分组1 - Scotts Miracle-Gro reported a quarterly loss of $1.96 per share, which was worse than the Zacks Consensus Estimate of a loss of $1.88, but an improvement from a loss of $2.31 per share a year ago [1] - The company posted revenues of $387.4 million for the quarter ended September 2025, missing the Zacks Consensus Estimate by 2.8% and down from $414.7 million year-over-year [2] - Scotts shares have declined approximately 17.9% year-to-date, contrasting with the S&P 500's gain of 15.1% [3] 分组2 - The current consensus EPS estimate for the upcoming quarter is -$0.88 on revenues of $419.58 million, while for the current fiscal year, the estimate is $4.21 on revenues of $3.49 billion [7] - The Zacks Industry Rank for Agriculture - Operations is in the bottom 15% of over 250 Zacks industries, indicating potential challenges for stocks in this sector [8]

Fiscal Year 2025 Performance - The company met or exceeded all previously provided financial guidance[21] - The company's share of the total Lawn & Garden category increased by 1%[21, 24] - Non-GAAP adjusted EBITDA grew by $71 million, a 14% increase, reaching $581 million[21] - Non-GAAP adjusted EPS grew by 63% to $3.74 per share[21] - Free cash flow was $274 million in excess of Non-GAAP adjusted earnings[21] - Debt paydown of $120 million drove interest expense down by $30 million, reducing the leverage ratio to 4.1x[21] - Full year net sales reached $3.41 billion, a 4% decrease compared to the previous year[62] Q4 2025 Performance - Net sales were $387.4 million, a 7% decrease compared to Q4 2024[59] - Adjusted gross margin rate improved by 1,030 bps to 7.2%[59] - Adjusted net loss was $(113.1) million, an improvement compared to $(131.5) million in Q4 2024[59] Fiscal Year 2026 Outlook - The company expects low single-digit sales growth in the U S Consumer segment[87] - The company anticipates a non-GAAP adjusted gross margin rate of at least 32%[86, 87] - The company projects adjusted EPS to be between $4.15 and $4.35 per share[87]

