The Scotts Miracle-Gro Company (SMG) Bundle
A company's Mission Statement, Vision, and Core Values aren't just HR boilerplate; they are the strategic anchors that underpin financial performance, and for The Scotts Miracle-Gro Company, those principles helped drive a solid fiscal 2025.
You've seen the numbers-U.S. Consumer net sales hit an impressive $2.99 billion, with Non-GAAP Adjusted EBITDA growing to $581 million, and Non-GAAP adjusted earnings per share (EPS) reaching $3.74, reflecting a significant turnaround. But what intangible factors actually translated an 8.5% surge in point-of-sale (POS) units into that kind of free cash flow, which topped out at $274 million?
Honestly, the cultural framework-their purpose to GroMoreGood, everywhere-is what guides the operational efficiencies, like their strategic investment in AI and robotic automation, that freed up that cash. To be fair, if the market shifts away from the core lawn-and-garden category, even the best values won't save you, but are you defintely mapping their commitment to sustainability and community against their aggressive debt reduction goals?
The Scotts Miracle-Gro Company (SMG) Overview
You're looking for a clear, no-nonsense assessment of The Scotts Miracle-Gro Company (SMG), and the takeaway is simple: the core business is strong and getting much more profitable, even as they clean up a challenging side project. The company, which is the world's largest marketer of branded consumer lawn and garden products, just delivered a fiscal year 2025 that was defined by significant margin expansion and a laser focus on its most valuable consumer brands.
The Scotts Miracle-Gro Company's roots go deep, starting back in 1868 when Civil War veteran Orlando M. Scott began selling seed in Marysville, Ohio. The business evolved from a premium seed company for farmers to a consumer-focused lawn care pioneer, eventually merging with Miracle-Gro Products, Inc. in 1995 to create the powerhouse we know today. Now, their portfolio of products covers nearly every aspect of yard and garden care in the U.S. and abroad.
- Lawn Care: Scotts grass seed and Turf Builder fertilizers.
- Gardening: Miracle-Gro plant food and growing media.
- Pest/Weed Control: Ortho and consumer Roundup products.
For the full fiscal year 2025, the company reported total net sales of $3.41 billion. That's a massive amount of product moving off the shelves, but the real story is where that money is coming from and how efficiently they're earning it. The focus is defintely on the branded consumer side.
Fiscal Year 2025 Financial Performance: Margin Over Volume
The latest financial reports, covering the full fiscal year ended September 30, 2025, show a company successfully executing a margin-reinvention strategy. You can see this clearly in the profitability metrics. Full-year non-GAAP adjusted earnings per share (EPS) hit $3.74 per diluted share, a huge jump of 63% compared to the $2.29 in the prior year. Here's the quick math: they're making significantly more money per share, even with some revenue headwinds in other segments.
The core U.S. Consumer segment, which sells the Scotts and Miracle-Gro brands, saw net sales of $2.99 billion, a solid 1% increase for the year. This growth was driven by a strong consumer appetite for their branded products, evidenced by point-of-sale (POS) unit growth of 8.5% across their categories for the full year. They're shifting the product mix away from lower-margin commodities like mulch toward higher-margin fertilizers and branded soils.
The operational efficiency is the biggest win. The non-GAAP adjusted gross margin rate expanded by 490 basis points to 31.2%, easily surpassing their 30% target. This margin expansion, combined with cost-saving initiatives, helped push adjusted EBITDA up by 14%, or $71 million, to $581.1 million for the year. Plus, they're generating cash flow, with free cash flow exceeding expectations at $274 million.
- Adjusted EPS: $3.74 (up 63% year-over-year).
- Adjusted Gross Margin: 31.2% (up 490 basis points).
- E-commerce Unit Growth: 51% (e-commerce is now 10% of POS).
What this estimate hides is the drag from the Hawthorne segment, which focuses on hydroponics and indoor gardening, but the company is actively divesting parts of it to focus on the core consumer business. Still, the strength in their main products is undeniable.
The Unquestioned Leader in Consumer Lawn and Garden
The Scotts Miracle-Gro Company isn't just a big player; it's North America's leader in the consumer lawn, garden, and hydroponics market. Their success is built on a foundation of trusted, iconic brands-Scotts, Miracle-Gro, and Ortho-that dominate their respective categories. This market leadership gives them a significant advantage in distribution and pricing power, which is exactly why they can drive that margin expansion even when facing broader market challenges. They are the benchmark. If you want to dive deeper into the institutional confidence behind these numbers, you should read Exploring The Scotts Miracle-Gro Company (SMG) Investor Profile: Who's Buying and Why? to see what the smart money is doing. Their strategy is clear: double down on branded products, cut costs through automation, and capture the fast-growing e-commerce channel, which saw an incredible 51% unit growth in fiscal 2025. This combination of brand strength and operational discipline is the key to understanding why The Scotts Miracle-Gro Company continues to succeed.
The Scotts Miracle-Gro Company (SMG) Mission Statement
You're looking for the bedrock of The Scotts Miracle-Gro Company's strategy, and it starts with a clear purpose: to guide long-term goals, a mission statement must be more than just a plaque on the wall. For Scotts Miracle-Gro, the guiding principle is their purpose, which they articulate as GroMoreGood, everywhere.
