# SCOTTS MIRACLE-GRO CO (SMG)

Informational only - not investment advice.

CIK: 0000825542
SIC: 2870 Agricultural Chemicals
SIC breadcrumb: [Manufacturing](/division/D/) > [Chemicals And Allied Products](/major-group/28/) > [SIC 2870 Agricultural Chemicals](/industry/2870/)
Latest 10-K filed: 2025-11-25
SEC page: https://www.sec.gov/edgar/browse/?CIK=825542
Filing source: https://www.sec.gov/Archives/edgar/data/825542/000082554225000022/smg-20250930.htm

## At a glance

FY2025 · period end 2025-09-30 · filed 2025-11-25 · accession 0000825542-25-000022 · source: https://data.sec.gov/api/xbrl/companyfacts/CIK0000825542.json

| Metric | Value | FY | Provenance |
| --- | ---: | ---: | --- |
| Revenue | 3,413,100,000 USD | 2025 | verified |
| Net income | 145,200,000 USD | 2025 | verified |
| Assets | 2,742,000,000 USD | 2025 | verified |
| Free cash flow | 273,900,000 USD | 2025 | computed |
| Net margin | 4.25% | 2025 | computed |
| Operating margin | 10.51% | 2025 | computed |
| Revenue YoY | -3.93% | 2025 | computed |

Stockholders' equity was not positive at FY2025 year-end (-357,500,000 USD, as filed); ROE and liabilities / equity are omitted rather than computed.

Computed values are grepcent-computed from the verified facts above and may differ from ratios the company itself reports. Free cash flow = operating cash flow − capital expenditures. Net margin = net income ÷ revenue. Operating margin = operating income ÷ revenue. Revenue YoY = FY2025 revenue ÷ FY2024 revenue − 1 (consecutive fiscal years only).

No market price, no rating, no forecast on this site. Not investment advice.

### Peer percentile fingerprint

| Ratio | SMG | Peer median | Percentile | N |
| --- | ---: | ---: | ---: | ---: |
| Net margin | 4.3% | 1.2% | 56 | 219 |
| Operating margin | 10.5% | 3.0% | 64 | 201 |
| Revenue growth | -3.9% | 8.0% | 22 | 251 |
| FCF margin | 8.0% | -1.7% | 65 | 251 |
| ROA | 5.3% | -12.1% | 78 | 340 |
| Current ratio | 1.27 | 3.93 | 8 | 341 |

Percentile = share of the N covered peers reporting that ratio whose value is lower (ties counted half); computed among grepcent-covered companies in SIC major-group 28 Chemicals And Allied Products, not the whole market. A higher percentile means a higher value of the ratio, not a better company. Ratios with fewer than 8 reporting peers are omitted. Latest reported values per company; fiscal periods may differ. Descriptive arithmetic - not a score, rating, or ranking.

## Selected Fundamentals
| Metric | Value | Unit | FY | Filed |
| --- | ---: | --- | ---: | --- |
| Revenue | 3413100000 | USD | 2025 | 2025-11-25 |
| Net income | 145200000 | USD | 2025 | 2025-11-25 |
| Assets | 2742000000 | USD | 2025 | 2025-11-25 |

## Financials

Annual standardized facts from SEC companyfacts as of latest extracted filing date 2025-11-25. Source: https://data.sec.gov/api/xbrl/companyfacts/CIK0000825542.json. Derived margins, ratios, and free cash flow are computed from the extracted annual SEC facts.

