The Scotts Miracle-Gro Company — Cyborg Score 5/10
Mixed
Consumer Lawn and Garden Care Products / Hydroponic Growing Supplies
Strategic Profile
The company's brands are among the most recognized in the industry and include Scotts, Miracle-Gro, Ortho and Tomcat, market-leading in their categories. The company is actively executing a multi-year growth strategy, including advanced discussions for the sale of its Hawthorne subsidiary to Vireo Growth, Inc., and has approved a $500 million share repurchase program to enhance shareholder returns.
Cyborg Score Rationale
Despite a reduction in cost of sales, the company reported a net loss of $125.0 million in recent quarters, a significant increase from the previous year's $69.5 million loss. However, management remains confident with strategic initiatives and maintains guidance. The company faces operational headwinds but has strong brand equity and market position.
Top Insights
The U.S. lawn and garden market has grown by approximately 5% YTD in dollars, with SMG gaining about 2 percentage points of that market share, with strong POS unit growth of 8% YTD.
SMG is selling the Hawthorne subsidiary to Vireo Growth, Inc., expected to close in fiscal Q2 2026, and has reclassified Hawthorne results as discontinued operations.
The company aims for sustained average annual U.S. consumer sales growth of at least 3%, gross margin rates of 35% or higher, and EBITDA growth in the mid- to high-single-digit percentages.
SMG plans to implement pricing increases in fiscal 2026 to recover costs and provide resources for innovation and activation.
Named Competitors
Lawn Care Products — Herbicide and weed control products