Quarterly ResultApr 29, 2026, 06:51 AM
SMG Q2 Net Sales +5% to $1.46B; Adj EPS $4.53; Leverage 3.71x
AI Summary
Scotts Miracle-Gro reported strong second-quarter 2026 results, with net sales increasing 5% to $1.46 billion and non-GAAP adjusted EPS rising 13% to $4.53. The company significantly improved its gross margin rate by 240 basis points and reduced net leverage to 3.71x from 4.41x. SMG reaffirmed its fiscal 2026 guidance, expecting low single-digit U.S. Consumer net sales growth and adjusted EPS between $4.15 and $4.35, driven by continued profitability growth and improved free cash flow.
Key Highlights
- Net sales increased 5% to $1.46 billion in Q2 2026.
- Non-GAAP adjusted gross margin rate improved by 240 basis points to 41.8%.
- Non-GAAP adjusted net income per share rose 13% to $4.53.
- Non-GAAP adjusted EBITDA increased 9% to $437.4 million.
- Net leverage improved to 3.71x, down from 4.41x in the prior year.
- Reaffirmed fiscal 2026 guidance for U.S. Consumer net sales: low single-digit growth.
- Reaffirmed fiscal 2026 non-GAAP adjusted EPS guidance: $4.15 to $4.35.
- Reaffirmed fiscal 2026 free cash flow guidance: $275 million.