Financial Performance - U.S. Consumer net sales for fiscal 2025 were $2.99 billion, in line with guidance[6] - GAAP gross margin rate improved by 670 basis points to 30.6%, while non-GAAP adjusted gross margin improved by 490 basis points to 31.2%[6] - GAAP earnings per share increased by $3.08 to $2.47, and non-GAAP adjusted earnings per share rose by $1.45 to $3.74[6] - Non-GAAP adjusted EBITDA for fiscal 2025 was $581 million, an increase of $71 million compared to the prior year[6] - Free cash flow reached $274 million, exceeding expectations, with net leverage improving to 4.10x, a reduction of 0.76x year-over-year[6] - Fiscal 2026 guidance includes non-GAAP adjusted earnings per share projected between $4.15 and $4.35[6] - The company expects non-GAAP adjusted gross margin to be at least 32% in fiscal 2026[6] - The company reported a net income of $145.2 million for fiscal 2025, a significant improvement from a net loss of $34.9 million in the previous year[13] - The company anticipates continued solid financial performance in fiscal 2026, reflecting its growth strategy[3] - For the twelve months ended September 30, 2025, the company reported a net income of $145.2 million, compared to a net loss of $34.9 million for the same period in 2024, representing a significant turnaround[24] - Adjusted EBITDA for the twelve months ended September 30, 2025, was $581.1 million, an increase from $510.1 million in 2024, reflecting a growth of approximately 13.9%[24] - Income from operations for the twelve months ended September 30, 2025, was $358.6 million, compared to $208.8 million in 2024, marking an increase of 71.8%[24] - Diluted net income per common share for the twelve months ended September 30, 2025, was $2.47, a significant increase from a loss of $0.61 per share in 2024[24] Sales and Segment Performance - For the three months ended September 30, 2025, consolidated net sales decreased by 7% to $387.4 million compared to $414.7 million in the same period of 2024[15] - The U.S. Consumer segment reported net sales of $311.2 million, a slight increase of 0.5% from $309.7 million in the prior year[15] - The Hawthorne segment experienced a significant decline in net sales, down 38% to $49.9 million from $80.5 million year-over-year[15] - Segment Profit (Loss) for the U.S. Consumer improved by 21% to a loss of $65.5 million compared to a loss of $82.5 million in the previous year[15] Operational Efficiency and Cost Management - The company is strategically implementing AI and robotic automation to enhance operational efficiencies and cost savings[3] - The gross margin as a percentage of sales improved to 30.6% in 2025 from 23.9% in 2024, indicating enhanced operational efficiency[24] - The company incurred impairment, restructuring, and other charges totaling $83.8 million for the twelve months ended September 30, 2025, compared to $146.3 million in 2024, showing a reduction of 42.6%[24] - The company’s interest expense decreased to $128.8 million in 2025 from $158.8 million in 2024, representing a reduction of approximately 18.9%[24] Cash Flow and Assets - The company generated $371.3 million in net cash from operating activities, down from $667.5 million in the previous year[20] - Free cash flow for the twelve months ended September 30, 2025, was $273.9 million, down from $583.5 million in 2024, highlighting a decrease of approximately 53%[28] - Total assets decreased to $2,742.0 million as of September 30, 2025, down from $2,871.9 million in 2024[17] - Total liabilities decreased to $3,099.5 million from $3,262.5 million year-over-year[17] Tax and Impairment Charges - The company’s income tax expense for the twelve months ended September 30, 2025, was $76.5 million, compared to $11.3 million in 2024, indicating a substantial increase in tax obligations[24] - During the three months ended September 30, 2024, the Company incurred costs of $16.8 million related to restructuring initiatives[43] - For the twelve months ended September 30, 2024, the Company incurred total restructuring costs of $83.5 million[43] - The Company recognized a non-cash, pre-tax impairment charge of $64.6 million related to convertible debt investments during the three and twelve months ended September 30, 2024[43] - Pre-tax impairment charges of $51.5 million and $61.9 million were recorded for the investment in Bonnie Plants, LLC during the three and twelve months ended September 30, 2024, respectively[43] - A valuation allowance against certain deferred tax assets resulted in an additional tax expense of $15.6 million during the three and twelve months ended September 30, 2024[43] - The Company recorded a gain of $12.1 million associated with a payment received from a dispute resolution during the twelve months ended September 30, 2024[43]

Core Insights - The Scotts Miracle-Gro Company reported significant improvements in key financial metrics for fiscal 2025, including gross margin, EBITDA, and EPS, indicating strong growth potential for fiscal 2026 [2][3][7]. Financial Performance - U.S. Consumer net sales reached $2.99 billion, aligning with guidance, with POS units and dollars increasing by 8.5% and 1.4% respectively [7]. - GAAP gross margin rate improved to 30.6%, while non-GAAP adjusted gross margin rate reached 31.2%, reflecting increases of 670 and 490 basis points over the prior year [7]. - GAAP earnings per share were $2.47, and non-GAAP adjusted earnings per share were $3.74, marking improvements of $3.08 and $1.45 per share over the previous year [7]. - Non-GAAP adjusted EBITDA was $581 million, an increase of $71 million compared to the prior year [7]. - Free cash flow of $274 million exceeded expectations, and net leverage improved to 4.10x, a reduction of 0.76x from the previous year [7]. Fiscal 2026 Guidance - The company anticipates continued growth, projecting non-GAAP adjusted gross margin of at least 32% and adjusted earnings per share between $4.15 and $4.35 for fiscal 2026 [7]. - Non-GAAP adjusted EBITDA is expected to show mid single-digit growth, with free cash flow projected at $275 million, further reducing the leverage ratio to the high 3's [7]. Operational Strategy - The company is implementing AI, robotic automation, and other efficiencies to achieve cost savings, which will be reinvested into brand innovation and channel expansion [3]. - The management expressed confidence in executing its growth strategy, supported by the strong financial performance and positive market trends observed in fiscal 2025 [3].

