Core Insights - Kimberly-Clark reported a revenue of $4.08 billion for the quarter ended December 2025, reflecting a decline of 17.2% year-over-year [1] - The company's EPS was $1.86, an increase from $1.50 in the same quarter last year, resulting in an EPS surprise of +33.57% against a consensus estimate of $1.39 [1] Financial Performance Metrics - The revenue of $4.08 billion was slightly below the Zacks Consensus Estimate of $4.12 billion, indicating a surprise of -0.98% [1] - Key metrics showed a volume impact year-over-year change of 2.5%, aligning with the average estimate of four analysts [4] - Organic net sales year-over-year change was 0.8%, below the average estimate of 2.7% by four analysts [4] - The net price impact for North America showed a year-over-year change of -1%, compared to an estimated 0.2% by four analysts [4] - The stock has returned +0.1% over the past month, underperforming the Zacks S&P 500 composite's +0.4% change [3] - Kimberly-Clark currently holds a Zacks Rank 4 (Sell), suggesting potential underperformance in the near term [3]

Financial Data and Key Metrics Changes - In Q4 2025, Kimberly-Clark achieved an eighth consecutive quarter of solid volume-plus-mix performance, with a volume mix increase of 1.7% in Q4 and 2.1% for the full year in North America [17][19] - The company expects organic sales growth to be in line or ahead of the category in 2026, with a category outlook around ±2% globally [19][51] Business Line Data and Key Metrics Changes - The company is pivoting its portfolio towards higher growth, higher-margin personal care categories, which is expected to drive future growth [7][8] - In the diaper category, Kimberly-Clark grew share by 100 basis points in Q4, marking two consecutive years of share growth [34] Market Data and Key Metrics Changes - In international markets, share gains were noted, with significant increases in China (up 270 basis points), Korea (up 60 basis points), and Brazil (up 40 basis points) [34][94] - The company anticipates that the distribution loss in the North America club channel will be a headwind of around 60 basis points for the full year [38] Company Strategy and Development Direction - Kimberly-Clark's "Powering Care" initiative aims to unlock the next chapter of growth, focusing on consumer-directed innovation and cost discipline [5][7] - The acquisition of Kenvue is seen as a transformative step that will compound the company's momentum and position it as a global health and wellness leader [8] Management's Comments on Operating Environment and Future Outlook - Management acknowledges ongoing pressure on consumers and emphasizes the importance of delivering superior value propositions across all product tiers [12][13] - The company is optimistic about its innovation pipeline for 2026, expecting it to be one of the best years for new product launches [18][51] Other Important Information - The company is focused on maintaining pricing discipline while growing volume and mix profitably, with a strong emphasis on innovation [28][82] - Management indicated that gross margin expansion is expected in 2026, driven by flat input costs and strong productivity [52][78] Q&A Session Summary Question: State of the consumer and growth expectations - Management noted that they are growing volumes despite a challenging environment by focusing on delivering superior propositions across all price tiers [12][13] Question: Pricing and mix dynamics in North America - Management explained that promotional dynamics and consumer channel shifts have impacted pricing, but they remain focused on maintaining pricing discipline while growing volume [25][27] Question: U.S. diaper category dynamics - Management highlighted that they are growing share through innovation and brand building, despite the competitive landscape [33][34] Question: Visibility on achieving margin targets - Management expressed confidence in achieving margin targets, citing strong productivity and a robust innovation pipeline [52][72] Question: International business and margin opportunities - Management acknowledged that international margins present a significant opportunity and are focused on improving them through premiumization and productivity [91][94]

