The Scotts Miracle-Gro Company (SMG) is a major player in the agricultural inputs industry, operating through three core business units: U.S. Consumer, Hawthorne, and an 'Other' category. Founded in 1868 and headquartered in Marysville, Ohio, the company has a long history of providing premium lawn care products, starting with grass ...The Scotts Miracle-Gro Company (SMG) is a major player in the agricultural inputs industry, operating through three core business units: U.S. Consumer, Hawthorne, and an 'Other' category. Founded in 1868 and headquartered in Marysville, Ohio, the company has a long history of providing premium lawn care products, starting with grass seed. Today, its product portfolio is extensive, covering fertilizers, grass seeds, spreaders, garden tools, weed and pest controls, potting mixes, mulches, and organic solutions. For indoor and hydroponic growing, SMG offers soilless systems, lighting, and specialized nutrients. The company's brands are widely recognized, including Scotts, Miracle-Gro, Ortho, Turf Builder, Roundup, and AeroGarden. Distribution is diverse, reaching major home improvement retailers, mass merchants, hardware stores, nurseries, e-commerce platforms, and specialized hydroponic distributors. Financially, SMG has a market cap of approximately $3.66 billion, with a trailing twelve-month revenue per share of $58.06 and a net profit margin of 2.2%. The company employs around 5,200 people according to the latest data, though other sources report higher numbers. CEO Nathan E. Baxter, who assumed the role in June 2026, leads the company. SMG is focused on innovation and sustainability, aiming to grow in both traditional and emerging cultivation markets.
YoYYoY means Year-over-Year. It compares the latest annual value with the previous annual value to show long-term trend strength.
QoQQoQ means Quarter-over-Quarter. It compares the latest quarter with the immediately previous quarter to show short-term momentum changes.
RevenueThe total money that came through the front door from selling things, before paying a single bill. Think of it as the grand total of every credit card swipe from customers. (YoY compares this year to last year's performance, while QoQ compares the current three months to the previous three).
$3.4B
-3.9%
-19.7%
Net IncomeThe absolute bottom line. If the company paid every single supplier, employee, banker, and tax collector, this is the actual money left in their pocket at the end of the day.
$145.2M
+516.0%
-53.0%
Gross MarginThe basic markup. If they sell a $100 pair of sneakers, this percentage tells you how much of that price tag is profit right after paying for the rubber and shoelaces, but before paying for things like store rent or TV commercials.
+30.6%
+27.8%
-25.4%
Operating MarginThe 'day job' efficiency score. Out of every dollar a customer spends, this shows how many cents the company keeps after making the product AND paying for all the everyday corporate overhead (like salaries, marketing, and keeping the lights on).
+10.5%
+78.8%
-48.7%
Net MarginThe final take-home percentage. When you strip away every conceivable cost, tax, and interest payment, this is the exact number of cents the company truly gets to keep from every dollar in sales.
+4.3%
+533.1%
-41.4%
Free Cash FlowThe holy grail of corporate cash. It's the spendable, physical money left over after the business pays for its daily operations AND buys the big, expensive upgrades (like new factories or servers) it needs to survive. This is the 'free' money they can use to pay dividends or buy back stock.
$273.9M
-53.1%
+90.8%
FCF MarginThe ultimate cash conversion rate. It shows how good the company is at turning regular sales directly into cold, hard, spendable cash. A high percentage means the business is an absolute cash-printing machine.
+8.0%
-51.1%
+137.5%
Debt / EquityThe financial risk gauge. It compares how much of the company's empire was built using borrowed money (loans) versus the owners' own money (shareholders). A high number means they are heavily leveraged and playing a riskier game; a low number means they are playing it safe.
-665.8%
-3.3%
-23.6%
Current RatioThe 12-month survival check. It simply compares the cash they have right now (plus things they can quickly turn into cash) against the immediate bills they absolutely must pay this year. A score above 1 means they have enough in the wallet to cover the upcoming bills without panicking.
1.27x
-2.7%
-4.5%
Total AssetsThe absolute size of the company's empire. It bundles together absolutely everything of value they own—from the cash in the register and the inventory in the warehouse, to the software patents in the vault and the factories on the ground.
Operator: Good morning. Welcome to Scotts Miracle-Gro's third quarter 2026 earnings webcast.
Brad Chelton: I am Brad Chelton, head of investor relations. Speaking today are President and CEO, Nate Baxter and chief financial officer and chief accounting officer, Mark J. Scheiwer. Nate will provide a strategic overview, and Mark will follow with a review of our financial results. In conjunction with our commentary today, please review our earnings release, 8-K filing, and supplemental financial presentation slides which were published on our website at investor.scotts.com prior to this webcast. During our review, we will make forward-looking statements and discuss certain non-GAAP financial measures. Please be aware that our actual results could differ materially from what we share today. Please refer to our Form 10-K filed with the SEC for details of the full range of risk factors that could impact our results. A live Q&A session will promptly follow the earnings video. To listen to the Q&A, simply remain on this webcast. To participate, please join by the audio link shared in our press release. As always, today's session will be recorded. An archived version will be published on our website. For further discussion after the call, please email or call me directly. With that, let's get started with Nate's update.
Nathan E. Baxter: Good morning, everyone. I will start with how honored I am to lead Scotts Miracle-Gro at such a pivotal time for us. The CEO transition is moving smoothly, and I am fully committed to building upon our legacy to deliver greater shareholder value. I want to thank all of our associates for their hard work this season. The results speak for themselves. We have entered an exciting chapter. Our multiyear SMG 2.0 strategy is not just about adapting to the changing consumer and retail environment, it is about proactively shaping our future. We are driving a fundamental shift in how we innovate, how we engage with our consumers, and how we maximize digital and e-commerce platforms to unlock sustainable growth. In our last earnings call, I walked through the building blocks of SMG 2.0. Today, I will provide a progress report. Before heading down that road, I want to address 2 things. First, some of my priorities in my initial 90 days as CEO. And second, our performance in Q3, which gives us confidence to reaffirm our full year outlook. I will provide a high-level assessment, and let Mark cover the details. As for my priorities, top on the list is to optimize our organizational structure for SMG 2.0. This starts with the leadership team. I will not be backfilling the COO role. Instead, I am restructuring the management team to encourage faster decision making and maximize collaboration among all associates. I will be hiring a chief innovation officer and a chief information officer as we focus on increasing our investments in our brands, AI, automation, technology, and data analytics. In parallel, we are undertaking a rigorous …
