Scotts Miracle-Gro ( (SMG) ) has released its Q2 earnings. Here is a breakdown of the information Scotts Miracle-Gro presented to its investors.
Scotts Miracle-Gro Company, a leading marketer of branded consumer lawn and garden products, has announced its second-quarter financial results for 2025, highlighting improvements in gross margin and EBITDA growth. The company, also a significant player in indoor and hydroponic growing products, remains a key name in the lawn and garden industry.
In the second quarter of 2025, Scotts Miracle-Gro reported a gross margin rate improvement, with GAAP gross margin at 38.6% and non-GAAP adjusted gross margin at 39.1%, reflecting significant gains over the previous year. The company achieved a non-GAAP adjusted EBITDA of $402.8 million, marking an increase from the prior year, despite a 7% decline in total company sales, which amounted to $1.42 billion.
Key financial metrics from the report include a GAAP net income of $217.5 million, or $3.72 per diluted share, and a non-GAAP adjusted net income of $232.2 million, or $3.98 per diluted share. The U.S. Consumer segment saw a 5% decrease in sales, attributed to a delayed start to the lawn and garden season. However, the company experienced a notable reduction in net leverage, down to 4.41x from 6.95x the previous year.
Looking ahead, Scotts Miracle-Gro reaffirms its full-year guidance for the U.S. Consumer segment, adjusted gross margin, adjusted EBITDA, and free cash flow. Despite uncertainties in the cannabis industry affecting its Hawthorne segment, the company remains optimistic about its fiscal third-quarter performance, driven by strong consumer takeaway and retailer replenishment expectations.