SMG NYSE Russell 1000 Earnings call
Scotts Miracle-Gro Company (SMG) · Q2 2026 results and valuation
Share price: $65.04 · 2026-11-11
Results Q2 2026 vs Q1 2026 · previous quarter · fiscal Q3 2026 · published 29 Jul 2026 and 29 Apr 2026
Net income down 53.0% on the previous quarter, guidance raised. Management sounded about as positive as a typical company call, in its script and in answers to analysts.
Only a basic analysis is available for this company at the moment.
1 · Numbers
−53.0%
Net income vs Q1 2026
Guidance raised
Net income 112.2M vs 238.6M
Revenue −19.7%
Against the same quarter last year (Q2 2025) it is −24.7% — part of the move on last quarter is seasonal.
2 · How management spoke
Typical
More upbeat than 58% of company calls
Answers to analysts: typical, in line with the script.
Similar to last call.
3 · What stood out
Rising
SMG is on track for sales and gross margin expansion in Q3 2026, contributing to debt paydown and preparing the company for dividends and other…
Valuation
Is Scotts Miracle-Gro Company undervalued?
Reverse DCF. Free cash flow from the last full fiscal year (2025-09-30), grown for 10 years, discounted back, plus a terminal value. “Implied growth” is the rate the current price assumes.
At −4.5% growth a year (3-year revenue growth), the model's fair value is $10.83 a share — the stock trades 501% above it. Today's price assumes 7.6% growth a year.
Current price
$65.04
close of 2026-11-11
Market implies growth of iThe yearly free-cash-flow growth, for the next 10 years, that today’s share price already assumes. If you believe the company grows faster than this, the stock is cheap under this model; slower, and it is expensive.
+7.6% for 10 yrs
Fair value / share
$10.83
Buy below
$8.12
Price vs fair value
Overvalued >200%
Price vs buy-below price
Overvalued >200%
Read between the lines
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Guidance
SMG is reevaluating its capital allocation strategy, including financial targets and share repurchases, while maintaining its targets of a $1 billion increase in net sales and $1 billion in EBITDA.
Source quote
“Mark and I are also reevaluating the capital allocation strategy, including the previously announced financial targets, and share repurchase initiative. In parallel, we are undertaking a rigorous assessment of our talent to ensure we have the right people in the right roles for where we are going and to create a strong pipeline of future leaders. While the $1 billion increase in net sales and $1 billion in EBITDA remain the targets, our immediate focus is on quality earnings growth and margin expansion, which will naturally...”
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Guidance ↑
SMG raised its fiscal 2026 revenue guidance because the company is on track for sales, gross margin expansion, EBITDA, and leverage reduction.
Source quote
“We have delivered against all financial imperatives for fiscal 2026 and are on track for sales, gross margin expansion, EBITDA, and leverage reduction in addition to an increased...”
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Guidance ↑
SMG increased its earnings guidance range because of the hard work efforts of its associates.
Source quote
“This increase in our earnings guidance range is reflective of the hard work efforts of our associates.”
Tone
How upbeat the language was, compared with other companiesiTone counts positive minus negative finance words, adjusted for length. Executives mostly speak positively, so the labels compare each call with every company's latest call: “typical” is the middle third, “very upbeat” the top tenth, “cautious” the bottom tenth.. Dot: Q2 2026. Ring: Q1 2026.
Script and answers carried a similar tone, so the script's message held up under questioning.
Sentences that drove the tone
“While the $1 billion increase in net sales and $1 billion in EBITDA remain the targets, our immediate focus is on quality earnings growth and margin expansion, which will naturally...”
“Below the line, interest expense declined from lower debt balances and interest rates.”
“E-commerce channel expansion continues to be the growth opportunity we expected.”
Full figures
USD · SEC EDGAR XBRL (10-Q, period end 2026-06-27)
| Metric | Q2 2026period end 2026-06-27 | Q1 2026period end 2026-03-28 | Change | Q2 2025 | YoY |
|---|---|---|---|---|---|
| Revenue | 1.17B | 1.46B | −19.7% | 1.16B | +1.1% |
| Gross profit | 365.9M | 610.5M | −40.1% | 372.7M | −1.8% |
| Operating income | 169.6M | 401.8M | −57.8% | 221.8M | −23.5% |
| Net income | 112.2M | 238.6M | −53.0% | 149.1M | −24.7% |
| EPS | 1.90 | 4.04 | −53.0% | 2.54 | −25.2% |
| P/E today 40.2 | 57.3 | 32.4 | +24.9 | 80.2 | −22.9 |
Topics
Most discussed now
- In the third quarter, total company net sales increased 1% to $1.17 billion.
- Scotts Miracle-Gro is committed to a balanced capital allocation strategy, including an updated long-term financial model in which it will…
- New Instead, I am restructuring the management team to encourage faster decision making and maximize collaboration among all associates.
- He has forged strong relationships with Scotts Miracle-Gro's retailers, suppliers, partners, investors, banks, and associates.
- Earlier in the year, Scotts Miracle-Gro announced an authorization for a share repurchase program that it is excited to start as...
Faded since Q1 2026
- Dropped The marketplace is dynamic and there are more competitive pressures from digitally native startups with low barriers of entry to...
- Dropped Terrific job like reducing the risk for this year
- Fading That's what SMG 2.0 is all about, transforming for future growth.
- Fading They have focused on improved sell-through and quality and the results are starting to...
Latest announcements
Official filings, newest first.
- Agreement terminated; Other events · SEC 8-K
- Director or officer change · SEC 8-K
- Director or officer change · SEC 8-K
- Material agreement · SEC 8-K
- Results of operations · SEC 8-K
- Director or officer change · SEC 8-K
- Results of operations; Regulation FD disclosure · SEC 8-K
- Other events · SEC 8-K