Fourth Quarter ended September 30, 2025 Quarterly Earnings Report Supplemental Financial Presentation November 5, 2025 Please view this presentation in conjunction with our Q4 2025 earnings release, which is furnished on Form 8-K, our related pre-recorded remarks and additional information regarding our non-GAAP financial measures, including GAAP to non-GAAP reconciliations, available on our website at https://investor.scotts.com. 1 Safe Harbor Disclosure Statements contained in this presentation, which add ...

Financial Performance - Q3 2025 - Net sales reached $1.19 billion, a decrease of 1% compared to Q3 2024[56] - Adjusted gross margin rate improved to 32.1%, an increase of 290 bps from Q3 2024[56] - Adjusted net income was $151.5 million, compared to $133.8 million in Q3 2024[56] - Adjusted diluted EPS was $2.59, compared to $2.31 in Q3 2024[56] - Adjusted EBITDA was $256.1 million, compared to $236.8 million in Q3 2024[56] Segment Performance - U S Consumer net sales increased by 1% in Q3 2025[64] - Hawthorne net sales decreased by 54% in Q3 2025[64] - Other segment net sales increased by 8% in Q3 2025[64] Strategic Focus & Outlook - The company aims for sustainable net sales growth, averaging 3% annually, focused on the consumer lawn & garden business[19] - The company expects approximately $75 million in additional supply chain cost savings over fiscal years 2026 and 2027[45] - The company anticipates approximately $250 million in free cash flow for fiscal year 2025[60] - The company projects an adjusted gross margin rate of approximately 30% for fiscal year 2025, targeting mid-30% by fiscal year 2027[60] - E-commerce penetration of POS dollars is at approximately 10% year-to-date[41]

Financial Performance & Strategic Focus - ScottsMiracle-Gro's FY24 net sales reached $3.6 billion, with approximately 85% originating from the U.S[6] - The company's FY24 adjusted EBITDA was $510.1 million, and free cash flow was $583.5 million[6] - ScottsMiracle-Gro reaffirms FY25 adjusted EBITDA guidance of $570 million to $590 million, representing a ~12% to ~16% year-over-year increase[53] - The company expects FY25 adjusted EPS to be at least $3.50, an +89% increase[55] - ScottsMiracle-Gro is targeting a leverage ratio in the low 4's by the end of FY25 and below 3.5x by the end of FY27[59, 67] Industry Position & Capabilities - The Consumer DIY Lawn & Garden industry is estimated to be ~$11 billion in 2024[21] - ScottsMiracle-Gro's U.S Consumer net sales have grown at an average of ~5% CAGR since FY17[46, 47] - Approximately ~15% of ScottsMiracle-Gro's annual sales are generated from innovation launched in the trailing 3 years[32] - The company's supply chain team is expected to deliver $75 million of cost savings in FY25, with another $75 million targeted for FY26 & FY27[36]