Scotts Miracle-Gro Reports 5% Revenue Growth and Increased Net Income in Q2 Fiscal 2026

The Scotts Miracle-Gro Company reported a notable increase in financial performance for the second quarter of fiscal 2026, with net sales reaching $1,459.5 million, a 5% rise from $1,389.7 million in the same period last year. For the first half of the fiscal year, net sales totaled $1,814.0 million, up 3.3% from $1,756.3 million. The growth was primarily driven by higher sales volumes in the U.S. Consumer segment, particularly in soils, grass seed, fertilizer, and plant food products, despite a decline in mulch sales. The gross margin improved to 41.8% for the quarter, compared to 39.0% a year earlier, reflecting better pricing and product mix.

In terms of profitability, the company reported net income from continuing operations of $263.3 million, or $4.46 per diluted share, for the three months ended March 28, 2026, compared to $220.7 million, or $3.78 per diluted share, for the same period in 2025. The increase in net income was attributed to higher sales, improved gross margins, and reduced interest expenses, although it was partially offset by increased selling, general, and administrative (SG&A) expenses. For the six-month period, net income from continuing operations was $215.6 million, or $3.65 per diluted share, up from $154.7 million, or $2.64 per diluted share, in the prior year.

Significant operational changes included the divestiture of the Hawthorne business, which was classified as a discontinued operation. The sale, completed on April 8, 2026, involved the transfer of the Hawthorne business in North America to Vireo Growth Inc. for 213 million common shares of Vireo, representing approximately 14% of Vireo's total outstanding shares. This strategic shift is expected to allow Scotts Miracle-Gro to focus more on its core consumer lawn and garden business.

The company also reported a decrease in interest expenses, which fell to $31.3 million for the quarter, down from $36.6 million a year earlier, due to lower average borrowings and a decrease in the weighted average interest rate. Additionally, the company’s leverage ratio was reported at 3.71, well below the maximum permitted ratio of 5.00 under its credit agreements, indicating a strong position to manage its debt obligations.

Looking ahead, Scotts Miracle-Gro remains cautious about macroeconomic conditions, including inflationary pressures and geopolitical uncertainties, which could impact consumer behavior and operational performance. The company continues to monitor these factors closely as it navigates its strategic direction post-divestiture and aims to enhance its market position in the consumer lawn and garden sector.