Financial Performance - Net sales for Q4 2025 were $4.1 billion, down 0.6%, with organic sales growth of 2.1% offset by a 2.5% decline from exiting the private label diaper business in the US [4]. - Adjusted operating profit for Q4 2025 was $629 million, up 13.1% year-over-year, driven by strong productivity gains and lower expenses [7]. - Diluted earnings per share (EPS) for Q4 2025 were $1.50, with adjusted EPS increasing 24.0% to $1.86, reflecting strong operating profit delivery [11]. - Full year 2025 net sales were $16.4 billion, a decrease of 2.1%, primarily due to a 2.9% negative impact from divestitures and a 0.9% impact from foreign currency translation [12]. - Full year 2025 adjusted operating profit was $2.7 billion, in line with the prior year, despite headwinds from divestitures [15]. - Net income attributable to Kimberly-Clark Corporation for Q4 2025 was $499 million, representing an increase of 11.6% from $447 million in Q4 2024 [42]. - For the full year 2025, net sales were $16,447 million, down 2.1% from $16,805 million in 2024 [44]. - The operating profit for the full year 2025 decreased by 12.9% to $2,351 million, compared to $2,700 million in 2024 [44]. - Net income for the twelve months ended December 31, 2025, was $2,049 million, a decrease of 20.5% from $2,578 million in 2024 [48]. - Total net sales for the twelve months ended December 31, 2025, were $16,447 million, down 2.1% from $16,805 million in 2024 [50]. - Operating profit for the twelve months ended December 31, 2025, was $2,351 million, a decline of 12.9% compared to $2,700 million in 2024 [50]. Cash Flow and Capital Expenditures - Cash provided by operations in 2025 was $2.8 billion, down from $3.2 billion the previous year, while capital spending increased to $1.1 billion [31]. - Cash provided by operations for the twelve months ended December 31, 2025, was $2,777 million, down from $3,234 million in 2024 [48]. - Capital spending for the twelve months ended December 31, 2025, increased to $1,138 million from $721 million in 2024 [48]. - Cash dividends declared increased by 3.3% to $1.26 per share in Q4 2025, compared to $1.22 in Q4 2024 [42]. - Cash dividends paid for the twelve months ended December 31, 2025, were $1,660 million, slightly up from $1,628 million in 2024 [48]. Future Outlook - The company expects 2026 organic sales growth to align with or exceed the average growth in its competitive categories, projected at approximately 2% [32]. - Adjusted operating profit for 2026 is expected to grow at a mid-to-high single-digit rate on a constant-currency basis [32]. - Adjusted EPS from continuing operations for 2026 is expected to grow double-digit on a constant-currency basis, driven by a 30% increase in income from equity companies [32]. Shareholder Actions - The company completed share repurchases of 1.1 million shares at a cost of $141 million in 2025 [31]. Mergers and Acquisitions - The company is pursuing mergers with Kenvue and a joint venture with Suzano, which are expected to impact future growth and cost savings [37]. - The Kenvue acquisition is ongoing, with associated costs impacting financial results [58]. - Kenvue Acquisition added $32 million to Operating Profit in Q4 2025, with no contribution in Q4 2024 [62]. Operational Initiatives - The 2024 Transformation Initiative aims to enhance operational agility and improve growth trajectory and profitability [58]. - The 2024 Transformation Initiative contributed $90 million to Operating Profit in Q4 2025, compared to $97 million in Q4 2024 [62]. Tax and Legal Matters - The Effective Tax Rate as reported for the year ended December 31, 2025, was 29.2%, while the adjusted rate was 22.8% [64]. - The company reported a legal expense of $39 million in Q4 2024, which did not recur in Q4 2025 [62]. Other Financial Metrics - Basic earnings per share for Q4 2025 were $1.50, an increase of 11.9% from $1.34 in Q4 2024 [42]. - Income from Discontinued Operations for Q4 2025 was $142 million, up from $103 million in Q4 2024, a 37.9% increase [65]. - Organic sales growth for the year ended December 31, 2025, was 1.7%, with North America showing a growth of 1.8% and IPC at 1.7% [59]. - Total assets as of December 31, 2025, were $17,098 million, an increase from $16,546 million in 2024 [46]. - Current liabilities increased to $7,125 million in 2025 from $7,004 million in 2024 [46].