| Metric | 2016 | 2017 | 2018 | 2019 | 2020 | 2021 | 2022 | 2023 | 2024 | 2025 |
| --- | ---: | ---: | ---: | ---: | ---: | ---: | ---: | ---: | ---: | ---: |
| Revenue | 2,506,200,000 | 2,642,100,000 | 2,663,400,000 | 3,156,000,000 | 4,131,600,000 | 4,925,000,000 | 3,924,100,000 | 3,551,300,000 | 3,552,700,000 | 3,413,100,000 |
| Net income | 315,300,000 | 218,300,000 | 63,700,000 | 460,700,000 | 387,400,000 | 512,500,000 | -437,500,000 | -380,100,000 | -34,900,000 | 145,200,000 |
| Operating income | 447,600,000 | 433,400,000 | 198,900,000 | 409,600,000 | 585,200,000 | 723,000,000 | -434,000,000 | -174,400,000 | 208,800,000 | 358,600,000 |
| Gross profit | 900,300,000 | 972,600,000 | 864,600,000 | 1,019,600,000 | 1,347,000,000 | 1,469,000,000 | 872,900,000 | 657,300,000 | 850,500,000 | 1,044,200,000 |
| Diluted EPS | 5.09 | 3.63 | 1.12 | 8.18 | 6.81 | 8.96 | -7.88 | -6.79 | -0.61 | 2.47 |
| Operating cash flow | 244,000,000 | 363,200,000 | 342,500,000 | 226,800,000 | 558,000,000 | 271,500,000 | -129,000,000 | 531,000,000 | 667,500,000 | 371,300,000 |
| Capital expenditures | 58,300,000 | 69,600,000 | 68,200,000 | 42,400,000 | 62,700,000 | 106,900,000 | 113,500,000 | 92,800,000 | 84,000,000 | 97,400,000 |
| Dividends paid | 116,600,000 | 120,300,000 | 120,000,000 | 124,500,000 | 411,200,000 | 143,000,000 | 166,200,000 | 149,100,000 | 151,300,000 | 154,300,000 |
| Share buybacks | 137,400,000 | 255,200,000 | 327,700,000 | 3,100,000 | 53,200,000 | 129,300,000 | 257,900,000 | 9,300,000 | 5,100,000 | 18,400,000 |
| Assets | 2,755,800,000 | 2,747,000,000 | 3,054,500,000 | 3,028,700,000 | 3,380,500,000 | 4,800,000,000 | 4,296,800,000 | 3,413,700,000 | 2,871,900,000 | 2,742,000,000 |
| Liabilities | 2,021,500,000 | 2,085,300,000 | 2,694,900,000 | 2,305,500,000 | 2,677,600,000 | 3,786,700,000 | 4,149,100,000 | 3,681,000,000 | 3,262,500,000 | 3,099,500,000 |
| Stockholders' equity | 734,300,000 | 661,700,000 | 359,600,000 | 723,200,000 | 702,900,000 | 1,013,300,000 | 147,700,000 | -267,300,000 | -390,600,000 | -357,500,000 |
| Cash and cash equivalents | 28,600,000 | 120,500,000 | 33,900,000 | 18,800,000 | 16,600,000 | 244,100,000 | 86,800,000 | 31,900,000 | 71,600,000 | 36,600,000 |
| Free cash flow | 185,700,000 | 293,600,000 | 274,300,000 | 184,400,000 | 495,300,000 | 164,600,000 | -242,500,000 | 438,200,000 | 583,500,000 | 273,900,000 |

### Ratios

ROE and ROA use period-end equity/assets. Liabilities / equity uses total liabilities divided by stockholders' equity. Current ratio uses current assets divided by current liabilities when both are reported.

| Metric | 2016 | 2017 | 2018 | 2019 | 2020 | 2021 | 2022 | 2023 | 2024 | 2025 |
| --- | ---: | ---: | ---: | ---: | ---: | ---: | ---: | ---: | ---: | ---: |
| Net margin | 12.58% | 8.26% | 2.39% | 14.60% | 9.38% | 10.41% | -11.15% | -10.70% | -0.98% | 4.25% |
| Operating margin | 17.86% | 16.40% | 7.47% | 12.98% | 14.16% | 14.68% | -11.06% | -4.91% | 5.88% | 10.51% |
| Return on assets | 11.44% | 7.95% | 2.09% | 15.21% | 11.46% | 10.68% | -10.18% | -11.13% | -1.22% | 5.30% |
| Current ratio | 1.46 | 1.62 | 1.45 | 1.68 | 1.28 | 1.77 | 2.06 | 1.81 | 1.31 | 1.27 |

## As-reported value updates

9 tracked differences above grepcent's stated thresholds were found between the earliest XBRL-filed value and the value currently on file for the same fiscal period.

Ledger: /company/SMG/revisions/


## Quarterly

Quarterly standardized facts from SEC companyfacts as of latest extracted filing date 2026-08-05. Source: https://data.sec.gov/api/xbrl/companyfacts/CIK0000825542.json.

Flow metrics use discrete quarter-length periods from 10-Q/10-Q/A filings. Q4 revenue and net income are derived only when annual FY and nine-month YTD facts exist for the same fiscal year; derived Q4 values are labeled. EPS Q4 is not derived.

