The Scotts Miracle-Gro 2025 Q3 Earnings Earnings Rise Despite Revenue Decline

The Scotts Miracle-Gro (SMG) reported its fiscal 2025 Q3 earnings on August 6, 2025, with earnings per share outperforming expectations, although total revenue fell slightly. The company’s EPS increased 10.7% year-over-year, and net income rose by 12.9%, showing strong profitability despite a 1.2% dip in overall revenue.

Revenue
The company’s total revenue for Q3 2025 came in at $1.19 billion, down 1.2% compared to $1.20 billion in the same period last year. The U.S. Consumer segment accounted for the largest portion, reporting $1.03 billion in revenue. The Hawthorne segment contributed $31.20 million, while the "Other" segment added $126.60 million. Collectively, these figures underscore a slight contraction in overall sales, with no significant shifts in segment performance.

Earnings/Net Income
The Scotts Miracle-Gro’s earnings per share (EPS) rose 10.7% year-over-year to $2.58, while net income climbed to $149.10 million, a 12.9% increase from $132.10 million in 2024 Q3. The company demonstrated solid profitability growth, despite the modest revenue decline.

Price Action
The stock has declined across multiple timeframes, with a 1.51% drop in the most recent trading day, a 2.56% decline over the week, and a more pronounced 11.21% fall month-to-date. The underperformance reflects a challenging investor response post-earnings.

Post-Earnings Price Action Review
The strategy of buying SMG following a positive earnings report and holding for 30 days underperformed significantly, returning -43.03% compared to the benchmark's 85.42%. While the maximum drawdown was 0.00%, the strategy showed a negative Sharpe ratio of -0.24 and high volatility of 44.81%, indicating it was a high-risk, low-reward approach with no meaningful downside protection.

CEO Commentary
Jim Hagedorn, chairman and CEO, praised John Vines for his 12 years of service on the board and his continued advisory role as Board member emeritus. He also highlighted the appointment of General Scott Miller, emphasizing his strategic leadership and collaborative approach as the company evolves into a consumer goods marketing powerhouse. Hagedorn conveyed optimism about the company’s future and leadership direction.

Guidance
The company did not provide explicit forward-looking guidance or numerical expectations within the 8-K filing excerpt.

Additional News
On August 6, 2025, the company issued a report titled *Scotts Miracle-Gro's Q3 Earnings Top, Revenues Lag Estimates*. However, the content was not accessible due to a technical issue (Incapsula incident ID: 4558000210106714455-104052270308394360). No earnings metrics were included in the reported issue, and no significant M&A, C-level changes, or shareholder-related updates were identified within the specified timeframe.