Scotts Miracle-Gro Reaffirms Fiscal 2026 Guidance Amid Commodity Stability
Written by Emily J. Thompson, Senior Investment Analyst
Updated: 1 hour ago
0mins
Should l Buy SMG?
Source: Newsfilter
- Guidance Reaffirmation: Scotts Miracle-Gro reaffirms its fiscal 2026 guidance, indicating that significant global commodity impacts from the Iran War are not expected to affect its full-year outlook, reflecting strong market confidence.
- Commodity Locking Status: As of March 28, 2026, approximately 80% of commodities were locked, with 90% of cost of goods sold sourced domestically, including nearly 100% of urea, ensuring supply chain stability for the company.
- Debt Management Progress: The company's debt-to-EBITDA leverage ratio was below 4 times at the close of the fiscal second quarter, marking significant progress in debt reduction and laying the groundwork for future reinvestment and shareholder-friendly actions.
- Strong Market Demand: The company has observed strong consumer engagement with its brands, expecting this early momentum to carry into the fiscal third quarter, particularly during the peak lawn and garden season, indicating robust market demand even amid inflationary and recessionary pressures.
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Analyst Views on SMG
Wall Street analysts forecast SMG stock price to rise
5 Analyst Rating
4 Buy
1 Hold
0 Sell
Strong Buy
Current: 60.810
Low
51.37
Averages
64.09
High
74.00
Current: 60.810
Low
51.37
Averages
64.09
High
74.00
About SMG
The Scotts Miracle-Gro Company is a manufacturer and marketer of branded consumer products for lawn and garden care. The Company's segments include United States (U.S.) Consumer, Hawthorne and Other. The U.S. Consumer segment consists of its consumer lawn and garden business in the United States. Its consumer lawn and garden brands include Scotts and Turf Builder lawn fertilizer and Scotts grass seed products; Miracle-Gro soil, plant food and gardening products; Ortho herbicide and pesticide products, and Tomcat rodent control and animal repellent products. The Hawthorne segment is engaged in providing nutrients, lighting and other materials used for indoor and hydroponic gardening in North America. Its key brands include General Hydroponics, Gavita, Botanicare, Agrolux, Gro Pro, Mother Earth, Grower’s Edge, HydroLogic Purification System and CYCO. The Other segment primarily consists of its consumer lawn and garden business in Canada.
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
Scotts Miracle-Gro Reaffirms Fiscal 2026 Guidance Amid Commodity Stability
- Guidance Reaffirmation: Scotts Miracle-Gro reaffirms its fiscal 2026 guidance, indicating that significant global commodity impacts from the Iran War are not expected to affect its full-year outlook, reflecting strong market confidence.
- Commodity Locking Status: As of March 28, 2026, approximately 80% of commodities were locked, with 90% of cost of goods sold sourced domestically, including nearly 100% of urea, ensuring supply chain stability for the company.
- Debt Management Progress: The company's debt-to-EBITDA leverage ratio was below 4 times at the close of the fiscal second quarter, marking significant progress in debt reduction and laying the groundwork for future reinvestment and shareholder-friendly actions.
- Strong Market Demand: The company has observed strong consumer engagement with its brands, expecting this early momentum to carry into the fiscal third quarter, particularly during the peak lawn and garden season, indicating robust market demand even amid inflationary and recessionary pressures.
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Value Investors Pitch Stock Ideas at New York Conference
- CF Industries Cash Flow Advantage: Amid soaring liquid fertilizer prices due to shipping bottlenecks in the Strait of Hormuz, Jennifer Wallace from Summit Street Capital highlighted CF Industries as a structurally advantaged 'cash-flow machine,' benefiting from its exposure to globally priced fertilizers and low-cost U.S. natural gas, positioning it as one of the most profitable producers worldwide.
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- Scotts Miracle-Gro Undervalued: John Rogers from Ariel Investments highlighted Scotts Miracle-Gro's strong brand and potential for shareholder returns, expecting the lawn-care company to rely more on share buybacks, which he believes could drive both earnings and stock price higher.