| Quarter | End date | Revenue | Net income | Diluted EPS | Method |
| --- | --- | ---: | ---: | ---: | --- |
| 2020-Q4 | 2020-09-30 |  | 3,900,000 |  | derived Q4 = FY annual - nine-month YTD |
| 2021-Q1 | 2021-01-02 |  | 24,400,000 |  | reported discrete quarter |
| 2021-Q2 | 2021-04-03 |  | 310,000,000 |  | reported discrete quarter |
| 2021-Q3 | 2021-07-03 |  | 225,900,000 |  | reported discrete quarter |
| 2021-Q4 | 2021-09-30 |  | -47,900,000 |  | derived Q4 = FY annual - nine-month YTD |
| 2022-Q1 | 2022-01-01 |  | -50,000,000 |  | reported discrete quarter |
| 2022-Q2 | 2022-04-02 |  | 276,500,000 |  | reported discrete quarter |
| 2022-Q3 | 2022-07-02 |  | -443,900,000 |  | reported discrete quarter |
| 2022-Q4 | 2022-09-30 |  | -220,000,000 |  | derived Q4 = FY annual - nine-month YTD |
| 2023-Q1 | 2022-12-31 |  |  | -1.17 | reported discrete quarter |
| 2023-Q2 | 2023-04-01 |  |  | 1.94 | reported discrete quarter |
| 2023-Q3 | 2023-07-01 |  |  | 0.77 | reported discrete quarter |
| 2023-Q4 | 2023-09-30 | 374,500,000 |  |  | derived Q4 = FY annual - nine-month YTD |
| 2024-Q1 | 2023-12-30 | 410,400,000 |  | -1.42 | reported discrete quarter |
| 2024-Q2 | 2024-03-30 | 1,525,400,000 |  | 2.74 | reported discrete quarter |
| 2024-Q3 | 2024-06-29 | 1,202,200,000 |  | 2.28 | reported discrete quarter |
| 2024-Q4 | 2024-09-30 | 414,700,000 |  |  | derived Q4 = FY annual - nine-month YTD |
| 2025-Q1 | 2024-12-28 | 416,800,000 |  | -1.21 | reported discrete quarter |
| 2025-Q2 | 2025-03-29 | 1,421,000,000 |  | 3.72 | reported discrete quarter |
| 2025-Q3 | 2025-06-28 | 1,188,000,000 |  | 2.54 | reported discrete quarter |
| 2025-Q4 | 2025-09-30 | 387,300,000 |  |  | derived Q4 = FY annual - nine-month YTD |
| 2026-Q1 | 2025-12-27 | 354,400,000 | -125,000,000 | -2.16 | reported discrete quarter |
| 2026-Q2 | 2026-03-28 | 1,459,500,000 | 238,600,000 | 4.04 | reported discrete quarter |
| 2026-Q3 | 2026-06-27 | 1,172,100,000 | 112,200,000 | 1.90 | reported discrete quarter |

## Filed narrative (10-K & 10-Q)

## Business

Verbatim Item 1 Business section from SMG's latest 10-K: [/company/SMG/business/](/company/SMG/business/).

## Risk Factors

Verbatim Item 1A Risk Factors from SMG's latest 10-K: [/company/SMG/risk-factors/](/company/SMG/risk-factors/).

## Latest quarter (10-Q)

Latest 10-Q source: https://www.sec.gov/Archives/edgar/data/825542/000082554226000041/smg-20260627.htm

Extracted structurally from real Item 2 body heading to real Item 3/4 boundary.
Confidence: high
Filing date: 2026-08-05
Report date: 2026-06-27

ITEM 2. MANAGEMENT’S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS

The purpose of this Management’s Discussion and Analysis of Financial Condition and Results of Operations (“MD&A”) is to provide an understanding of our financial condition and results of operations by focusing on changes in certain key measures from year-to-year. This MD&A includes the following sections:

•Executive summary

•Results of operations

•Segment results

•Liquidity and capital resources

•Regulatory matters

•Critical accounting estimates

This MD&A should be read in conjunction with “Management’s Discussion and Analysis of Financial Condition and Results of Operations” included in Scotts Miracle-Gro’s Annual Report on Form 10-K for the fiscal year ended September 30, 2025 (the “2025 Annual Report”) and our condensed consolidated financial statements included in this Form 10-Q.

EXECUTIVE SUMMARY

U.S. Consumer consists of our consumer lawn and garden business in the United States. Other primarily consists of our consumer lawn and garden business in Canada. Corporate consists of general and administrative expenses and certain other income and expense items not allocated to the operating segments. See “SEGMENT RESULTS” below for additional information regarding our evaluation of segment performance.

Through our U.S. Consumer and Other segments, we are the leading marketer of branded consumer lawn and garden products in North America. Our products are marketed under some of the most recognized brand names in the industry. Our key consumer lawn and garden brands include Scotts® Turf Builder® lawn fertilizer and Scotts® grass seed products; Miracle-Gro® soil, plant food and gardening products; Ortho® herbicide and pesticide products; and Tomcat® rodent control and animal repellent products. We are the exclusive agent of Monsanto for the marketing and distribution of certain of Monsanto’s consumer Roundup® branded products within the United States and certain other specified countries. In addition, we have an equity interest in Bonnie Plants, LLC, a joint venture with AFC, focused on planting, growing, developing, distributing, marketing and selling live plants.

