Scotts Miracle-gro Company (the) · NYSE:SMG
Scotts Miracle-gro Company (the) — Q1 2026 Earnings Presentation
30 slides from Scotts Miracle-gro Company (the)'s earnings presentation, Jan 28, 2026
Slide 1: Quarterly Earnings Report
First Quarter ended December 27, 2025 Quarterly Earnings Report Supplemental Financial Presentation January 28, 2026 Please view this presentation in conjunction with our Q1 2026 earnings release, which is furnished on Form 8-K, our related pre-recorded remarks and additional information regarding o
Slide 2: Safe Harbor Disclosure
Safe Harbor Disclosure Statements contained in this presentation, which address activities, events and developments that the Company expects or anticipates will or may occur in the future, including, but not limited to, information regarding the future economic performance and financial condition of
Slide 3: Today's speakers
Today’s speakers Jim Hagedorn Chairman and Chief Executive Officer Nate Baxter President and Chief Operating Officer Mark Scheiwer Chief Financial Officer and Chief Accounting Officer 3
Slide 4: Q&A session will follow the earnings webcast
Q&A A Q&A session will follow the earnings webcast at approximately 9:30 a.m. ET Jim Hagedorn Nate Baxter Mark Scheiwer Chris Hagedorn Chairman & CEO President & COO EVP, CFO & CAO EVP, Chief of Staff Review the press release for registration details. ● To listen to the Q&A, please remain on the web
Slide 5: Q1 2026 Business Update
Q1 2026 Business Update PRESENTED BY Jim Hagedorn Chairman and Chief Executive Officer Nate Baxter President and Chief Operating Officer 5
Slide 6: Fiscal 2026 First Quarter Highlights
Fiscal 2026 First Quarter Highlights ● Reaffirmed full year financial guidance ● U.S. Consumer sales on track to FY26 low single-digit net sales growth following the segment’s performance in the fiscal first quarter ● Ecommerce for our branded products is growing as portion of our business shown by its 1
Slide 7: Internal and external transformation initiatives will drive cost advantages and propel growth
NEAR-TERM (END OF FY27) STRATEGIC FOCUS AREAS. Internal and external transformation initiatives will drive cost advantages and propel growth ● Averaging 3 percent annually focused on our consumer lawn & garden business Deliver sustainable net 01 ● Built on higher-margin branded products, innovation
Slide 8: Brand portfolio increased leading share position of the $11 billion category
INDUSTRY OVERVIEW: CATEGORY SIZE: Our brand portfolio, in total, increased it’s leading share position of the $11 billion Consumer DIY Lawn & Garden by 1% in fiscal 2025 Fertilizers, Grass Seed, Spreaders Weed, Insect, Rodent Control #1 brand #1 brand in Fertilizers, Grass in Rodent Control Seed & Sp
Slide 9: Lawn & Garden industry has low exposure to private label
INDUSTRY OVERVIEW: PRIVATE LABEL: Lawn & Garden industry has low exposure to private label Private Label Unit Share of Lawn & Garden Industry No meaningful growth in unit share over the last 3 years Decline o f ~ 300 b ps Source: Yipit and internal data. Includes retailers HD,LO, WM, Ace, Amz, Menar
Slide 10: Our Super Powers give us competitive advantages
COMPANY OVERVIEW: BEST-IN-CLASS CAPABILITIES: Our Super Powers give us competitive advantages Brands/Marketing Innovation Supply Chain Sales Industry-leading R&D with Integrated manufacturing and Most powerful brands with low Unparalleled in-store activation science-backed product distribution netwo
Slide 11: The Lawns segment will focus on multi-bag feeding to drive frequency
Fiscal 2026. The Lawns segment will focus on multi-bag feeding to drive frequency and target new consumers FY26 Focus Areas Consumer Activation Innovation Drive feeding frequency with current category users while still offering solution-type products Target new DIY lawn care consumers with a focus o
Slide 12: The Gardens segment continues to be the biggest growth engine
Fiscal 2026. The Gardens segment continues to be the biggest growth engine for the company; branded POS units up double digits each of the last 2 years FY26 Focus Areas Consumer Activation Innovation Attract emerging & pre-emerging consumers with accessible, modern solutions including indoor & organ
Slide 13: The Controls segment is growing ecommerce and expanding into new categories
Fiscal 2026. The Controls segment is growing ecommerce and expanding into new categories with the launch of several new innovative products FY26 Focus Areas Consumer Activation Innovation Launch of 10 new innovative products under the Ortho brand Grow digital presence across ecommerce channels via f
Slide 14: Continued expansion in ecommerce; on track to ~13% penetration in FY26
Fiscal 2026. Continued expansion in ecommerce; on track to ~13% penetration in FY26 Ecommerce 1Q26 POS POS dollars¹ +12% and POS units¹ +17% 2 0 bps +80 14 ¹Branded POS consists of 15 of our largest customers which represent >80% of U.S. Consumer net sales and excludes Mulch, Private Label and Commo
Slide 15: Strong visibility to supply chain savings in FY26
