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ScottsMiracle-Gro Reports Third Quarter Results; Updates Full-Year Outlook Reflecting Accelerated EPS Growth

SMG
  • Scotts Miracle-Gro reported third-quarter 2026 net sales of $1.17 billion, a 1% increase year-over-year.
  • GAAP diluted net income from continuing operations was $1.75 per share, a 34% decline driven by impairment, restructuring, and other non-recurring items.
  • Non-GAAP adjusted diluted net income from continuing operations was $2.82 per share, an 8% improvement over the prior year.
  • GAAP gross margin rate decreased to 31.2% from 32.1% due to higher freight and commodity costs resulting from the Iran conflict.
  • The company raised its full-year non-GAAP adjusted diluted net income guidance to a range of $4.30 to $4.45 per share.
  • Nate Baxter serves as president and CEO, with full support from the Hagedorn Partnership following the succession of Jim Hagedorn.
  • The net leverage ratio improved to 3.78x, down 0.37x from the previous year.
  • The company expects a full-year tax rate between 27-28%, down from 29% in the prior year.
  • U.S. Consumer net sales are projected to grow in the low single-digits for the full fiscal year.
  • Full-year non-GAAP adjusted gross margin is expected to be at least 32%.
  • Free cash flow is projected at $275 million, which will drive the leverage ratio into the high 3s.
  • The Hawthorne business was classified as a discontinued operation following its divestiture on April 8, 2026.
  • Impairment, restructuring, and other charges totaled $48.2 million for the quarter and $53.5 million for the nine-month period.
  • The company highlighted strong operating performance from its Bonnie Plants joint venture as a contributor to earnings growth.
  • A conference call to discuss results is scheduled for July 29, 2026, at 8:15 a.m. ET.