Due to the seasonal nature of the consumer lawn and garden business, significant portions of our U.S. Consumer and Other segment net sales ship to our retail customers during our second and third fiscal quarters, as noted in the following table. Our annual net sales are further concentrated in the second and third fiscal quarters by retailers who rely on our ability to deliver products closer to when consumers buy our products.

[[GREPCENT_TABLE]]
[["","Percent of Net Sales from Continuing Operations by Quarter"],["","2025","","2024","","2023"],["First Quarter","11.3","%","","10.2","%","","12.8","%"],["Second Quarter","42.7","%","","44.7","%","","46.7","%"],["Third Quarter","35.6","%","","34.8","%","","33.2","%"],["Fourth Quarter","10.4","%","","10.3","%","","7.3","%"]]
[[/GREPCENT_TABLE]]

30

[[GREPCENT_TABLE]]
[["Contents","THE SCOTTS MIRACLE-GRO COMPANY"],["","(Dollars in millions, except per share data)"]]
[[/GREPCENT_TABLE]]

Recent Events and Trends Affecting our Business

On June 29, 2026, the Company announced that its Board of Directors had named Nathan E. Baxter as President & Chief Executive Officer of the Company effective June 26, 2026. In addition, the Board elected Mr. Baxter to the Board of Directors. Mr. Baxter succeeds James Hagedorn, who served as Chief Executive Officer of the Company since 2001. Mr. Hagedorn, who served as Chairman of the Board since 2003, also resigned from the Board, and the Board elected Lead Independent Director Peter Shumlin as Chairman.

During the three months ended December 27, 2025, we determined that the Hawthorne business met the criteria to be classified as held for sale, and classified the related assets and liabilities as held for sale in the Condensed Consolidated Balance Sheets for all periods presented. We determined this represented a strategic shift, and therefore, effective in the first quarter of fiscal 2026, we classified our results of operations for all periods presented to reflect the Hawthorne business as a discontinued operation. On April 8, 2026, we completed the sale of the Hawthorne business in North America to Vireo in exchange for 213.0 million common shares of Vireo, which represented approximately 14% of Vireo’s total outstanding common shares as of the closing date, and a warrant with a five-year term to acquire 80.0 million additional common shares of Vireo at a strike price of $0.85 per share. On the closing date, the Hawthorne business held cash and cash equivalents of $35.0 that was transferred to Vireo as part of the sale. Additionally, in connection with the transaction, we entered into a contract manufacturing agreement and agreed to provide Vireo with up to $20.0 of manufacturing services over a two-year period for no cost. For the nine months ended June 27, 2026, we recorded a loss of $101.8 related to the sale of the Hawthorne business in North America. The completion of the divestiture during the three months ended June 27, 2026 resulted in an ordinary taxable loss that will allow the realization of deferred tax assets to reduce cash taxes paid over the next several fiscal years.

We continue to monitor the impacts of macroeconomic conditions, including elevated interest rates and inflationary pressures on input costs and consumer behavior, as well as geopolitical uncertainty, including the duration and resolution of ongoing conflicts, potential escalation of tensions and global supply chain disruptions, and ongoing changes to global trade policies, including the imposition of tariffs. The impact that these events and conditions will have on our operational and financial performance will depend on future developments, which are difficult to predict. For more information about factors that could impact our business, refer to “ITEM 1A. RISK FACTORS” in the 2025 Annual Report.

RESULTS OF OPERATIONS

Unless specifically stated, all discussion herein refers to results from our continuing operations. The following table sets forth the components of earnings as a percentage of net sales for the three months ended June 27, 2026 and June 28, 2025:

[[GREPCENT_TABLE]]
[["","June 27, 2026","","% Of Net Sales","","June 28, 2025","","% Of Net Sales"],["Net sales","$","1,172.1","","","100.0","%","","$","1,159.3","","","100.0","%"],["Cost of sales","805.0","","","68.7","","","784.6","","","67.7"],["Cost of sales\u2014impairment, restructuring and other","1.2","","","0.1","","","2.0","","","0.2"],["Gross margin","365.9","","","31.2","","","372.7","","","32.1"],["Operating expenses:"],["Selling, general and administrative","145.6","","","12.4","","","144.8","","","12.5"],["Impairment, restructuring and other","47.0","","","4.0","","","(1.0)","","","(0.1)"],["Other expense, net","3.7","","","0.3","","","7.1","","","0.6"],["Income from operations","169.6","","","14.5","","","221.8","","","19.1"],["Equity in income of unconsolidated affiliates","(29.2)","","","(2.5)","","","(25.3)","","","(2.2)"],["Interest expense","28.0","","","2.4","","","31.8","","","2.7"],["Other non-operating expense, net","15.6","","","1.3","","","1.3","","","0.1"],["Income from continuing operations before income taxes","155.2","","","13.2","","","214.0","","","18.5"],["Income tax expense from continuing operations","51.6","","","4.4","","","59.3","","","5.1"],["Net income from continuing operations","103.6","","","8.8","","","154.7","","","13.3"],["Income (loss) from discontinued operations, net of tax","8.6","","","0.7","","","(5.6)","","","(0.5)"],["Net income","$","112.2","","","9.6","%","","$","149.1","","","12.9","%"]]
[[/GREPCENT_TABLE]]

The sum of the components may not equal the total due to rounding.