Fiscal 2026. Strong visibility to supply chain savings in FY26; on track to achieve goal Out “ We targeted $150M in supply chain savings over a 3-year period and another $30M in savings in corporate functions. We've already “ Over the past 18 months, we've harnessed the power of technology to optimi
Slide 16: Q1 2026 Financial Update
Q1 2026 Financial Update PRESENTED BY Mark Scheiwer Chief Financial Officer and Chief Accounting Officer The Company has classified Hawthorne as a discontinued operation within its financial reporting effective with the first quarter of 2026. Prior first quarter financial results have also been updated to re
Slide 17: First Quarter Performance Summary
1Q 2026 - 3 Months ended December 27, 2025. First Quarter Performance Summary Total Company Non-GAAP Results vs. Q1 2025 Net Sales $354.4 million -3% Adjusted Gross Margin Rate 25.4% +90 bps SG&A $106 million -7% Adjusted Net Loss from Continuing Operations $(44.6) million vs. $(50.2M) Interest Expe
Slide 18: Net sales performance for the quarter
1Q 2026 - 3 Months ended December 27, 2025. Net sales performance for the quarter In millions $366.6 - 5.3% + 1.8% Flat $354.4 3.3% Decrease Quarter Drivers ● Vol/Mix - Due to expected shifts in ● Price - Reflects the impact of sales as customers order closer to the market-wide price increases on POS
Slide 19: Net sales performance for the quarter by segment
1Q 2026 - 3 Months ended December 27, 2025. Net sales performance for the quarter by segment Fiscal First Quarter (October - December 2025) Net Sales Volume & Foreign Price(2) Other(3) Net Sales Drivers (1) Mix Exchange U.S. Consumer (5.4)% –% 1.8% –% (3.6)% Other (2.0)% 1.2% 1.6% –% 0.8% Total SMG
Slide 20: Branded POS performance for the quarter
1Q 2026 - 3 Months ended December 27, 2025. Branded POS¹ performance for the quarter POS dollars¹ -1% and POS units¹ -1% LAWNS: GARDENS: CONTROLS: FERTILIZERS, GRASS SOILS & PLANT WEED, INSECT, SEED, SPREADERS FOOD RODENT POS Dollars¹ POS Dollars¹ Plant food growth led POS Dollars¹ by consumer deman
Slide 21: Drive margin expansion through positive pricing and cost savings
1Q 2026 - 3 Months ended December 27, 2025. Drive margin expansion through positive pricing and cost savings + 90 bps Quarter Drivers ● Favorable pricing from ● Continued execution of ● Unfavorable fixed cost market-wide price U.S. Consumer supply leverage as sales shift increases on targeted chain s
Slide 22: FY 2026 Financial Update
FY 2026 Financial Update PRESENTED BY Mark Scheiwer Chief Financial Officer and Chief Accounting Officer 22
Slide 23: Financial objectives for fiscal 2026
Fiscal 2026. Financial objectives for fiscal 2026 Drive Sales Growth Continued Margin Expansion Strengthen Balance Sheet ● Maintain and build upon listing ● $150 million of supply chain ● $275 million expected free cash gains, ecommerce penetration, cost savings over 3 years; flow going towards the qu
Slide 24: Our Fiscal 2026 Guidance
Fiscal 2026. Our Fiscal 2026 Guidance Net Sales ● US Consumer: Low single-digit growth Adjusted Gross Margin Rate ● At least 32% Adjusted EPS from ● $4.15 to $4.35 per share Continuing Operations Adjusted EBITDA ● Mid single-digit growth Free Cash Flow ● $275 million Leverage Ratio ● High 3’s 24 Non
Slide 25: Reconciliation of Non-GAAP Financial Measures
Reconciliation of Non-GAAP Financial Measures 25
Slide 26: Reconciliation of Non-GAAP Financial Measures
Reconciliation of Non-GAAP Financial Measures Use of Non-GAAP Measures To supplement the financial measures prepared in accordance with U.S. generally accepted accounting principles (“GAAP”), the Company uses non-GAAP financial measures. The reconciliations of these non-GAAP financial measures to the m
Slide 27: Reconciliation of Non-GAAP Financial Measures
Reconciliation of Non-GAAP Financial Measures Exclusions from Non-GAAP Financial Measures Non-GAAP financial measures reflect adjustments based on the following items: ● Impairments, which are excluded because they do not occur in or reflect the ordinary course of the Company’s ongoing business operati
Slide 28: Reconciliation of Non-GAAP Financial Measures
Reconciliation of Non-GAAP Financial Measures Definitions of Non-GAAP Financial Measures The reconciliations of non-GAAP disclosure items include the following financial measures that are not calculated in accordance with GAAP: ● Adjusted gross margin: Gross margin excluding impairment, restructuring
Slide 29: Reconciliation of Non-GAAP Financial Measures
1Q 2026 - 3 Months ended December 27, 2025. Reconciliation of Non-GAAP Financial Measures 29
Slide 30: Reconciliation of Non-GAAP Financial Measures
Reconciliation of Non-GAAP Financial Measures During the three months ended December 27, 2025, the Company determined that the Hawthorne business meets the criteria to be classified as held for sale, and has reclassified the related assets and liabilities as held for sale on the Condensed Consolidated
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