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Scotts Miracle-Gro (SMG) investor relations material

Scotts Miracle-Gro Q3 2025 earnings summary

Complete event summary combining all related documents: earnings call transcript, report, and slide presentation.
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Q3 2025 earnings summary30 Jul, 2025

Executive summary

  • Achieved Q3 net sales of $1.19B, down 1% year-over-year, with adjusted net income of $151.5M and adjusted EPS of $2.59, both up from prior year.

  • U.S. Consumer net sales rose 1% to $1.03B, with POS units up 8% year-to-date; key categories saw soils +12%, grass seed +16%, mulch +8%.

  • Transformation and restructuring initiatives improved cost structure, margins, and balance sheet, enabling reinvestment and innovation.

  • Hawthorne segment remains EBITDA positive but sales declined sharply due to cannabis oversupply; divestiture expected by Q4 close.

  • Reaffirmed full-year guidance for adjusted EBITDA, EPS, and free cash flow; continued focus on brand strength and digital growth.

Financial highlights

  • Adjusted EBITDA for Q3 was $256M, up from $237M; year-to-date, $663M, up over 9%.

  • GAAP net income for Q3 was $149.1M ($2.54/share); non-GAAP adjusted net income was $151.5M ($2.59/share).

  • GAAP gross margin for Q3: 31.8% (up from 29.5%); adjusted: 32.1% (up from 29.2%).

  • Interest expense down 18–19% year-over-year; leverage ratio improved to 4.15x, well below covenant maximum.

  • Operating income for Q3 was $215M, up 7.4% year-over-year; cash from operations for nine months was $197.2M.

Outlook and guidance

  • Reaffirmed full-year adjusted EBITDA guidance of $570M–$590M and non-GAAP adjusted EPS at least $3.50.

  • U.S. Consumer net sales expected to grow low single digits, excluding nonrecurring sales.

  • Gross margin target of 30% for the year, with long-term goal of 35%+ via supply chain savings and pricing.

  • Free cash flow guidance of $250M for the year; capital expenditures ~$100M.

  • Leverage ratio targeted in low 4's by year-end, below 3.5x by FY27.

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Frequently asked questions

The Scotts Miracle-Gro Company manufactures, markets, and sells products for lawn, garden care, and indoor and hydroponic gardening in the United States and internationally. It offers lawn fertilizers, grass seed products, spreaders, other durable products, weed control products, outsourced manufactured soilless growing media and plastic plant containers, landscape fabrics, weed barriers/landscape fabrics, lawn/garden decorative products consisting of outdoor décor, holiday décor items during appropriate seasons, deck and patio décor items comprising outdoor pottery sets, pots and planters for patio decks and gardens; bird feeders; window boxes; trellises; obelisks; and whitewash cedar boards used in construction of window boxes. The Scotts Miracle-Gro Company was founded in 1868 and is headquartered in Marysville, Ohio.

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