ScottsMiracle-Gro Reaffirms Fiscal 2026 Guidance; Margin Recovery and Growth Plans Remain on Track

Rhea-AI Impact

(Moderate)

Rhea-AI Sentiment

(Positive)

Rhea-AI Summary

ScottsMiracle-Gro (NYSE: SMG) reaffirmed its fiscal 2026 guidance and says margin recovery and growth plans remain on track. The company reported ~80% of commodities locked by March 28, 2026, ~90% of COGS sourced domestically and nearly 100% urea domestic sourcing.

Debt-to-EBITDA was reported below 4x, and management reiterated a planned share repurchase program to begin later in fiscal 2026. Full details will be discussed on the Q2 earnings call on April 29, 2026.

Positive

80% of fiscal 2026 commodities locked by March 28, 2026
~90% of cost of goods sold sourced domestically
Targeted non-GAAP adjusted gross margin of at least 32%
Debt-to-EBITDA leverage reported below 4x
Planned share repurchase program to start later in fiscal 2026

Negative

None.

Key Figures

Commodities locked: 80% of commodities Domestic sourcing: 90% of cost of goods sold Urea sourcing: Nearly 100% domestic urea +4 more

7 metrics

Commodities locked 80% of commodities Locked for fiscal 2026 by close of Q2 on March 28, 2026

Domestic sourcing 90% of cost of goods sold Sourced domestically for fiscal 2026

Urea sourcing Nearly 100% domestic urea Primary fertilizer input from domestic suppliers under contracts

Leverage ratio Debt-to-EBITDA below 4x At close of fiscal Q2 2026

Gross margin guidance ≥32% non-GAAP adjusted gross margin Fiscal 2026 guidance reiterated

Net sales outlook U.S. Consumer low single-digit growth Fiscal 2026 guidance component

Earnings call date April 29, 2026 Fiscal Q2 2026 earnings call to discuss guidance progress

Market Reality Check

Price: $61.01 Vol: Volume 1,027,820 is 3% ab...

normal vol

$61.01 Last Close

Volume Volume 1,027,820 is 3% above the 20-day average, indicating modestly elevated interest ahead of lawn and garden season. normal

Technical Shares at $61.01 are trading slightly below the $61.33 200-day MA and about 15.67% below the 52-week high, suggesting room for recovery if guidance confidence persists.

Peers on Argus

SMG’s mild 0.33% gain came with mixed peer action: MOS and CF showed gains (e.g....

2 Up

SMG’s mild 0.33% gain came with mixed peer action: MOS and CF showed gains (e.g., CF scanner move +4.39%), while FMC and UAN were down. With only two peers in momentum and no news-driven clustering, trading appeared more company-specific than sector-wide.

Historical Context

5 past events · Latest: Mar 18 (Positive)

Pattern 5 events

Date	Event	Sentiment	Move	Catalyst
Mar 18	Product launch partnership	Positive	+3.6%	Launch of Inspired to Gro patio garden kits with partners and online sales.
Feb 11	NYSE anniversary mention	Neutral	+0.3%	NYSE update noting SMG’s 30th anniversary closing bell celebration.
Jan 28	Earnings and strategy	Positive	-0.7%	Q1 results, Hawthorne divestiture plan, guidance reaffirmation and $500M buyback.
Jan 26	Dividend declaration	Positive	+0.6%	Announcement of $0.66 per share quarterly dividend and sales context.
Jan 20	Earnings timing	Neutral	-1.3%	Scheduling of Q1 2026 results release and webcast details.

Pattern Detected

Recent company-specific news (product launches, dividends, guidance/strategy) has usually led to modest, directionally aligned moves, with occasional divergences on earnings and scheduling updates.

Recent Company History

Over the last few months, ScottsMiracle-Gro has focused on brand and financial positioning. A Q1 fiscal 2026 update on Jan 28 reported results, detailed the planned Hawthorne divestiture, reaffirmed fiscal 2026 guidance, and authorized a $500 million share repurchase program, yet shares slipped modestly. Dividend and product announcements on Jan 26 and Mar 18 supported small positive moves. A neutral NYSE anniversary mention on Feb 11 had little impact. Today’s reaffirmed guidance and margin recovery message fits this trajectory of steady, shareholder-focused communications.

Market Pulse Summary

This announcement centers on reaffirmed fiscal 2026 guidance and execution on margin recovery. Manag...

Analysis

This announcement centers on reaffirmed fiscal 2026 guidance and execution on margin recovery. Management emphasized that about 80% of commodities are locked, roughly 90% of cost of goods are sourced domestically, and the debt-to-EBITDA ratio is below 4x, supporting plans for at least 32% non-GAAP gross margin and future share repurchases. In context of recent strategic moves and dividends, investors may focus on upcoming Q2 results on April 29, 2026 to validate these targets.

