The Scotts Miracle-Gro Company forecast 2% to 4% sales growth for fiscal 2027 after adjusted continuing-operations earnings per share climbed, while total net income fell 28%.
Net sales for the fiscal year ended Sept. 30, 2026, came to $3,288.9 million, 1% above fiscal 2025's $3,255.8 million. The company attributed the increase to branded products and continued e-commerce expansion.
Diluted earnings per share (EPS) from continuing operations under generally accepted accounting principles (GAAP) rose 6% to $3.30 from $3.10. Adjusted diluted EPS from continuing operations reached $4.48, up from $3.80 a year earlier, an 18% increase.
GAAP gross margin rose to 32.3% from 31.3%; adjusted gross margin was 32.4%, compared with 31.6%. ScottsMiracle-Gro said supply-chain savings, pricing and a product mix with more higher-margin brands supported the improvement. Higher commodity and freight costs offset part of those gains.
Total GAAP net income fell to $103.9 million from $145.2 million. The discontinued-operations loss came to $91.0 million after tax; within those results, the filing records a $106.2 million pretax loss tied to the North American Hawthorne sale.
ScottsMiracle-Gro sells consumer lawn and garden products under the Scotts, Miracle-Gro, Ortho and Tomcat brands. ScottsMiracle-Gro's fiscal 2026 continuing-operations figures omit Hawthorne; it also recast earlier results on that basis.
In the fourth quarter, sales were $302.9 million, down from $340.1 million in the year-earlier period. On an adjusted basis, the continuing-operations diluted loss widened to $2.16 a share from $1.97.
For fiscal 2027, the company expects adjusted diluted EPS from continuing operations of $4.70 to $4.90 and free cash flow of about $275 million. It also expects leverage to decline year over year and remains on track for a leverage target of 3.0x to 3.5x by fiscal 2029.
