ScottsMiracle-Gro Announces Execution of Key Capital Allocation Initiatives

ScottsMiracle-Gro redeems 2026 notes, renews $750 million AR facility, starts a $500 million buyback and maintains Fiscal 2026 guidance targets.

Rhea-AI Summary

ScottsMiracle-Gro (SMG) has executed key capital allocation actions, achieved its free cash flow target of $275 million for Fiscal 2026, and reaffirmed full-year guidance.

The company redeemed all $250 million of its 5.250% senior notes due 2026 on September 11, 2026, funded with available revolver debt and planned excess free cash flow. It renewed a $750 million accounts receivable facility with JPMorgan Chase Bank, extending maturity to August 31, 2027. ScottsMiracle-Gro also began its Board-authorized $500 million share repurchase program with $25 million of buybacks in August.

Fiscal 2026 guidance is reaffirmed, including U.S. Consumer net sales low single-digit growth, non-GAAP adjusted gross margin of at least 32%, non-GAAP adjusted EPS of $4.30–$4.45, mid single-digit non-GAAP adjusted EBITDA growth, and free cash flow of $275 million, expected to reduce leverage to the high 3s.

Positive

• $250 million 5.250% senior notes due 2026 fully redeemed on September 11, 2026
• Renewed $750 million accounts receivable facility, extending maturity to August 31, 2027
• Initiated $500 million share repurchase program with $25 million of August buybacks
• Achieved Fiscal 2026 free cash flow target of $275 million
• Reaffirmed Fiscal 2026 non-GAAP adjusted EPS guidance of $4.30–$4.45
• Fiscal 2026 free cash flow of $275 million expected to reduce leverage ratio to the high 3s

Negative

• None.

Market Context

The Aug 04 investor-day announcement had a -2.61% 24-hour reaction and covered the same Fiscal 2026 ...

Analysis

The Aug 04 investor-day announcement had a -2.61% 24-hour reaction and covered the same Fiscal 2026 guidance and capital-allocation framework. Today’s release reported execution through debt redemption, facility renewal, and initial repurchases.

Key Figures

Free cash flow target: $275 million Senior notes redeemed: $250 million Accounts receivable facility: $750 million +5 more

Free cash flow target

$275 million

Fiscal 2026 guidance

Senior notes redeemed

$250 million

5.250% senior notes due 2026

Accounts receivable facility

$750 million

Renewed through August 31, 2027

Share repurchases

$25 million

Repurchased during August 2026

Share repurchase program

$500 million

Board-authorized program

Adjusted net income per share

$4.30 to $4.45

Fiscal 2026 guidance

Adjusted gross margin

At least 32%

Fiscal 2026 guidance

Leverage ratio

High 3s

Fiscal 2026 guidance after free cash flow deployment

Historical Context

1 past event · Latest: Aug 04

1 event

1. Aug 04

   Financial targets

   24h Move

   -2.6%

   Reiterated fiscal 2026 guidance and introduced fiscal 2027–2029 capital allocation targets

24h Move is the share-price change in the day after each event; other market factors may also have contributed.

Key Terms

senior notes, accounts receivable facility, non-GAAP adjusted EBITDA, leverage ratio

4 terms

senior notes financial

"The Company redeemed all $250 million aggregate principal amount of its outstanding 5.250% senior notes"

Senior notes are a type of loan that a company borrows from investors, promising to pay it back with interest. They are called "senior" because in case the company faces financial trouble, these lenders are paid back before others. This makes senior notes safer for investors compared to other types of loans or bonds.

accounts receivable facility financial

"The Company renewed its $750 million accounts receivable facility with JPMorgan Chase Bank"

A financing arrangement in which a company borrows money or sells the rights to be paid for its outstanding invoices (accounts receivable) to a lender in exchange for immediate cash. Think of it like using customer IOUs as collateral so the business gets money now instead of waiting for payments; it matters to investors because it affects a company’s short-term liquidity, cash-flow stability, reported debt levels, and potential costs or recourse risks tied to those receivables.

non-GAAP adjusted EBITDA financial

"Non-GAAP adjusted EBITDA mid single-digit growth"

Non-GAAP adjusted EBITDA is a measure of a company's profitability that shows earnings before interest, taxes, depreciation, and amortization, with certain adjustments made to exclude irregular or non-recurring expenses and income. It provides a clearer picture of ongoing operational performance by filtering out items that might distort the core business results. Investors use it to better compare how well different companies are performing without the noise of one-time events.

leverage ratio financial

"Free cash flow of $275 million, driving leverage ratio down to the high 3s"

Leverage ratio measures how much a company relies on borrowed money compared with its own funds or assets, typically expressed as debt relative to equity or total assets. Like a homeowner with a mortgage, higher leverage can amplify returns when business is strong but also raises the chance of big losses or default if revenue falls, so investors use it to judge financial risk and resilience.