Key Terms

cost of goods sold, urea, debt-to-EBITDA leverage ratio, non-GAAP adjusted gross margin, +1 more

5 terms

cost of goods sold financial

"around 90 percent of its cost of goods sold are sourced domestically"

Cost of goods sold (COGS) is the direct cost of producing the products a company sells, including materials, labor and factory overhead tied to making those items. Think of it like the ingredients and cook time for a bakery’s cakes — the more you spend to make each cake, the less you keep when you sell it. Investors watch COGS because it directly reduces gross profit and reveals how efficiently a company turns inputs into profitable sales, affecting margins, pricing and competitiveness.

urea technical

"including nearly 100 percent of the urea that is a primary input"

Urea is a small, water‑soluble molecule the body makes to carry away nitrogen waste from breaking down protein, similar to how a household drains remove unwanted material. Investors care because urea is also a major industrial feedstock used in fertilizers and chemicals, and changes in demand, prices, or regulatory shifts can affect companies in agriculture, chemicals and healthcare diagnostics tied to kidney function monitoring.

debt-to-EBITDA leverage ratio financial

"debt-to-EBITDA leverage ratio at the close of the fiscal second quarter was below 4 times"

A debt-to-EBITDA leverage ratio compares a company’s total debt to its operating cash-like earnings (EBITDA), showing how many years of those earnings would be needed to pay off the debt. Investors use it to gauge financial risk: a higher ratio is like a household owing many years of income on its mortgage, implying greater strain, higher borrowing costs and more vulnerability in a downturn.

non-GAAP adjusted gross margin financial

"guidance, which includes U.S. Consumer low single-digit net sales growth and non-GAAP adjusted gross margin of at least 32%"

Non-GAAP adjusted gross margin is the percentage of sales left after direct product or service costs, but recalculated after removing certain one-time or non-cash items that management believes obscure underlying profitability. Think of it as a cleaned-up version of the basic profit-on-sales number that aims to show how efficiently a company makes its product when you wipe away unusual or accounting-driven smudges. Investors use it to judge core operating performance, but it can vary by company and may omit real costs, so compare adjustments carefully.

AI-generated analysis. Not financial advice.

04/02/2026 - 07:00 AM

MARYSVILLE, Ohio, April 02, 2026 (GLOBE NEWSWIRE) -- The Scotts Miracle-Gro Company (NYSE: SMG), the leading marketer of branded consumer lawn and garden products in North America, announced that it is reaffirming its fiscal 2026 guidance as it does not expect the significant global commodity impacts from the Iran War to affect its full-year outlook.

The Company noted that approximately 80 percent of its commodities for the fiscal year were locked by the close of its second quarter on March 28, 2026. Additionally, around 90 percent of its cost of goods sold are sourced domestically, including nearly 100 percent of the urea that is a primary input in its fertilizer products. The Company obtains urea from reliable suppliers under previously negotiated contracts.

“We are in a very good position when it comes to our cost of goods for fiscal 2026 and are fully confident that we will deliver on our gross margin recovery and growth plans,” said Jim Hagedorn, chairman and CEO. “We do not expect supply or sourcing issues, and any fluctuations in commodities that we may encounter through the remainder of our fiscal year are manageable.

“As for our consumers, we are seeing strong signs of engagement in our category and with our brands. We expect this early momentum to carry over into our fiscal third quarter and the heart of the lawn and garden season. History shows that even in inflationary and recessionary times, our category tends to do well, as people focus on spending more time in their yards and gardens.”

The Company also announced continued progress on debt reduction, as debt-to-EBITDA leverage ratio at the close of the fiscal second quarter was below 4 times.

“This is a tremendous achievement that will lead us into a period of sustained reinvestment in the business and shareholder friendly actions that include the previously announced share repurchase program that we intend to begin later in fiscal 2026,” Hagedorn said.

The Company will address its financial performance and progress toward its guidance, which includes U.S. Consumer low single-digit net sales growth and non-GAAP adjusted gross margin of at least 32%, in detail during its fiscal second-quarter earnings call on April 29, 2026.

About ScottsMiracle-Gro

With approximately $3.4 billion in sales, the Company is the leading marketer of branded consumer lawn and garden products in North America. The Company’s brands are among the most recognized in the industry. The Company’s Scotts®, Miracle-Gro®, Ortho® and Tomcat® brands are market-leading in their categories. For additional information, visit us at www.scottsmiraclegro.com.

For investor inquiries:
Brad Chelton
Vice President
Treasury, Tax and Investor Relations
brad.chelton@scotts.com
(937) 309-2503

For media inquiries:
Tom Matthews
Chief Communications Officer
tom.matthews@scotts.com
(937) 844-3864

FAQ

What fiscal 2026 guidance did ScottsMiracle-Gro (SMG) reaffirm on April 2, 2026?

They reaffirmed fiscal 2026 guidance including U.S. Consumer low single-digit net sales growth. According to the company, guidance also targets a non-GAAP adjusted gross margin of at least 32% and full-year outlook unchanged despite commodity concerns.

How much of ScottsMiracle-Gro's commodities were locked by March 28, 2026 for fiscal 2026?

Approximately 80% of commodities were locked by March 28, 2026. According to the company, this hedging reduces exposure to commodity volatility linked to global events like the Iran War.

What portion of ScottsMiracle-Gro's cost of goods sold is sourced domestically in fiscal 2026?

Around 90% of cost of goods sold are sourced domestically, with nearly 100% of urea domestic. According to the company, domestic sourcing supports supply stability and margin protection for fiscal 2026.

What did ScottsMiracle-Gro say about its debt level and buybacks on April 2, 2026?

Debt-to-EBITDA was reported below 4x at the end of Q2, and management plans a share repurchase program later in fiscal 2026. According to the company, lower leverage enables reinvestment and shareholder-friendly actions.

When will ScottsMiracle-Gro discuss fiscal Q2 results and progress toward 2026 guidance (SMG)?

The company will address fiscal Q2 results and guidance progress on its earnings call on April 29, 2026. According to the company, the call will detail performance and updates on sales, margins, and capital plans.

ScottsMiracle-Gro Reaffirms Fiscal 2026 Guidance; Margin Recovery and Growth Plans Remain on Track