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SMG Swiss Marketplace Group Reports Strong 2025 Earnings Growth
- Significant Revenue Growth: SMG Swiss Marketplace Group reported a 14.1% revenue increase in 2025, reaching CHF 332 million, indicating strong market performance that is expected to drive further investments and expansion in the future.
- Adjusted EBITDA Surge: Adjusted EBITDA grew by 29.4% to CHF 180 million, with a margin of 54.3%, demonstrating substantial progress in cost control and operational efficiency, thereby enhancing profitability.
- Improved Cash Conversion: Cash conversion increased by 4% to 81%, enabling the company to propose a dividend payout of CHF 80.5 million, reflecting healthy cash flow and a commitment to shareholder returns.
- Agent Count Recovery: The number of agents surpassed 4,000, reversing a previous negative trend, showcasing the company's success in customer acquisition and market penetration, which is expected to support future revenue growth.
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Scotts-Miracle-Gro Shifts Focus to Core Lawn and Garden Business
- Investment Focus Shift: At the UBS Global Consumer and Retail Conference, Scotts-Miracle-Gro (SMG) announced a strategic pivot towards branded products and digital commerce, aiming for long-term sales and margin goals, particularly after exiting the unsuccessful cannabis market and refocusing on its core lawn and garden business.
- E-commerce Growth Engine: E-commerce sales are projected to account for 13% to 15% of consumer sales in fiscal 2025, a significant increase from 2% five years ago, indicating a growing consumer acceptance of lawn and garden products, which facilitates year-round product launches for the company.
- Younger Consumers Driving Demand: Research indicates that millennials and Gen Z consumers spend comparably to older generations on lawn and garden products but expect a stronger digital experience, prompting Scotts to invest heavily in a digital ecosystem to cater to this emerging market demand.
- Profitability Targets Set: Scotts expects a gross margin of at least 32% this year, up from 31.6% last year, primarily driven by net pricing and supply chain savings, with future goals aiming for mid-30s to nearly 40% margins, enhancing competitiveness with top-tier consumer packaged goods companies.
See More
Scotts Miracle-Gro Reaffirms Fiscal 2026 Guidance Amid Commodity Stability
- Guidance Reaffirmation: Scotts Miracle-Gro reaffirms its fiscal 2026 guidance, indicating that significant global commodity impacts from the Iran War are not expected to affect its full-year outlook, reflecting strong market confidence.
- Commodity Locking Status: As of March 28, 2026, approximately 80% of commodities were locked, with 90% of cost of goods sold sourced domestically, including nearly 100% of urea, ensuring supply chain stability for the company.
- Debt Management Progress: The company's debt-to-EBITDA leverage ratio was below 4 times at the close of the fiscal second quarter, marking significant progress in debt reduction and laying the groundwork for future reinvestment and shareholder-friendly actions.
- Strong Market Demand: The company has observed strong consumer engagement with its brands, expecting this early momentum to carry into the fiscal third quarter, particularly during the peak lawn and garden season, indicating robust market demand even amid inflationary and recessionary pressures.
See More
Meta Platforms Faces Legal Setbacks, Stock Drops Over 6%
- Meta Legal Setbacks: Meta Platforms' stock dropped over 6% following losses in two major legal cases concerning child safety, raising concerns about Big Tech's role in social media safety and free speech protections, despite relatively minor financial penalties.
- AppLovin's Decline: AppLovin's shares fell nearly 8% due to reports of weakening e-commerce spending trends, with insufficient new client momentum to offset churn in Q1, highlighting potential challenges in maintaining growth.
- Brown-Forman's Surge: Shares of Brown-Forman rose over 14% after Bloomberg reported that French spirits company Pernod Ricard is considering a bid, indicating strong market interest in the company's future acquisition potential.
- Pony AI's Expansion Plans: Pony AI's stock fell 13% after announcing ambitious robotaxi expansion plans alongside its first quarterly profit, but an 18% revenue drop due to project timing raises concerns about margin pressures despite doubling robotaxi revenue.
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Wall Street's Latest Ratings: Apple and Dell Rated Buy
- Apple and Dell Benefiting: Goldman Sachs reiterates Buy ratings for Apple (AAPL) and Dell (DELL), citing increased demand for PC hardware driven by the rise of open-source autonomous AI agents, which is expected to enhance their market performance.
