Scotts Miracle-Gro Shares Up 6.8% After Q1 Beat, Reaffirms 2026 EBITDA and Cash Targets
Shares of Scotts Miracle-Gro have climbed 6.8% since its Q1 report, which showed an adjusted EPS loss of $0.77 versus $0.88 year over year and net sales of $354.4M beating estimates. It reaffirmed fiscal 2026 targets: mid-single-digit EBITDA growth, at least 32% gross margin and $275M free cash flow.
1. Q1 Financial Performance
In the fiscal first quarter ended December 27, Scotts Miracle-Gro reported an adjusted loss from continuing operations of $0.77 per share, narrowing from $0.88 a year earlier. Net sales decreased 3% year over year to $354.4 million, with U.S. Consumer sales down 4% to $328.5 million and the Other segment up 1% to $25.9 million.
2. Balance Sheet and Debt Reduction
Cash and cash equivalents rose to $8.3 million from $5.7 million a year ago, while long-term debt declined 14.7% to $2.25 billion, reflecting ongoing efforts to strengthen financial flexibility.
3. Fiscal 2026 Outlook
The company reaffirmed full-year guidance, targeting low single-digit U.S. Consumer sales growth, mid-single-digit adjusted EBITDA growth, a minimum 32% adjusted gross margin and approximately $275 million in free cash flow.
4. Stock Performance
Since the Q1 earnings release roughly one month ago, shares have gained 6.8%, outpacing the S&P 500, as investors digest the beat on sales and narrowed losses alongside solidified fiscal 2026 targets.