Scotts Miracle-gro Company (the) · NYSE:SMG
Scotts Miracle-gro Company (the) — Q4 2025 Earnings Presentation
34 slides from Scotts Miracle-gro Company (the)'s earnings presentation, Nov 5, 2025
Slide 1: Fourth Quarter 2025 Quarterly Earnings Report
Fourth Quarter ended September 30, 2025 Quarterly Earnings Report Supplemental Financial Presentation November 5, 2025 Please view this presentation in conjunction with our Q4 2025 earnings release, which is furnished on Form 8-K, our related pre-recorded remarks and additional information regarding
Slide 2: Safe Harbor Disclosure
Safe Harbor Disclosure Statements contained in this presentation, which address activities, events and developments that the Company expects or anticipates will or may occur in the future, including, but not limited to, information regarding the future economic performance and financial condition of
Slide 3: Today's speakers
Today’s speakers Jim Hagedorn Chairman and Chief Executive Officer Mark Scheiwer Chief Financial Officer and Chief Accounting Officer 3
Slide 4: Q&A session
Q&A A Q&A session will follow the earnings webcast at approximately 9:30 a.m. ET Jim Hagedorn Nate Baxter Mark Scheiwer Chris Hagedorn Chairman & CEO President & COO EVP, CFO & CAO EVP, Chief of Staff Review the press release for registration details. ● To listen to the Q&A, please remain on the web
Slide 5: Q4 2025 Business Update
Q4 2025 Business Update PRESENTED BY Jim Hagedorn Chairman and Chief Executive Officer 5
Slide 6: Fiscal 2025 Full Year Highlights
Fiscal 2025 Full Year Highlights ● Met or exceeded all financial guidance previously provided ● Two year average annualized net sales growth rate within U.S. Consumer for fiscal 2024 and 2025 in line with long term target of at least 3% ● Our share of the total Lawn & Garden category increased by 1% ●
Slide 7: Internal and external transformation initiatives
MID-RANGE (END OF FY27) STRATEGIC FOCUS AREAS. Internal and external transformation initiatives will drive cost advantages and propel growth ● Averaging 3 percent annually focused on our consumer lawn & garden business Deliver sustainable net 01 ● Built on higher-margin branded products, innovation
Slide 8: Brand portfolio increased leading share of $11 billion category
INDUSTRY OVERVIEW: CATEGORY SIZE: Our brand portfolio, in total, increased it’s leading share position of the $11 billion Consumer DIY Lawn & Garden by 1% in fiscal 2025 Fertilizers, Grass Seed, Spreaders Weed, Insect, Rodent Control #1 brand #1 brand in Fertilizers, Grass in Rodent Control Seed & Sp
Slide 9: Lawn & Garden industry has low exposure to private label
INDUSTRY OVERVIEW: PRIVATE LABEL: Lawn & Garden industry has low exposure to private label Private Label Unit Share of Lawn & Garden Industry No meaningful growth in unit share over the last 3 years Decline o f ~ 300 b ps Source: Yipit and internal data. Includes retailers HD,LO, WM, Ace, Amz, Menar
Slide 10: Our Super Powers give us competitive advantages
COMPANY OVERVIEW: BEST-IN-CLASS CAPABILITIES: Our Super Powers give us competitive advantages Brands/Marketing Innovation Supply Chain Sales Industry-leading R&D with Integrated manufacturing and Most powerful brands with low Unparalleled in-store activation science-backed product distribution netwo
Slide 11: Lawns segment will focus on multi-bag feeding
Fiscal 2026. The Lawns segment will focus on multi-bag feeding to drive frequency and target new consumers FY26 Focus Areas Consumer Activation Innovation Drive feeding frequency with current category users while still offering solution-type products Target new DIY lawn care consumers with a focus o
Slide 12: Gardens segment continues to be the biggest growth engine
Fiscal 2026. The Gardens segment continues to be the biggest growth engine for the company; branded POS units up double digits each of the last 2 years FY26 Focus Areas Consumer Activation Innovation Attract emerging & pre-emerging consumers with accessible, modern solutions including indoor & organ
Slide 13: Controls segment is growing ecommerce
Fiscal 2026. The Controls segment is growing ecommerce and expanding into new segments with the launch of several new innovative products FY26 Focus Areas Consumer Activation Innovation Launch of 10 new innovative products under the Ortho brand Grow digital presence across ecommerce channels via foc
Slide 14: Continued expansion in ecommerce after strong POS gains
Fiscal 2026. Continued expansion in ecommerce after strong POS gains in fiscal ‘25 POS dollars +23% and units +51% in fiscal 2025 Growth primarily driven by retailer ecomm sites 1 s 0 bp +80 14 ¹E-commerce is defined as retail.com, Amazon and SMG direct sites
Slide 15: Strong line of sight to savings in FY26
Fiscal 2026. Strong line of sight to savings in FY26; on track to achieve FY27 targets Out “ Our supply chain team is doing an outstanding job delivering on cost savings initiatives…$75 million of cost “ Over the past 18 months, we've harnessed the power of technology to optimize processes with IoT,
Slide 16: Q4 2025 Financial Update
Q4 2025 Financial Update PRESENTED BY Mark Scheiwer Chief Financial Officer and Chief Accounting Officer 16
