Financial Data and Key Metrics Changes - The stockholders approved the issuance of shares of common stock as part of a merger agreement dated November 2, 2025, with Kenvue and other entities [4][7]. Business Line Data and Key Metrics Changes - No specific data or metrics related to individual business lines were provided in the meeting [1]. Market Data and Key Metrics Changes - No specific market data or metrics were discussed during the meeting [1]. Company Strategy and Development Direction and Industry Competition - The meeting focused on the approval of the issuance proposal, indicating a strategic move towards a merger that may enhance the company's market position [4][5]. Management's Comments on Operating Environment and Future Outlook - Management did not provide specific comments on the operating environment or future outlook during this meeting [1]. Other Important Information - The meeting was conducted virtually, and stockholders were encouraged to submit questions via the meeting portal [3][4]. - The final voting results will be reported in a current report on Form 8-K to be filed with the SEC within four business days [7]. Q&A Session Summary - No questions were posed during the meeting, and all inquiries were to be addressed via email after the meeting concluded [4][7].

Core Viewpoint - Kimberly-Clark Corporation and Kenvue Inc. have received overwhelming shareholder approval for Kimberly-Clark's acquisition of Kenvue, marking a significant step towards creating a global health and wellness leader [1][2]. Group 1: Transaction Details - The acquisition transaction is expected to close in the second half of 2026, pending regulatory approvals and other customary closing conditions [3]. - Approximately 96% of shares present at Kimberly-Clark's Special Meeting voted in favor of the share issuance related to the transaction [2]. - At Kenvue's Special Meeting, about 99% of shares voted to adopt the merger agreement, representing approximately 77% of all outstanding shares [2]. Group 2: Company Statements - Kimberly-Clark's CEO, Mike Hsu, expressed gratitude to shareholders for their support and emphasized the potential to raise care standards for billions globally while generating significant shareholder value [2]. - Kenvue's CEO, Kirk Perry, highlighted the growth opportunities for the combined company and the potential to accelerate innovation and expand access to trusted brands [2]. Group 3: Company Backgrounds - Kimberly-Clark operates in over 175 countries with a portfolio of brands that hold No. 1 or No. 2 market share positions in approximately 70 countries, focusing on sustainable practices [4]. - Kenvue is recognized as the world's largest pure-play consumer health company by revenue, with a heritage of over a century and a portfolio of well-known brands [5].

Core Viewpoint - Kenvue shareholders are set to vote on Kimberly-Clark's $48.7 billion acquisition proposal, which aims to create a significant consumer health and wellness entity by merging well-known brands [1] Group 1: Acquisition Details - The merger deal offers Kenvue shareholders $21.01 per share, which is a substantial premium compared to the current trading price of around $17, although Kenvue stock is trading approximately 18% below the deal price [2] - The proposed merger would combine two consumer goods giants, serving nearly half of the global population, with Kimberly-Clark expecting to achieve around $2.1 billion in synergies while maintaining strong margins [3] Group 2: Kenvue's Financial Performance - Kenvue has faced operational challenges, reporting a 3.5% decline in net sales and a 4.4% drop in organic sales in the third quarter, continuing a trend of weakness throughout 2025 [5] - The company experienced a 4% drop in volume and a 0.4% decrease in pricing power, affecting all business segments, including a 5.3% decline in Self-Care and a 4.2% drop in Essential Health [6] Group 3: Market Dynamics - Low seasonal incidences of allergies and flu have negatively impacted demand for products like Zyrtec and Tylenol, compounded by inventory reductions at major retailers and shipment timing issues in China, indicating deeper distribution challenges [7] - Despite market share gains for flagship brands like Zyrtec and Tylenol, these successes have not translated into sales growth, raising concerns about Kenvue's ability to recover independently [8]