- Abercrombie & Fitch Coverage Initiated: Needham initiates coverage on Abercrombie & Fitch (ANF) with a Buy rating and a $108 price target, believing that after a challenging FY25, the company's fundamentals are stabilizing, making it attractive for investors.
- Spotify Performance Outlook: Daiwa rates Spotify Technology (SPOT) as Outperform with a $535 price target, based on expectations of steady revenue growth, indicating confidence in its future development.
- Somnigroup International Upgrade: Jefferies upgrades Somnigroup International (SGI) from Hold to Buy, noting that SGI shares have fallen about 17% since the start of the Iran war, yet its valuation remains attractive, reflecting market confidence in its future growth potential.
See More
Value Investors Pitch Stock Ideas at New York Conference
- CF Industries Cash Flow Advantage: Amid soaring liquid fertilizer prices due to shipping bottlenecks in the Strait of Hormuz, Jennifer Wallace from Summit Street Capital highlighted CF Industries as a structurally advantaged 'cash-flow machine,' benefiting from its exposure to globally priced fertilizers and low-cost U.S. natural gas, positioning it as one of the most profitable producers worldwide.
- Signet Jewelers Steady Cash Flow: Wallace also pointed out that Signet Jewelers is undervalued by the market, as the company generates most of its sales in North America and holds a leading share in the U.S. bridal jewelry market, which supports steady cash generation despite concerns around consumer spending.
- Investment Opportunities in Sports Stocks: Mario Gabelli of GAMCO Investors emphasized the scarcity of sports-related stocks tied to premium live content, identifying the Atlanta Braves, Madison Square Garden Sports, and Manchester United as attractive investments, particularly noting that Madison Square Garden Sports could see a 50% increase in value.
- Scotts Miracle-Gro Undervalued: John Rogers from Ariel Investments highlighted Scotts Miracle-Gro's strong brand and potential for shareholder returns, expecting the lawn-care company to rely more on share buybacks, which he believes could drive both earnings and stock price higher.
See More
SMG Swiss Marketplace Group Reports Strong 2025 Earnings Growth
- Significant Revenue Growth: SMG Swiss Marketplace Group reported a 14.1% revenue increase in 2025, reaching CHF 332 million, indicating strong market performance that is expected to drive further investments and expansion in the future.
- Adjusted EBITDA Surge: Adjusted EBITDA grew by 29.4% to CHF 180 million, with a margin of 54.3%, demonstrating substantial progress in cost control and operational efficiency, thereby enhancing profitability.
- Improved Cash Conversion: Cash conversion increased by 4% to 81%, enabling the company to propose a dividend payout of CHF 80.5 million, reflecting healthy cash flow and a commitment to shareholder returns.
- Agent Count Recovery: The number of agents surpassed 4,000, reversing a previous negative trend, showcasing the company's success in customer acquisition and market penetration, which is expected to support future revenue growth.
See More
Scotts-Miracle-Gro Shifts Focus to Core Lawn and Garden Business
- Investment Focus Shift: At the UBS Global Consumer and Retail Conference, Scotts-Miracle-Gro (SMG) announced a strategic pivot towards branded products and digital commerce, aiming for long-term sales and margin goals, particularly after exiting the unsuccessful cannabis market and refocusing on its core lawn and garden business.
- E-commerce Growth Engine: E-commerce sales are projected to account for 13% to 15% of consumer sales in fiscal 2025, a significant increase from 2% five years ago, indicating a growing consumer acceptance of lawn and garden products, which facilitates year-round product launches for the company.
- Younger Consumers Driving Demand: Research indicates that millennials and Gen Z consumers spend comparably to older generations on lawn and garden products but expect a stronger digital experience, prompting Scotts to invest heavily in a digital ecosystem to cater to this emerging market demand.
- Profitability Targets Set: Scotts expects a gross margin of at least 32% this year, up from 31.6% last year, primarily driven by net pricing and supply chain savings, with future goals aiming for mid-30s to nearly 40% margins, enhancing competitiveness with top-tier consumer packaged goods companies.
See More
