Scotts Miracle-Gro reported third-quarter fiscal 2026 net sales of $1.17 billion and GAAP diluted net income per share from continuing operations of $1.75, while raising its full-year non-GAAP adjusted diluted EPS guidance to $4.30–$4.45. Adjusted diluted net income per share for the quarter was $2.82, up 8% year-over-year, and the company reiterated a target adjusted gross margin of at least 32%. Management cited supply chain automation, AI use and manufacturing investments as drivers of margin resilience and strengthened leverage.

Financial Highlights

  • Revenue (Net sales) — Three months ended June 27, 2026: $1,172.1 million (up 1% vs prior year).
  • Gross profit and margin — Gross margin $365.9 million; GAAP gross margin rate 31.2% (non-GAAP adjusted gross margin rate 31.3%).
  • Operating income — Income from operations: $169.6 million (14.5% of sales).
  • Net income — Net income for the quarter: $112.2 million; GAAP diluted net income per share from continuing operations: $1.75.
  • Adjusted results — Adjusted diluted net income per share from continuing operations: $2.82 (up 8% year-over-year); adjusted EBITDA for the quarter: $246.3 million.
  • Updated full-year outlook — Non-GAAP adjusted diluted net income per share from continuing operations raised to $4.30–$4.45; reaffirmed at least 32% adjusted gross margin and free cash flow target of $275 million.

Business Highlights

  • Strategy execution — Management reported progress on the multi-year SMG 2.0 growth strategy focused on channel expansion, innovation and renewed consumer engagement.
  • Supply chain and operations — Company emphasized continued supply chain automation, expanded use of AI and sustained manufacturing capital expenditures to offset elevated freight and commodity costs.
  • Segment performance — U.S. Consumer net sales were essentially flat for the quarter; "Other" (primarily Canada) grew 8% year-over-year for the quarter.
  • Joint venture contribution — Strong operating performance from the Bonnie Plants joint venture contributed to adjusted results and lower effective tax rate expectations.
  • Balance sheet and leverage — Net leverage ratio improved to 3.78x, down 0.37x versus prior year, supported by free cash flow generation and deleveraging targets for fiscal 2026.

Original SEC Filing:

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