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Jun 30
Kimberly-Clark Q2 2025 Earnings Report
Kimberly-Clark reported solid Q2 results, led by strong volume growth and disciplined cost management.
Key Takeaways
The company posted robust organic growth and maintained profitability despite pricing pressures and currency impacts. Adjusted EPS slightly declined year-over-year, but strong operational execution contributed to high margins and improved cash returns.
Organic net sales grew 3.9% driven by 5.0% volume growth
Adjusted EPS was $1.92, down 2.0% from last year
Adjusted gross margin was 36.9%, reflecting productivity gains
North America saw 4.3% organic growth despite reported revenue decline
Kimberly-Clark
Kimberly-Clark
Kimberly-Clark Revenue by Segment
Kimberly-Clark Revenue by Geographic Location
Revenue by Segment
North America Revenue
CapyFin.comInternational Personal Care Revenue
CapyFin.comRevenue by Geographic Location
North America Revenue
CapyFin.comInternational Revenue
CapyFin.com Forward Guidance
Kimberly-Clark expects low-to-mid single digit growth in adjusted EPS and operating profit for FY25, despite ongoing headwinds from divestitures and currency impacts.
Positive Outlook
- 2025 organic sales growth expected to exceed category average
- Transformation initiative driving productivity gains
- Improved operational efficiency through portfolio restructuring
- Expected $2B in adjusted free cash flow
- Discontinued depreciation boosts EPS outlook
Challenges Ahead
- Currency translation expected to negatively impact results by ~100-150 bps
- Divestiture and exits (PPE, private label diapers) reduce growth by ~290-380 bps
- Higher net interest expense expected
- Elevated effective tax rate anticipated
- Reduced equity income from currency impact on international JVs
Revenue & Expenses
Visualization of income flow from segment revenue to net income