This isn't corporate fluff; it's the lens through which every major capital allocation and product decision is filtered. This single, powerful statement defines their obligation across four key areas: their associates, communities, consumers, and the planet. This focus is defintely showing up in the numbers, with the company reporting full-year sales of $3.41 billion and a net income of $145.2 million for fiscal year 2025.
A mission like this is crucial because it maps the company's long-term value creation. Exploring The Scotts Miracle-Gro Company (SMG) Investor Profile: Who's Buying and Why? will show you how this mission attracts a specific type of investor.
Empowering the Consumer Experience
The first core component of the mission is a direct commitment to the consumer: providing the products, knowledge, and support that allow people to express themselves on their own piece of the Earth. This is about more than just selling fertilizer; it's about enabling the outcome-a beautiful, thriving space. The company's strategy is built on delivering high-quality, innovative products that earn that trust.
Here's the quick math on that commitment: the U.S. Consumer segment net sales were $2.99 billion in fiscal 2025, which aligns with their guidance. This resilience is driven by a strategic shift toward higher-margin branded products and away from low-margin commodities. The focus on innovation is paying off, with the e-commerce channel growing by 51% in fiscal 2025, now representing 10% of total sales.
- Deliver high-quality products.
- Invest in brand innovation.
- Expand the fastest-growing organic portfolio.
They are actively expanding the organic portfolio, which management calls their fastest-growing product line ever, including new indoor and outdoor solutions introduced in 2025. That's a clear action tied to a consumer trend.
Driving Sustainable Growth (GroMoreGood for the Planet)
The second pillar, 'GroMoreGood for the Planet,' addresses the non-negotiable trend of environmental stewardship. This component focuses on designing products that work in concert with the environment and reducing the company's operational footprint.
For fiscal 2025, the company's financial performance was directly linked to operational efficiency, which often overlaps with sustainability efforts. The non-GAAP adjusted gross margin rate hit 31.2%, a significant improvement of 490 basis points over the prior year, partly due to operational efficiencies like supply chain optimization. The company also made concrete progress on packaging, expanding its use of 100-percent recyclable packaging for the O.M. Scott & Sons brand and reducing virgin plastic with refillable pouches under the Ortho brand in 2025.
What this estimate hides is the long-term capital required for this shift, but the immediate benefit is a stronger financial profile. They also diverted 1.76 million pounds of waste from coir, a natural material, for use in other applications. That's a measurable environmental win.
Cultivating People and Community
The final core component is about cultivating a positive impact on people-both their associates and the broader community. This commitment supports the creation of gardens and green spaces that transform neighborhoods and helps associates grow professionally.
The financial strength of the company directly enables this community focus. In fiscal 2025, Scotts Miracle-Gro generated $274 million in free cash flow, exceeding expectations and positioning them for strategic investments beyond the core business. The company's commitment to community extends to a goal of introducing 10 million kids to gardening within five years, a tangible social metric.
This component is about corporate culture and risk mitigation, too. The company's incentive plan for associates is now built on metrics like branded sales growth and gross margin, ensuring everyone is aligned with the high-margin, quality-focused strategy. A focused team is a more productive team.
The Scotts Miracle-Gro Company (SMG) Vision Statement
You're looking for the bedrock of The Scotts Miracle-Gro Company's (SMG) strategy-the core beliefs that drive a business with U.S. Consumer net sales of nearly $3 billion. The direct takeaway is that their vision is deeply personal, and their mission is a measurable commitment to corporate responsibility, which they call GroMoreGood. This isn't just marketing fluff; it's directly tied to their operational focus and capital allocation.
The company's vision is simple but powerful: 'to help people of all ages express themselves on their own piece of the Earth.' This is what guides their product development, from the classic Miracle-Gro plant food to their newer hydroponic systems. They aren't just selling fertilizer; they're selling a means of self-expression and a connection to nature. That's the emotional hook that drives consumer loyalty in a challenging economy.
When you look at their fiscal 2025 performance, this vision translates into real-world results. The U.S. Consumer segment delivered $2.99 billion in net sales, right in line with their guidance, showing the resiliency of that core consumer base. Honestly, a company that can maintain that level of performance while navigating supply chain pressures is defintely doing something right at the foundational level.
The Scotts Miracle-Gro Company (SMG) Mission: GroMoreGood
The mission, or purpose, is the engine that executes the vision. For Scotts Miracle-Gro, that purpose is stated as: 'To GroMoreGood, everywhere.' This is their commitment to stakeholders-associates, communities, consumers, and the planet-and it's the framework for their environmental, social, and governance (ESG) strategy. It's a modern, actionable take on the traditional mission statement, moving beyond just being the world's foremost marketer of lawn and garden products.
The financial imperative here is clear: a strong mission reduces risk and improves the quality of earnings. For fiscal 2025, the company's non-GAAP adjusted Earnings Per Share (EPS) hit $3.74, a significant increase from the prior year. This growth is partly fueled by operational efficiencies, like the strategic implementation of AI and robotic automation, which generate cost savings that are then reinvested into brand innovation and channel expansion-a direct loop back to the 'GroMoreGood' commitment to consumers and associates.
