Trump privately backed marijuana rescheduling since taking office: Scotts Miracle-Gro CEO
Written by Emily J. Thompson, Senior Investment Analyst
Updated: Aug 01 2025
0mins
Source: SeekingAlpha
Trump's Commitment to Cannabis Reform: Scotts Miracle-Gro CEO James Hagedorn stated that President Donald Trump has privately committed to advancing cannabis rescheduling reforms since taking office, with ongoing discussions about a proposal from the Biden administration to reclassify marijuana as a low-risk substance.
DEA Administrator's Stance: Hagedorn commented on the new DEA administrator Terrance Cole's decision not to prioritize cannabis rescheduling, suggesting that Trump's influence could still lead to changes in cannabis policy despite current agency priorities.
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Analyst Views on SMG
Wall Street analysts forecast SMG stock price to fall
5 Analyst Rating
4 Buy
1 Hold
0 Sell
Strong Buy
Current: 66.840
Low
51.37
Averages
64.09
High
74.00
Current: 66.840
Low
51.37
Averages
64.09
High
74.00
About SMG
The Scotts Miracle-Gro Company is a manufacturer and marketer of branded consumer products for lawn and garden care. The Company's segments include United States (U.S.) Consumer, Hawthorne and Other. The U.S. Consumer segment consists of its consumer lawn and garden business in the United States. Its consumer lawn and garden brands include Scotts and Turf Builder lawn fertilizer and Scotts grass seed products; Miracle-Gro soil, plant food and gardening products; Ortho herbicide and pesticide products, and Tomcat rodent control and animal repellent products. The Hawthorne segment is engaged in providing nutrients, lighting and other materials used for indoor and hydroponic gardening in North America. Its key brands include General Hydroponics, Gavita, Botanicare, Agrolux, Gro Pro, Mother Earth, Grower’s Edge, HydroLogic Purification System and CYCO. The Other segment primarily consists of its consumer lawn and garden business in Canada.
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
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- Adjusted EBITDA Surge: Adjusted EBITDA grew by 29.4% to CHF 180 million, with a margin of 54.3%, demonstrating substantial progress in cost control and operational efficiency, thereby enhancing profitability.
- Improved Cash Conversion: Cash conversion increased by 4% to 81%, enabling the company to propose a dividend payout of CHF 80.5 million, reflecting healthy cash flow and a commitment to shareholder returns.
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- Divestiture of Cannabis Business: The company classified its Hawthorne Gardening cannabis unit as discontinued operations, reporting losses of $77.2 million, sharply up from $3.4 million a year earlier, highlighting increased volatility in this segment.
- Sales Drop: Quarterly sales fell by 3% to $354.4 million, missing the consensus estimate of $358 million, suggesting challenges in a competitive market environment.
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See More
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- CF Industries Cash Flow Advantage: Amid soaring liquid fertilizer prices due to shipping bottlenecks in the Strait of Hormuz, Jennifer Wallace from Summit Street Capital highlighted CF Industries as a structurally advantaged 'cash-flow machine,' benefiting from its exposure to globally priced fertilizers and low-cost U.S. natural gas, positioning it as one of the most profitable producers worldwide.
- Signet Jewelers Steady Cash Flow: Wallace also pointed out that Signet Jewelers is undervalued by the market, as the company generates most of its sales in North America and holds a leading share in the U.S. bridal jewelry market, which supports steady cash generation despite concerns around consumer spending.
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- Scotts Miracle-Gro Undervalued: John Rogers from Ariel Investments highlighted Scotts Miracle-Gro's strong brand and potential for shareholder returns, expecting the lawn-care company to rely more on share buybacks, which he believes could drive both earnings and stock price higher.
See More
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- Significant Revenue Growth: SMG Swiss Marketplace Group reported a 14.1% revenue increase in 2025, reaching CHF 332 million, indicating strong market performance that is expected to drive further investments and expansion in the future.
- Adjusted EBITDA Surge: Adjusted EBITDA grew by 29.4% to CHF 180 million, with a margin of 54.3%, demonstrating substantial progress in cost control and operational efficiency, thereby enhancing profitability.
- Improved Cash Conversion: Cash conversion increased by 4% to 81%, enabling the company to propose a dividend payout of CHF 80.5 million, reflecting healthy cash flow and a commitment to shareholder returns.
