Scotts Miracle-Gro Reports $145.2 Million Net Income for Fiscal Year 2025

The Scotts Miracle-Gro Company reported a net income of $145.2 million for the fiscal year ending September 30, 2025, translating to earnings of $2.47 per diluted share. This marks a significant recovery from a net loss of $34.9 million in the previous fiscal year. The company's total revenue for the year was $3.41 billion, a decrease of 3.9% from $3.55 billion in fiscal 2024. The decline in revenue was attributed to lower sales volumes in the Hawthorne segment, which focuses on indoor and hydroponic gardening, and the discontinuation of sales of certain products. In contrast, the U.S. Consumer segment, which includes lawn and garden products, saw a slight increase in sales volume, driven by higher demand for soils, mulch, and grass seed.

In terms of operational changes, Scotts Miracle-Gro completed the divestiture of its Hawthorne professional horticulture business in the Netherlands for $8.5 million, which was financed through a loan. The company also incurred restructuring charges of $83.8 million, primarily related to severance and facility closure costs. The total employee headcount as of September 30, 2025, was approximately 5,200, with a peak workforce of around 6,900 during high-demand periods. The company continues to focus on enhancing its product offerings and marketing strategies to drive consumer engagement and sales.

The company’s balance sheet showed total assets of $2.74 billion and total liabilities of $3.10 billion, resulting in a shareholders' equity deficit of $357.5 million. As of the end of the fiscal year, Scotts Miracle-Gro had $2.12 billion in debt, with a leverage ratio of 4.10, which is within the limits set by its credit agreements. The company has entered into a new credit agreement that provides for a revolving credit facility and a term loan, allowing for greater flexibility in managing its capital structure.

Looking ahead, Scotts Miracle-Gro anticipates continued challenges in the Hawthorne segment due to ongoing oversupply issues in the cannabis market, which have negatively impacted sales. The company is also monitoring macroeconomic conditions, including inflation and interest rates, which could affect consumer spending and operational costs. Despite these challenges, management remains focused on innovation and strategic marketing initiatives to enhance brand awareness and drive growth in the U.S. Consumer segment. The company expects to allocate approximately $100 million for capital expenditures in fiscal 2026, with a focus on maintenance and innovation projects.