Core Insights - Kimberly-Clark exceeded quarterly profit expectations due to effective cost controls and consistent demand for its products, including Huggies diapers and Kleenex tissues [1] Company Performance - The company reported strong quarterly profits, indicating robust financial health and operational efficiency [1] - Cost management strategies played a significant role in enhancing profitability [1] Product Demand - Steady demand for key products such as Huggies diapers and Kleenex tissues contributed positively to the company's performance [1]

Core Insights - Kimberly-Clark Corporation reported fourth quarter and full year 2025 results, showcasing momentum from its innovation-driven growth strategy and significant efficiencies that support brand reinvestment and shareholder returns [1][2]. Financial Performance - Fourth quarter net sales were $4.1 billion, down 0.6%, with organic sales growth of 2.1% offset by a 2.5% decline due to exiting the private label diaper business in the US [4][11]. - Gross margin improved to 35.9% from 35.2% year-over-year, with an adjusted gross margin of 37.0%, consistent with the prior year [5][12]. - Operating profit for the quarter was $507 million, up from $420 million, with adjusted operating profit increasing 13.1% to $629 million [6][10]. - Diluted earnings per share (EPS) attributable to Kimberly-Clark were $1.50, a 11.9% increase from the prior year, while adjusted EPS rose 24.0% to $1.86 [10][18]. Yearly Overview - For the full year 2025, net sales totaled $16.4 billion, a decrease of 2.1%, primarily due to divestitures and currency translation impacts [11][12]. - The full year gross margin was 36.0%, down from 37.4% in the previous year, with an adjusted gross margin of 37.3% [12][13]. - Operating profit for the year was $2.4 billion, consistent with the prior year, while adjusted operating profit remained at $2.7 billion [13][24]. - Diluted EPS for the year was $6.07, down from $7.55, but adjusted EPS increased 3.2% to $7.53 [18][39]. Business Segment Results - North America segment net sales decreased 3.0% in Q4, driven by the exit of the private label diaper business, while organic sales growth was 0.8% [21][22]. - International Personal Care segment net sales increased 4.2% in Q4, with organic sales growth of 4.5% [25][26]. - For the full year, North America segment net sales were down 2.4%, while International Personal Care segment net sales decreased 0.9% [22][26]. Cash Flow and Shareholder Returns - Cash provided by operations was $2.8 billion, down from $3.2 billion, with capital spending increasing to $1.1 billion [29]. - The company returned $1.8 billion to shareholders through dividends and share repurchases, completing share repurchases of 1.1 million shares at a cost of $141 million [29]. 2026 Outlook - The company expects organic sales growth in 2026 to align with or exceed the average growth in its competitive categories, forecasting a mid-to-high single-digit growth rate for adjusted operating profit [30]. - Adjusted EPS from continuing operations is anticipated to grow double digits on a constant-currency basis, driven by a projected 30% increase in income from equity companies [30].

Core Insights - Kimberly-Clark Corporation is a leading player in the personal care and consumer tissue industry, operating through three main segments: Personal Care, Consumer Tissue, and K-C Professional, with well-known brands like Huggies, Kleenex, and Scott [1] Price Target Trends - The consensus price target for Kimberly-Clark's stock has been on a downward trend over the past year, decreasing from $129.21 a year ago to $120.38 in the last quarter and further to $104.67 in the past month, indicating a more cautious outlook from analysts [2][6] Earnings Expectations - Kimberly-Clark is approaching its Q4 earnings report with expected declines in both revenue and earnings per share (EPS), facing challenges such as promotions, tariffs, and foreign exchange pressures, although stable core demand and productivity may provide some support [3][6] Analyst Perspectives - Analyst Peter Grom from UBS has set a price target of $138 for Kimberly-Clark, contrasting with the overall downward trend in consensus price targets, suggesting that some analysts still see potential for recovery or growth due to the company's stable core demand and productivity [4][6]

Core Insights - Kimberly-Clark Corporation (KMB) is expected to report a decline in both revenue and earnings for the fourth quarter of 2025, with revenue estimated at $4.12 billion, reflecting a 16.4% decrease year-over-year [1][10] - The consensus estimate for earnings per share (EPS) is $1.39, indicating a 7.3% decline from the previous year [2][10] Factors Influencing Results - The company operates in a competitive environment with value-conscious consumer behavior, leading to increased promotional intensity, particularly in North America, while demand in core categories remains resilient [3] - Productivity and cost management are crucial for performance, with industry-leading productivity supporting profitability, although margins are pressured by price investments and tariff-related costs [4] - Innovation and brand investment are key strategies, with continued support for core brands through targeted marketing and a good-better-best value strategy, although results may be impacted by foreign currency translation [5] Earnings Predictions - The current model does not predict an earnings beat for KMB, as it holds a Zacks Rank of 4 (Sell) and an Earnings ESP of 0.00% [6]

