ScottsMiracle-Gro shields margins with domestic sourcing as 2026 targets reaffirmed

ScottsMiracle-Gro (NYSE:SMG) has reaffirmed its fiscal 2026 financial guidance, signaling confidence in its margin recovery plan by highlighting a supply chain largely insulated from international volatility and inflationary spikes.

The Marysville, Ohio-based lawn and garden giant disclosed that as of March 28, 2026, it has locked in approximately 80% of its commodity costs for the fiscal year.

In a move that provides significant protection against global logistics disruptions and geopolitical instability, the company revealed that approximately 90% of its cost of goods sold (COGS) is now sourced domestically.

Notably, nearly 100% of its urea—a critical raw material for fertilizer—is sourced within the United States.

The domestic-heavy sourcing strategy appears to be a cornerstone of the company’s "Project Springboard" initiative, aimed at restoring historical margin levels after several years of post-pandemic inventory and supply chain rebalancing.

On the balance sheet front, ScottsMiracle-Gro reported that its leverage ratio has improved, with debt-to-EBITDA now sitting below the 4x mark.

This strengthened financial position has cleared the way for a return of capital to shareholders; management reiterated plans to initiate a share repurchase program later in fiscal 2026.