Kimberly-Clark Corp
Q1 2025 Earnings
Market Reaction
S&P 500 over the same 30 days: +10.59%.
Did KMB Beat Earnings? Q1 2025 Results
Kimberly-Clark delivered a mixed first quarter for 2025, beating profit expectations while grappling with revenue headwinds and a sobering outlook revision that overshadowed the bottom-line strength. Adjusted EPS of $1.93 came in 7.22% above the $1.80 consensus estimate, though it still represented a 4.0% year-over-year decline, supported in part by a lower adjusted effective tax rate following the resolution of certain tax matters. Net sales fell 6.0% to $4.84 billion, with roughly half that decline attributable to currency translation drag and the impact of portfolio exits including the PPE divestiture. The more consequential story, however, was management's disclosure that tariff-related supply chain costs are expected to reach $300 million, prompting a sharp downgrade to full-year guidance — adjusted operating profit and EPS are now expected to be merely flat to positive on a constant-currency basis, a steep step down from the prior expectation of high single-digit growth. For investors who prize Kimberly-Clark as one of the <a href="https://247wallst.com/investing/2025/12/09/the-5-best-sp-500-dividend-aristocrat-stocks-to-buy-before-2026/">most resilient dividend growers</a> in the market, the company's 53rd consecutive year of dividend increases offered a measure of reassurance amid the uncertainty.
- Strong in-market execution and effective cost management
- Sustained productivity momentum fueling investments and profitability
- Resilient consumer demand
- Lower adjusted effective tax rate of 21.4% benefiting from resolution of certain tax matters
- Price investments across all segments to enhance value propositions
“Building on the strong foundation we established in 2024, we made further progress across the three pillars of our Powering Care strategy in the first quarter of 2025. Despite the evolving external landscape, our first quarter was consistent with our full-year plan.”
Kimberly-Clark CEO, on the earnings call
Forward Guidance & Outlook
Kimberly-Clark significantly revised its 2025 outlook to reflect a reassessment of its cost base including potential impacts from changes in the global geopolitical landscape. Organic sales growth is expected to outpace weighted average category growth, which is currently estimated at 1.5-2.0% (down from approximately 2% at the start of the year). Reported net sales will reflect approximately 200 basis points of negative currency translation (improved from approximately 300 bps previously) and approximately 240 bps negative impact from PPE divestiture and private-label diaper exit. Adjusted operating profit is now expected to be flat to positive on a constant-currency basis, a meaningful downgrade from the prior expectation of high single-digit constant-currency growth. Adjusted EPS is now expected to be flat to positive on a constant-currency basis. Adjusted free cash flow is now expected to be approximately $2 billion, reduced from the prior expectation of more than $2 billion. The outlook reflects uncertainty around tariffs, geopolitical developments, and their impact on the global supply chain.
KMB YoY Financials
KMB Revenue by Segment
Figures from SEC filings and company reports. Not investment advice.