- Agent Count Recovery: The number of agents surpassed 4,000, reversing a previous negative trend, showcasing the company's success in customer acquisition and market penetration, which is expected to support future revenue growth.
See More
Scotts-Miracle-Gro Shifts Focus to Core Lawn and Garden Business
- Investment Focus Shift: At the UBS Global Consumer and Retail Conference, Scotts-Miracle-Gro (SMG) announced a strategic pivot towards branded products and digital commerce, aiming for long-term sales and margin goals, particularly after exiting the unsuccessful cannabis market and refocusing on its core lawn and garden business.
- E-commerce Growth Engine: E-commerce sales are projected to account for 13% to 15% of consumer sales in fiscal 2025, a significant increase from 2% five years ago, indicating a growing consumer acceptance of lawn and garden products, which facilitates year-round product launches for the company.
- Younger Consumers Driving Demand: Research indicates that millennials and Gen Z consumers spend comparably to older generations on lawn and garden products but expect a stronger digital experience, prompting Scotts to invest heavily in a digital ecosystem to cater to this emerging market demand.
- Profitability Targets Set: Scotts expects a gross margin of at least 32% this year, up from 31.6% last year, primarily driven by net pricing and supply chain savings, with future goals aiming for mid-30s to nearly 40% margins, enhancing competitiveness with top-tier consumer packaged goods companies.
See More
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- Acquisition Expansion Plan: Vireo Growth has agreed to acquire the Hawthorne Gardening subsidiary from Scotts Miracle-Gro for an undisclosed amount of shares, expected to close in Q1 or Q2 of 2026, which will enhance its vertical integration in North America, reduce supply chain risks, and improve product quality.
- Strong Financial Performance: For the first nine months of the year, Vireo reported revenue of $164 million, a 121% year-over-year increase, with adjusted EBITDA of $45 million, up 145%, demonstrating the company's robust financial strength and expansion potential in a competitive market.
- Risks of Rapid Growth: Vireo's rapid expansion from 16 to 166 dispensaries raises concerns among investors, particularly with a debt level of $60.8 million, which could lead to integration challenges and quality control issues as the company navigates its aggressive acquisition strategy.
- Market Volatility: Currently trading around $0.55 per share, Vireo's stock reflects market uncertainty regarding its future; while acquisitions may offer long-term growth opportunities, the high short-term risks suggest that investors should approach with caution.
See More
Dividend Stocks Gain Favor Amid Market Turbulence
- Investor Shift to Dividends: Amid market turbulence and uncertainty, many investors are turning to dividend-yielding stocks, which typically feature high free cash flows and substantial payouts to shareholders, thereby enhancing investor confidence and market stability.
- Analyst Ratings Overview: Benzinga offers insights into the latest analyst takes on high-yield stocks, allowing investors to visit the Analyst Stock Ratings page for informed decision-making, which is crucial during volatile market conditions.
- High-Yield Stocks in Materials: Within the materials sector, Kronos Worldwide, Inc. (NYSE:KRO), Graphic Packaging Holding Co (NYSE:GPK), and Scotts Miracle-Gro Co (NYSE:SMG) are highlighted as attractive high-yield stocks, indicating significant investment potential in this industry.
- Analyst Accuracy Metrics: Benzinga's database enables traders to sort ratings by analyst accuracy, providing investors with a more reliable basis for decision-making, particularly when selecting high-dividend stocks in a fluctuating market.
See More
Scotts Miracle-Gro Reports Wider Q1 Loss, Maintains Full-Year Growth Targets
- Financial Decline: Scotts Miracle-Gro reported a net loss of $125 million in Q1 2026, translating to a loss of $2.16 per share, which is significantly worse than the $69.5 million loss reported in the same quarter last year, indicating revenue weakness during the typical slow season.
- Divestiture of Cannabis Business: The company classified its Hawthorne Gardening cannabis unit as discontinued operations, reporting losses of $77.2 million, sharply up from $3.4 million a year earlier, highlighting increased volatility in this segment.
- Sales Drop: Quarterly sales fell by 3% to $354.4 million, missing the consensus estimate of $358 million, suggesting challenges in a competitive market environment.
- Stable Outlook: Despite short-term challenges, Scotts reaffirmed its fiscal year outlook ending September 2026, projecting adjusted earnings from continuing operations between $4.15 and $4.35 per share, demonstrating confidence in future growth.
See More