Slide 17: Fourth Quarter Performance Summary
4Q 2025 - 3 Months ended September 30, 2025. Fourth Quarter Performance Summary Total Company Non-GAAP Results vs. Q4 2024 Net Sales $387.4 million -7% Adjusted Gross Margin Rate 7.2% +1,030 bps SG&A $136.9 million +16% Adjusted Net Loss $(113.1) million vs. $(131.5M) Interest Expense $26.8 million
Slide 18: Fiscal 2025 Performance Summary
Fiscal 2025 - 12 Months ended September 30, 2025. Fiscal 2025 Performance Summary Total Company Non-GAAP Results vs. Fiscal 2024 Net Sales $3.41 billion -4% Adjusted Gross Margin Rate 31.2% +490 bps SG&A $603.4 million +8% Adjusted Net Income $219.6 million vs. $132M Interest Expense $128.8 million
Slide 19: Net sales performance for the quarter and year-to-date
4Q 2025 - 3 and 12 Months ended September 30, 2025. Net sales performance for the quarter and year-to-date In millions In millions + 1.4% - 2.4% + 4.4% - 8.0% $414.7 $3,552.7 - 0.7% - 1.1% - 1.9% - 2.2% $387.4 $3,413.1 6.6% Decrease 3.9% Decrease Quarter Drivers Full Year Drivers ● Vol/Mix - Expecte
Slide 20: Net sales performance by segment
4Q 2025 - 3 and 12 Months ended September 30, 2025. Net sales performance for the quarter and year-to-date by segment Fiscal Fourth Quarter (July - September 2025) Fiscal 2025 (October 2024 - September 2025) Net Sales Volume & Foreign Price(2) Other(3) Net Sales Net Sales Volume & Foreign Price(2) O
Slide 21: POS dollars and units performance for the quarter and full year
4Q 2025 - 3 and 12 Months ended September 30, 2025. POS dollars and units performance for the quarter and full year POS dollars +3.6% and units +11% for the quarter; POS dollars +1.4% and units +8.5% for the year LAWNS: GARDENS: CONTROLS: FERTILIZERS, GRASS SEED, SOILS & PLANT FOOD WEED, INSECT, ROD
Slide 22: Drive margin expansion through cost savings and material cost deflation
4Q 2025 - 3 Months and 12 Months ended September 30, 2025. Drive margin expansion through cost savings and material cost deflation + 1,030 bps + 490 bps Quarter Drivers Full Year Drivers ● Benefit from not ● Continued execution of ● Favorable mix from U.S. ● Over delivered on the ● Distribution saving
Slide 23: Strengthen balance sheet and reduce leverage ratio
Fiscal 2025. Strengthen balance sheet and reduce leverage ratio 23 Non-GAAP Measures.
Slide 24: FY 2026 Financial Update
FY 2026 Financial Update PRESENTED BY Mark Scheiwer Chief Financial Officer and Chief Accounting Officer 24
Slide 25: Financial objectives for fiscal 2026
Fiscal 2026. Financial objectives for fiscal 2026 Drive Sales Growth Continued Margin Expansion Strengthen Balance Sheet ● Maintain and build upon listing ● $150 million of supply chain ● $275 million expected free cash gains, ecommerce penetration cost savings over 3 years; flow and consumer engageme
Slide 26: Our Fiscal 2026 Guidance
Fiscal 2026. Our Fiscal 2026 Guidance Net Sales ● US Consumer: Low single-digit growth Adjusted Gross Margin Rate ● At least 32% Adjusted EPS ● $4.15 to $4.35 per share Adjusted EBITDA ● Mid single-digit growth Free Cash Flow ● $275 million Leverage Ratio ● High 3’s 26 Non-GAAP Measures.
Slide 27: Reconciliation of Non-GAAP Financial Measures
Reconciliation of Non-GAAP Financial Measures 27
Slide 28: Reconciliation of Non-GAAP Financial Measures
Reconciliation of Non-GAAP Financial Measures Use of Non-GAAP Measures To supplement the financial measures prepared in accordance with U.S. generally accepted accounting principles (“GAAP”), the Company uses non-GAAP financial measures. The reconciliations of these non-GAAP financial measures to the m
Slide 29: Reconciliation of Non-GAAP Financial Measures
Reconciliation of Non-GAAP Financial Measures Definitions of Non-GAAP Financial Measures The reconciliations of non-GAAP disclosure items include the following financial measures that are not calculated in accordance with GAAP: ● Adjusted gross margin: Gross margin excluding impairment, restructuring
Slide 30: Reconciliation of Non-GAAP Financial Measures
4Q 2025 - 3 Months ended September 30, 2025. Reconciliation of Non-GAAP Financial Measures 30
Slide 31: Reconciliation of Non-GAAP Financial Measures
4Q 2025 - 12 Months ended September 30, 2025. Reconciliation of Non-GAAP Financial Measures 31
Slide 32: Reconciliation of Non-GAAP Financial Measures
4Q 2025 - 12 Months ended September 30, 2025. Reconciliation of Non-GAAP Financial Measures 32
Slide 33: Reconciliation of Non-GAAP Financial Measures
Reconciliation of Non-GAAP Financial Measures For the three and twelve months ended September 30, 2025, the following items were adjusted, in accordance with the definitions above, to arrive at the non-GAAP financial measures: ● During the three and twelve months ended September 30, 2025, the Company
Slide 34: Reconciliation of Non-GAAP Financial Measures
Reconciliation of Non-GAAP Financial Measures For the three and twelve months ended September 30, 2024, the following items were adjusted, in accordance with the definitions above, to arrive at the non-GAAP financial measures: ● During fiscal 2022, the Company began implementing a series of Company-wid
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