Overview

* Scotts Miracle-Gro ( SMG ) Q4 revenue missed analyst expectations

* Adjusted EBITDA for Q4 beats estimates

Outlook

* Scotts Miracle-Gro ( SMG ) expects U.S. Consumer net sales low single-digit growth in fiscal 2026

* Company projects non-GAAP adjusted EPS of $4.15 to $4.35 for fiscal 2026

* Scotts Miracle-Gro ( SMG ) anticipates free cash flow of $275 mln, reducing leverage ratio to high 3's

Result Drivers

* GROSS MARGIN IMPROVEMENT - Co achieved significant gross margin improvement, increasing by 670 basis points over prior year

* COST SAVINGS - Strategic implementation of AI and robotic automation contributed to cost savings, allowing reinvestment in brands and channel expansion

* U.S. CONSUMER SALES - U.S. Consumer net sales of $2.99 bln were in line with guidance, showing resilience in the consumer segment

Key Details

Metric Beat/Mis Actual Consensu

s s

Estimate

Q4 Sales Miss $387.40 $397.30

mln mln (9

Analysts

)

Q4 Beat -$1.96 -$1.99

Adjusted (8

EPS Analysts

)

Q4 EPS -$2.63

Q4 Net -$151.80

Income mln

Q4 Beat -$81.60 -$86 mln

Adjusted mln (7

EBITDA Analysts

)

Q4 Gross 23.50%

Margin

Q4 Basic -$2.63

EPS

Q4 -$150.10

Operatin mln

g Income

Q4 -$190.60

Pretax mln

Profit

Analyst Coverage

* The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 5 "strong buy" or "buy", 4 "hold" and no "sell" or "strong sell"

* The average consensus recommendation for the agricultural chemicals peer group is "buy"

* Wall Street's median 12-month price target for Scotts Miracle-Gro Co ( SMG ) is $70.50, about 22.8% above its November 4 closing price of $54.46

* The stock recently traded at 13 times the next 12-month earnings vs. a P/E of 15 three months ago

Press Release:

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(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)