Scotts Miracle-Gro Reports Strong Q3 Earnings Growth

Scotts Miracle-Gro ( (SMG) ) has released its Q3 earnings. Here is a breakdown of the information Scotts Miracle-Gro presented to its investors.

Scotts Miracle-Gro is the world’s largest marketer of branded consumer lawn and garden products and a leader in indoor and hydroponic growing products, known for its popular brands such as Scotts, Miracle-Gro, and Ortho.

In its latest earnings report for the third quarter of fiscal 2025, Scotts Miracle-Gro reported growth in both EBITDA and earnings per share, driven by improved gross margins and a slight increase in U.S. consumer net sales. The company reaffirmed its full-year non-GAAP fiscal 2025 guidance, highlighting its strategic focus on profitability and balance sheet strength.

Key financial highlights include a 1% increase in U.S. consumer net sales and a 6% rise in POS units. The company achieved a GAAP gross margin rate of 31.8% and a non-GAAP adjusted gross margin rate of 32.1%, marking significant improvements over the previous year. GAAP earnings per share rose to $2.54, while non-GAAP adjusted earnings per share increased to $2.59. Additionally, non-GAAP adjusted EBITDA improved by $19.3 million compared to the prior year.

The company continues to focus on transforming its operations by shifting from internal cost-saving initiatives to outward efforts aimed at attracting a new and younger consumer base. This strategic shift is expected to support the company’s growth ambitions for fiscal 2026 and beyond.

Looking ahead, Scotts Miracle-Gro remains confident in its fiscal 2025 commitments, anticipating low single-digit growth in U.S. consumer net sales, a non-GAAP adjusted gross margin of approximately 30%, and adjusted EBITDA between $570 million to $590 million. The company also projects free cash flow of around $250 million, underscoring its commitment to enhancing profitability and financial stability.