Symbols

Scotts Miracle-Gro Posts $151M Loss as Agrichem Margins Cripple Earnings

Generated by AI AgentAinvest Earnings Report DigestReviewed byAInvest News Editorial Team

Monday, Jan 26, 2026 2:18 am ET1min read

OP--

SMG--

Aime Summary

- SMG reported $151.8M Q4 2025 net loss with $387.4M revenue, showing severe margin compression and trailing industry peers.

- Analysts highlight high U.S. chemicals861003-- PE (71.8x) vs. 36% annual earnings decline, while competitors like CF IndustriesCF-- gain momentum.

- Cost-cutting initiatives face challenges from $151.8M debt burden and soft agricultural demand, risking 2026 execution outcomes.

- Shareholders seek performance-linked CEO compensation adjustments amid sector-wide margin pressures and uncertain market conditions.

Forward-Looking Analysis

Analysts project mixed outcomes for The Scotts Miracle-GroSMG-- (SMG) in Q1 2026, with industry-wide challenges in the fertilizers and agricultural chemicals sector. The U.S. Chemicals Industry’s elevated PE ratio (71.8x) reflects optimism, but earnings growth has historically declined 36% annually over three years. SMG’s Q4 2025 results ($387.4M revenue, -$151.8M net income) highlight margin pressures. Competitors like CF Industries and Albemarle show stronger momentum, with upgraded lithium and ammonia price assumptions. Analysts note SMG’s cost-cutting initiatives and potential margin recovery, but demand remains soft due to agricultural sector deferrals. Earnings forecasts for the fertilizers segment suggest 7.2% annual growth, though SMG’s execution risks and high debt burden could weigh on results.

Historical Performance Review

In Q4 2025, SMGSMG-- reported revenue of $387.40 million, a net loss of $151.80 million, and EPS of -$2.63. Gross profit totaled $23.50 million, reflecting significant margin compression. The results underscore ongoing challenges in managing input costs and demand volatility, with the company’s performance trailing industry peers.

Additional News

Recent news highlights shareholder caution regarding SMG’s CEO compensation structure, with conservative adjustments expected to align with performance metrics. No major product launches, M&A activity, or operational updates were reported for SMG in the provided data.

Summary & Outlook

SMG’s Q4 2025 results indicate weak financial health, with declining revenue and profitability. While cost management and potential agricultural demand recovery could act as growth catalysts, risks include persistent input cost inflation and sector-wide margin pressures. The company’s ability to execute on cost actions and stabilize its core business will determine its 2026 outlook. A bearish stance is warranted due to historical underperformance and uncertain market conditions.

Ainvest Earnings Report Digest

Get noticed about the list of notable companies` earning reports after markets close today and before markets open tomorrow.

Latest Articles

Comments

﻿

Add a public comment...

No comments yet

Ainvest News articles are AI-generated using advanced large language model (LLM) technology designed to analyze and synthesize publicly available data and news. While AI tools assist in producing initial drafts and insights, all AI generated content published on Ainvest is subject to comprehensive human editorial review before publication. A designated human editor reviews, verifies, and approves each article for factual accuracy, coherence, and compliance with AInvest Fintech Inc's editorial and disclosure standards. Despite these review procedures, the information provided may still contain inaccuracies, incomplete data, or time sensitive references due to the inherent limitations of AI generated analysis and evolving changes. The material is provided strictly for informational and educational purposes and does not constitute personalized investment, legal, or financial advice. Readers should independently verify all facts, figures, and statements before making any decision based on this content. AInvest Fintech Inc. its affiliates, and partners accept no liability or responsibility for any direct or consequential losses arising from reliance on this content. All articles and analyses are subject to revision, update, or removal without prior notice to maintain accuracy and integrity in our publications.