View in glossary

AI-generated analysis. How Rhea-AI works. Not financial advice.

See more from StockTitan in Google Search and AI answers. Adds StockTitan as a preferred source · opens Google

Add on Google Not now

Achieves free cash flow target of $275 million and reaffirms full Fiscal 2026 guidance

MARYSVILLE, Ohio, Sept. 15, 2026 (GLOBE NEWSWIRE) -- The Scotts Miracle-Gro Company (NYSE: SMG), the leading marketer of branded consumer lawn and garden products in North America, today announced the successful execution of key elements of its capital allocation strategy and reaffirmed confidence in achieving its Fiscal 2026 guidance.

The recent actions demonstrate continued execution of the Company’s disciplined capital allocation strategy. Among the completed actions:

• Senior Notes Redemption: The Company redeemed all $250 million aggregate principal amount of its outstanding 5.250% senior notes due 2026. This redemption, completed on September 11, 2026, was funded through a combination of available revolver debt and planned fiscal year 2026 excess free cash flow.
• Accounts Receivable Facility Renewal: The Company renewed its $750 million accounts receivable facility with JPMorgan Chase Bank, N.A., extending its maturity to August 31, 2027, providing consistent access to efficient liquidity.
• Share Repurchases: The Company executed share repurchases totaling $25 million during the month of August, marking the start of the $500 million share repurchase program authorized by the Board of Directors. The timing and scale of future repurchases remain secondary to the Company’s commitment to ongoing debt reduction and will be subject to market conditions and other factors determined by management.
  

“We continue to accomplish what we set out to do,” said Nate Baxter, president and chief executive officer. “Our focus remains on operational excellence and executing our SMG 2.0 multi-year strategy to drive sustainable and consistent growth. These actions reflect our commitments to disciplined capital allocation, maintaining financial flexibility and further enhancing our capital structure.”

Mark Scheiwer, chief financial officer and chief accounting officer, added, "Strengthening our balance sheet is a top priority, and we are pleased with the progress we have made in deleveraging. By optimizing our liquidity through our accounts receivable facility and deploying free cash flow to address our debt obligations, we are further strengthening our financial position to fund growth and return value to shareholders.

“The start of the share repurchase program reflects our confidence in the strength of our SMG 2.0 initiatives, our consistent annual free cash flow generation and the long-term value of our Company and our capital allocation strategy. Future share repurchases will be undertaken in alignment with our commitment to debt reduction and other financial priorities outlined in our mid-term growth algorithm for fiscal years 2027 through 2029.”

The Company will close its fiscal year on September 30, 2026, and announce full-year financial results on November 4, 2026.

Fiscal 2026 Outlook
In connection with today’s announcement, the Company has reaffirmed its previously provided Fiscal 2026 guidance, which includes:

• U.S. Consumer net sales low single-digit growth
• Non-GAAP adjusted gross margin of at least 32%
• Non-GAAP adjusted net income per share from continuing operations of $4.30 to $4.45
• Non-GAAP adjusted EBITDA mid single-digit growth
• Free cash flow of $275 million, driving leverage ratio down to the high 3s
  

About ScottsMiracle-Gro
With approximately $3.3 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

FAQ

AI-generated questions and answers. How Rhea-AI works. Not financial advice.

How was the redemption of ScottsMiracle-Gro's 5.250% senior notes funded?

The redemption of all $250 million aggregate principal amount of 5.250% senior notes due 2026, completed on September 11, 2026, was funded through a combination of available revolver debt and planned Fiscal 2026 excess free cash flow.

What are the key terms of the renewed accounts receivable facility?

The company renewed its $750 million accounts receivable facility with JPMorgan Chase Bank, N.A., extending the facility's maturity to August 31, 2027, which the company states provides consistent access to efficient liquidity.

What is the size of ScottsMiracle-Gro's current share repurchase authorization and how much has been used?

The Board of Directors authorized a $500 million share repurchase program. During August, the company executed repurchases totaling $25 million, which it describes as marking the start of this program.

How will future share repurchases be managed under ScottsMiracle-Gro's capital allocation priorities?

The company states that the timing and scale of future repurchases will remain secondary to its commitment to ongoing debt reduction and will depend on market conditions and other factors determined by management. It further indicates that future repurchases will align with financial priorities outlined in its mid-term growth algorithm for fiscal years 2027 through 2029.

When will ScottsMiracle-Gro report its full Fiscal 2026 results?

The company will close its fiscal year on September 30, 2026, and plans to announce full-year financial results on November 4, 2026.