Kimberly-Clark Corp
Q2 2025 Earnings
Market Reaction
S&P 500 over the same 30 days: +3.54%.
Did KMB Beat Earnings? Q2 2025 Results
Kimberly-Clark delivered a standout second quarter, posting adjusted EPS of $1.92 against a consensus estimate of $1.66 — a 15.66% beat — as CEO Mike Hsu described it as "one of the strongest quarters in our recent history." Reported revenue came in at $4.16 billion, down 17.2% year-over-year, a decline driven almost entirely by divestitures and currency headwinds rather than underlying demand weakness; organic sales grew 3.9%, powered by volume growth of 5.0% — the highest in five years — as the company's innovation investments drove consumer pull across both North America and international markets. The adjusted gross margin of 36.9% contracted 180 basis points as price-value investments and tariff costs offset strong productivity gains. Looking ahead, management raised its full-year 2025 outlook, now expecting organic sales growth to exceed the roughly 2% category rate and adjusted EPS to grow at a low-to-mid single digit pace on a constant-currency basis. For income-focused investors, the results reinforce why Kimberly-Clark remains among the <a href="https://247wallst.com/investing/2025/12/09/the-5-best-sp-500-dividend-aristocrat-stocks-to-buy-before-2026/">most durable dividend aristocrats</a>, having now extended its consecutive annual dividend growth streak to 53 years.
- Highest volume growth in five years at 5.0% consolidated, driving 3.9% organic sales growth
- Strong productivity gains partially offsetting cost headwinds
- North America Personal Care categories grew weighted share by 60 basis points
- Innovation-led demand and strong commercial execution
- Planned lower marketing, research and general expenses partially offsetting gross profit headwinds
“Our second quarter results are indicative of the exceptional progress we are making executing our Powering Care strategy. This was a very active quarter and one of the strongest in our recent history. We delivered strong organic sales growth, fueled by the highest volume growth we've achieved in five years. Our durable brands, differentiated value propositions and innovation investments enabled us to enhance and maintain leading market share positions across categories and price tiers. We took decisive actions to set Kimberly-Clark up for enhanced, sustainable growth and profitability.”
Kimberly-Clark CEO, on the earnings call
Forward Guidance & Outlook
Kimberly-Clark raised its 2025 outlook. Organic sales growth is expected to outpace the weighted average category growth of approximately 2%. Reported net sales are forecast to reflect approximately 100 basis points of negative currency translation and approximately 290 basis points of headwind from the PPE divestiture and US private label diaper exit. Adjusted operating profit is expected to grow at a low-to-mid single digit rate on a constant-currency basis, including a negative 380 basis point impact from divestitures and business exits and approximately 100 basis points from currency translation. Adjusted EPS attributable to Kimberly-Clark is expected to grow at a low-to-mid single digit rate on a constant-currency basis, with a negative 320 basis point impact from divestitures, approximately 100 basis points from items below operating profit, and approximately 150 basis points from currency translation, partially offset by a favorable approximately 200 basis points ($0.16 per diluted share) from cessation of depreciation and amortization on assets held for sale. Adjusted free cash flow is expected to be approximately $2 billion in 2025.
KMB YoY Financials
KMB Revenue by Segment
Figures from SEC filings and company reports. Not investment advice.