Scotts Miracle-Gro Q2 Revenue Rises 5% to $1.46B; EPS $4.53 Beats Estimates
Scotts Miracle-Gro reported Q2 adjusted EPS of $4.53, beating estimates by $0.67, on revenue of $1.46B, up 5% year-over-year. Adjusted gross margin expanded 240 basis points to 41.8%, adjusted EBITDA rose 9% to $437.4M, and net leverage improved to 3.71x as the company reaffirmed full-year adjusted EPS guidance of $4.15-4.35.
1. Strong Q2 Financial Results
Scotts Miracle-Gro delivered adjusted EPS of $4.53 in the quarter ended March 28, surpassing the consensus estimate of $3.86 by $0.67. Revenue of $1.46 billion represented a 5% increase year-over-year and exceeded the $1.41 billion forecast.
2. Margin Expansion and Profitability
Adjusted gross margin widened by 240 basis points to 41.8%, while adjusted EBITDA rose 9% to $437.4 million. The company credits targeted consumer activation spending and efficient capital allocation for improved profitability and expects approximately $275 million in free cash flow for fiscal 2026.
3. Reaffirmed Guidance and Deleveraging
Scotts Miracle-Gro reaffirmed its full-year adjusted EPS range of $4.15 to $4.35 and expects low single-digit net sales growth in its U.S. Consumer segment with at least a 32% adjusted gross margin. Net leverage improved to 3.71x from 4.41x a year earlier, with planned free cash flow aimed at further reducing debt.