Fiscal 2026 Guidance calls for further gains in key financial metrics (Form 8-K)

Fiscal 2026 Guidance calls for further gains in key financial metrics

MARYSVILLE, Ohio, November 5, 2025 - The Scotts Miracle-Gro Company (NYSE: SMG), the leading marketer of branded consumer lawn and garden products in North America, today announced its results for the fourth quarter and full fiscal year ended September 30, 2025.

"In fiscal '25, we delivered significant results in the financial metrics that are central to our growth plans," said Jim Hagedorn, chairman and CEO. "We drove share gains, made substantial gross margin improvement and achieved meaningful EBITDA and EPS increases. The bigger story is the health of our consumer and resiliency of our category, as evidenced by our strong and sustained POS growth.

"As for our operating structure, we continue to strategically implement AI, robotic automation and other efficiencies to bring cost savings that we in turn are investing in our brands, innovation and channel expansion. Overall, we expect another solid financial performance in fiscal '26 to further drive the quality of our earnings."

Mark Scheiwer, chief financial officer and chief accounting officer, added, "We closed the fiscal year with another strong quarter, continuing the momentum we built over the past two years. We not only delivered on our fiscal '25 guidance, but we also outperformed our expectations for gross margin expansion, EPS and free cash flow, enabling us to reduce our debt levels and leverage ratio. We are well positioned to execute our growth strategy, which is reflected in our fiscal '26 guidance."

Fiscal 2025 Full Year Highlights

•U.S. Consumer net sales of $2.99 billion were in line with guidance

•POS units and dollars increased 8.5% and 1.4%, respectively

•GAAP gross margin rate of 30.6% and non-GAAP adjusted gross margin rate of 31.2% improved by 670 and 490 basis points over prior year, respectively

•GAAP earnings of $2.47 per share and non-GAAP adjusted earnings of $3.74 per share improved by $3.08 and $1.45 per share over prior year, respectively

•Non-GAAP Adjusted EBITDA of $581 million improved $71 million over prior year

•Free cash flow of $274 million exceeded expectations and net leverage of 4.10x improved 0.76x versus last year

Fiscal 2026 Outlook

The Company provided direction for fiscal 2026 that includes the following:

•U.S. Consumer net sales low single-digit growth

•Non-GAAP adjusted gross margin of at least 32%

•Non-GAAP adjusted earnings per share of $4.15 to $4.35

•Non-GAAP adjusted EBITDA mid single-digit growth

•Free cash flow of $275 million, driving leverage ratio down to the high 3's

Details for the fourth quarter and full fiscal year 2025 are available in the accompanying financial tables. Management will further outline its 2026 expectations during its scheduled conference call with the investment community.

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Conference Call and Webcast Scheduled for 9 a.m. ET Today, November 5, 2025

The Company will discuss results during a video presentation via webcast today at 9 a.m. ET. To watch the Company presentation and listen to the question-and-answer session, please register in advance at this webcast link. For those planning to participate in the question-and-answer session that follows the video presentation, please register for the webcast to view the presentation in addition to registering in advance via this audio link to receive call-in details and a unique PIN. Supplemental slides will be available approximately 15 minutes prior to the start of the conference call. A replay of the conference call will also be available on the Company's investor website where an archive of the press release and any accompanying information will remain available for at least a 12-month period.

About ScottsMiracle-Gro

With approximately $3.4 billion in sales, the Company is the leading marketer of branded consumer lawn and garden products in North America. The Company's brands are among the most recognized in the industry. The Company's Scotts®, Miracle-Gro®, Ortho® and Tomcat® brands are market-leading in their categories. For additional information, visit us at www.scottsmiraclegro.com.