31

[[GREPCENT_TABLE]]
[["Contents","THE SCOTTS MIRACLE-GRO COMPANY"],["","(Dollars in millions, except per share data)"]]
[[/GREPCENT_TABLE]]

The following table sets forth the components of earnings as a percentage of net sales for the nine months ended June 27, 2026 and June 28, 2025:

[[GREPCENT_TABLE]]
[["","June 27, 2026","","% Of Net Sales","","June 28, 2025","","% Of Net Sales"],["Net sales","$","2,986.1","","","100.0","%","","$","2,915.7","","","100.0","%"],["Cost of sales","1,918.5","","","64.2","","","1,903.8","","","65.3"],["Cost of sales\u2014impairment, restructuring and other","2.5","","","0.1","","","8.6","","","0.3"],["Gross margin","1,065.1","","","35.7","","","1,003.3","","","34.4"],["Operating expenses:"],["Selling, general and administrative","450.7","","","15.1","","","436.2","","","15.0"],["Impairment, restructuring and other","51.0","","","1.7","","","25.9","","","0.9"],["Other expense, net","13.7","","","0.5","","","15.5","","","0.5"],["Income from operations","549.7","","","18.4","","","525.7","","","18.0"],["Equity in income of unconsolidated affiliates","(11.6)","","","(0.4)","","","(9.5)","","","(0.3)"],["Interest expense","86.5","","","2.9","","","102.2","","","3.5"],["Other non-operating expense, net","17.9","","","0.6","","","3.9","","","0.1"],["Income from continuing operations before income taxes","456.9","","","15.3","","","429.1","","","14.7"],["Income tax expense from continuing operations","137.8","","","4.6","","","119.7","","","4.1"],["Net income from continuing operations","319.1","","","10.7","","","309.4","","","10.6"],["Income (loss) from discontinued operations, net of tax","(93.3)","","","(3.1)","","","(12.3)","","","(0.4)"],["Net income","$","225.8","","","7.6","%","","$","297.1","","","10.2","%"]]
[[/GREPCENT_TABLE]]

The sum of the components may not equal the total due to rounding.

Net Sales

Net sales for the three months ended June 27, 2026 were $1,172.1, an increase of 1.1% from net sales of $1,159.3 for the three months ended June 28, 2025. Net sales for the nine months ended June 27, 2026 were $2,986.1, an increase of 2.4% from net sales of $2,915.7 for the nine months ended June 28, 2025. Factors contributing to the change in net sales are outlined in the following table:

[[GREPCENT_TABLE]]
[["","Three Months Ended","","Nine Months Ended"],["","June 27, 2026","","June 27, 2026"],["Volume and mix","1.3","%","","2.0","%"],["Pricing","(0.1)","","","0.4"],["Foreign exchange rates","(0.1)","","","\u2014"],["Change in net sales","1.1","%","","2.4","%"]]
[[/GREPCENT_TABLE]]

The increase in net sales for the three months ended June 27, 2026 as compared to the three months ended June 28, 2025 was primarily driven by:

•favorable mix in our U.S. Consumer segment driven by higher sales of branded products, partially offset by lower sales of mulch products;

•higher sales volume in our Other segment; and

•higher net sales associated with the Roundup® marketing agreement.

The increase in net sales for the nine months ended June 27, 2026 as compared to the nine months ended June 28, 2025 was primarily driven by:

•favorable mix in our U.S. Consumer segment driven by higher sales of branded products including soils, grass seed, controls and fertilizer products, partially offset by lower sales of mulch products;

•higher net sales associated with the Roundup® marketing agreement; and

•increased pricing in our U.S. Consumer and Other segments.

32

[[GREPCENT_TABLE]]
[["Contents","THE SCOTTS MIRACLE-GRO COMPANY"],["","(Dollars in millions, except per share data)"]]
[[/GREPCENT_TABLE]]

Cost of Sales

The following table shows the major components of cost of sales:

[Excerpt truncated for page length; source filing is linked above.]

