77/share), both improved from prior year.
Free cash flow improved by $78M, with a target of $275M for the year.
Outlook and guidance
Fiscal 2026 guidance: U.S. Consumer net sales growth in low single digits, adjusted gross margin of at least 32%, adjusted EPS of $4.15–$4.35, and mid-single digit adjusted EBITDA growth.
Free cash flow target of $275M and leverage ratio expected to decline to high threes by year-end.
Longer-term targets include 5% annual top-line growth through 2030, with contributions from innovation, pricing, volume, and modest M&A.
Management incentive plan requires outperformance of guidance for full payout.
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