Financial Data and Key Metrics Changes - The third quarter organic net sales increased by 2.5%, driven by a 2.4% volume growth, with Baby and Child Care showing volume growth across multiple regions [40] - Adjusted operating profit dollars for Q3 were flat compared to the prior year and down 3.2% for the first nine months of the year [40][41] - Year-to-date adjusted operating profit margin was 17%, consistent with the prior year despite tariff headwinds [41][42] Business Line Data and Key Metrics Changes - North America achieved a volume plus mix growth of 2.1% in Q3, with strong performance in adult and feminine care, and baby and child care [19][20] - International Personal Care segment reported a volume plus mix growth of 3.6% in Q3, with significant gains in China, Korea, Australia, and Indonesia [29] - The diaper business in North America grew volume by 7% and gained 90 basis points of market share year-to-date [27] Market Data and Key Metrics Changes - In North America, the company gained 30 basis points of share in the first half of the year, with overall market share improvements in Personal Care [21][24] - Internationally, the company saw share gains in diapers across several markets, including China (270 basis points), South Korea (230 basis points), Brazil (90 basis points), and Indonesia (150 basis points) [29][38] - The weighted average private label share in personal care categories has consistently declined for the past five quarters [21] Company Strategy and Development Direction - The company is focused on its "Powering Care" strategy, which emphasizes innovation, brand building, and operational efficiency to drive growth [4][16] - Recent portfolio moves are aimed at sharpening focus on higher margin, higher growth personal care categories [10][11] - The company plans to leverage its global scale to deliver the best products across the good, better, best spectrum in various markets [28] Management's Comments on Operating Environment and Future Outlook - Management noted that despite persistent macro challenges, the "Powering Care" strategy is creating momentum and energy across the organization [16] - The company remains confident in its ability to unlock long-term potential and drive shareholder value [51] - The outlook for net sales and operating profit growth reflects a disciplined approach to leading market growth over time [43] Other Important Information - The company announced a commitment of $29 million to menstrual care and maternal and infant care across seven major markets [6] - Year-to-date adjusted free cash flow was approximately $1.3 billion, with expectations to deliver around $2 billion for the full year [42] Q&A Session Summary Question: What are the expectations for net sales growth in 2025? - The company expects to grow broadly in line with market growth where it competes in 2025, while maintaining the intent to lead market growth over time [43] Question: How is the company addressing tariff impacts? - The company projects a net tariff impact of approximately $50 million for the year, with efforts to mitigate some of the headwinds through productivity gains [45][46] Question: What is the outlook for adjusted earnings per share? - The company continues to expect low to mid single-digit growth versus the prior year on a constant currency basis, despite various headwinds [48]

Financial Performance - Kimberly-Clark's Q3 2025 organic sales growth was 2.5% [48] - Adjusted operating profit growth for Q3 2025 was 0.1% [48] - Adjusted EPS growth attributable to Kimberly-Clark in Q3 2025 was (0.5%) [48] - Year-to-date adjusted free cash flow reached $1.263 billion [48] - The company is on track to achieve approximately $2 billion in adjusted free cash flow for the full year 2025 [48] Productivity and Savings - Q3 gross productivity reached 6.5% of adjusted COGS [12, 17] - Year-to-date gross productivity was 5.8% of adjusted COGS [17] - Kimberly-Clark is targeting the high end of 5-6% gross productivity savings in 2025 [19] Segment Performance - North America experienced organic growth of 2.1% year-to-date [22, 24] - International Personal Care saw organic growth of 2.1% in Q3 2025 [28] - International Personal Care volume+mix growth led by +5% volume growth in Focus Markets [30] Market Share - International Personal Care gained weighted share, with gains in Diapers & Pants [12] - Huggies market share increased by +230 bps in South Korea [30, 38] - Huggies market share increased by +90 bps in Brazil [30, 42]

Core Insights - Kimberly-Clark's third-quarter profit decreased by 51% due to divestitures, business exits, and recent tariffs, despite a slight increase in sales [1] Financial Performance - The company's profit fell significantly by 51% in the third quarter [1] - Sales experienced a slight uptick, indicating some resilience in revenue generation [1] Strategic Changes - The decline in profit is attributed to strategic decisions such as divestitures and exits from certain business segments [1] - Recent tariffs have also impacted the company's financial performance [1]

Core Insights - Kimberly-Clark, the maker of Huggies diapers, exceeded analysts' expectations for third-quarter sales, driven by inflation-sensitive consumers seeking affordable products [1] Company Performance - The company reported stronger-than-expected sales figures for the third quarter, indicating resilience in its product offerings amid economic pressures [1] Consumer Behavior - Inflation-weary consumers are increasingly gravitating towards Kimberly-Clark's affordable staples, highlighting a shift in purchasing behavior due to economic conditions [1]

