Kimberly-Clark (KMB) Q4 2025 earnings summary

Executive summary

• Achieved strong volume-plus-mix growth and global weighted share gains, with Q4 and FY25 showing robust performance in both North America and International Personal Care segments.

• Delivered solid operating profit and stable earnings, supported by productivity, cost management, and reinvestment in brands and capabilities.

• Focused on consumer-directed innovation, cost discipline, and margin optimization, with a strategic pivot to higher growth, higher-margin personal care categories.

• Announced the acquisition of Kenvue, expected to create a $32 billion global health and wellness leader, with anticipated $2.1B in EBITDA synergies and accretive adjusted EPS by year 2.

• Transformation initiatives and portfolio shifts, including business exits and the IFP transaction, are expected to drive long-term value.

Financial highlights

• Q4 organic sales up 2.1%, with FY25 organic sales growth at 1.7%; Q4 adjusted operating profit up 13.1%, adjusted EPS up 24%.

• Full-year adjusted operating profit was $2.7B, flat year-over-year; adjusted EPS up 3.2% to $7.53.

• Adjusted free cash flow for FY25 was $1.9B; cash from operations was $2.8B.

• Gross productivity savings reached 6.2% of adjusted COGS for FY25, exceeding the 5-6% target.

• Adjusted gross margin improved by 70 bps to 37.3% in FY25.

Outlook and guidance

• 2026 organic sales growth expected to be in line or ahead of category averages (~2%), with mid- to high-single digit constant-currency adjusted operating profit growth and double-digit constant-currency adjusted EPS growth from continuing operations.

• Adjusted free cash flow expected to be ~$2B in 2026, with capital expenditures accelerating to ~$1.3B.

• Expect margin expansion in 2026, with gross margin targeted to reach at least 40% before 2030 and operating profit margin 18%-20%.

• Innovation and brand support to ramp up through Q1 and Q2, with organic growth accelerating in the back half of the year.

• Adjusted EPS attributable to the company expected to be flat due to reduced discontinued operations income.