Financial Data and Key Metrics Changes - In Q4 2025, the company achieved an eighth consecutive quarter of solid volume-plus-mix performance, indicating strong execution of its growth model [5] - The volume mix in North America was up 1.7% in Q4, and on a two-year stack basis, it was up 3.6% [17] - For the full year in North America, the volume mix was up 2.1% in Q4, and on a two-year stack basis, it was up 4.1% [17] Business Line Data and Key Metrics Changes - The company is pivoting its portfolio towards higher growth, higher-margin personal care categories, which is expected to drive future growth [7] - The company reported industry-leading productivity for the second consecutive year, with Q4 being the strongest of the year [5] Market Data and Key Metrics Changes - The company gained share in key international markets, including a 210 basis point increase in China, 30 basis points in Korea, 50 basis points in Brazil, and 230 basis points in Indonesia [33] - In North America, the company grew share by about 100 basis points in Q4, marking two consecutive years of share growth in diapers [34] Company Strategy and Development Direction - The company launched the "Powering Care" initiative to unlock growth and has made significant progress in executing this strategy [5] - The acquisition of Kenvue is seen as a transformative step that will compound the company's momentum and position it as a global health and wellness leader [8] - The company is focused on delivering superior propositions across all price tiers to meet consumer demand [12] Management's Comments on Operating Environment and Future Outlook - Management acknowledged ongoing pressure on consumers and emphasized the importance of providing strong value propositions [12] - The company expects category growth to be around ±2% globally in 2026, with a focus on maintaining resilience in demand [19] - Management expressed confidence in their strategy and the potential for significant value creation through the Kenvue acquisition [39] Other Important Information - The company expects to maintain pricing discipline while growing volume and mix profitably, driven by innovation and category development [28] - The company anticipates a headwind of around 60 basis points for the full year due to the loss of distribution in the North America club channel [38] Q&A Session Summary Question: State of the consumer and growth expectations - Management noted that they are growing volumes despite a challenging environment by focusing on delivering superior propositions across all price tiers [12][13] Question: Pricing and mix dynamics - Management explained that promotional dynamics and consumer channel shifts have impacted pricing and mix, but they remain focused on maintaining pricing discipline while growing volume [25][27] Question: U.S. diaper category dynamics - Management acknowledged the competitive landscape, particularly with Procter entering the market, but emphasized their strategy of driving innovation and brand building [32][34] Question: Visibility on achieving margin targets - Management expressed strong visibility into their plans for productivity and margin expansion, aiming for at least 40% gross margin before the end of the decade [52][54] Question: International business and margin opportunities - Management highlighted the potential for margin improvement in international markets, driven by premiumization and productivity initiatives [91][93]

Kimberly-Clark (NYSE:KMB) Q4 2025 Earnings call January 27, 2026 08:00 AM ET Speaker2Greetings. Welcome to the Kimberly-Clark 4Q2025 earnings call. At this time, all participants are in a listen-only mode. A question-and-answer session will follow the opening remarks. If anyone should require operator assistance during the conference, please press star zero on your telephone keypad. Please note this conference is being recorded. I will now turn the conference over to your host, Chris Jakubik, Vice President ...

Group 1 - The core viewpoint of the article is that Kimberly-Clark reported its Q4 2025 earnings, showing a slight miss in net sales but a beat in adjusted earnings per share due to cost control and stable demand for its products [1] Group 2 - The company reported net sales of $4.08 billion, slightly below analyst expectations of $4.09 billion [1] - Adjusted earnings per share were $1.86, exceeding analyst expectations of $1.81 [1] - The company anticipates a double-digit growth in adjusted earnings per share for 2026, while analysts project a growth of 3.1% [1]

