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 ...

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 AnalystEdward Lewis - Senior AnalystLauren Lieberman - Managing Director and Equity Research AnalystMike Lavery - Senior Research ...

Kimberly-Clark (NYSE:KMB) Q4 2025 Earnings call January 27, 2026 08:00 AM ET Speaker2Greetings. Welcome to the Kimberly-Clark 4Q2025 earnings call. At this time, all participants are in a listen-only mode. A question-and-answer session will follow the opening remarks. If anyone should require operator assistance during the conference, please press star zero on your telephone keypad. Please note this conference is being recorded. I will now turn the conference over to your host, Chris Jakubik, Vice President ...

Kimberly-Clark (NYSE:KMB) Q4 2025 Earnings call January 27, 2026 07:00 AM ET Company ParticipantsChris Jakubik - Head of Investor RelationsMichael Hsu - Chairman and CEONelson Urdaneta - CFORuss Torres - Group PresidentChris JakubikHello, this is Chris Jakubik, Head of Investor Relations at Kimberly-Clark. Welcome to our Q4 and full year 2025 business update. Today, our Chairman and CEO, Mike Hsu, will provide an update on our overall business transformation and performance. Russ Torres, our President and C ...

Kimberly-Clark (NYSE:KMB) Q4 2025 Earnings call January 27, 2026 07:00 AM ET Speaker0Hello, this is Chris Jakubik, Head of Investor Relations at Kimberly-Clark. Welcome to our fourth quarter and full year 2025 business update. Today, our Chairman and CEO, Mike Hsu, will provide an update on our overall business transformation and performance. Russ Torres, our President and Chief Operating Officer, will provide an overview of segment results and key market highlights. Nelson Urdaneta, our Chief Financial Off ...

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 Data and Key Metrics Changes - The company reported a 4% compound annual growth rate (CAGR) in net sales since 2021, with consistent volume and mix growth observed over the last couple of years [10] - Operating margin improved by 300 basis points over the past two years, while marketing spending increased by 33% [10] Business Line Data and Key Metrics Changes - The North American diaper business saw a significant shift towards premium products, with the premium segment increasing from 40% to over 70% [13] - E-commerce now accounts for more than 25% of consumer sales, with a strong performance in digital channels [9] Market Data and Key Metrics Changes - The global category growth rate in the second quarter was around 2%, with expectations to outpace this through innovation and premiumization [16] - The company is gaining or holding market share in seven of its eight consumer categories, particularly in personal care [10] Company Strategy and Development Direction - The company is transforming into a pure-play personal care and wellness company, focusing on higher growth and higher margin categories [5][42] - A new leadership appointment was made to accelerate transformation, with a focus on leveraging global expertise and proprietary technologies [6][11] Management's Comments on Operating Environment and Future Outlook - Management noted that consumers are under pressure, but the company is well-positioned to meet their needs through innovation and product performance [16] - The company expects to continue investing in innovation and marketing to drive growth, despite current economic challenges [16][39] Other Important Information - The company plans to increase capital expenditures to around 6% of net sales in the coming years to support supply chain transformation [28] - The advertising spend has doubled since 2018, with a current run rate of about 7% of sales, which management believes is appropriate for long-term growth [39] Q&A Session Summary Question: What is driving the positive volume mix growth? - Management indicated that consumers are willing to trade up for better-performing products, leading to significant premiumization in categories like diapers [13][15] Question: What are the key focus areas for the COO in the next year? - The COO emphasized the importance of performing while transforming, focusing on executing current strategies while laying the groundwork for future growth [40] Question: How does the company plan to manage productivity targets in light of recent changes? - The CFO confirmed that the company remains committed to its long-term productivity targets and is tracking ahead of its $3 billion gross productivity program [54]

