ScottsMiracle-Gro sets fiscal 2027-2029 financial targets at investor day

ScottsMiracle-Gro Company (NYSE: SMG) outlined its mid-range financial targets and capital allocation strategy for fiscal years 2027 through 2029 at its Investor Day 2026 event held at the New York Stock Exchange.

The company's growth targets call for average annual net sales growth of 2% to 4%, adjusted gross margin rate improvement of 50 to 100 basis points, adjusted earnings per share growth of 5% to 8%, and free cash flow above $275 million. The company also set a mid-range leverage ratio target of 3 to 3.5x, with a longer-range goal of below 3x.

President and CEO Nate Baxter and Chief Financial Officer Mark Scheiwer presented the targets alongside other company leaders. The targets are tied to the company's SMG 2.0 strategy, which includes portfolio optimization, omnichannel retail expansion, category growth, and technology-driven operational improvements.

Capital allocation priorities include annual capital expenditures of 2.5% to 3.5% of net sales, quarterly shareholder dividends, share repurchases, and selective tuck-in acquisitions described as neutral to positive on leverage.

For fiscal 2026, the company reaffirmed guidance for U.S. Consumer net sales low single-digit growth, a non-GAAP adjusted gross margin rate of at least 32%, and free cash flow of $275 million. The company said it raised its fiscal 2026 non-GAAP adjusted diluted net income per share outlook last month to a range of $4.30 to $4.45.

"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.

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