The Scotts Miracle-Gro Company (SMG) Q3 2026 earnings summary

Executive summary

• Raised full-year non-GAAP adjusted EPS guidance to $4.30–$4.45, reflecting confidence in ongoing performance and accelerated EPS growth.

• CEO transition completed, with a focus on SMG 2.0 strategy to drive innovation, digital engagement, and sustainable growth.

• Organizational restructuring included eliminating the COO role, hiring new innovation and information officers, and executive severance charges.

• E-commerce POS for branded products surged 27% in dollars and 33% in units year to date.

• Non-GAAP adjusted diluted EPS from continuing operations grew 8% for the quarter and 15% year to date.

Financial highlights

• Q3 net sales increased 1% to $1.17B; year-to-date net sales up 2% to $2.99B.

• GAAP gross margin YTD was 35.7%, up 130 bps; non-GAAP gross margin for Q3 was 31.3%, down 100 bps year-over-year.

• Non-GAAP adjusted EBITDA YTD was $686.6M, up 5% from $655.9M; Q3 adjusted EBITDA was $246.3M.

• GAAP net income YTD was $319.1M ($5.40/share); non-GAAP adjusted net income was $390.2M ($6.60/share).

• Q3 GAAP net income was $103.6M ($1.75/share); non-GAAP adjusted net income was $166.9M ($2.82/share), up 8% year-over-year.

Outlook and guidance

• Full-year non-GAAP adjusted EPS guidance raised to $4.30–$4.45.

• U.S. Consumer net sales expected to achieve low single-digit growth.

• Non-GAAP adjusted gross margin rate expected at least 32% for the year.

• Free cash flow guidance maintained at $275M; leverage ratio targeted in the high 3s.

• Long-term targets include $1B net sales and EBITDA by 2030+.