The Scotts Miracle-Gro Company reported results for the first quarter ended December 27, 2025. They announced plans to divest their Hawthorne subsidiary to Vireo Growth, Inc. and have a new share repurchase program of up to $500 million. The company reaffirmed its fiscal 2026 guidance despite the change in operations.

The divestiture of Hawthorne will bring margin-accretive benefits, with the cultivation supply business integrated into Vireo’s consumer cannabis operations. Vireo plans to expand to 10 states with 166 dispensaries. The transaction is expected to close in the fiscal second quarter following customary conditions.

The share repurchase program, set to begin in late 2026, aligns with the company’s capital allocation strategy. Repurchases will depend on deleveraging progress, market conditions, and management decisions. The program may include open market purchases, negotiated transactions, or other methods.

For fiscal 2026, the company forecasts low single-digit growth in U.S. Consumer net sales, a non-GAAP adjusted gross margin of at least 32%, and non-GAAP adjusted net income per share from continuing operations of $4.15 to $4.35. They also anticipate mid single-digit growth in non-GAAP adjusted EBITDA.

The company’s financial results for the first quarter of 2026 include U.S. Consumer net sales of $328.5 million, a 25.0% GAAP gross margin rate, and a non-GAAP adjusted EBITDA of $3.0 million. Net leverage improved to 4.03x compared to the previous year.

Read more at GlobeNewswire: ScottsMiracle-Gro Reports First Quarter Results and