Kimberly-Clark Corp
Q3 2025 Earnings
Market Reaction
S&P 500 over the same 30 days: +0.25%.
Did KMB Beat Earnings? Q3 2025 Results
Kimberly-Clark posted a solid beat in Q3 2025, with adjusted EPS of $1.82 clearing the $1.75 consensus estimate by 4.00% as volume-led organic growth and disciplined cost management offset a challenging macro backdrop. Reported revenue of $4.15 billion reflected a steep -16.2% year-over-year decline, though that figure was heavily distorted by prior-year asset sale gains and portfolio exits — on an organic basis, sales grew 2.5%, with volumes up 2.4% across the portfolio. The most material driver of the adjusted EPS result was the company's ability to hold adjusted operating profit essentially flat at $683 million despite a 170-basis-point compression in adjusted gross margins, as tariff headwinds and planned price-to-value investments weighed on gross margins while lower marketing and overhead costs cushioned the blow. The quarter arrives against a backdrop of heightened strategic interest in the company, including a proposed $48.7 billion merger with Kenvue that has drawn significant retail investor attention. As a long-tenured <a href="https://247wallst.com/investing/2025/12/09/the-5-best-sp-500-dividend-aristocrat-stocks-to-buy-before-2026/">dividend aristocrat</a>, Kimberly-Clark guided for approximately 2% organic sales growth in 2025, with adjusted EPS expanding at a low-to-mid single-digit rate on a constant-currency basis.
- Broad-based volume-plus-mix-led organic growth of 2.5% despite challenging broader industry volumes
- Strong productivity gains across the business
- Lower marketing, research and general expenses driven by efficiency gains
- Lower incentive accruals versus prior year
- Innovation and activations driving 2.6% volume growth in North America
“The operating environment remains dynamic, but we continue to execute our strategy with discipline and excellence as we play to win. We once again delivered broad-based volume-plus-mix-led growth, even while volume has been somewhat challenged in the broader industry. We held global weighted share, reflecting the strength of our brands across geographies and the good-better-best ladder. We continued to follow through on our decisive actions to transform Kimberly-Clark into an industry-leading personal care company poised for long-term durable growth.”
Kimberly-Clark CEO, on the earnings call
Forward Guidance & Outlook
Kimberly-Clark expects 2025 organic sales growth broadly in line with the weighted average growth of the categories and countries it competes in, currently approximately 2%. Reported net sales are forecast to reflect a negative ~100 basis point impact from currency translation and a negative 290 basis point impact from the PPE divestiture and private label diaper exit. Adjusted operating profit is expected to grow at a low single-digit rate on a constant-currency basis, including a negative 380 basis point impact from divestitures/exits and ~70 basis points from currency. 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/exits, a negative 100 basis point impact from items below operating profit, and approximately 200 basis points favorable from cessation of depreciation/amortization for assets held for sale. EPS is expected to face ~150 basis points of currency headwind. 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.