SMG
The Scotts Miracle-Gro Company58.62
+0.13+0.22%
Dec 16, 4:00:02 PM EST
Earnings Call Transcripts
This Quarter (Q1 '26)
No earnings call transcript available yet
Last Quarter (Q4 '25)
FY Q1 '26
Confident outperform; e-comm surges
Q&A amplified confidence in outperforming FY2026 guidance, pointing to robust Q1 retailer load-ins exceeding expectations and optimism for spring despite consumer pressures, with lawn/garden eyed as a traffic driver. E-commerce delivered double-digit POS growth to 14% of total, margins trailing brick-and-mortar by under 5 points, potentially fueling half the $1B long-term sales target via 5-6% CAGR including ~1% from tuck-in M&A. Executives prioritized buybacks to 40M shares over large deals, committing 75% of cash flow to growth investments. Sales phasing eyes a more traditional 50/50 split. Retailers are bullish. Management sounded energized on execution ahead.
Key Stats
Market Cap
3.40BP/E (TTM)
23.73Basic EPS (TTM)
2.47Dividend Yield
0.05%Recent Filings
8-K
Hawthorne now discontinued ops
Scotts Miracle-Gro classified its Hawthorne business as held for sale on February 20, 2026, deeming it a strategic shift and recasting fiscal 2024-2025 results to show Hawthorne as discontinued. Continuing ops net sales fell to $3.26B in FY2025 from $3.55B prior; adjusted EBITDA hit $570M. Hawthorne dragged $37M loss.
10-Q
Q1 FY2026 results
Scotts Miracle-Gro's Q1 FY2026 continuing operations posted net sales of $354.4M, down 3.3% y/y from $366.6M, yet gross margin ticked up to 25.0% from 24.1% on pricing gains and lower manufacturing costs; operating loss narrowed to $21.8M from $45.8M as SG&A dropped 6.6% and restructuring charges fell sharply. U.S. Consumer sales dipped 3.6% y/y to $328.5M (93% of total) but held segment profit near $9.0M. Debt stands at $2.5B with $979.8M revolver availability and leverage at 4.03; cash ended at $8.3M after seasonal outflows, offset by net borrowings. Hawthorne classified held for sale with $104.8M non-cash write-down in discontinued ops. Securities litigation lingers.
8-K
LTIP share pool boosted
Scotts Miracle-Gro shareholders approved amending its Long-Term Incentive Plan on January 26, 2026, adding 2,750,000 common shares for executive and director awards. New RSU, performance unit, stock option, and deferred stock forms take effect January 30. Plan expires 2032. Shareholders also elected four directors amid mixed support.
8-K
Q1 results, Hawthorne sale
Scotts Miracle-Gro reported Q1 fiscal 2026 results with U.S. Consumer net sales at $328.5 million, adjusted gross margin up 90 basis points to 25.4%, and adjusted EBITDA rising to $3.0 million. It's advancing Hawthorne's sale to Vireo Growth, expected to close Q2, while approving a $500 million share repurchase starting late 2026. Fiscal 2026 guidance reaffirmed. Divestiture sharpens core focus.
10-K
FY2025 results
Scotts Miracle-Gro posted FY2025 net sales of $3.4B, down 3.9% y/y from $3.6B, yet swung to net income of $145.2M ($2.47 diluted EPS) from a $34.9M loss, fueled by gross margin expansion to 30.6% from 23.9% via lower material costs and favorable U.S. Consumer mix. U.S. Consumer dipped 0.7% to $3.0B on nonrecurring sales drop but lifted segment profit 15% to $573M; Hawthorne cratered 44% to $166M yet turned profitable at $2.8M amid cannabis oversupply. Q4 mirrored seasonality at 11% of sales. Debt fell to $2.1B (leverage 4.10x) with $1.2B revolver capacity; dividends held steady, no buybacks. Cannabis oversupply clouds Hawthorne momentum.
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