AI Takeaway
Kimberly-Clark (KMB) reported a challenging FY2025 with revenue declining 2.1% to $16.45B and net income falling 20.6% to $2.02B, pressured by higher costs and restructuring-related headwinds despite maintaining strong operating cash flow of $2.78B.
Revenue
$16.45B
-2.13% YoY
EPS (Basic)
$6.09
-19.66% YoY
Gross Margin
36.0%
-1.41% YoY
Operating Income
$2.35B
-12.93% YoY
Filed · Analysis updated · Source: SEC EDGAR 10-K filing
Total revenue fell 2.1% year-over-year from $16.81B to $16.45B, reflecting headwinds from pricing, volume, and unfavorable foreign exchange impacts across key markets. The decline signals ongoing demand softness in consumer staples categories.
Source: Source: 10-K Income Statement (XBRL Financial Data)
Gross margin contracted approximately 140 basis points from 37.4% to 36.0%, as cost of revenue remained nearly flat at $10.52B while revenue declined, indicating limited ability to offset input cost pressures through pricing in FY2025.
Source: Source: 10-K Income Statement & Key Ratios (XBRL Financial Data)
Net income dropped 20.6% to $2.02B from $2.55B in the prior year, with operating income also falling 12.9% to $2.35B, suggesting elevated below-the-line costs such as interest expense or restructuring charges contributed to the steeper net income decline relative to operating income.
Source: Source: 10-K Income Statement (XBRL Financial Data)
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Upgrade to unlockKMB's gross margin declined to 36.0% from 37.4% and operating margin fell to 14.3% from 16.1%, reflecting persistent cost pressures that the company has been unable to fully offset through pricing. If input costs remain elevated or pricing power weakens further, margins could compress further in future periods.
Source: Source: 10-K Key Ratios (XBRL Financial Data)
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Upgrade to unlockReported EPS of $1.86 versus the $1.83 analyst consensus — a +1.7% beat for FY2025.
| Metric | Current | Previous | YoY Change |
|---|---|---|---|
Revenue | $16.45B | $16.8B | -2.13% |
Cost of Revenue | $10.52B | $10.52B | +0.08% |
Gross Profit | $5.92B | $6.29B | -5.82% |
Operating Income | $2.35B | $2.7B | -12.93% |
Net Income | $2.02B | $2.54B | -20.59% |
EPS (Basic) | $6.09 | $7.58 | -19.66% |
EPS (Diluted) | $6.07 | $7.55 | -19.60% |
R&D Expense | $326M | $328M | -0.61% |
| Metric | Current | Previous | YoY Change |
|---|---|---|---|
Total Assets | $17.1B | $16.55B | +3.34% |
Current Assets | $5.31B | $5.58B | -4.84% |
Current Liabilities | $7.13B | $7B | +1.73% |
Stockholders' Equity | $1.5B | $840M | +78.81% |
Cash & Equivalents | $688M | $1.01B | -31.88% |
| Metric | Current | Previous | YoY Change |
|---|---|---|---|
Operating Cash Flow | $2.78B | $3.23B | -14.13% |
Investing Cash Flow | $-951M | $-100M | -851.00% |
Financing Cash Flow | $-2.18B | $-3.17B | +31.17% |
Share Buybacks | $141M | $1B | -85.90% |
D&A | $805M | $781M | +3.07% |
| Metric | Current | Previous | YoY Change |
|---|---|---|---|
Gross Margin | 36.0% | 37.4% | -1.41% |
Operating Margin | 14.3% | 16.1% | -1.77% |
Net Margin | 12.3% | — | — |
ROE | 134.6% | — | — |
ROA | 11.8% | — | — |
Current Ratio | $0.745 | — | — |
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KMB had a difficult FY2025, with revenue declining 2.1% to $16.45B and net income falling 20.6% to $2.02B. Diluted EPS came in at $6.07, down from $7.55 in the prior year, reflecting margin compression and elevated costs.
KMB's net income dropped 20.6% to $2.02B, a steeper decline than the 12.9% fall in operating income, suggesting below-the-line costs such as interest expense or restructuring charges added pressure. Gross margin also contracted to 36.0% from 37.4% as costs remained flat while revenue declined.
KMB's balance sheet shows some stress, with a current ratio of just 0.75 and cash declining 31.9% to $688M, indicating current liabilities exceed current assets. However, operating cash flow of $2.78B remains solid, providing support for dividends and debt service.
Yes, KMB dramatically reduced share repurchases by 85.9% to just $141M in FY2025, compared to $1.0B in the prior year. This suggests the company prioritized liquidity and balance sheet management over returning capital to shareholders through buybacks.
Key risks include ongoing margin pressure (gross margin fell to 36.0%), a negative working capital position with a current ratio of 0.75, and a sharp surge in investing outflows to -$951M from -$100M. These factors collectively point to tighter financial flexibility for KMB in the near term.