SMG | Market Cap: $3.7B (07/13/26)
Industry:
Chemicals

DESCRIPTION

Scotts Miracle-Gro is the dominant player in branded consumer lawn and garden products in North America. Its core U.S. Consumer segment — roughly 88% of net sales — sells fertilizers, grass seed, soils, weed and pest control, and related products under the Scotts, Turf Builder, Miracle-Gro, Ortho, Roundup, and Tomcat brands, primarily through Home Depot and Lowe's. Scotts Miracle-Gro acts as the exclusive marketing and distribution agent for Bayer's consumer Roundup products in the U.S., earning a commission rather than booking full product revenue. The business is highly seasonal, with more than 75% of annual net sales occurring in the spring season. Scotts Miracle-Gro also operates Hawthorne, a hydroponic and indoor gardening supply business serving cannabis cultivators, though management is actively pursuing a divestiture to focus entirely on lawn and garden. The company is executing a multi-year strategy centered on shifting investment toward higher-margin branded products, relaunching its Turf Builder lawn line with new formulations and lower price points, expanding the Ortho controls line, and growing its organic and natural product offerings. E-commerce is a growing priority, with online point-of-sale units growing over 50% in FY25. The company also targets $150M in supply chain savings over FY25–FY27. After a period of high leverage, Scotts Miracle-Gro has been aggressively paying down debt and plans to pursue share buybacks as its balance sheet normalizes.

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