Core Insights - Kimberly-Clark reported fourth-quarter adjusted earnings of $1.86 per share, exceeding analyst estimates of $1.81, with revenue at $4.08 billion, slightly below the consensus of $4.09 billion and down 0.6% year over year [1] Financial Performance - Adjusted operating profit increased by 13.1% to $629 million, attributed to productivity improvements and reduced spending on marketing, research, and overhead [2] - Organic sales in the International Personal Care segment grew by 4.5%, while North America experienced 0.8% organic growth, impacted by a 3.7% decline from exiting the private-label diaper business [2] Future Outlook - For 2026, Kimberly-Clark anticipates organic sales growth to align with or slightly exceed category averages of approximately 2% [3] - Adjusted operating profit is expected to grow at a mid-to-high single-digit rate on a constant-currency basis, with adjusted earnings per share from continuing operations projected to rise at a double-digit pace [3]

Core Insights - Kimberly-Clark Corporation reported earnings per share of $1.86, exceeding estimates of $1.39, driven by effective cost control and consistent demand for essential products [1][5] - The company announced an increase in its quarterly dividend to $1.28 per share, marking the 54th consecutive year of dividend growth [2][5] - Kimberly-Clark is planning a strategic acquisition of Kenvue to enhance its market position in the health and wellness sector [3][5] Financial Metrics - The company has a price-to-earnings (P/E) ratio of approximately 17.04, indicating investor confidence in its earnings potential [4] - The price-to-sales ratio is about 1.86, while the enterprise value to sales ratio is around 2.22 [4] - The debt-to-equity ratio is notably high at about 5.44, suggesting significant reliance on debt financing, and the current ratio is approximately 0.77, indicating potential challenges in covering short-term liabilities [4]

Core Insights - Kimberly-Clark Corporation (KMB) reported fourth-quarter 2025 results with improved earnings but a decline in sales, missing consensus estimates [1][4] Financial Performance - Adjusted earnings per share were $1.86, exceeding the Zacks Consensus Estimate of $1.39, and reflecting a 24% year-over-year increase driven by growth in adjusted operating profit and reduced shares outstanding [3][4] - Total sales were $4,080 million, a 0.6% decline from $4,104 million in the prior-year quarter, missing the consensus estimate of $4,120 million [4] - Organic sales growth was 2.1%, supported by a 3% volume-and-mix expansion, offset by a 1.1% decline due to price investments [4] Segment Analysis - North America segment net sales were $2,641 million, down 3% year over year, impacted by a 3.7% decline from exiting the private-label diaper business, partially offset by 0.8% organic sales growth [7] - North America's operating profit increased 5.5% to $580 million, aided by productivity gains and lower expenses despite divestiture-related headwinds [8] - International Personal Care segment net sales rose 4.2% to $1,439 million, with organic sales growth of 4.5%, driven by strong volume gains and a favorable portfolio mix [9] Operational Efficiency - Adjusted gross margin remained flat at 37%, with productivity savings offsetting unfavorable pricing net of cost inflation [5] - Adjusted operating profit increased 13.1% to $629 million, driven by productivity savings and reduced marketing and general expenses [5][10] Financial Health - The company ended the quarter with cash and cash equivalents of $688 million, long-term debt of $6,474 million, and total stockholders' equity of $1,630 million [11] - Cash provided by operations for the 12 months ended December 31 was $2,777 million, with capital spending of $1,138 million [11] Future Outlook - For 2026, Kimberly-Clark expects organic sales growth to outpace market growth, with net sales anticipated to reflect a negative impact of approximately 50 basis points from the exit of the private-label diaper business [12] - Adjusted operating profit is projected to grow at a mid-to-high single-digit rate, with adjusted earnings per share expected to grow at a double-digit rate [13]