Core Viewpoint - Scotts Miracle-Gro Company is set to release its fourth quarter financial results on November 5, 2025, prior to the U.S. market opening, followed by a video presentation and a Q&A session [1]. Company Overview - Scotts Miracle-Gro is the world's largest marketer of branded consumer lawn and garden products, with approximately $3.6 billion in sales [3]. - The company's brands, including Scotts®, Miracle-Gro®, and Ortho®, are recognized as market leaders in their respective categories [3]. Investor Engagement - Investors can participate in the upcoming presentation and Q&A session by registering in advance through the provided webcast link [2]. - A replay of the conference call will be available on the company's investor website for at least 12 months [2].

Industry Overview - The U.S. cannabis industry is projected to exceed $35 billion in annual sales by 2025 and over $70 billion by 2030 as legalization efforts continue [1][3] - Recent discussions in Congress regarding cannabis rescheduling and the Department of Health and Human Services' recommendation to reclassify cannabis have increased investor optimism [1] Ancillary Companies' Role - Ancillary companies provide essential products and services to cannabis cultivators, including equipment, nutrients, and hydroponic systems, allowing them to operate efficiently without direct plant handling [3][19] - These companies offer investors diversified exposure with lower regulatory risk compared to direct cannabis producers [3] Key Ancillary Stocks - **GrowGeneration Corp. (GRWG)**: Operates a large hydroponic and organic gardening supply chain in the U.S., with over 60 retail locations. Reported approximately $41 million in net sales in the latest quarter, with gross margins improving to around 28% [5][9][10] - **Hydrofarm Holdings Group Inc. (HYFM)**: Designs and distributes hydroponic products, serving commercial cultivators and greenhouses. Recent financial results showed a per-share loss of around $3.60, with revenues impacted by weaker order volumes [11][12][13] - **Scotts Miracle-Gro Company (SMG)**: A leader in gardening solutions, its Hawthorne Gardening division provides hydroponic systems and nutrients. The company reaffirmed its full-year 2025 outlook, with rising demand in the Hawthorne segment and robust free cash flow [14][17][18] Market Dynamics - The cannabis sector is experiencing renewed growth as more states move toward legalization, which is expected to drive demand for cultivation supplies and equipment [1][20] - Ancillary stocks may present strong short-term trading opportunities as the market stabilizes and cultivators increase capacity [2][21]

Industry Overview - The U.S. cannabis industry is projected to exceed 40 billion dollars in annual sales by 2025, driven by increasing state approvals for medical and recreational use and discussions on federal legalization [1][11] - Ancillary companies, which provide essential tools to cultivators and dispensaries without directly handling cannabis, are positioned favorably due to lower regulatory risks [1] Company Summaries GrowGeneration (GRWG) - GrowGeneration operates a significant hydroponic and organic gardening supply chain in the U.S., with a strong presence in California and operations in Colorado, Oregon, and Florida [3] - In Q2 2025, GrowGeneration reported net sales of approximately 41 million dollars, showing sequential improvement but a decline from the previous year [3] - Proprietary brands contributed over 30% to cultivation and gardening revenue, with gross profit margins exceeding 28% [3] - The company ended the quarter with nearly 50 million dollars in cash and marketable securities and has no debt, indicating a strong financial position [3] Hydrofarm Holdings Group (HYFM) - Hydrofarm is a leading distributor and manufacturer of hydroponic equipment, focusing on commercial cannabis cultivators in the U.S. and Canada [5] - For the full year 2024, Hydrofarm reported revenue of just over 190 million dollars, a decline of more than 15% year-over-year, with net income negative by over 66 million dollars [7] - The company is working on reducing excess inventory and streamlining operations to control costs, with a focus on improving gross margins [7] Scotts Miracle-Gro (SMG) - Scotts Miracle-Gro is a well-known name in consumer gardening, with its Hawthorne Gardening division supplying hydroponic equipment to cannabis cultivators [8] - In Q3 2025, Scotts reported total revenue of about 1.19 billion dollars, with Hawthorne Gardening's revenue declining by over 50% to around 33 million dollars [10] - Despite the decline in the Hawthorne division, net income rose to nearly 150 million dollars, supported by strength in the broader consumer business [10] Investment Insights - The three companies exemplify the diversity within the ancillary cannabis sector, with GrowGeneration focusing on brand value and retail scale, Hydrofarm addressing revenue challenges through cost discipline, and Scotts leveraging its consumer business stability [11] - As the cannabis industry continues to grow, these ancillary providers are essential to cultivation and supply chains, presenting unique advantages and risks for investors [11]

