Garden marketer Scotts Miracle-Gro Q2 sales rise 5%, beat estimates

Scotts Miracle-Gro

29/04/2026 11:58

Overview

U.S. lawn and garden marketer's fiscal Q2 sales rose 5%, beating analyst expectations

Adjusted EBITDA for fiscal Q2 rose 9%, beating analyst expectations

Company improved net leverage to 3.71x from 4.41x last year

Outlook

Company reaffirms fiscal 2026 U.S. Consumer net sales growth in low single digits

Company expects fiscal 2026 non-GAAP adjusted net income per share of $4.15 to $4.35

Company sees fiscal 2026 free cash flow of $275 mln, targeting leverage ratio in high 3’s

Result Drivers

SALES GROWTH - Co said net sales rose 5% due to continued sales and POS momentum

GROSS MARGIN EXPANSION - Co attributed improved profitability to gross margin rate expansion of over 200 basis points

INVESTMENTS IN CONSUMER ACTIVATION - Co said it made incremental investments in consumer activation and return-generating capital expenditures

Company press release: ID:nGNX5727YF

Key Details

Metric
Beat/Miss
Actual
Consensus Estimate
Q2 Sales
Beat
$1.46 bln
$1.41 bln (7 Analysts)
Q2 Adjusted EBITDA
Beat
$437.40 mln
$399.23 mln (6 Analysts)

Analyst Coverage

The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 4 "strong buy" or "buy", 3 "hold" and no "sell" or "strong sell"

The average consensus recommendation for the agricultural chemicals peer group is "buy"

Wall Street's median 12-month price target for Scotts Miracle-Gro Co is $79.00, about 20.8% above its April 28 closing price of $65.38

The stock recently traded at 14 times the next 12-month earnings vs. a P/E of 13 three months ago

For questions concerning the data in this report, contact Estimates.Support@lseg.com. For any other questions or feedback, contact reuters.support@thomsonreuters.com.

(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)