SMG · CIK 825542
What The Scotts Miracle-Gro Company told the SEC could break it.
Scotts Miracle-Gro's single biggest exposure is its retail channel: just two customers, The Home Depot and Lowe's, accounted for 52% of fiscal 2025 net sales and 25% of accounts receivable, so reduced orders from either would hit results hard. The rest of its register reflects the nature of a consumer lawn-and-garden maker — input-cost swings across urea and other fertilizer inputs, resins, fuels, natural gas, peat, bark and grass seed, plus the regulatory burden on its products, which must comply with FIFRA pesticide registration and now face evolving PFAS rules after the EPA designated PFOA and PFOS as CERCLA hazardous substances. It also flags refinancing risk tied to indebtedness including its 5.250% Senior Notes due 2026.
5 self-disclosed vulnerabilities, pulled from its own filings, each in the company’s words, with the source. This is the risk register almost nobody reads.
In its own words
What could break it.
Regulatory & policy
- FIFRA / EPA pesticide registration (and provincial Canadian bans)medium
All U.S. pesticide products must comply with FIFRA and be registered with the EPA and state agencies; failure to obtain/maintain registrations, cancellations, or Canadian provincial restrictions could materially affect the business.
“All pesticide products sold in the United States must comply with FIFRA and most must be registered with the U.S. EPA and similar state agencies.”
SEC filing →As of 2025 - PFAS regulation (EPA CERCLA hazardous-substance designation of PFOA/PFOS)low
EPA's April 2024 designation of PFOA and PFOS as CERCLA hazardous substances, and broader PFAS restrictions, could have wide-ranging cross-industry impact including potential remediation liability.
“Further, in April 2024, the U.S. EPA designated two PFAS chemicals – perfluorooctanoic acid (“PFOA”) and perfluorooctanesulfonic acid (“PFOS”), including their salts and structural isomers – as hazardous substances under section 102(a) of the Comprehensive Environmental Response, Compensation, and Liability Act (“CERCLA”), which could have wide-ranging impact on companies across industries.”
SEC filing →As of 2025
Customer concentration
- Home Depot + Lowe's = 52% of net sales / 25% of ARhigh
Two retail customers, The Home Depot and Lowe's, together accounted for 52% of fiscal 2025 net sales and 25% of accounts receivable; loss of or reduced orders from either would materially hurt results.
“Our top two retail customers, The Home Depot and Lowe's, together accounted for 52% of our fiscal 2025 net sales and 25% of our outstanding accounts receivable as of September 30, 2025.”
SEC filing →As of 2025
Commodity & input dependence
- urea & fertilizer inputs, resins, diesel, gasoline, natural gas, sphagnum peat, bark, grass seedmedium
Product costs are exposed to fluctuating prices of urea and other fertilizer inputs, resins, diesel, gasoline, natural gas, sphagnum peat, bark, and grass seed.
“We are subject to market risk as a result of the fluctuating prices of raw materials, including urea and other fertilizer inputs, resins, diesel, gasoline, natural gas, sphagnum peat, bark and grass seed.”
SEC filing →As of 2025
Liquidity & debt
- indebtedness / refinancing (5.250% Senior Notes due 2026)medium
Ability to service or refinance indebtedness — including the 5.250% Senior Notes due 2026 — depends on future cash generation and credit availability, factors partly beyond the company's control.
“Our ability to make payments on or to refinance our indebtedness (including, for example, our 5.250% Senior Notes due 2026 (the “5.250% Senior Notes”)), fund planned capital expenditures and acquisitions, pay dividends and repurchase our Common Shares will depend on our ability to generate cash in the future which, to some extent, is subject to general economic, financial, competitive, legislative, regulatory and other factors that are beyond our control.”
SEC filing →As of 2025
The hidden graph
Who it depends on, and who depends on it.
Relationships surfaced from filings, including ones disclosed by the other side, which is how the non-obvious ones come to light.
Its customers
“The Company's two largest customers accounted for the following percentages of net sales for the fiscal years ended September 30: Percentage of Net Sales 2025 2024 2023 The Home Depot 34 % 30 % 29 % Lowe's 18 % 18 % 18 %”
Cited →Monsanto Company (Bayer)
“minus $ 186.4 , if Monsanto or its successor terminates the Third Restated Agreement as a result of a Roundup Sale or Change of Control of Monsanto (each, as defined in the Third Restated Agreement).”
Cited →“The Company's two largest customers accounted for the following percentages of net sales for the fiscal years ended September 30: Percentage of Net Sales 2025 2024 2023 The Home Depot 34 % 30 % 29 % Lowe's 18 % 18 % 18 %”
Cited →
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