Overview

• Lawn and garden products firm's fiscal Q1 revenue missed analyst expectations

• Adjusted EBITDA for fiscal Q1 beat analyst expectations

• Company announced divestiture of Hawthorne and $500 mln share repurchase program

Outlook

• Scotts Miracle-Gro reaffirms fiscal 2026 guidance despite Hawthorne divestiture

• Company expects fiscal 2026 U.S. Consumer net sales low single-digit growth

• Scotts Miracle-Gro plans share repurchase program to start in late 2026

Result Drivers

• MARGIN IMPROVEMENT - Co reported gross margin rate improvement by 90 basis points over prior year

Key Details

Metric	Beat/Miss	Actual	Consensus Estimate
Q1 Sales	Miss	$354.40 mln	$358.43 mln (7 Analysts)
Q1 EPS		-$2.16
Q1 Net Income		-$125 mln
Q1 Adjusted EBITDA	Beat	$3 mln	-$11.12 mln (6 Analysts)
Q1 Gross Margin		88.70%
Q1 Basic EPS		-$2.16
Q1 Operating Income		-$21.80 mln

Analyst Coverage

• The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 5 "strong buy" or "buy", 2 "hold" and no "sell" or "strong sell"

• Wall Street's median 12-month price target for Scotts Miracle-Gro Co is $70.00, about 10.7% above its January 27 closing price of $63.23

• The stock recently traded at 14 times the next 12-month earnings vs. a P/E of 13 three months ago

Press Release: ID:nGNX7SpRm2

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