Financial Data and Key Metrics Changes - In 2025, the company achieved approximately 2% volume-led organic growth, with 3% volume plus mix growth in Q4 despite a slowdown in global weighted average category growth to about 60 basis points [38][39] - Adjusted free cash flow for the year was $1.9 billion, consistent with previous estimates, indicating strong cash generation capabilities [39] - The company reported industry-leading gross productivity at 6.2% of Adjusted COGS, peaking at 7.2% in Q4, exceeding expectations [15] Business Line Data and Key Metrics Changes - The personal care business led productivity improvements, with significant progress in baby and childcare categories, reducing product platforms from 30 to 11 [16] - Innovations in personal care, such as Huggies' new products, contributed to share gains in key markets, with Huggies gaining nearly 50 basis points of share in Brazil in Q4 [23][28] - The company maintained healthy margins and strong exit momentum in Q4, with broad-based volume-led organic growth across all IPC focus markets [22] Market Data and Key Metrics Changes - In China, the company gained over 900 basis points of share in diapers over the past five years, while local competitors shifted focus to other markets [21] - The international personal care business saw broad-based share gains, with all focus markets delivering volume-led organic growth in Q4 [22] - The North American market demonstrated resilience, with positive volume mix-led growth for three consecutive years, despite competitive pressures [27][28] Company Strategy and Development Direction - The company is pivoting towards higher growth, higher margin personal care categories, including the sale of its Brazilian tissue operations and PPE business [4] - The acquisition of Kenvue is seen as a strategic move to enhance growth and create a consumer-centric health and wellness leader [5][6] - The company aims to achieve $2.1 billion in annual synergies from the Kenvue acquisition, with a focus on cost synergies and EPS accretion [7] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the company's ability to navigate a challenging environment, emphasizing a commitment to innovation and brand support [11][19] - The outlook for 2026 includes expectations for mid- to high-single-digit constant currency adjusted EPS growth, driven by the Kenvue acquisition and ongoing operational improvements [46][47] - The company anticipates continued pressure on consumers and a focus on value, but remains optimistic about its growth initiatives [11] Other Important Information - The company has made significant investments in its North American manufacturing footprint, including a $2 billion investment to enhance its supply chain [16] - The Powering Care strategy has created a virtuous cycle of growth, enabling the company to maintain resilience amid external challenges [10][12] - The company has improved its cash conversion cycle significantly, moving from 6 days in 2021 to around negative 10 days by the end of 2025 [43] Q&A Session Summary Question: What are the expectations for the Kenvue acquisition? - The company expects the Kenvue acquisition to enhance growth and create significant value for shareholders, with a focus on achieving synergies and integrating the brands effectively [7][45] Question: How is the company addressing competitive pressures? - Management highlighted a disciplined approach to innovation and marketing, which has allowed the company to maintain market share and drive growth despite competitive challenges [19][27] Question: What is the outlook for 2026? - The company projects mid- to high-single-digit constant currency adjusted EPS growth for 2026, supported by strong operational performance and the Kenvue acquisition [46][47]

Financial Data and Key Metrics Changes - In 2025, the company achieved approximately 2% organic growth, supported by 3% volume plus mix growth, despite a slowdown in global weighted average category growth to roughly 60 basis points in Q4 [38][39] - Adjusted Free Cash Flow for the year was $1.9 billion, consistent with previous estimates, indicating strong cash generation capabilities [39] - The company reported industry-leading gross productivity at 6.2% of Adjusted COGS for the year, peaking at 7.2% in Q4, exceeding expectations [15] Business Line Data and Key Metrics Changes - The Personal Care business led the way in productivity improvements, with significant progress in delivering high-performing products at lower costs [16] - Innovations in the Personal Care segment, such as Huggies' new products, contributed to strong volume-led organic growth, particularly in key markets like China and Brazil [22][24] - The company exited a large private label diaper contract in North America, which impacted the overall performance but was part of a strategic realignment [38] Market Data and Key Metrics Changes - In the international Personal Care business, the company gained over 900 basis points of share in diapers over the past five years, while local competitors have struggled [20] - The company saw broad-based share gains in international focus markets, with all focus markets delivering volume-led organic growth in Q4 [22] - In North America, the company achieved a volume plus mix growth of 1.8% in Q4, with Personal Care growing value share by 20 basis points for the year [28] Company Strategy and Development Direction - The company is focused on transforming into a pure-play Personal Care company, pivoting its portfolio towards higher growth and higher margin categories [4] - The acquisition of Kenvue is seen as a strategic move to enhance growth and create a consumer-centric health and wellness leader [5][7] - The company aims to leverage its operating momentum to create significant value for shareholders and improve care standards for consumers globally [9] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the company's ability to navigate a challenging environment, citing strong execution of the Powering Care strategy as a key driver of success [19] - The outlook for 2026 includes expectations for mid- to high-single-digit constant currency growth in Adjusted Operating Profit, supported by a robust pipeline of initiatives [46][47] - Management acknowledged ongoing consumer pressure and a focus on value, indicating that these factors will persist in the near term [11] Other Important Information - The company has made significant investments in its North American manufacturing footprint, including a $2 billion investment to enhance its capabilities [16] - The integration of Kenvue is being led by a dedicated team, with strong progress reported in the early stages [18] - The company has achieved a strong cash conversion cycle improvement, going from 6 days in 2021 to around negative 10 days at the close of 2025 [43] Q&A Session Summary Question: What are the expectations for the Kenvue acquisition? - Management expects the Kenvue acquisition to create significant value and enhance growth, with a target of generating $2.1 billion in annual synergies net of reinvestment [7][51] Question: How is the company addressing competitive pressures? - The company is focused on out-innovating and out-marketing competitors, maintaining a disciplined approach to brand investments and consumer engagement [19][27] Question: What is the outlook for Adjusted EPS growth? - The company anticipates double-digit growth in Adjusted EPS from continuing operations on a constant currency basis, driven by the Kenvue acquisition and ongoing operational improvements [47][48]

