Kimberly-Clark 2025-26: Powering Care Year, Kenview Acquisition
FY25 revenue $17.22B (-14% reported on portfolio + FX); Op income $2.49B (-22%); NI $2.02B (-21%); EPS $6.07 (-20%). 8th consecutive quarter of solid volume + mix performance Q4. Industry-leading productivity. Power and Care strategic plan in 2nd year — accelerating momentum. Kenview acquisition. FY26: organic sales in line/ahead of category, 6% productivity, mid-to-high single OI growth, adj EPS in line FY25 cc.
Key takeaways
- Volume + mix growth — 8 consecutive quarters. Despite reported revenue -14% (portfolio simplification + FX + Personal Care divestiture), underlying volume + mix continued to grow.
- Industry-leading productivity. Q4 strongest of the year. FY26 productivity target ~6% of cost of goods sold — top of peer group.
- Power and Care strategic plan year 2. Two-year-old plan delivering: enterprise-weighted share gain + productivity + portfolio shift to higher-margin personal care.
- Kenview acquisition. Recently announced; integration in FY26. Adds to portfolio in adjacent personal care category.
- FY26 guide framework. Organic sales in line or ahead of category growth; operating profit growth mid-to-high single-digit; adj EPS in line with FY25 on constant currency basis. Kenview integration impact + portfolio mix continuing.
Business
Kimberly-Clark is a global consumer products company specializing in personal care + tissue + paper. Three primary segments + recent portfolio actions:
- Personal Care (~50% of revenue, growing fastest): Diapers (Huggies + Pull-Ups) + Feminine Care (Kotex + U by Kotex) + Adult Incontinence (Depend + Poise). Higher-margin growth segment.
- Consumer Tissue (~30% of revenue): Toilet paper + facial tissue + paper towels. Brands: Cottonelle + Scott + Kleenex.
- Professional + Other (~20% of revenue): Commercial tissue + safety + away-from-home products.
Recent portfolio actions: Personal Care non-strategic brand divestiture; Kenview acquisition (small bolt-on). Mgmt focused on higher-margin personal care growth.
FY25 financial performance
| Metric (FY) | 2023 | 2024 | 2025 |
|---|---|---|---|
| Revenue ($B) | 20.43 | 20.06 | 17.22 |
| Gross profit ($B) | 7.03 | 7.18 | 6.13 |
| Op income ($B) | 2.34 | 3.21 | 2.49 |
| Op margin | 11.5% | 16.0% | 14.5% |
| EBITDA ($B) | 3.07 | 3.98 | 3.11 |
| Net income ($B) | 1.76 | 2.55 | 2.02 |
| Diluted EPS ($) | 5.21 | 7.55 | 6.07 |
| FCF ($B) | 2.78 | 2.51 | 1.64 |
| Capex ($M) | -766 | -721 | -1,138 |
| Total debt ($B) | 8.11 | 7.92 | 7.17 |
| Dividends ($B) | -1.59 | -1.63 | -1.66 |
| Buyback ($M) | -225 | -1,000 | -141 |
The earnings print: Revenue -14% reported on portfolio simplification + FX, but underlying volume + mix +. Op margin compressed but op income holding mid-teens. EPS $6.07 vs $7.55 FY24 reflects portfolio + FX.
Capex stepped up to $-1.14B FY25 — capacity + automation investment.
Capital allocation
- Capex: $-1.14B FY25 (6.6% of revenue) — heavy.
- Dividends: $-1.66B FY25 (+2% YoY).
- Buybacks: $-141M FY25 (vs $-1.0B FY24). Slowed substantially.
- M&A / Divestitures: Personal Care divestiture; Kenview acquired.
- Debt: $7.17B (-$0.75B YoY).
FY26 outlook (per Q4 2025 call, 2026-01-27)
| FY26 framework | Direction |
|---|---|
| Organic sales growth | In line or ahead of category |
| Productivity | ~6% of cost of goods sold |
| Operating profit growth | Mid-to-high single-digit |
| Adjusted EPS | In line with 2025 levels on constant currency basis |
| Kenview acquisition | Integration ongoing |
Constant currency EPS in line means FX is the primary headwind to reported. Operating dynamics + productivity + Kenview should deliver underlying growth.
Key risks
- Category growth deceleration: Mature consumer personal care + tissue categories.
- Commodity input costs: Pulp + resin + chemicals + freight.
- Currency: Multi-currency global business.
- Competition: Procter & Gamble + Reckitt + private label.
- Portfolio simplification execution: Continued divestiture timing + impact.
- Tariff regime: Pulp + raw material imports.
Bottom line
KMB FY25 is the Power and Care year 2 with portfolio simplification reset. Reported revenue -14% on portfolio + FX, but volume + mix +. EPS $6.07 vs $7.55 reflects portfolio. FY26 organic in line/ahead of category + ~6% productivity + mid-high single OI growth. Risks are category + commodity + competition + FX. Quality consumer staples with Kenview optionality.
Citations
- Kimberly-Clark Corp. FY25 Form 10-K (filed February 2026, SEC EDGAR).
- KMB Q4 2025 earnings call, 2026-01-27 — 2-year Power and Care plan executing; 8 consecutive quarter of solid volume + mix; industry-leading productivity (Q4 strongest of year); enterprise-weighted share gain; FY26 guide (organic in line/ahead of category, ~6% productivity, mid-high single OI growth, adj EPS in line cc, Kenview integration).
- Internal financial_statements view (consolidated annual + cash flow + capital structure).