Scotts Miracle-Gro Company (SMG) stock is soaring 5.03% in Thursday's trading session following the release of its second-quarter 2025 earnings report and subsequent earnings call. The company's strong performance and reaffirmed guidance have sparked investor optimism.

Key highlights from the earnings report and call include:

• Reaffirmed full-year EBITDA guidance of $570 to $590 million, demonstrating confidence in the company's financial outlook.
• Reported a 12.1% increase in point-of-sale (POS) units, indicating strong consumer demand, particularly in garden and mulch categories.
• Achieved a nearly 500 basis-point recovery in gross margin, with a target of 30% by fiscal year-end.
• Delivered a $36 million EBITDA increase in the first half of the fiscal year.
• On track to achieve more than $75 million in supply chain cost savings this year, contributing to long-term profitability goals.

CEO James Hagedorn emphasized the company's progress on key financial metrics and its strong position in the lawn and garden market. He stated, "We're good. Our outlook is unchanged, and we're reaffirming our full year guidance of $570 to $590 million of EBITDA."

The company's focus on driving unit growth, improving gross margins, and strategic investments in brand support and promotions appears to be resonating with investors. Additionally, Scotts Miracle-Gro's resilience in the face of economic uncertainties and its minimal exposure to potential tariff impacts have further bolstered investor confidence.