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 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 Pre ...

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 company reported a 17.8% increase in diluted earnings per share for the full year of 2025, with diluted EPS at $0.90 for the fourth quarter compared to $0.96 in the linked quarter [5][21] - Net interest income was $43 million for the fourth quarter, consistent with the third quarter, while the net interest margin (NIM) was 4% for the fourth quarter, down from 4.05% in the linked quarter [21][22] - Deposits remained steady at $3.87 billion at the end of the fourth quarter, with a full-year increase of $253 million or 7% from year-end 2024 [22][23] - Tangible book value per share increased to $29.05 as of December 31, 2025, compared to $28.14 as of September 30, 2025 [25] Business Line Data and Key Metrics Changes - Loans held for investment increased by $91 million to $3.14 billion in the fourth quarter, primarily due to organic growth in multifamily property loans, direct energy loans, and other commercial loans [11] - The indirect auto loan portfolio totaled $241 million at the end of the fourth quarter, relatively unchanged from the linked quarter, with a focus on maintaining credit quality [16][19] - Non-interest income was $10.9 million in the fourth quarter, flat compared to $11.2 million in the linked quarter, with mortgage banking revenues declining due to seasonal factors [20] Market Data and Key Metrics Changes - The loan portfolio in major metropolitan markets of Dallas, Houston, and El Paso increased by $15 million or 5.8% annualized to $1.03 billion [14] - The Houston market is highlighted as a key growth area, with the Bank of Houston acquisition expected to enhance the company's presence in this fast-growing region [6][15] Company Strategy and Development Direction - The company is focused on expanding its lending team across high-growth Texas markets and pursuing accretive M&A opportunities, including the acquisition of Bank of Houston [5][6] - The merger with Bank of Houston is projected to be approximately 11% accretive to earnings in 2027, with a tangible book value earnback of less than three years [8] - The company aims to enhance its technology and systems to support efficient growth and is open to additional acquisitions that align with its strategic goals [98][99] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about loan growth accelerating to a mid to high single-digit growth rate in 2026, driven by new hires and the Bank of Houston acquisition [9][13] - The company remains well-capitalized and is focused on returning income to shareholders through dividends and share buybacks [10][25] - Management acknowledged potential headwinds in the first quarter of 2026 from expected payoffs in the multifamily property portfolio [14] Other Important Information - The company recorded a $1.8 million provision for credit losses in the fourth quarter, up from $500,000 in the linked quarter, primarily due to strong loan growth [24] - The cost of deposits decreased by 9 basis points to 2.01% compared to the linked quarter, with expectations for a modest decline in the cost of funds in the first quarter [23] Q&A Session Summary Question: NIM outlook and loan growth - Management indicated that while they aim to keep NIM stable, there may be some compression due to competitive pressures and loan growth dynamics [28][29][30] Question: Deposit growth expectations - Management believes they can reduce the deposit costs of Bank of Houston's deposits over time, which may help offset NIM pressures [31] Question: M&A strategy - The company is not pursuing aggressive acquisitions but is open to opportunities that align with their strategic goals, including potential deals beyond Houston [32][33] Question: Payoffs and loan growth - The fourth quarter saw fewer payoffs than previous quarters, aiding net growth, but management anticipates some payoffs in the first quarter of 2026 [40][41] Question: Indirect auto loan portfolio quality - Management noted that the portfolio remains in good condition, with a focus on maintaining high credit quality despite some shifts in borrower credit scores [44][48] Question: Mortgage banking and fee income - The company is actively hiring mortgage producers to prepare for a potential upturn in volumes and is focused on maintaining fee income growth [51][52]

South Plains Financial (NasdaqGS:SPFI) Q4 2025 Earnings call January 26, 2026 05:00 PM ET Company ParticipantsBrent Bates - Chief Credit OfficerBrett Rabatin - Managing Director and Head of Equity ResearchCory Newsom - PresidentCurtis Griffith - Chairman and CEOStephen Scouten - Managing DirectorSteve Crockett - CFO and TreasurerWoody Lay - VPConference Call ParticipantsJoe Yanchunas - Equity Research AnalystOperatorGood afternoon, ladies and gentlemen, and welcome to the South Plains Financial Fourth Quart ...

