Loading...
•
Dec 27, 2025
Scotts Q1 2026 Earnings Report
Scotts reported a net loss in Q1 2026 but showed progress toward strategic goals including divestiture of Hawthorne and improved margins.
Key Takeaways
Scotts Miracle-Gro posted a net loss in Q1 2026 but improved its operating results year-over-year. The company announced plans to divest its Hawthorne business and approved a $500 million share repurchase program, reaffirming guidance for FY26.
Revenue by Segment
Revenue by Geographic Location
Forward Guidance
The company reaffirmed its fiscal 2026 guidance, anticipating margin expansion and free cash flow growth while reducing leverage.
Positive Outlook
- U.S. Consumer net sales expected to grow low single digits
- Adjusted gross margin projected at 32%+
- Adjusted EPS guidance of $4.15 to $4.35
- Adjusted EBITDA to grow mid-single digits
- Free cash flow target of $275M
Challenges Ahead
- Continued operating losses in Q1 despite improvement
- Ongoing losses in discontinued Hawthorne operations
- High interest expense remains a burden
- Equity losses from unconsolidated affiliates persist
- Company remains in net equity deficit
Revenue & Expenses
Visualization of income flow from segment revenue to net income
Historical Earnings Impact
Analyze how earnings announcements historically affect stock price performance
Avg. Return Before/After Earnings
Loading earnings performance data...
Loading earnings reaction data...