Core Insights - Kimberly-Clark has been successfully growing volumes in a challenging consumer environment by focusing on delivering superior product propositions and accelerating innovation across its portfolio [1][3] - The company reported its eighth consecutive quarter of solid volume-plus-mix performance and gained enterprise-weighted market share [2][5] - Management anticipates continued consumer pressure and a focus on value, leading to strategic adjustments in pricing and product offerings [6][12] Financial Performance - In Q4 2025, Kimberly-Clark achieved strong productivity, marking the strongest quarter of the year [2][3] - The company expects largely flat costs for 2026, with a productivity target of approximately 6% and aims for margin expansion [4][17] - Long-term targets include achieving at least 40% adjusted gross margin and 18-20% operating margin before 2030 [4][17] Strategic Initiatives - The planned acquisition of Kenvue is expected to enhance Kimberly-Clark's position in higher growth, higher-margin personal care categories [4][15] - Management is focused on maintaining healthy investment levels across the value chain while adapting to consumer trends [1][6] Market Dynamics - The company anticipates a partial loss of diaper distribution in the North American club channel starting in Q1, which is expected to impact full-year results by approximately 60 basis points [5][13] - Despite this, Kimberly-Clark reported global share gains in diapers across several markets, including a 100 basis point increase in North America in Q4 [14] Category Growth Expectations - The global category growth outlook for 2026 is projected to be around ±2%, with some recent fluctuations noted [7][16] - The company expects organic growth to accelerate in the second half of 2026, supported by innovation and brand initiatives [16] Pricing and Consumer Behavior - Management noted that promotional activity remains below category levels, and the company intends to maintain pricing discipline while growing volume and mix profitably [12][18] - Shifts in consumer purchasing behavior, including a move towards larger pack sizes and club channels, are influencing pricing strategies [11][6]

Core Insights - Kimberly-Clark Corporation reported a stronger-than-expected quarter, driven by solid execution and expanding profit momentum despite sales pressure from changes in the U.S. diaper business [1][3] Financial Performance - The company reported fourth-quarter adjusted earnings per share of $1.86, exceeding the analyst consensus estimate of $1.81 [3] - Quarterly sales were $4.08 billion, slightly missing the expected $4.09 billion, with revenues down by 0.6% and organic sales growth of 2.1% [3] - Gross margin was 35.9%, with an adjusted gross margin of 37%, consistent with the prior year [4] - Adjusted operating profit increased to $629 million, a rise of 13.1% from the previous year, attributed to strong productivity gains and reduced planned spending [4] Strategic Initiatives - The company is making significant progress in various international markets, including Australia, Brazil, and South Korea [5] - The acquisition of Kenvue is viewed as a transformative step that will enhance the company's momentum and improve care standards globally [5] Cash and Dividend - Kimberly-Clark ended the quarter with cash and equivalents totaling $688 million and inventories of $1.475 billion [6] - The company announced an increase in its quarterly dividend to $1.28 per share, up from $1.26, payable on April 2, 2026 [7] 2026 Outlook - The company anticipates reported net sales to be impacted by approximately a 50-basis-point decline due to exiting the U.S. private-label diaper business [8] - Forecasts indicate mid- to high-single-digit adjusted operating profit growth on a constant-currency basis [8] - Expected double-digit adjusted EPS growth from continuing operations is projected, driven by increased equity-company income and stable net interest expense [9]

Core Insights - Kimberly-Clark reported a revenue of $4.08 billion for the quarter ended December 2025, reflecting a decline of 17.2% year-over-year [1] - The company's EPS was $1.86, an increase from $1.50 in the same quarter last year, resulting in an EPS surprise of +33.57% against a consensus estimate of $1.39 [1] Financial Performance Metrics - The revenue of $4.08 billion was slightly below the Zacks Consensus Estimate of $4.12 billion, indicating a surprise of -0.98% [1] - Key metrics showed a volume impact year-over-year change of 2.5%, aligning with the average estimate of four analysts [4] - Organic net sales year-over-year change was 0.8%, below the average estimate of 2.7% by four analysts [4] - The net price impact for North America showed a year-over-year change of -1%, compared to an estimated 0.2% by four analysts [4] - The stock has returned +0.1% over the past month, underperforming the Zacks S&P 500 composite's +0.4% change [3] - Kimberly-Clark currently holds a Zacks Rank 4 (Sell), suggesting potential underperformance in the near term [3]

Kimberly-Clark (NYSE:KMB) Q4 2025 Earnings call January 27, 2026 08:00 AM ET Company ParticipantsChris Carey - Head of Consumer Staples ResearchChris Jakubik - Head of Investor RelationsMike Hsu - Chairman and CEONelson Urdaneta - CFONik Modi - Managing DirectorRuss Torres - President and COOConference Call ParticipantsBonnie Herzog - Managing Director and Senior Equity Research AnalystBrent Hickman - Senior Customer Logistics AnalystEdward Lewis - Senior AnalystLauren Lieberman - Managing Director and Equi ...