Financial Data and Key Metrics Changes - Revenue for Q1 Fiscal 2026 was $3.19 billion, representing a 59% increase compared to the same period a year ago [12][13] - Non-GAAP operating margin was 6.0%, up 40 basis points year-over-year [14] - Non-GAAP diluted earnings per share reached $2.38, a 66.1% increase compared to the same period last year [14] Business Line Data and Key Metrics Changes - IMS revenue was $2.79 billion, up 72% year-over-year, driven by growth in communications networks and cloud and AI infrastructure [15][16] - CPS revenue was $434 million, a 4.3% increase year-over-year, with a non-GAAP gross margin of 12.9%, which is lower than recent performance due to investments for new programs [17] Market Data and Key Metrics Changes - Communication networks and cloud infrastructure accounted for approximately 62% of total revenue, with core business growth of about 20% year-over-year [28] - Industrial, energy, medical, defense, aerospace, automotive, and transportation contributed 38% of revenue, slightly down by 3% year-over-year, but expected to stabilize [28] Company Strategy and Development Direction - The company aims to double revenue in the next two years, targeting $16 billion by calendar year 2027, with a strong focus on AI opportunities [34] - Strategic investments are planned in technologies and capabilities to support growth, particularly in AI data centers and energy solutions [21][36] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the growth trajectory for fiscal 2026, with expectations for continued strong demand in AI hardware and core business growth in high single digits [24][38] - The company is focused on maintaining a healthy balance sheet while investing in future growth opportunities [20][36] Other Important Information - Cash flow from operations was $179 million, with capital expenditures of $87 million for the quarter [20] - The company has a strong balance sheet with cash and cash equivalents of $1.42 billion and no outstanding borrowings on its $1.5 billion revolver [18] Q&A Session Summary Question: Can you help parse through the sequential revenue guidance for the March quarter? - Management indicated that the business is improving and that they are guiding one quarter at a time, with expectations for strong performance in both core Sanmina and ZT Systems [42][44] Question: How do you see the transition occurring with ZT Systems? - Management confirmed that the transition is on track and that they are focused on future opportunities, emphasizing the importance of execution and customer relationships [45][49] Question: What is the outlook for the communications market? - Management reported strong demand in the communications market, expecting continued strength in the March quarter and throughout the year [55]

Financial Data and Key Metrics Changes - The company reported record quarterly operating earnings of $450 million, or $1.13 per share, growing 9.5% over the prior year, with a 21.4% return on beginning of year equity [16] - Net income also reached $450 million, resulting in a 21.4% return on beginning of year equity [16] - Record quarterly pre-tax underwriting income of $338 million, an improvement of 14.9% over the prior year [16] - The expense ratio improved to 28.2%, driven by record net premiums earned of $3.2 billion [17] - Strong operating cash flows of nearly $1 billion for the quarter and $3.6 billion for the full year contributed to an 11.4% growth in invested assets, reaching a record level of $33.2 billion [18] Business Line Data and Key Metrics Changes - The current accident year loss ratio, excluding catastrophe losses, was 59.7%, slightly better than the previous two quarters [17] - The combined ratio excluding catastrophe losses was 87.9%, while the calendar year combined ratio was 89.4% [18] - The reinsurance and monoline excess segment reported a current accident year loss ratio of 53.9%, resulting in a strong combined ratio of 83% [18] Market Data and Key Metrics Changes - The auto liability market continues to be a challenge, with hopes of finding a bottom by the end of 2026 [10] - The property reinsurance market is experiencing significant competition, with a risk-adjusted rate decrease of 19% noted [11] - The casualty market, particularly in smaller accounts and excess and umbrella markets, is showing opportunities for meaningful rate increases [14] Company Strategy and Development Direction - The company is focusing on technology adoption, particularly AI, to enhance operational efficiency and underwriting processes [8] - There is an emphasis on understanding the evolving relationship between traditional distribution and carriers, with a shift towards self-service models for customers [9] - The company is committed to making meaningful investments in technology and data to improve competitiveness and operational efficiency [26] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about the company's ability to adapt to changing market conditions and customer preferences, particularly regarding technology and distribution [7][9] - There is a cautious outlook on premium growth for 2026, with expectations that insurance activities will likely perform better than the fourth quarter of 2025 [35] - Management noted that while the reinsurance marketplace is becoming more challenging, the company remains disciplined in its approach [121] Other Important Information - The effective tax rate in the fourth quarter was 20.5%, benefiting from lower rates related to foreign earnings [20] - The company returned $608 million of capital to investors in the fourth quarter, comprising special and regular dividends and share repurchases [21][22] - Stockholders' equity grew by 15.6% during the year, with a financial leverage ratio of 22.6% [22] Q&A Session Summary Question: Premium growth expectations for 2026 - Management believes insurance activities will likely perform better than the fourth quarter of 2025, while the reinsurance marketplace may face challenges [35] Question: Expense ratio and technology investments - Significant investments in technology are expected in 2026, with benefits anticipated to start appearing in 2027 [37] Question: Workers' compensation market outlook - Management noted that medical costs and claims activity in workers' compensation have been artificially suppressed, and there are expectations for improvement [44] Question: Pricing trends in casualty lines - Auto liability is a concern, with management indicating a reduction in exposure due to pricing pressures [62] Question: AI and technology implementation - The company is actively utilizing technology to improve efficiency in underwriting processes [66] Question: Impact of competition on premium growth - Management cautioned against overreacting to short-term trends, noting that certain market segments may still present growth opportunities [107]

