Scotts Miracle-Gro Company Class A (SMG)

In November 2025, Scotts Miracle-Gro's Q4 earnings call highlighted a strategic pivot towards branded products and AI-driven innovation, with the CEO emphasizing a return to being a "safe harbor, high-return equity". The company outlined a 2026 EPS target of $4.15-$4.35 and announced its intent to propose a multiyear share buyback program for fiscal 2026. In January 2026, the company reported Q1 2026 earnings that surpassed expectations, with an EPS of -$0.77 and revenue of $354.4 million. Strategic moves announced included the planned sale of its Hawthorne cannabis-supply unit, a new multi-year share repurchase program starting in late 2026, and a declared quarterly dividend of $0.66. However, a February 2026 10-Q report indicated a slight year-over-year decrease in net sales and an increased net loss. Institutional investors have shown a pattern of net selling over the last 24 months.

Demand for Scotts Miracle-Gro's products is highly seasonal and influenced by weather conditions. The third fiscal quarter typically accounts for approximately 60% of the total point-of-sale (POS) for the year. Retailer load-in is generally strongest in the first and second quarters. To mitigate the impact of weather swings and retailer inventory policies on peak-season sales, the company employs strategies such as diversifying channels, expanding buy-online-pickup-in-store (BOPIS) and direct-to-consumer (DTC) options, and agile production planning. The Hawthorne segment aims to reduce its seasonality by expanding into institutional Controlled Environment Agriculture (CEA) accounts.

Scotts Miracle-Gro specializes in consumer lawn, garden, and pest control products, as well as soilless indoor gardening equipment. The company operates within the consumer packaged goods industry, primarily focused on the lawn and garden sector, and is also categorized under agricultural inputs. It manufactures and sells lawn fertilizers, grass seed, spreaders, outdoor cleaners, weed, pest, and disease control solutions, water-soluble and continuous-release plant foods, potting mixes, garden soils, mulch, decorative groundcover, organic garden products, and live goods. Through its Hawthorne Gardening Company subsidiary, it also provides hydroponic products, lighting systems, and components for indoor and hydroponic growing. Key brands include Scotts, Miracle-Gro, and Ortho, and it also markets and distributes Roundup herbicide in the U.S. and several international markets.

Scotts Miracle-Gro is headquartered in Marysville, Ohio, with a primary market presence in North America, where the U.S. and Canada account for 88% of its fiscal 2024 sales. The company maintains its strongest market share and brand recognition in the Midwest and Northeast U.S., while strategically focusing on Sun Belt states like Florida, Texas, and Arizona. It also has a smaller-scale presence in Canada and Europe, and its international operations extend to other countries, including Australia and Asia. The company's infrastructure includes 62 manufacturing facilities, 17 distribution centers, and six research and development sites. Its e-commerce platform for the Hawthorne segment provides a national digital market presence.

Scotts Miracle-Gro maintains a strong brand presence and a reputation for innovation within the home lawn and garden market. Its core brands, Scotts, Miracle-Gro, and Ortho, are recognized as market leaders. In 2025, the company expanded its organic product portfolio and introduced drought-tolerant grasses. The company has also focused on sustainability, innovating with 100% recyclable packaging and reducing virgin plastic packaging. Its 2025 Corporate Responsibility Report highlighted efforts in waste reduction and expanding plastic film recycling. The company also exceeded its 2024 goal of reaching over 157 million people through partnerships focused on water quality, conservation, and pollinator habitats.

Institutional investors hold approximately 74.07% of Scotts Miracle-Gro's stock. Major institutional shareholders include Vanguard Group Inc, BlackRock, Inc., Earnest Partners Llc, State Street Corp, and Northern Trust Corp. The Hagedorn Partnership, L.P. also holds a substantial beneficial ownership of about 23% of the common shares. Despite this high institutional ownership, there has been a trend of net selling by institutional investors over the past two years.