Scotts Miracle-Gro Reports Strong Q2 Results with 5% Sales Growth and 18% EPS Increase; Reaffirms FY26 Outlook
Summary
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.
Key Events
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Q2 Net Sales Growth
Net sales increased 5% to $1.46 billion for the second quarter, primarily driven by the U.S. Consumer segment.
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Strong Profitability
GAAP diluted EPS from continuing operations rose 18% to $4.46, and non-GAAP adjusted EBITDA improved 9% to $437.4 million.
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Gross Margin Expansion
The GAAP gross margin rate improved by 280 basis points to 41.8% compared to the prior year.
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Improved Financial Health
Net leverage decreased significantly to 3.71x, down from 4.41x in the prior year, indicating a stronger balance sheet.
Analysis
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.
At the time of this filing, SMG was trading at $66.00 on NYSE in the Industrial Applications And Services sector, with a market capitalization of approximately $3.8B. The 52-week trading range was $45.61 to $72.35. This filing was assessed with positive market sentiment and an importance score of 8 out of 10.