The Scotts Miracle-gro Company Stock Earnings Reports

Scotts Miracle-Gro reported solid Q3 fiscal 2025 results and reaffirmed full-year guidance. Key takeaways for investors: 1) Strong consumer demand — POS unit growth is healthy (up 8% year-to-date, with soils +12%, mulch +8%, grass seed +16%, and branded lawn fertilizers reversing a multi-year decline), and e-commerce POS is growing rapidly (+54% in recent push; ~10% of POS dollars). 2) Market share gains — management reported additional share gains (about +200 bps year-over-year) and said they are winning versus private label. 3) Financial progress — year-to-date EBITDA +9%, EPS +24%, gross margin expanded (non-GAAP adjusted gross margin ~32.1% in Q3, tracking to ~30% for the year), interest expense and leverage improved (net debt/EBITDA 4.15x vs 5.46x prior year), and free cash flow and debt reduction remain priorities. 4) Transformation underway — internal cost, supply chain automation, and technology initiatives have delivered ~$75M of U.S. consumer supply chain savings this year, with another ~$75M targeted across FY26–27. Management is shifting focus outward in FY26 to ramp marketing, digital/e-commerce, influencer strategies (targeting younger consumers), and product innovation (including organic/biological R&D). 5) Lawns strategy reset — a major reformulation, simplified SKUs/pricing, year-round media cadence, and retailer activation to drive frequency and household penetration; pricing discussions with retailers are ongoing for FY26. 6) Hawthorne business — continuing to improve (three consecutive profitable quarters) but sales remain down; divestiture remains a goal by end of Q4. Overall, management is confident in delivering FY25 targets (sales, gross margin, EBITDA, EPS, free cash flow) and is positioning the company for sustained mid-term margin recovery and top-line growth while balancing reinvestment needs.