## Latest 10-K MD&A (excerpt)

Latest 10-K Item 7 source: https://www.sec.gov/Archives/edgar/data/825542/000082554225000022/smg-20250930.htm
Complete FY 2025 MD&A: /company/SMG/mda/fy2025/

Extracted structurally from real Item 7 body heading to real Item 7A/8 boundary.
Confidence: high
Filing date: 2025-11-25
Report date: 2025-09-30

ITEM 7.    MANAGEMENT’S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS

The purpose of this Management’s Discussion and Analysis of Financial Condition and Results of Operations (“MD&A”) is to provide an understanding of our financial condition and results of operations by focusing on changes in certain key measures from year-to-year. This MD&A includes the following sections:

•Executive summary

•Results of operations

•Segment results

•Liquidity and capital resources

•Regulatory matters

•Critical accounting estimates

Executive Summary

U.S. Consumer consists of our consumer lawn and garden business in the United States. Hawthorne consists of our indoor and hydroponic gardening business. Other primarily consists of our consumer lawn and garden business in Canada. Corporate consists of general and administrative expenses and certain other income and expense items not allocated to the operating segments. See “SEGMENT RESULTS” below for additional information regarding our evaluation of segment performance.

Through our U.S. Consumer and Other segments, we are the leading marketer of branded consumer lawn and garden products in North America. Our products are marketed under some of the most recognized brand names in the industry. Our key consumer lawn and garden brands include Scotts® Turf Builder® lawn fertilizer and Scotts® grass seed products; Miracle-Gro® soil, plant food and gardening products; Ortho® herbicide and pesticide products; and Tomcat® rodent control and animal repellent products. We are the exclusive agent of Monsanto for the marketing and distribution of certain of Monsanto’s consumer Roundup® branded products within the United States and certain other specified countries. In addition, we have an equity interest in Bonnie Plants, LLC, a joint venture with AFC, focused on planting, growing, developing, distributing, marketing and selling live plants.

Through our Hawthorne segment, we are a leading provider of nutrients, lighting and other materials used for indoor and hydroponic gardening in North America. Our signature brands include General Hydroponics®, Gavita®, Botanicare®, Gro Pro®, Mother Earth®, Grower’s Edge®, HydroLogic Purification System® and CYCO®.

As a leading consumer branded lawn and garden company, our product development and marketing efforts are largely focused on providing innovative and differentiated products and continually increasing brand and product awareness to inspire consumers to create retail demand. We have implemented this model for a number of years by focusing on research and development, advertising and consumer activation programs with our customers to support and promote our consumer lawn and garden products and brands. We continually explore new and innovative ways to communicate with consumers. We believe that we receive a significant benefit from these expenditures and we anticipate continued growth in these investments in the future, with the continuing objective of driving category growth and profitably maintaining and/or increasing market share.

Our consumer lawn and garden business in any year is susceptible to weather conditions in the markets in which our products are sold. These climate conditions may adversely impact the sale of certain products or increase demand for other products thereby making the overall impact of abnormal or extreme weather conditions on us difficult to predict. We believe that our diversified product line and our geographic diversification reduce this risk, although to a lesser extent in a year in which unfavorable weather is geographically widespread and extends across a significant portion of the lawn and garden season. We also believe that weather conditions in any one year, positive or negative, do not materially impact longer-term category growth trends.

Due to the seasonal nature of the consumer lawn and garden business, significant portions of our U.S. Consumer and Other segment net sales ship to our retail customers during our second and third fiscal quarters, as noted in the following table. Our annual net sales are further concentrated in the second and third fiscal quarters by retailers who rely on our ability to deliver products closer to when consumers buy our products.

31

Table of Contents

THE SCOTTS MIRACLE-GRO COMPANY

(Dollars in millions, except per share data)

[[GREPCENT_TABLE]]
[["","Percent of Net Sales by Quarter"],["","2025","","2024","","2023"],["First Quarter","12.2","%","","11.6","%","","14.8","%"],["Second Quarter","41.6","%","","42.9","%","","43.2","%"],["Third Quarter","34.8","%","","33.8","%","","31.5","%"],["Fourth Quarter","11.4","%","","11.7","%","","10.5","%"]]
[[/GREPCENT_TABLE]]

Management focuses on a variety of key indicators and operating metrics to monitor the financial condition and performance of the continuing operations of our business. These metrics include consumer purchases (point-of-sale data), market share, category growth, e-commerce penetration, household penetration, net sales (including unit volume, mix, pricing and other drivers), gross margins, advertising to net sales ratios, income (loss) from operations, net income (loss), earnings per share, earnings before interest, taxes, depreciation and amortization (“EBITDA”), leverage ratio, fixed charge coverage ratio and interest coverage ratio. We also focus on measures to optimize cash flow and return on invested capital, including the management of working capital and capital expenditures.