Financial Data and Key Metrics Changes - The company reported record quarterly operating earnings of $450 million, or $1.13 per share, representing a 9.5% increase over the prior year, with a 21.4% return on beginning of year equity [16] - Net income for the quarter was also $450 million, resulting in a 21.4% return on beginning of year equity [16] - The expense ratio improved to 28.2%, driven by record net premiums earned of $3.2 billion and operational efficiencies [17] - Strong operating cash flows of nearly $1 billion for the quarter contributed to an increase in invested assets, which grew 11.4% during 2025 to $33.2 billion [18] Business Line Data and Key Metrics Changes - The current accident year loss ratio, excluding catastrophe losses, was 59.7%, slightly better than the previous two quarters [17] - The reinsurance and monoline excess segment reported a current accident year loss ratio of 53.9%, resulting in a strong combined ratio of 83% [18] - The company experienced record top line gross and net premiums written of $15.1 billion and $12.7 billion, respectively, for the full year [23] Market Data and Key Metrics Changes - The auto liability market continues to be a challenge, with expectations that it may find a bottom by the end of 2026 [10] - The property reinsurance market is experiencing significant competition, with a risk-adjusted rate decrease of 19% noted [11] - The casualty market, particularly in smaller accounts and excess and umbrella markets, is showing opportunities for meaningful rate increases [14] Company Strategy and Development Direction - The company is focusing on technology adoption, particularly AI, to enhance operational efficiency and underwriting processes [8] - There is an emphasis on understanding customer behavior changes, with a shift towards self-service models and convenience over price [9] - The company is committed to maintaining a disciplined approach to capital management, returning $608 million to investors in Q4 [21] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about the company's ability to adapt to changing market conditions and technology advancements [7] - There are early signs of improvement in the workers' compensation market, particularly in California [15] - The company anticipates continued growth in 2026, particularly in the insurance business, while remaining cautious about the reinsurance market [121] Other Important Information - The effective tax rate for Q4 was 20.5%, benefiting from lower rates related to foreign earnings [20] - The company returned a total of $971 million to investors for the year, exceeding 10% of stockholders' equity [22] Q&A Session Summary Question: Premium growth expectations for 2026 - Management expects insurance activities to likely perform better than Q4, with a cautious outlook on reinsurance [35] Question: Expense ratio and investment year guidance - Significant investments in technology and AI are expected in 2026, with benefits anticipated in 2027 [37] Question: Medical inflation impact on workers' compensation - Medical costs in workers' compensation are expected to rise, with claims activity previously suppressed [44] Question: Pricing trends in casualty lines - Auto liability is being reduced in exposure due to unfavorable pricing trends, while other lines are being monitored [62] Question: Technology investments and efficiency - Investments in technology are aimed at improving efficiency and competitiveness, with potential savings being passed on to customers [91] Question: Impact of competition on premium growth - Management cautioned against overreacting to short-term premium growth fluctuations, noting potential for recovery [107]