Financial Performance - Third quarter 2025 net sales were $4.2 billion, consistent with the prior year, with organic sales growth of 2.5% driven by 2.4% volume growth [4]. - Year-to-date sales totaled $12.4 billion, a decrease of 2.6%, primarily due to a 3.0% negative impact from divestitures and foreign currency translation [12]. - Net sales for Q3 2025 were $4,150 million, a slight increase of 0.1% compared to $4,144 million in Q3 2024 [40]. - For the nine months ended September 30, 2025, net sales were $12,367 million, a decrease of 2.6% from $12,701 million in the same period of 2024 [42]. - Total net sales for the nine months ended September 30, 2025, were $12,367 million, down 2.6% from $12,701 million in 2024 [48]. Profitability - Gross margin for the quarter was 36.0%, with an adjusted gross margin of 36.8%, down 170 basis points year-over-year due to pricing pressures and cost inflation [5]. - Diluted earnings per share (EPS) attributable to Kimberly-Clark were $1.34, down from $2.69 in the prior year, while adjusted EPS were $1.82, broadly in line with the previous year [11]. - Operating profit decreased by 39.5% to $621 million in Q3 2025 from $1,026 million in Q3 2024 [40]. - Net income attributable to Kimberly-Clark Corporation fell by 50.8% to $446 million in Q3 2025, down from $907 million in Q3 2024 [40]. - Operating profit for the nine months ended September 30, 2025, was $1,844 million, down 19.1% from $2,280 million in 2024 [42]. - Net income for the nine months ended September 30, 2025, was $1,539 million, a decrease of 27.6% compared to $2,126 million in 2024 [46]. Cash Flow and Capital Expenditures - Adjusted free cash flow is expected to be approximately $2 billion in 2025 [30]. - Cash provided by operations for the nine months ended September 30, 2025, was $1,805 million, down 25.4% from $2,417 million in 2024 [46]. - Capital spending for the nine months ended September 30, 2025, was $741 million, an increase of 44.7% compared to $512 million in 2024 [46]. - Cash and cash equivalents at the end of the period were $634 million, down 43% from $1,111 million at the end of the same period in 2024 [46]. Debt and Assets - Total debt as of September 30, 2025, was $7.3 billion, down from $7.4 billion as of December 31, 2024 [25]. - Total assets as of September 30, 2025, were $16,888 million, an increase from $16,546 million at the end of 2024 [44]. - Current liabilities increased to $7,077 million as of September 30, 2025, compared to $7,004 million at the end of 2024 [44]. Taxation - The Effective Tax Rate as reported for Q3 2025 was 45.4%, significantly higher than 19.4% in Q3 2024 [62]. - The Adjusted Effective Tax Rate for the nine months ended September 30, 2025, was 22.6%, compared to 21.7% in the same period of 2024 [62]. Transformation Initiative - The company initiated a 2024 Transformation Initiative aimed at improving growth trajectory and profitability [56]. - The company is focusing on its 2024 Transformation Initiative to enhance operational efficiency and drive future growth [61]. - The 2024 Transformation Initiative contributed $62 million to income from continuing operations in Q3 2025, compared to $(12) million in Q3 2024 [62].

Core Insights - Kimberly-Clark Corporation reported third quarter 2025 results driven by resilient consumer demand, innovative product introductions, and effective cost management [1][2][3] Financial Performance - Net sales for Q3 2025 were $4.2 billion, consistent with the prior year, with organic sales increasing by 2.5% due to a 2.4% volume growth [3][11] - Gross margin was reported at 36.0%, with an adjusted gross margin of 36.8%, reflecting a decline of 170 basis points year-over-year due to cost inflation and pricing pressures [4][10] - Operating profit for Q3 was $621 million, with adjusted operating profit at $683 million, remaining in line with the previous year despite challenges [5][12] - Diluted EPS attributable to Kimberly-Clark was $1.34, down from $2.69 in the prior year, while adjusted EPS was $1.82, broadly in line with the previous year [8][15] Year-to-Date Results - For the first nine months of 2025, sales totaled $12.4 billion, a decrease of 2.6%, primarily due to divestitures and foreign currency translation impacts [9][12] - Year-to-date gross margin was 36.0%, with an adjusted gross margin of 37.4%, down 130 basis points compared to the prior year [10][12] - Year-to-date operating profit was $1.8 billion, including $258 million in costs related to the 2024 Transformation Initiative, with adjusted operating profit at $2.1 billion, a decline of 3.2% [12][13] Business Segment Performance - North America net sales decreased by 0.8% in Q3, while organic sales grew by 2.7%, driven by strong volume growth [18][19] - International Personal Care (IPC) net sales increased by 1.9% in Q3, with organic sales growth of 2.1%, reflecting improvements in consumer value propositions [20][21] Cash Flow and Balance Sheet - Year-to-date cash provided by operations was $1.8 billion, down from $2.4 billion last year, attributed to lower operating profit [22][23] - Total debt as of September 30, 2025, was $7.3 billion, a decrease from $7.4 billion at the end of 2024 [23] 2025 Outlook - The company expects 2025 organic sales growth to align with the average growth in its competitive categories, projected at approximately 2% [25][26] - Adjusted operating profit is anticipated to grow at a low single-digit rate on a constant-currency basis, with a negative impact from divestitures and currency translation [26][27] - Adjusted free cash flow is expected to be approximately $2 billion in 2025 [28]