Trends Affecting our Business

During fiscal 2025, our Hawthorne segment continued to experience decreased sales volume. This was partially attributable to an oversupply of cannabis, which has led to a prolonged period of lower cannabis wholesale prices, reduced indoor and outdoor cannabis cultivation and consolidation of retail establishments. The oversupply has been driven by increased licensing activity across the U.S. as well as inconsistent approaches to state regulation and enforcement. We expect that the oversupply of cannabis will continue to adversely impact our Hawthorne segment. If the oversupply of cannabis persists longer, or is more significant than we expect, our results of operations could be materially and adversely impacted for a longer period and to a greater extent than we currently anticipate.

During fiscal 2024, our Hawthorne segment discontinued distribution of other companies’ products in order to shift its focus solely to marketing, innovating and supporting its portfolio of signature brands. The discontinuation of sales of other companies’ products has resulted in lower sales volume when compared to historical periods, but has enabled continued optimization of Hawthorne’s operations and improvement of its profitability.

We continue to monitor the impacts of macroeconomic conditions, including elevated interest rates and the impact of inflationary pressures on input costs and consumer behavior; as well as geopolitical uncertainty, including the duration and resolution of ongoing conflicts, potential escalation of tensions and global supply chain disruptions. We are also continuing to monitor ongoing changes to global trade policies, including the imposition of tariffs. The impact that these events and conditions will have on our operational and financial performance will depend on future developments, which are difficult to predict.

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THE SCOTTS MIRACLE-GRO COMPANY

(Dollars in millions, except per share data)

Results of Operations

The following table sets forth the components of earnings as a percentage of net sales:

[[GREPCENT_TABLE]]
[["","Year Ended September 30,"],["","2025","% of Net Sales","","2024","% of Net Sales","","2023","% of Net Sales"],["Net sales","$","3,413.1","","100.0","%","","$","3,552.7","","100.0","%","","$","3,551.3","","100.0","%"],["Cost of sales","2,348.6","","68.8","","","2,618.7","","73.7","","","2,708.3","","76.3"],["Cost of sales\u2014impairment, restructuring and other","20.3","","0.6","","","83.5","","2.4","","","185.7","","5.2"],["Gross margin","1,044.2","","30.6","","","850.5","","23.9","","","657.3","","18.5"],["Operating expenses:"],["Selling, general and administrative","603.4","","17.7","","","559.0","","15.7","","","551.3","","15.5"],["Impairment, restructuring and other","63.4","","1.9","","","62.8","","1.8","","","280.5","","7.9"],["Other (income) expense, net","18.8","","0.6","","","19.9","","0.6","","","(0.1)","","\u2014"],["Income (loss) from operations","358.6","","10.5","","","208.8","","5.9","","","(174.4)","","(4.9)"],["Equity in loss of unconsolidated affiliates","2.8","","0.1","","","68.1","","1.9","","","101.1","","2.8"],["Interest expense","128.8","","3.8","","","158.8","","4.5","","","178.1","","5.0"],["Other non-operating (income) expense, net","5.3","","0.2","","","5.5","","0.2","","","(0.3)","","\u2014"],["Income (loss) before income taxes","221.7","","6.5","","","(23.6)","","(0.7)","","","(453.3)","","(12.8)"],["Income tax expense (benefit)","76.5","","2.2","","","11.3","","0.3","","","(73.2)","","(2.1)"],["Net income (loss)","$","145.2","","4.3","%","","$","(34.9)","","(1.0)","%","","$","(380.1)","","(10.7)","%"]]
[[/GREPCENT_TABLE]]

The sum of the components may not equal due to rounding.

Net Sales

Net sales for fiscal 2025 were $3,413.1, a decrease of 3.9% from net sales of $3,552.7 for fiscal 2024. Net sales for fiscal 2024 were flat to net sales of $3,551.3 for fiscal 2023. Factors contributing to the change in net sales are outlined in the following table:

[[GREPCENT_TABLE]]
[["","Year Ended September 30,"],["","2025","","2024"],["Volume and mix","(3.3)","%","","1.1","%"],["Pricing","(0.6)","","","(1.1)"],["Change in net sales","(3.9)","%","","\u2014","%"]]
[[/GREPCENT_TABLE]]

The decrease in net sales for fiscal 2025 as compared to fiscal 2024 was primarily driven by:

•decreased net sales of 2.1% included within “volume and mix” related to nonrecurring fiscal 2024 sales of bulk raw materials and AeroGarden® products in our U.S. Consumer segment and the discontinuation of sales of other companies’ products in our Hawthorne segment;

•decreased sales volume of 1.0% comprised of the net impact of lower volume in our Hawthorne segment driven by all product categories, partially offset by higher volume in our U.S. Consumer segment driven by soils, mulch, grass seed and spreader products; and

•decreased pricing, primarily driven by additional investments in consumer activation activities in our U.S. Consumer segment.