Here's the quick math: improving the non-GAAP adjusted gross margin rate to 31.2% in FY2025, an improvement of 490 basis points over the prior year, gives them more capital to fund these mission-driven initiatives, like their commitment to introduce 10 million kids to gardening within five years.
Core Values: The Four Pillars of GroMoreGood
The 'GroMoreGood' mission is broken down into four core value pillars that define their operational focus and culture. This is where the rubber meets the road, showing employees and investors exactly where the company's energy goes. You can read more about how this commitment has evolved over time in The Scotts Miracle-Gro Company (SMG): History, Ownership, Mission, How It Works & Makes Money.
The four pillars ensure that profitability isn't pursued in a vacuum, but is instead balanced with responsibility. This is a trend-aware realist approach to business, acknowledging that long-term value creation requires a holistic view of capital.
- To our associates: Focus on putting people first through holistic wellness programs and professional growth.
- To our communities: Support the creation of gardens and green spaces, and develop programs for kids in underserved communities.
- To our consumers: Provide the products, knowledge, and support that allow them to express themselves on their own piece of the Earth.
- For the planet: Design products to work in concert with the environment and support environmental partners.
What this estimate hides is the challenge in the Hawthorne segment (indoor and hydroponic gardening), which saw a decline in net sales in FY2025, reflecting broader market challenges. Still, the company's overall financial strength, evidenced by exceeding free cash flow expectations at $274 million, allows them to absorb that sectoral weakness while continuing to invest in their core values and long-term growth strategy.
The Scotts Miracle-Gro Company (SMG) Core Values
You're looking past the stock ticker to understand what truly drives a company, and honestly, that's where the real value is found. The Scotts Miracle-Gro Company (SMG) operates under a powerful, unifying purpose: GroMoreGood, everywhere. This isn't just a marketing slogan; it's the foundation for their core values, which map directly to their financial and operational choices. They're a trend-aware realist, translating social and environmental commitments into tangible business results.
In fiscal year 2025, The Scotts Miracle-Gro Company's commitment to these values helped them post a Net Income of $145.2 million, a sharp turnaround from the prior year's loss. Here's the quick math: values translate to better products, which means more sales, like the 8.5% increase in Point-of-Sale (POS) units they saw in the U.S. Consumer segment. You can dig deeper into their business model at The Scotts Miracle-Gro Company (SMG): History, Ownership, Mission, How It Works & Makes Money.
GroMoreGood: Environmental Stewardship
The core value of environmental stewardship is embedded in the GroMoreGood purpose, defining their obligation to the planet and consumers. This isn't about vague promises; it's about measurable action on product ingredients and packaging. They know that a sustainable supply chain is a more resilient one, which is defintely a near-term risk worth mitigating.
The 2025 Corporate Responsibility Report highlights their concrete progress. For instance, they successfully diverted 1.76 million pounds of coir waste-a natural material from coconut husks-from landfills, repurposing it for agricultural and industrial applications. Also, their focus on water conservation led to a reduction in greenhouse irrigation water usage by nearly 50%. That's a massive operational efficiency gain.
- Launched organic portfolio with upcycled green waste.
- Introduced 100% recyclable packaging for O.M. Scott & Sons.
- Expanded drought-tolerant grasses to conserve water.
Associate Engagement & Wellness
A company with a healthy balance sheet needs a healthy workforce. The Scotts Miracle-Gro Company views its people as a core value, fostering a culture of accountability, collaboration, and empowerment. They understand that engaged associates drive innovation and reduce costly turnover.
Their focus on Associate Engagement & Wellness is a clear investment in human capital. They strive to create an inclusive workplace where everyone is valued. This commitment is a critical factor when you consider the U.S. Consumer net sales of $2.99 billion for fiscal 2025; you can't hit numbers like that without an engaged team executing flawlessly. They offer comprehensive wellness programs that prioritize the health and safety of their associates above the bottom line.
- Prioritize health, safety, and wellness programs.
- Foster a culture of ownership and quick reaction to change.
- Equip associates with knowledge and skills for career development.
Passion for Growth: Innovation and Financial Discipline
The value of Passion for Growth is where the rubber meets the road for investors. It means seeking new opportunities, innovating products, and maintaining a sharp financial discipline. This is a realist's approach to growth, balancing new ideas with cost control.
Their financial performance in fiscal 2025 is the clearest example of this value in action. They achieved a GAAP gross margin rate of 30.6%, which is a significant improvement of 670 basis points over the prior year. This wasn't luck; it was the result of strategic implementation of efficiencies, like using AI and robotic automation to drive cost savings across operations. They're taking those savings and reinvesting them into brand innovation and channel expansion, which is how you sustain a Non-GAAP Adjusted EPS of $3.74. That's how you build a quality earnings profile.
- Implement AI and robotic automation for cost savings.
- Achieve significant gross margin expansion.
- Reduce debt levels and improve the leverage ratio with strong free cash flow.

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