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Scotts Miracle-Gro SMG Hawthorne — Gain (Loss) on Disposition of Business

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Other financials

Income statement

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Revenue$1.2B+1.1%
Gross profit$367.1M-2.0%
Operating income$169.6M-23.5%
Net income$112.2M-24.7%
EPS (diluted)$1.90-25.2%

Balance sheet

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Cash & equivalents$27.7M-30.1%
Total debt$2.5B+1.3%
Total equity-$208.7M-22.1%
Total assets$3.2B+2.5%

Cash flow

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Operating cash flow$345.6M-23.9%
CapEx$24.5M+45.0%
Free cash flow$321.1M-26.6%

Valuation

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Market cap$3.61B+3.5%
Enterprise value$6.09B+2.8%
P/E9.6×
P/S0.0×

Profitability

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Gross margin32.2%+1.8pp
Operating margin0.3%-0.2pp
Net margin1.6%+0.9pp
FCF margin10.5%-3.4pp

Returns & leverage

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Return on equity-47.6%+65.7pp
Debt / equity25.2×+16.1×
Current ratio1.2×-0.4×

Where this comes from

Reported directly by Scotts Miracle-Gro in its filing.

Tagged under the XBRL concept us-gaap:GainLossOnSaleOfBusiness.

The source filing: Scotts Miracle-Gro’s 10-K, filed November 25, 2025.

Filed
Nov 25, 2025
Fiscal year
FY2025
Accession
0000825542-25-000022

On September 30, 2025, the Company completed the divestiture of its Hawthorne professional horticulture business based in the Netherlands for $8.5, which was financed by the Company in the form of a loan bearing interest at 6.0% with a maturity date of December 31, 2029. The seller financing loan is recorded in the “Other assets” line in the Consolidated Balance Sheets and was classified as an investing activity in the Consolidated Statements of Cash Flows. The Company incurred a non tax-deductible loss on the sale of $17.7 in the “Impairment, restructuring and other” line in the Consolidated Statements of Operations during fiscal 2025. The loss included a write-off of accumulated foreign currency translation adjustments of $9.5.

ITEM 16. FORM 10-K SUMMARY

FAQ

What is Scotts Miracle-Gro's hawthorne — gain (loss) on disposition of business?
Scotts Miracle-Gro (SMG) reported hawthorne — gain (loss) on disposition of business of -$4.43M in Q3 2025.
What does hawthorne — gain (loss) on disposition of business mean?
The net financial impact resulting from the sale or divestiture of business assets within the Hawthorne segment. It highlights the difference between the carrying value of the assets and the proceeds received, indicating the success of divestment strategies.

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