ScottsMiracle-Gro Announces Financial Targets and Capital Allocation Strategy During Investor Day 2026 at NYSE
Rhea-AI Summary
ScottsMiracle-Gro (NYSE: SMG) outlined mid-range financial targets and a capital allocation strategy for fiscal 2027–2029 ahead of Investor Day 2026 at the NYSE. Management tied these goals to its SMG 2.0 strategy, focused on portfolio optimization, omnichannel expansion, category growth and technology-driven efficiencies.
The Company’s mid-range algorithm targets average annual net sales growth of 2–4%, adjusted gross margin rate improvement of 50–100 bps, adjusted EPS growth of 5–8%, and free cash flow above $275 million, with a leverage ratio goal of 3–3.5x in 2027–2029 and below 3x longer term. Capital allocation plans include SG&A reinvestment, capex of 2.5–3.5% of net sales, ongoing dividends, anti-dilutive and opportunistic buybacks, and low-risk tuck-in acquisitions.
ScottsMiracle-Gro also reiterated key elements of its fiscal 2026 outlook, including non-GAAP adjusted EPS of $4.30–$4.45, U.S. Consumer net sales growth in the low single digits, an adjusted gross margin rate of at least 32%, mid single-digit adjusted EBITDA growth, and $275 million in free cash flow, expected to reduce leverage to the high 3s.
Positive
- 2027–2029 net sales targeted to grow 2–4% annually
- Adjusted EPS mid-range growth target of 5–8% per year
- Adjusted gross margin improvement of 50–100 bps targeted annually
- Free cash flow goal above $275 million per year in 2027–2029
- Fiscal 2026 EPS outlook raised to $4.30–$4.45 non-GAAP adjusted
- Fiscal 2026 free cash flow guided to $275 million, aiding leverage reduction
Negative
- Leverage ratio still targeted at 3–3.5x through fiscal 2029
- Top-line growth algorithm assumes modest 2–4% annual net sales increase
Key Figures
Historical Context
| Date | Event | Sentiment | 24h Move | Catalyst |
|---|---|---|---|---|
| Jul 21 | Responsibility strategy | Neutral | -1.1% | Released corporate responsibility report and introduced GroForward 2030 sustainability goals. |
| Jul 20 | Results scheduling notice | Neutral | -1.1% | Announced timing and webcast details for third-quarter 2026 financial results. |
| Jul 09 | Product showcase | Positive | +0.1% | Showcased organic gardening products and innovation at Cultivate 2026. |
| Jul 07 | Community initiative | Positive | -0.4% | Launched youth soccer initiative covering registration fees for up to 400 girls. |
| Jun 29 | Leadership succession | Neutral | -3.2% | Named Nate Baxter president and CEO while reaffirming fiscal 2026 guidance. |
24h Move is the share-price change in the day after each event; other market factors may also have contributed.
Recent news reactions were predominantly negative, with four of five events showing declines despite some positive or informative announcements.
Key Terms
adjusted eps financial
basis points financial
free cash flow financial
leverage ratio financial
AI-generated analysis. How Rhea-AI works. Not financial advice.
NEW YORK, Aug. 04, 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 its mid-range financial targets and capital allocation strategy for fiscal 2027 through fiscal 2029.
The Company is providing the update in advance of its Investor Day 2026 event at the New York Stock Exchange, starting at 9 a.m. today and featuring President and CEO Nate Baxter, Chief Financial Officer and Chief Accounting Officer Mark Scheiwer and other Company leaders discussing the SMG 2.0 growth strategy and its resulting mid-term targets that include dependable net sales growth, consistent profitability expansion and a disciplined approach to capital allocation.
“We continue to make significant and meaningful progress on the core elements of SMG 2.0, putting us on a clear path to meet or exceed the financial commitments we established for fiscal 2026,” Baxter said. “Looking ahead, we will build upon this foundation and accelerate the core elements of SMG 2.0. By tenaciously focusing and executing upon its tactical building blocks, we will drive sustainable mid- and long-term value for our Company and shareholders.”
SMG 2.0 Building Blocks
During today’s event, the Company will review SMG 2.0 in detail, including priority areas of focus for fiscal 2027 through fiscal 2029. The building blocks of SMG 2.0 include:
- Portfolio optimization and innovation through revitalization of core product lineups to drive premium growth.
- Omnichannel and retail expansion to engage broader consumer groups through digital scale and retailer partnerships.
- Category growth and market expansion through greater household penetration to grow the Company’s addressable market.
- Technology-driven operational excellence with a focus on expanding margins via targeted AI, automation and supply chain efficiencies.
Mid-Range Growth Algorithm
The Company’s mid-range growth algorithm for fiscal 2027 through fiscal 2029 is grounded in consistent progress with SMG 2.0 and includes average annual:
- Total Company net sales growth of 2 to
4% . - Adjusted gross margin rate improvement of 50 to 100 basis points.
- Adjusted EPS growth of 5 to
8% . - Free cash flow greater than
$275 million .
The Company also updated its leverage ratio targets to reflect a mid-range goal of 3 to 3.5x from fiscal 2027 through fiscal 2029 and a longer-range goal of leverage below 3x.
“We are committed to a disciplined and balanced capital allocation strategy that will enable us to properly invest in the SMG 2.0 growth drivers while further driving down our debt balances and taking consistent shareholder friendly actions,” Scheiwer said.
Disciplined Capital Allocation
Key elements of the Company’s capital allocation strategy include:
- Incremental SG&A reinvestment in technology, advertising and R&D.
- Annual capital expenditure target of 2.5 to
3.5% of net sales. - Ongoing high-quality, quarterly shareholder dividends.
- Anti-dilutive and opportunistic shareholder repurchases.
- Strong balance sheet management through achievement of mid-term financial targets.
- Strategic low-risk, tuck-in acquisitions and partnerships accretive to topline sales and neutral to positive on leverage.
Full-Year Fiscal 2026 Outlook
The Company last month raised its outlook for non-GAAP adjusted diluted net income per share from continuing operations to
- U.S. Consumer net sales low single-digit growth
- Non-GAAP adjusted gross margin rate of at least
32% - Non-GAAP adjusted EBITDA mid single-digit growth
- Free cash flow of
$275 million , driving leverage ratio down to the high 3s
Investor Day 2026 Details
For those interested in viewing Investor Day 2026 online, the Company’s live webcast can be accessed beginning at 9 a.m. through Vimeo. For those unable to participate during the live webcast, a replay will be available on the Investor Relations website.
About ScottsMiracle-Gro
With approximately
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
