Kimberly-Clark Corporation (NASDAQ: KMB) has reported its fourth quarter and full year 2025 results, reflecting the momentum of its innovation-driven, volume-plus-mix led growth model. Despite challenges such as the exit of the company's private label diaper business in the US, the company has shown positive performance.
In the fourth quarter of 2025, Kimberly-Clark reported net sales of $4.1 billion, a 0.6% decrease, with organic sales growth of 2.1%. Gross margin was 35.9%, and adjusted gross margin was 37.0%, in line with the prior year. Operating profit for the quarter was $507 million, while adjusted operating profit was $629 million, up 13.1% versus the prior year.
The diluted earnings per share ("EPS") attributable to Kimberly-Clark were $1.50, and adjusted earnings per share were $1.86, up 24.0% versus the prior year.
For the full year 2025, net sales of $16.4 billion were 2.1% lower than the prior year, primarily due to the exit of the company's private label diaper business in the US. Organic sales grew 1.7%, driven by a 2.5% increase in volume, partially offset by price investments of 0.9%.
Gross margin was 36.0%, and adjusted gross margin was 37.3%. Operating profit for the year was $2.4 billion, and adjusted operating profit was $2.7 billion, in line with the prior year.
In terms of business segment results, in North America, net sales decreased by 3.0% in the quarter, driven by the exit of the private label diaper business, partially offset by organic sales growth of 0.8%. For the full year, net sales were down 2.4%, driven by the exit of the private label diaper business, partially offset by organic sales growth of 1.8%.
In the International Personal Care segment, net sales in the quarter increased by 4.2%, driven by organic sales growth of 4.5%. For the full year, net sales decreased by 0.9% due to unfavorable currency impacts, offsetting organic sales growth of 1.7%.
Looking ahead to 2026, Kimberly-Clark expects organic sales growth to be in line with or ahead of the weighted average growth in the categories and countries it competes in, which grew at approximately two percent in the latest year. Reported net sales are forecasted to reflect a negative impact of 50 basis points from the exit of the company's private label diaper business in the US.
Adjusted operating profit is expected to grow at a mid-to-high single-digit rate on a constant-currency basis, and adjusted earnings per share from continuing operations are expected to grow double-digit on a constant-currency basis.
Following these announcements, the company's shares moved -1.09%, and are now trading at a price of $99.32. For the full picture, make sure to review KIMBERLY CLARK CORP's 8-K report.