Financial Data and Key Metrics Changes - In 2025, the company achieved approximately 2% volume-led organic growth, with a strong performance in the fourth quarter, delivering 3% volume plus mix growth despite a slowdown in global weighted average category growth to roughly 60 basis points [38][39] - Adjusted free cash flow for the year was $1.9 billion, consistent with previous estimates, indicating the company's ability to maintain performance across quarters [39][45] - The company reported industry-leading gross productivity at 6.2% of Adjusted COGS, peaking at 7.2% in the fourth quarter, exceeding expectations [15] Business Line Data and Key Metrics Changes - The personal care business led the way in productivity improvements, with significant progress in categories like baby and childcare, which are highly competitive [16] - The company pivoted its portfolio towards higher growth, higher margin personal care categories, including the sale of its Brazilian tissue operations and PPE business, and exiting approximately $650 million of private label business [4][5] - Innovations in the personal care segment, such as Huggies' new products, contributed to strong volume growth and market share gains in various regions [24][28] Market Data and Key Metrics Changes - In international personal care markets, the company gained over 900 basis points of share in diapers over the past five years, while local competitors shifted focus away from China [20] - The company saw broad-based share gains in international personal care focus markets, with all focus markets delivering volume-led organic growth in Q4 [21][22] - In North America, the company achieved a third consecutive year of positive volume mix-led growth, with personal care growing value share by 20 basis points [27][28] Company Strategy and Development Direction - The company is focused on its "Powering Care" strategy, which emphasizes innovation, cost discipline, and a pivot towards higher margin categories [3][4] - The acquisition of Kenvue is seen as a significant step in the company's transformation, expected to enhance growth and create a scaled health and wellness leader [5][6] - The company aims to build a consumer-centric care model with a portfolio of ten iconic billion-dollar brands across critical life stages [5] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the company's ability to navigate a challenging environment, citing strong execution and a focus on innovation-led growth [19][39] - The outlook for 2026 includes expectations for mid- to high-single-digit constant currency adjusted EPS growth, driven by the Kenvue acquisition and ongoing operational improvements [47][48] - The company anticipates continued pressure on consumers and a focus on value, but remains committed to supporting its brands and driving growth initiatives [11][47] Other Important Information - The company has made significant investments in its North American manufacturing footprint, including a $2 billion investment to build an advanced manufacturing facility and an automated distribution center [16] - The company has improved its cash conversion cycle from 6 days in 2021 to around negative 10 days at the close of 2025, reflecting better working capital discipline [43] - The company has achieved a strong overhead leverage, expanding adjusted operating profit margins by 100 basis points over the past two years [42] Q&A Session Summary Question: What are the expectations for the Kenvue acquisition? - Management expects the Kenvue acquisition to be quickly accretive to earnings and value-enhancing for shareholders, with a focus on achieving significant synergies [37][53] Question: How is the company addressing competitive pressures? - The company is maintaining a disciplined approach to innovation and marketing, focusing on delivering superior consumer value propositions to navigate competitive pressures [19][27] Question: What is the outlook for 2026? - The company projects mid- to high-single-digit constant currency adjusted EPS growth for 2026, supported by the Kenvue acquisition and ongoing operational improvements [47][48]

POWERING CARE Forward-Looking Statements Certain matters contained in this presentation concerning our plans and expectations regarding the pending mergers with Kenvue and the pending International Family Care and Professional ("IFP") joint venture transaction with Suzano ("IFP Transaction"), the business outlook, including raw material, energy and other input costs, the anticipated charges and savings from the 2024 Transformation Initiative, cash flow and uses of cash, growth initiatives, innovations, mark ...

Core Viewpoint - Kimberly-Clark reported a higher profit in its latest quarter just days before shareholders vote on its plan to buy Kenvue, aiming to create a global health-and-wellness giant [1] Financial Performance - The company achieved a higher profit in its latest quarter, indicating strong financial performance [1] Strategic Move - The planned acquisition of Kenvue is designed to enhance Kimberly-Clark's position in the health-and-wellness sector, reflecting a strategic initiative to expand its market presence [1]