The Scotts Miracle-Gro Company (NYSE:SMG) is among the 12 Best Marijuana Stocks to Buy According to Analysts. The Scotts Miracle-Gro Company (NYSE:SMG) made major strides toward sustainability and ESG targets in its 2025 Corporate Responsibility Report. Key accomplishments for the company included diverting 1.76 million pounds of coir waste for industrial and agricultural use, reducing virgin plastic with Ortho brand reusable pouches, and achieving 100% recyclable packaging for its O.M. Scott & Sons brand. ...

Industry Overview - The U.S. administration is considering reclassifying marijuana from Schedule I to Schedule III under the Controlled Substances Act, which could significantly impact the marijuana industry by allowing businesses to access standard banking and reducing their effective tax rates [2] - Currently, marijuana's Schedule I classification limits business deductions under Section 280E of the federal tax code, which could change with reclassification, potentially increasing profitability and attracting institutional investors [2] Analyst Insights - TD Cowen analyst Jaret Seiberg suggests that former President Trump may revive efforts to move cannabis to Schedule III, allowing for government regulation [3] Best Marijuana Stocks - **Aurora Cannabis Inc. (NASDAQ: ACB)**: Analysts project an upside potential of 4.55%. The company launched the Physician Experience Platform (PEP) to provide healthcare professionals with access to clinical insights on medicinal cannabis treatments [8] - **Turning Point Brands, Inc. (NYSE: TPB)**: Analysts project an upside potential of 5.47%. The company launched Stoker's Fine Cut Wintergreen in a compact can, responding to consumer demand and enhancing its moist smokeless tobacco line [9][10] - **The Scotts Miracle-Gro Company (NYSE: SMG)**: Analysts project an upside potential of 12.90%. The company made significant strides in sustainability, including reducing water usage for greenhouse irrigation by over 50% and achieving 100% recyclable packaging for its products [11][12]

Industry Overview - Investors in marijuana stocks are anticipating news regarding cannabis rescheduling, which historically leads to an increase in stock prices for cannabis companies [1][2] - The cannabis sector has faced challenges but is now showing signs of growth and potential legalization, which could significantly impact stock performance [2][3] Company Highlights - **GrowGeneration Corp.** operates retail stores focused on hydroponic and organic gardening products in the U.S. and has announced participation in the H.C. Wainwright 27th Annual Global Investment Conference [4][6] - **Hydrofarm Holdings Group, Inc.** manufactures and distributes hydroponics equipment in the U.S. and Canada, with its latest financial update released in August 2023 [7][8] - **The Scotts Miracle-Gro Company** engages in the manufacture and sale of gardening products and has recently published its 2025 Corporate Responsibility report, outlining its sustainability goals [10][12] Financial Performance - The Scotts Miracle-Gro Company reported a decrease in net sales to $39.2 million from $54.8 million, with a gross profit margin decline to 7.1% from 19.8% [13] - Adjusted gross profit margin also decreased to 19.2% from 24.4%, while net loss improved to $16.9 million from $23.5 million [13] - The company initiated a restructuring plan aimed at reducing costs and improving operational efficiency [13]