ScottsMiracle‑Gro Beats Q2 Targets, Expands Margins, Launches Major Share Buyback

Overview

• ScottsMiracle‑Gro, which reported Wednesday, posted net sales of $1.46 billion up 5% with adjusted EPS of $4.53 that topped forecasts.
• Adjusted gross margin rose to 41.8%, a 240‑basis‑point gain year over year, as management pointed to a richer branded mix and supply‑chain savings.
• The company cut its net leverage to 3.71x from 4.41x a year earlier, supporting a multi‑year plan to repurchase at least one‑third of outstanding shares.
• Full‑year fiscal 2026 guidance was reaffirmed, including adjusted EPS of $4.15 to $4.35, low single‑digit U.S. Consumer sales growth, and at least a 32% adjusted gross margin with about $275 million in expected free cash flow.
• Leaders outlined an SMG 2.0 roadmap targeting $1 billion in additional sales by 2030 focused on e‑commerce, innovation, and efficiency; shares rose about 3% in premarket trading and the company said it would file an 8‑K and post detailed results before the call.