Group 1 - Barclays has cut its price target for Kimberly-Clark Corporation (KMB) from $132 to $102 while maintaining an Equal Weight rating, indicating a cautious outlook for the stock [2] - The recent enthusiasm for Kimberly-Clark shares is attributed to a "flight to safety" rather than improvements in the company's fundamentals, with concerns about company-specific and sector conditions persisting [3] - Institutional Shareholder Services (ISS) has recommended that Kimberly-Clark shareholders support the proposed acquisition of Kenvue, suggesting it could enhance the company's financial profile and key metrics [4][5] Group 2 - The proposed acquisition of Kenvue, valued at over $40 billion, aims to create a global consumer health platform that combines well-known brands from both companies [6] - ISS acknowledges potential shareholder concerns regarding the market's negative reaction to the acquisition announcement and uncertainties related to litigation involving Kenvue products, but believes the merger could unlock significant synergies [7] - Kimberly-Clark is recognized as a global consumer products company focused on improving care and hygiene through a range of essential products [8]

Industry Overview - The consumer staples sector underperformed significantly in 2025 but is expected to see a more favorable environment in 2026 due to easing sector-specific pressures and potential fiscal stimulus boosting demand [1] - The sector has a 70-percentage-point performance gap relative to tech stocks over the past three years, indicating a contrarian opportunity for long-term investors [1] - The Consumer Staples exchange-traded fund (NYSEArca: XLP) gained 7.5% in just six trading days to start 2026, marking the strongest short-term run since 2022 [1] Investment Opportunities - The S&P 500 has produced double-digit returns over the past three years, but a shift towards safer consumer staples stocks is advisable due to potential market corrections [2] - Consumer staples stocks not only offer solid upside potential but also provide significant, dependable dividends, making them attractive for conservative growth and income investors [2] Notable Companies - Altria Group Inc. (NYSE: MO) offers a compelling entry point for value investors with a 7.30% dividend yield and focuses on smoke-free products [5] - Hormel Foods Corp. (NYSE: HRL) has a reliable 5.05% dividend yield and is restructuring its portfolio to improve performance after a 25% decline in 2025 [9] - Kimberly-Clark Corp. (NYSE: KMB) has raised its dividend for 53 consecutive years, currently yielding 5.04%, and is acquiring Kenvue Inc. in a $48.7 billion deal [13][15] - PepsiCo Inc. (NYSE: PEP) reported solid earnings and has a 3.81% dividend yield, with a potential upside of over 50% due to strategic changes proposed by activist investor Elliott Investment Management [19][20] - Procter & Gamble Co. (NYSE: PG) has raised dividends for 70 straight years, with a current yield of 2.82%, focusing on branded consumer packaged goods [22][25]

Group 1 - Barclays has lowered Kimberly-Clark's target price from $132 to $102 while maintaining a "Hold" rating [1]

Group 1 - The core viewpoint of the article is that ISS recommends shareholders support Kimberly-Clark's acquisition of Kenvue, suggesting that the partnership could enhance financial metrics [1] - Kimberly-Clark proposed to acquire Kenvue for over $40 billion to create a global consumer health company [1] - Shareholders are set to vote on the transaction on January 29, with ISS acknowledging concerns regarding ongoing negative market reactions and uncertainties related to lawsuits surrounding Kenvue's products [1]

Group 1 - Kimberly-Clark Corporation (NASDAQ:KMB) is currently viewed as one of the best depressed stocks to buy, despite a challenging operating environment for consumer staples [1] - UBS has reduced its price target for Kimberly-Clark's stock to $107 from $132 while maintaining a "Neutral" rating, indicating potential improvement in fundamentals by 2026 [1] - TD Cowen has also lowered its price target for the company to $105 from $112, reflecting a tough outlook for large-cap consumer staples with limited volume growth expected [2] - Wells Fargo has adjusted its price objective for Kimberly-Clark to $105 from $110, maintaining an "Equal Weight" rating as part of its broader analysis of the consumer staples sector [3] Group 2 - The overall sentiment in the consumer staples sector is cautious, with analysts predicting a difficult year ahead and limited growth opportunities [2] - The adjustments in price targets by multiple firms suggest a consensus on the challenges facing Kimberly-Clark and the consumer staples industry as a whole [2][3]