Financial Data and Key Metrics Changes - Revenue for the first quarter of Fiscal 2026 was $3.19 billion, representing a 59% increase compared to the same period a year ago [13][14] - Non-GAAP operating margin was 6%, consistent with the previous quarter and up 40 basis points year-over-year [14][19] - Non-GAAP diluted earnings per share reached $2.38, a 66.1% increase compared to the same period last year [14][19] Business Line Data and Key Metrics Changes - IMS revenue was $2.79 billion, up 72% year-over-year, driven by growth in communications networks and cloud and AI infrastructure [15][16] - CPS revenue was $434 million, a 4.3% increase year-over-year, with a non-GAAP gross margin of 12.9%, which is lower than recent performance due to investments in new programs [17][18] Market Data and Key Metrics Changes - The core Sanmina business in communication networks and cloud infrastructure grew approximately 20% year-over-year, contributing to 62% of total revenue [28] - Industrial, energy, medical, defense, aerospace, automotive, and transportation segments accounted for 38% of revenue, slightly down 3% year-over-year, but expected to stabilize and grow in the future [28][32] Company Strategy and Development Direction - The company aims to double revenue to $16 billion by 2027, focusing on AI opportunities and vertical integration in the AI data center market [34][36] - Strategic investments are being made in technologies and capabilities to support growth, particularly in the U.S., India, and Mexico [21][22] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the growth trajectory for Fiscal 2026, with expectations for strong demand in AI hardware and core business growth in high single digits [24][38] - The company is focused on maintaining a healthy balance sheet while investing in future growth opportunities [20][22] Other Important Information - Cash flow from operations was $179 million, with capital expenditures of $87 million for the quarter [20][21] - The company has a strong balance sheet with cash and cash equivalents of $1.42 billion and no outstanding borrowings on its $1.5 billion revolver [19][20] Q&A Session Summary Question: Can you help parse through the sequential revenue guidance for the March quarter? - Management indicated that the business is improving and that guidance is based on one quarter at a time, with expectations for strong performance from both core Sanmina and ZT Systems [41][44] Question: Can you clarify the revenue contributions from different parts of the ZT business? - Management confirmed that the transition is ongoing, and they are focused on future business opportunities while maintaining strong relationships with existing customers [46][49] Question: How do you see the communications market recovering? - Management noted strong demand in the communications market, with expectations for continued strength in the upcoming quarters [54][55] Question: What are the expectations for the industrial, medical, and automotive segments? - Management acknowledged some recent weakness in automotive but expects stabilization and growth in the second half of Fiscal 2026 [81][83]

Financial Data and Key Metrics Changes - Revenue for Q1 2026 was $3.19 billion, representing a 59% increase compared to the same period last year [10][13] - Non-GAAP operating margin was 6.0%, up 40 basis points year-over-year [14] - Non-GAAP diluted earnings per share reached $2.38, a 66.1% increase from the previous year [14] Business Line Data and Key Metrics Changes - IMS revenue was $2.79 billion, up 72% year-over-year, driven by growth in communications networks and cloud and AI infrastructure [15] - CPS revenue was $434 million, a 4.3% increase year-over-year, but lower than recent performance due to investments for new programs [16] Market Data and Key Metrics Changes - Communication networks, cloud, and AI infrastructure accounted for approximately 62% of total revenue, with core business growing about 20% year-over-year [28] - Industrial, energy, medical, defense, aerospace, automotive, and transportation represented 38% of revenue, slightly down 3% year-over-year [28] Company Strategy and Development Direction - The company aims to double revenue in the next two years, targeting $16 billion by calendar year 2027, focusing on AI opportunities [35] - Strategic investments are planned in technologies and capabilities to strengthen market position and support growth expectations [21][22] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the strong demand across most end markets and expects continued growth in fiscal 2026 [29][38] - The company is focused on maintaining a healthy balance sheet while investing in future growth opportunities [20][22] Other Important Information - Cash flow from operations was $179 million, with capital expenditures of $87 million for the quarter [20][21] - The company has a strong balance sheet with cash and cash equivalents of $1.42 billion and no outstanding borrowings [17][19] Q&A Session Summary Question: Can you help me parse through the sequential revenue guidance for the March quarter? - Management indicated that the business is improving and expects core Sanmina to grow quarter-over-quarter and double digits year-over-year [42][44] Question: Can you clarify the revenue contributions from different parts of the ZT business? - Management confirmed that the transition is ongoing and they are focused on future business opportunities, with strong demand expected [47][49] Question: How do you see the communications market recovering? - Management noted strong demand in the communications sector and expects continued strength throughout the year [56][58] Question: Where was the pocket of weakness in the industrial, medical, auto, and defense segments? - Management identified automotive and transportation as areas of recent weakness but expects stabilization and recovery in the future [84][86]