Scotts Miracle-Gro Reports Strong Q2 Results with 5% Sales Growth and 18% EPS Increase; Reaffirms FY26 Outlook

summarizeSummary

Scotts Miracle-Gro reported strong Q2 results with increased sales and EPS, improved gross margin and leverage, and reaffirmed its full-year fiscal 2026 guidance.

check_boxKey Events

• Q2 Net Sales Growth

  Net sales increased 5% to $1.46 billion for the second quarter, primarily driven by the U.S. Consumer segment.

• Strong Profitability

  GAAP diluted EPS from continuing operations rose 18% to $4.46, and non-GAAP adjusted EBITDA improved 9% to $437.4 million.

• Gross Margin Expansion

  The GAAP gross margin rate improved by 280 basis points to 41.8% compared to the prior year.

• Improved Financial Health

  Net leverage decreased significantly to 3.71x, down from 4.41x in the prior year, indicating a stronger balance sheet.

auto_awesomeAnalysis

The company's core business demonstrated robust performance in the second quarter, with significant increases in net sales, gross margin, and earnings per share. This strong operational execution, coupled with a substantial reduction in net leverage, indicates improved financial health. The reaffirmation of full-year guidance, despite ongoing impacts from discontinued operations, signals management's confidence in the company's strategic direction and ability to meet its financial targets.