Scotts Miracle-Gro(NYSE) SMG

Scotts Miracle-Gro helps people grow grass and vegetables at home. It makes fertilizers, seeds, and tools for gardens and lawns. These products help homeowners keep outdoor spaces green and healthy.

What’s in the Shed?

• Lawn Care: Fertilizers, grass seeds, and spreaders used to maintain grass; generated $505.5 million in Q2 2026 net sales.
• Growing Media: Potting mixes, garden soils, and mulch for planting; accounted for $561.3 million of net sales in Q2 2026.
• Controls: Weed and pest control products for home use; includes the Ortho and Tomcat brands.
• Roundup Marketing: Exclusive marketing and distribution of Roundup brand weed killers through an agreement with Monsanto.
• Gardening Solutions: Water-soluble plant foods and seeding products for growing flowers and vegetables.

Pruning for Better Results

• Sold the Hawthorne North American operations to Vireo Growth Inc. on April 8, 2026, in exchange for shares and warrants.
• Divested the Hawthorne business in the Netherlands on September 30, 2025, to focus on the core consumer market.
• Exchanged debt for an investment in FLUENT Corp. through its subsidiary, The Hawthorne Collective, to enter the cannabis market.
• Maintains a 50% interest in Bonnie Plants, a joint venture that grows and sells live plants to consumers.

Rooted in North America

The company generates over 75% of its annual sales during the spring and summer quarters. It uses a specialized program to sell customer invoices for cash to manage its seasonal funding needs.

Spring Season by the Numbers

• Net sales reached $1.46 billion in Q2 2026, an increase from $1.39 billion in Q2 2025.
• Net income hit $238.6 million in Q2 2026, up 9.7% from $217.5 million in the same period last year.
• The U.S. Consumer segment generated $1.38 billion in net sales during Q2 2026, up 5% from Q2 2025.
• Free cash flow reached $201.4 million in Q2 2026, representing a 12% increase year-over-year.

A New Path Forward

Scotts has returned to its roots by selling its hydroponic business, which allows for growing plants with little or no soil. This move focuses the company on its core North American lawn and garden brands.