Scotts Miracle-Gro (SMG) Reaffirms Fiscal 2025 Guidance

The Scotts Miracle-Gro Company (NYSE: SMG), the world’s leading marketer of branded consumer lawn and garden as well as a leader in indoor and hydroponic growing products, announced today that it is reaffirming its full fiscal year 2025 guidance. The Company is providing the guidance update through the first two months of its fiscal third quarter in advance of its presentation today at the William Blair Annual Growth Stock Conference.

Additionally, the Company reported that it continued to drive consumer POS unit and dollar growth during the peak lawn and garden season. Through the Memorial Day weekend, the year-to-date increases in POS units and POS dollars were in line with POS trends in the first half of the fiscal year.

The Company also projects interest expense to be approximately $30 million lower than prior year compared to its previous estimate of a $15 million to $20 million decrease, and it projects diluted share count increase to be approximately 1 million compared to its previous estimate of 2 million. The Company expects non-GAAP adjusted earnings per diluted share to be at least $3.50, a 53% increase versus prior year.

“With the peak lawn and garden season upon us, we continue to drive positive outcomes on multiple fronts, a reflection of the health of our consumer coupled with the power of our incremental marketing investments and retailer promotional programs,” said Jim Hagedorn, chairman and CEO. “We feel good about our overall performance and expect to meet our financial commitments for the fiscal year, creating a foundation to achieve our multi-year objectives aimed at improving shareholder returns.”

Chief Financial Officer Mark Scheiwer added, “The strong consumer takeaway, along with the pace of retailer replenishment thus far in the third quarter, solidifies our confidence in the full-year guidance. Delivering on our adjusted EBITDA and free cash flow targets will enable us to exit 2025 with a significantly improved debt position that will put us on a path to realize our goal of getting leverage below 3.5 by the end of fiscal 2027.”

Detailed Outlook for Fiscal Year 2025

The Company is reaffirming its previously announced fiscal year 2025 guidance of:

• U.S. Consumer net sales low single-digit growth (excluding non-repeat sales for AeroGarden and bulk raw material sales)

• Non-GAAP adjusted gross margin of approximately 30 percent
• Non-GAAP adjusted EBITDA of $570 million to $590 million
• Free cash flow of approximately $250 million

The Company will provide more commentary today when it participates in the William Blair 45th Annual Growth Stock Conference in Chicago at 9:40 a.m. ET. Investors and other interested parties may listen to a live webcast of the presentation from the events page of the Company’s investor relations website. An archive of the webcast will be available on the website for at least 90 days.

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