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Sep 30, 2025
Kimberly-Clark Q3 2025 Earnings Report
Kimberly-Clark reported solid Q3 results with steady organic growth and resilient earnings performance.
Key Takeaways
Kimberly-Clark delivered flat total revenue year-over-year, but achieved 2.5% organic net sales growth and maintained adjusted EPS in line with last year, driven by strong innovation, brand resilience, and disciplined cost management.
Organic net sales grew 2.5%, driven by 2.4% volume growth.
Adjusted EPS remained steady at $1.82, despite macro challenges.
Net income was $446M, down from $907M due to one-time adjustments.
Adjusted gross margin was 36.8%, impacted by inflation and tariff costs.
Revenue by Segment
Revenue by Geographic Location
Forward Guidance
Kimberly-Clark expects low-to-mid single digit adjusted EPS growth on a constant-currency basis, despite headwinds from divestitures, taxes, and tariffs.
Positive Outlook
- EPS expected to grow low-to-mid single digits (constant currency).
- Organic sales growth to align with market average (~2%).
- Ongoing productivity and innovation supporting margin strength.
- Benefits expected from cessation of depreciation on assets held for sale.
- Adjusted free cash flow forecasted at approximately $2B.
Challenges Ahead
- PPE divestiture and diaper business exit to reduce sales by ~290 bps.
- Currency translation to negatively impact sales by ~100 bps.
- Adjusted operating profit to face ~380 bps hit from divestitures.
- Higher net interest expense and tax rate to reduce EPS by ~100 bps.
Revenue & Expenses
Visualization of income flow from segment revenue to net income
Historical Earnings Impact
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Avg. Return Before/After Earnings
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