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The Scotts Miracle-Gro Company (NYSE: SMG), the leading marketer of branded consumer lawn and garden products in North America, announced that it is reaffirming its fiscal 2026 guidance as it does not expect the significant global commodity impacts from the Iran War to affect its full-year outlook.
The Company noted that approximately 80 percent of its commodities for the fiscal year were locked by the close of its second quarter on March 28, 2026. Additionally, around 90 percent of its cost of goods sold are sourced domestically, including nearly 100 percent of the urea that is a primary input in its fertilizer products. The Company obtains urea from reliable suppliers under previously negotiated contracts.
"We are in a very good position when it comes to our cost of goods for fiscal 2026 and are fully confident that we will deliver on our gross margin recovery and growth plans," said Jim Hagedorn, chairman and CEO. "We do not expect supply or sourcing issues, and any fluctuations in commodities that we may encounter through the remainder of our fiscal year are manageable.
"As for our consumers, we are seeing strong signs of engagement in our category and with our brands. We expect this early momentum to carry over into our fiscal third quarter and the heart of the lawn and garden season. History shows that even in inflationary and recessionary times, our category tends to do well, as people focus on spending more time in their yards and gardens."
The Company also announced continued progress on debt reduction, as debt-to-EBITDA leverage ratio at the close of the fiscal second quarter was below 4 times.
"This is a tremendous achievement that will lead us into a period of sustained reinvestment in the business and shareholder friendly actions that include the previously announced share repurchase program that we intend to begin later in fiscal 2026," Hagedorn said.
The Company will address its financial performance and progress toward its guidance, which includes U.S. Consumer low single-digit net sales growth and non-GAAP adjusted gross margin of at least 32%, in detail during its fiscal second-quarter earnings call on April 29, 2026.
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.
For investor inquiries:
Brad Chelton
Vice President
Treasury, Tax and Investor Relations
brad.chelton@scotts.com
(937) 309-2503
For media inquiries:
Tom Matthews
Chief Communications Officer
tom.matthews@scotts.com
(937) 844-3864