Core Insights - The article highlights the investment strategies and achievements of Paul Franke, a seasoned investor with 39 years of trading experience, emphasizing his contrarian stock selection style and algorithmic analysis [1] Group 1: Investment Strategies - Paul Franke developed a system called "Victory Formation," which focuses on identifying supply/demand imbalances through specific stock price and volume movements [1] - The "Bottom Fishing Club" articles target deep value stocks or those showing significant upward technical momentum reversals [1] - The "Volume Breakout Report" articles analyze positive trend changes supported by strong price and volume trading actions [1] Group 2: Performance and Recognition - Franke was consistently ranked among the top investment advisors nationally during the 1990s and achieved the 1 position in the Motley Fool® CAPS stock picking contest in 2008 and 2009 out of over 60,000 portfolios [1] - As of September 2025, he was ranked in the Top 4% of bloggers by TipRanks® for 12-month stock picking performance over the last decade [1] Group 3: Risk Management - Franke advises investors to implement stop-loss levels of 10% or 20% on individual stock choices and to maintain a diversified portfolio of at least 50 well-positioned stocks to enhance regular stock market outperformance [1]

Core Viewpoint - Kimberly-Clark Corp (NASDAQ: KMB) is highlighted as a top trending stock due to its resilience in economic downturns and attractive valuation metrics, despite a decline in stock price over the past year [1]. Company Summary - Kimberly-Clark produces essential consumer products such as Kleenex, Huggies, and various toilet paper brands, including Scott and Cottonelle [1]. - The stock has decreased by 20% over the last 52 weeks and 9% year-to-date, trading at approximately 16.5 times earnings [1]. - The company offers a dividend yield of 4.2%, making it appealing for investors seeking income [1]. Market Context - The current market sentiment is cautious, with a preference for stocks that have not significantly appreciated in value, as indicated by the CEO of Gilman Hill Asset Management [1]. - The demand for Kimberly-Clark's products is expected to remain stable, providing a level of economic insensitivity that is attractive for investment during uncertain times [1].

Core Insights - The discussion around a potential AI bubble is gaining traction on Wall Street as investors anticipate earnings reports from major tech companies. Some analysts argue that the substantial investments in AI are justified due to expected productivity gains [1][2][3] - Jon Gray, President and COO of Blackstone, emphasized that the company's AI investments are long-term and based on solid plans, involving long-term leases with major corporations [1] - Gray highlighted that global labor costs amount to $60 trillion, and if AI technology can enhance efficiency by 15%, it could result in $9 trillion in annual productivity gains, justifying the capital expenditures in AI [2][3] Investment Trends - There is a significant investment boom in chips, data centers, and power infrastructure that supports the anticipated productivity surge from AI technologies [3] - The popularity of ETFs is increasing, with record-breaking flows observed in the iShares business globally, indicating a strong investor interest in actively managed ETFs that aim to outperform benchmarks [8] - Investors are also seeking tax efficiency in their investments, which is a notable advantage of ETFs compared to mutual funds [8][10]

Core Insights - Kimberly-Clark Corporation (KMB) is expected to report a decline in both revenue and earnings for Q3 2025, with revenues estimated at $4.08 billion, reflecting a 17.6% decrease year-over-year [1] - The earnings consensus has dropped from $1.59 to $1.45, indicating a 20.8% decrease compared to the previous year [2] Factors Impacting Performance - The company faces a challenging operating environment, with softening demand in key international markets and economic pressures in emerging markets, including currency volatility and inflation [3] - Kimberly-Clark anticipates a nearly 100 basis point negative impact on net sales for the full year due to unfavorable currency rates, alongside a 290 basis point headwind from divestitures [4] - Operating profit growth is projected to be negatively impacted by approximately 100 basis points from currency translation, with earnings per share (EPS) expected to reflect a 150 basis point adverse impact [4] Margin and Cost Considerations - Margin performance may be strained due to ongoing cost pressures and increased brand investments, with advertising and promotional costs expected to rise to nearly 7% of sales in the second half of the year [5] - Despite these challenges, Kimberly-Clark's Powering Care strategy has led to 5.8% productivity savings in Q2, contributing to a multiyear savings target of $3 billion [6] Earnings Outlook - The current model does not predict an earnings beat for Kimberly-Clark, as it holds a Zacks Rank of 4 (Sell) and an Earnings ESP of -4.99% [7] - The company enters Q3 2025 earnings amid soft demand and a cautious retail environment, with external pressures likely impacting sales, margins, and EPS growth [9]