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Get filing alertsScotts Miracle-Gro raises FY2026 EPS guidance to $4.30–$4.45 on Q3 beat
Filed July 29, 2026 · Period ending July 29, 2026 · ~1 min read
Key Changes
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Raised full-year non-GAAP EPS guidance from $4.15–$4.35 to $4.30–$4.45; Q3 non-GAAP EPS of $2.82 up 8% year-over-year on sales of $1.17 billion (up 1%).
Exhibit 99.1 view on EDGAR → -
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Nate Baxter succeeded Jim Hagedorn as CEO on June 29, 2026, with public support from the Hagedorn Partnership (largest shareholder); Hagedorn retired after 25 years as CEO.
Exhibit 99.1 view on EDGAR → -
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Q3 gross margin declined 100 basis points (non-GAAP) year-over-year to 31.3% due to higher freight and commodity costs from the Iran conflict; full-year margin expansion remains on track.
Exhibit 99.1 view on EDGAR → -
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Net leverage ratio improved to 3.78x (down 0.37x year-over-year); company reaffirmed $275 million free cash flow target and expects leverage to reach high 3s by year-end.
Exhibit 99.1 view on EDGAR → -
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Strong performance from Bonnie Plants joint venture contributed to Q3 EPS growth; lower tax rate (27–28% expected for full year vs. 29% prior year) also aided results.
Exhibit 99.1 view on EDGAR →
Summary
Scotts Miracle-Gro reported third-quarter fiscal 2026 results that beat expectations and raised its full-year earnings outlook. The company lifted non-GAAP EPS guidance by 10 cents at the midpoint to $4.30–$4.45, reflecting stronger-than-expected performance in Q3 (non-GAAP EPS of $2.82, up 8% year-over-year) and confidence in the remainder of the year.
Sales grew modestly at 1% to $1.17 billion, while the Bonnie Plants joint venture and a lower tax rate contributed to earnings growth. The company absorbed a 100-basis-point gross margin headwind from Iran conflict-driven freight and commodity cost inflation but maintained its full-year margin expansion target through supply chain automation and purchasing efficiencies.
The filing also highlighted a leadership transition: Nate Baxter became CEO on June 29, 2026, succeeding founder Jim Hagedorn after nearly 40 years with the company. The Hagedorn Partnership, the largest shareholder, publicly endorsed Baxter and his strategic vision, signaling continuity and stakeholder alignment. The company's balance sheet continues to improve, with net leverage down to 3.78x (a 0.37x year-over-year reduction) and a path to the high 3s by year-end on $275 million of expected free cash flow. For retail holders, the raised guidance and deleveraging trajectory suggest operational momentum despite macro headwinds, while the smooth CEO succession with controlling-shareholder backing reduces governance uncertainty.
Section-by-Section Diff
Event · Item 2.02 — Results of Operations and Financial Condition
Scotts Miracle-Gro disclosed Q3 and nine-month fiscal 2026 financial results via press release.
Added in current filing · verify on EDGAR →
On July 29, 2026, Scotts Miracle-Gro issued a news release reporting information regarding its financial results for the three and nine months ended June 27, 2026 and its financial condition as of June 27, 2026.
The company announced its financial results for the third quarter and first nine months of fiscal year 2026, ending June 27, 2026. The detailed results are contained in a press release furnished as an exhibit to this filing.
Event · Exhibit 99.1
Added in current filing · view on EDGAR →
The Company now expects non-GAAP adjusted diluted net income per share from continuing operations of $4.30 to $4.45.
ScottsMiracle-Gro raised its full-year non-GAAP adjusted EPS guidance from the prior range of $4.15 to $4.35 to a new range of $4.30 to $4.45. For Q3, the company reported net sales of $1.17 billion (up 1% year-over-year) and non-GAAP adjusted diluted EPS from continuing operations of $2.82 (up 8% year-over-year). The company reaffirmed other full-year targets including low single-digit U.S. Consumer sales growth, adjusted gross margin of at least 32%, mid single-digit adjusted EBITDA growth, and free cash flow of $275 million.
Added in current filing · view on EDGAR →
the Hagedorn Partnership, L.P., the largest shareholder of the Company, has expressed its support for Baxter, who joined the Company in 2023 and was announced as president and CEO on June 29 after previously serving as president and COO. Baxter succeeded Jim Hagedorn, who completed a nearly 40-year career with ScottsMiracle-Gro and served as CEO since 2001.
Nate Baxter was announced as president and CEO on June 29, 2026, succeeding Jim Hagedorn who retired after nearly 40 years with the company and 25 years as CEO. The Hagedorn Partnership, the company's largest shareholder, publicly expressed support for Baxter and his strategic vision. Baxter joined the company in 2023 and previously served as president and COO.
Added in current filing · view on EDGAR →
GAAP gross margin rate of 31.2% and non-GAAP adjusted gross margin rate of 31.3% decreased by 90 and 100 basis points over prior year, respectively, driven by higher freight and commodity costs resulting from the Iran conflict.
Q3 gross margin declined 90 basis points (GAAP) and 100 basis points (non-GAAP adjusted) year-over-year due to higher freight and commodity costs attributed to the Iran conflict. Despite this headwind, the company stated that gross margin rate expansion remains on track over prior year through supply chain automation, expanded use of AI, manufacturing capital expenditures, and purchasing efficiencies.
Added in current filing · view on EDGAR →
Non-GAAP adjusted net income from continuing operations of $2.82 per diluted share improved by 8% over prior year, partially the result of the strong operating performance of our Bonnie Plants joint venture
The company attributed part of its 8% year-over-year increase in Q3 non-GAAP adjusted EPS from continuing operations to strong operating performance from its Bonnie Plants joint venture. The company also benefited from a lower tax rate driven by higher earnings and discrete tax items, with the full-year tax rate expected to range from 27-28% versus 29% in the prior year.
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Figures/quotes linked to EDGAR · Narrative written by AI · Jul 30, 2026 · How we verify