Financial Data and Key Metrics Changes - The company reported a 4% compound annual growth rate (CAGR) in net sales since 2021, with consistent volume and mix growth observed over the last couple of years [10] - Operating margin improved by 300 basis points over the past two years while marketing spending increased by 33% [10] Business Line Data and Key Metrics Changes - The North American diaper business saw a significant shift towards premium products, with the premium segment increasing from 40% to over 70% [13] - E-commerce now accounts for more than 25% of consumer sales, with a strong share index compared to national averages [9] Market Data and Key Metrics Changes - The global category growth rate in the second quarter was around 2%, with expectations to outpace this through innovation and premiumization [16][18] - In China, the premium segment of the diaper market grew from 6% in 2019 to 42% [13] Company Strategy and Development Direction - The company is transforming into a pure-play personal care and wellness company, focusing on high-growth, high-margin categories [5][42] - A new leadership appointment aims to enhance the company's operational capabilities and drive growth [11] Management's Comments on Operating Environment and Future Outlook - Management noted that consumers are under pressure, but the company is well-positioned to meet their needs across all price tiers [16] - The company expects to continue investing in innovation and marketing to drive growth, despite a challenging consumer environment [16][39] Other Important Information - The company plans to increase capital expenditures to around 6% of net sales in the coming years to support supply chain transformation [28] - The joint venture with Suzano is expected to reduce earnings volatility related to fiber costs significantly [43] Q&A Session Summary Question: What is driving the positive volume mix growth? - Management highlighted that consumers are willing to trade up for better-performing products, leading to a significant shift towards premium offerings [12][13] Question: What are the key drivers of the current 2% category growth? - The focus on driving new benefits, innovation, and premiumization across all price tiers is essential for growth [18] Question: How is the company approaching innovation? - The company plans to accelerate the pace of innovation, focusing on both incremental and category-changing advancements [20] Question: What are the priorities for the new COO? - The COO emphasized the importance of performing while transforming, ensuring the company executes effectively while laying the groundwork for future growth [40] Question: How does the company view its advertising investment? - The company has doubled its advertising spend since 2018 and is focused on creating brand love through effective storytelling [39] Question: What is the outlook for earnings growth into 2026 and 2027? - The company expects ongoing operations to grow in line with its long-term algorithm, with specific adjustments for the joint venture's impact [56]

Financial Data and Key Metrics Changes - The company reported a 4% compound annual growth rate (CAGR) in net sales since 2021, with consistent volume and mix growth observed over the last couple of years [10] - Operating margin improved by 300 basis points over the past two years while marketing spending increased by 33% [10] Business Line Data and Key Metrics Changes - The North American diaper business saw a significant shift towards premium products, with the premium segment increasing from 40% to over 70% [13] - E-commerce now accounts for more than 25% of consumer sales, with a strong share index compared to national averages [9] Market Data and Key Metrics Changes - The company experienced a 2% weighted average category growth rate globally in the second quarter [16] - In developed markets, there is a notable shift towards premiumization, with significant growth in premium segments in various regions, including China [13] Company Strategy and Development Direction - The company is transforming into a pure-play personal care and wellness company, focusing on high-growth, high-margin categories [5] - A multi-year pipeline of proprietary innovation is being developed to expand categories and meet consumer needs [5] Management's Comments on Operating Environment and Future Outlook - Management noted that consumers are under pressure, and there is no immediate catalyst for change in the near term [16] - The strategy of cascading innovation across all tiers is driving growth, with a focus on meeting consumer needs at every price point [15] Other Important Information - The company plans to increase capital expenditures to around 6% of net sales in the coming years to support supply chain transformation [28] - The advertising spend has doubled since 2018, with a projected ongoing run rate of about 7% of sales [39] Q&A Session Summary Question: What is driving the positive volume mix growth? - Management highlighted that consumers are willing to trade up for better-performing products, leading to significant shifts towards premium offerings [12][13] Question: What are the drivers of the current 2% category growth? - The focus on driving new benefits, innovation, and premiumization across all price tiers is essential for growth [18] Question: How is the company approaching innovation? - The company is committed to both an accelerated pace of innovation and significant improvements in product performance [20][21] Question: What are the top priorities for the new COO? - The focus is on performing while transforming, ensuring the organization is set up for future success while executing current strategies [40] Question: How does the company view its portfolio changes? - The company aims to focus on higher growth, higher margin categories and reduce earnings volatility associated with fiber costs [42][43] Question: What is the outlook for advertising investment? - The company has increased advertising investment significantly and plans to continue this trend to enhance brand storytelling and consumer connection [30][39]