Net sales for fiscal 2024 as compared to fiscal 2023 were primarily driven by the offsetting changes below:

•increased sales volume, comprised of the net impact of higher volume in our U.S. Consumer segment driven by mulch, soils and controls products, partially offset by lower volume in our Hawthorne segment driven by the discontinuation of sales of other companies’ products; and

•increased net sales associated with the Roundup® marketing agreement;

•offset by decreased pricing in our U.S. Consumer, Hawthorne and Other segments.

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(Dollars in millions, except per share data)

Cost of Sales

The following table shows the major components of cost of sales:

[[GREPCENT_TABLE]]
[["","Year Ended September 30,"],["","2025","","2024","","2023"],["Materials","$","1,179.7","","","$","1,401.7","","","$","1,524.1"],["Manufacturing labor and overhead","591.1","","","610.8","","","545.4"],["Distribution and warehousing","490.8","","","515.0","","","556.3"],["Costs associated with Roundup\u00ae marketing agreement","87.0","","","91.2","","","82.5"],["Cost of sales","2,348.6","","","2,618.7","","","2,708.3"],["Cost of sales\u2014impairment, restructuring and other","20.3","","","83.5","","","185.7"],["","$","2,368.9","","","$","2,702.2","","","$","2,894.0"]]
[[/GREPCENT_TABLE]]

Factors contributing to the change in cost of sales are outlined in the following table:

[Excerpt truncated for page length; the complete text is on the linked full-MD&A page.]

Read the full FY 2025 MD&A: /company/SMG/mda/fy2025/
All MD&A years: /company/SMG/mda/


## MD&A history

Prior-year 10-K MD&A spans are extracted from SEC filings with the same bounded parser used for the latest filing. Each year's full verbatim text is on its own sub-page.

- [FY 2024 MD&A](/company/SMG/mda/fy2024/): filed 2024-11-26; accession 0001546380-24-000043 (https://www.sec.gov/Archives/edgar/data/825542/000154638024000043/smg-20240930.htm)
- [FY 2023 MD&A](/company/SMG/mda/fy2023/): filed 2023-11-22; accession 0001546380-23-000037 (https://www.sec.gov/Archives/edgar/data/825542/000154638023000037/smg-20230930.htm)
- [FY 2022 MD&A](/company/SMG/mda/fy2022/): filed 2022-11-28; accession 0001546380-22-000035 (https://www.sec.gov/Archives/edgar/data/825542/000154638022000035/smg-20220930.htm)
- [FY 2021 MD&A](/company/SMG/mda/fy2021/): filed 2021-11-23; accession 0001546380-21-000037 (https://www.sec.gov/Archives/edgar/data/825542/000154638021000037/smg-20210930.htm)




## Macro cross-references

Indicators mapped to this company's SIC classification (industry 2870 Agricultural Chemicals) by grepcent's deterministic macro-sector crosswalk. A navigational mapping, not a statistical or causal claim.

- [INDPRO](/indicator/INDPRO/): Industrial Production: Total Index
- [TCU](/indicator/TCU/): Capacity Utilization: Total Index
- [PPIACO](/indicator/PPIACO/): Producer Price Index by Commodity: All Commodities
- [GDPC1](/indicator/GDPC1/): Real Gross Domestic Product
- [DGS10](/indicator/DGS10/): Market Yield on U.S. Treasury Securities at 10-Year Constant Maturity
- [FEDFUNDS](/indicator/FEDFUNDS/): Federal Funds Effective Rate
- [CES0500000003](/indicator/CES0500000003/): Average Hourly Earnings of All Employees, Total Private
- [PAYEMS](/indicator/PAYEMS/): All Employees, Total Nonfarm

Macro-to-micro threads including this sector: [Inflation (CPI / PCE / PPI)](/thread/inflation-cpi-pce-ppi/), [US labor market](/thread/us-labor-market/), [Growth & output](/thread/growth-output/), [Money & trade](/thread/money-trade/), [Government finances](/thread/government-finances/), [Sector employment](/thread/sector-employment/), [Industrial orders & inventories](/thread/industrial-orders/), [Trade & external](/thread/trade-external/).

All macro indicators: /indicators/


## For LLMs & downloads

Markdown twin: /company/SMG.md · JSON record: /company/SMG.json · verified financials: /company/SMG/financials.json / /company/SMG/financials.csv · machine TOC for the whole site: /llms.txt