The Scotts Miracle-Gro Company (SMG) Q4 2026 earnings summary

Executive summary

• FY26 net sales rose 1% to $3.29B; adjusted diluted EPS increased 18% to $4.48, FCF was $278.4M, and leverage improved to 3.89x.

• Branded products, e-commerce, innovation, pricing and supply-chain savings supported growth and margin expansion; FY27 guidance targets continued profitable growth.

Financial highlights

• FY26 net sales were $3,288.9M; U.S. Consumer sales rose 1%, and Other sales rose 4%.

• GAAP gross margin was 32.3%, up 100 bps; adjusted gross margin was 32.4%, up 80 bps, supported by mix, pricing and supply-chain savings.

• Adjusted EBITDA was $579.9M versus $569.7M; adjusted net income was $264.8M, up 19%.

• GAAP diluted EPS was $3.30, up 6%; adjusted diluted EPS was $4.48, up 18%.

• Q4 net sales declined 11% to $302.9M following retailer purchasing slowdowns after earlier-season loading.

Outlook and guidance

• FY27 net sales growth guidance is 2%–4%; adjusted EPS guidance is $4.70–$4.90, with adjusted gross margin expected to expand.

• FY27 FCF is expected at ~$275M; leverage is expected to improve YoY, with a 3.0x–3.5x target by FY29.

• FY27–FY29 algorithm targets 2%–4% sales growth, 50–100 bps adjusted gross margin expansion, 5%–8% adjusted EPS growth and FCF above $275M.

• At least $35M in annual supply-chain savings is targeted; FY27 includes $130M in supply-chain and IT CapEx.

• Pricing, innovation and efficiencies support the plan; sales and profitability are expected to be stronger in H2, with flexibility to manage costs if sales are flat to slightly down.