Unilever (ULVR LN) Q4 2025 (EUR): Revenue 12.6bln (exp. 12.47bln), Underlying Sales +4.2% (exp. +3.97%); New EUR 1.5bln share buyback announced

• Underlying sales growth (USG) 3.5%, with 1.5% volume growth; stronger fourth quarter USG of 4.2%, with 2.1% volume. 
• Turnover EUR 50.5bln, down (3.8)%; with adverse currency (5.9)% and net disposals (1.2)%. 
• Power Brands (78% of turnover) leading growth with 4.3% USG and volume up 2.2%. 
• Strong gross margin 46.9%, up 20bps, supporting brand & marketing investment up 10bps to 16.1%. 
• Underlying operating margin expansion to 20.0%, up 60bps, driven by disciplined overhead management. 
• Underlying EPS increased 0.7%; diluted EPS increased 6.2%. 
• Productivity programme delivering ahead of plan, with cumulative c.EUR 670mln savings by end of 2025. 
• 100% cash conversion with FCF of EUR 5.9bln; down EUR 0.4bln primarily due to Ice Cream demerger costs. 
• Quarterly dividend raised 3% vs third quarter 2025.
• New EUR 1.5bln share buyback announced.
• Further portfolio transformation; Ice Cream demerged and 10 transactions closed or announced since start of 2025.

Unilever's Q4 2025 results showed a solid beat on revenue expectations and robust underlying sales growth, which may positively shift investor sentiment towards the stock. The announcement of a new EUR 1.5 billion share buyback, alongside effective cost management and margin expansion, indicates a strong commitment to shareholder returns while navigating challenges like currency headwinds and product disposals. Overall, these results suggest a favorable outlook for the company’s financial health, though attention should be paid to ongoing transformations in their portfolio.