Scotts Miracle-Gro's Q4 Earnings and Revenues Miss Estimates

The Scotts Miracle-Gro Company SMG reported a fourth-quarter fiscal 2025 (ended Sept. 30, 2025) loss of $151.8 million or $2.63 per share compared with a loss of $244 million or $4.29 per share in the year-ago quarter.

Barring one-time items, adjusted loss was $1.96 per share, narrower than $2.31 a year ago. The figure was wider than the Zacks Consensus Estimate of a loss of $1.88.

Net sales decreased around 6.6% year over year to $387.4 million and missed the consensus mark of $398.6 million.

The Scotts Miracle-Gro Company Price, Consensus and EPS Surprise

The Scotts Miracle-Gro Company price-consensus-eps-surprise-chart | The Scotts Miracle-Gro Company Quote

SMG’s Segment Details

In the fiscal fourth quarter, net sales in the U.S. Consumer division were up 0.5% year over year to $311.2 million. It missed our estimate of $360 million. The segment delivered a loss of $65.5 million, up 21% year over year.

Net sales in the Hawthorne segment tumbled 38% year over year to $49.9 million in the reported quarter. The figure beat our estimate of $27 million. 

Net sales in the other segment increased 7% year over year to $26.3 million. The figure topped our estimate of $5.3 million. The segment reported a loss of $9.8 million, down 20% year over year.

SMG’s Balance Sheet

At the end of the quarter, the company had cash and cash equivalents of $36.6 million, down from $71.6 million a year ago. Long-term debt was $2,049.2 million, down around 5.7% year over year.

SMG’s Outlook

The company provided its full-year fiscal 2026 outlook. Key projections include low single-digit growth in U.S. Consumer net sales. The adjusted gross margin is expected to be at least 32%, with adjusted EBITDA anticipated to grow in the mid-single digits. Adjusted earnings per share are projected to be between $4.15-$4.35, and free cash flow is estimated at approximately $275 million.

SMG’s Price Performance

Shares of Scotts Miracle-Gro have lost 19% in the past year compared the 5.4% decline of the industry.

SMG’s Zacks Rank & Other Key Picks

SMG currently carries a Zacks Rank #2 (Buy).

Some other top-ranked stocks worth a look in the basic materials space are AngloGold Ashanti plc AU, U.S. Gold Corp. USAU and Integra Resources Corp. ITRG.

AngloGold is scheduled to report third-quarter results on Nov. 11. The Zacks Consensus Estimate for AU’s third-quarter earnings and revenues is pegged at $1.34 per share and $2.35 billion, respectively. AU currently flaunts a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.

U.S. Goldis expected to report fiscal second-quarter results on Dec. 15. USAU carries a Zacks Rank #2 at present. The Zacks Consensus Estimate for USAU’s second-quarter earnings is pegged at a loss of 13 cents, indicating a 35% year-over-year growth.

Integra Resources is scheduled to report third-quarter results on Nov. 12. ITRG’s earnings estimate for the third quarter is pegged at 13 cents per share. Integra Resources carries a Zacks Rank #2 at present.

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This article originally published on Zacks Investment Research (zacks.com).

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