The Scotts Miracle-Gro
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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.
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Q1 2026 earnings summary28 Jan, 2026

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.

Explain the $104.8M Hawthorne valuation charge
What factors influence share repurchase timing?
Reconcile Q1 US Consumer sales with FY26 guidance
Prioritize 2030 growth drivers: volume, price, M&A
What is the long-term share repurchase commitment?
E-commerce: What operational changes are needed?
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Q2 202629 Apr, 2026
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Q2 202629 Apr, 2026

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Frequently asked questions

The Scotts Miracle-Gro Company manufactures, markets, and sells products for lawn, garden care, and indoor and hydroponic gardening in the United States and internationally. It offers lawn fertilizers, grass seed products, spreaders, other durable products, weed control products, outsourced manufactured soilless growing media and plastic plant containers, landscape fabrics, weed barriers/landscape fabrics, lawn/garden decorative products consisting of outdoor décor, holiday décor items during appropriate seasons, deck and patio décor items comprising outdoor pottery sets, pots and planters for patio decks and gardens; bird feeders; window boxes; trellises; obelisks; and whitewash cedar boards used in construction of window boxes. The Scotts Miracle-Gro Company was founded in 1868 and is headquartered in Marysville, Ohio.

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