[10-Q] Kimberly-Clark Corp. Quarterly Earnings Report
Filing Impact
Filing Sentiment
Form Type
10-Q
Rhea-AI Filing Summary
Kimberly-Clark鈥檚 Q2-25 10-Q shows modest top-line softness, margin pressure and heavy restructuring, offset by progress on the strategic portfolio shift.
- Continuing-ops net sales slipped 1.6% YoY to $4.16 bn; six-month sales -4.0% to $8.22 bn. Organic growth was positive (+3.9% Q2) but more than offset by divestitures, business exits and FX.
- GAAP operating profit rose 9.8% YoY to $592 mn, helped by lapping prior-year restructuring charges. Adjusted operating profit fell 2.2% as lower pricing, input inflation and tariffs (鈮�$170 mn FY impact) outweighed $110 mn of productivity gains.
- Diluted EPS from continuing ops eased to $1.33 (-1.5%); total EPS $1.53 (-5%). FY-to-date EPS is $3.23 (-8%).
- 2024 Transformation Initiative logged $122 mn pre-tax in Q2 ($199 mn YTD); total expected cost 鈮�$1.5 bn with completion by 2026, targeting $3.0 bn gross productivity savings.
- IFP Business reclassified as discontinued ops; JV with Suzano will yield ~$1.7 bn cash for 51% stake (closing mid-2026). Q2 discontinued income was $68 mn (-24%).
- Cash from operations fell to $1.10 bn (-25% YoY) on working-capital build; cash balance $634 mn versus $1.01 bn YE-24. Net debt declined ~$177 mn YTD.
- Segment trends: North America sales -1.9%, OP -4.0%; International Personal Care sales +0.4%, OP -12.9% due to FX and inflation.
- Balance sheet remains solid: equity up to $1.40 bn (from $0.98 bn) boosted by OCI gains; leverage manageable with long-term debt 6.47 bn.
Il 10-Q del secondo trimestre 2025 di Kimberly-Clark mostra una leggera debolezza nei ricavi, pressione sui margini e pesanti ristrutturazioni, bilanciate dai progressi nella trasformazione strategica del portafoglio.
- Le vendite nette da operazioni continuative sono scese dell'1,6% su base annua a 4,16 miliardi di dollari; le vendite a sei mesi sono diminuite del 4,0% a 8,22 miliardi. La crescita organica 猫 stata positiva (+3,9% nel Q2) ma 猫 stata pi霉 che compensata da cessioni, uscite di business e variazioni valutarie.
- L'utile operativo GAAP 猫 aumentato del 9,8% su base annua a 592 milioni di dollari, grazie all'assenza di oneri di ristrutturazione dell'anno precedente. L'utile operativo rettificato 猫 sceso del 2,2% a causa di prezzi pi霉 bassi, inflazione dei costi di input e tariffe (impatto annuo di circa 170 milioni di dollari), che hanno superato i guadagni di produttivit脿 per 110 milioni.
- L'utile per azione diluito da operazioni continuative 猫 sceso a 1,33 dollari (-1,5%); l'utile per azione totale 猫 stato di 1,53 dollari (-5%). L'utile per azione da inizio anno 猫 di 3,23 dollari (-8%).
- L'iniziativa di trasformazione 2024 ha registrato costi pre-tasse di 122 milioni nel Q2 (199 milioni da inizio anno); il costo totale previsto 猫 di circa 1,5 miliardi, con completamento previsto entro il 2026, mirando a risparmi di produttivit脿 lordi per 3,0 miliardi.
- Il business IFP 猫 stato riclassificato come operazioni cessate; la joint venture con Suzano generer脿 circa 1,7 miliardi di liquidit脿 per il 51% della quota (chiusura prevista a met脿 2026). Il reddito da operazioni cessate nel Q2 猫 stato di 68 milioni (-24%).
- La liquidit脿 generata dalle operazioni 猫 scesa a 1,10 miliardi (-25% su base annua) a causa dell'aumento del capitale circolante; la liquidit脿 disponibile 猫 di 634 milioni rispetto a 1,01 miliardi a fine 2024. Il debito netto 猫 diminuito di circa 177 milioni da inizio anno.
- Tendenze per segmento: vendite Nord America -1,9%, utile operativo -4,0%; vendite International Personal Care +0,4%, utile operativo -12,9% a causa di FX e inflazione.
- Lo stato patrimoniale resta solido: patrimonio netto salito a 1,40 miliardi (da 0,98 miliardi) sostenuto da utili da OCI; leva finanziaria gestibile con debito a lungo termine di 6,47 miliardi.
El informe 10-Q del segundo trimestre de 2025 de Kimberly-Clark muestra una ligera debilidad en los ingresos, presi贸n en los m谩rgenes y una reestructuraci贸n significativa, compensada por avances en el cambio estrat茅gico del portafolio.
- Las ventas netas de operaciones continuas cayeron un 1,6% interanual a 4,16 mil millones de d贸lares; las ventas en seis meses bajaron un 4,0% a 8,22 mil millones. El crecimiento org谩nico fue positivo (+3,9% en el Q2) pero fue m谩s que compensado por desinversiones, salidas de negocios y fluctuaciones cambiarias.
- La utilidad operativa GAAP aument贸 un 9,8% interanual a 592 millones de d贸lares, favorecida por la ausencia de cargos por reestructuraci贸n del a帽o anterior. La utilidad operativa ajustada cay贸 un 2,2% debido a precios m谩s bajos, inflaci贸n en insumos y aranceles (impacto anual aproximado de 170 millones), que superaron los ahorros de productividad por 110 millones.
- Las ganancias por acci贸n diluidas de operaciones continuas bajaron a 1,33 d贸lares (-1,5%); las ganancias por acci贸n totales fueron 1,53 d贸lares (-5%). Las ganancias por acci贸n acumuladas en el a帽o son 3,23 d贸lares (-8%).
- La iniciativa de transformaci贸n 2024 registr贸 costos antes de impuestos de 122 millones en el Q2 (199 millones en lo que va del a帽o); el costo total esperado es de aproximadamente 1,5 mil millones, con finalizaci贸n prevista para 2026, apuntando a ahorros brutos de productividad de 3,0 mil millones.
- El negocio IFP fue reclasificado como operaciones discontinuadas; la joint venture con Suzano generar谩 alrededor de 1,7 mil millones en efectivo por el 51% de participaci贸n (cierre a mediados de 2026). Los ingresos por operaciones discontinuadas en el Q2 fueron 68 millones (-24%).
- El efectivo generado por operaciones cay贸 a 1,10 mil millones (-25% interanual) debido al aumento del capital de trabajo; el saldo de efectivo es de 634 millones frente a 1,01 mil millones a fin de 2024. La deuda neta disminuy贸 aproximadamente 177 millones en lo que va del a帽o.
- Tendencias por segmento: ventas en Norteam茅rica -1,9%, utilidad operativa -4,0%; ventas en Cuidado Personal Internacional +0,4%, utilidad operativa -12,9% debido a FX e inflaci贸n.
- El balance sigue s贸lido: patrimonio neto subi贸 a 1,40 mil millones (desde 0,98 mil millones) impulsado por ganancias OCI; apalancamiento manejable con deuda a largo plazo de 6,47 mil millones.
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- 瓿勳啀 鞓侅梾 攵�氍胳潣 靾滊Г於滌潃 鞝勲厔 雽�牍� 1.6% 臧愳唽頃� 41.6鞏� 雼煬鞓�鞙茧┌, 6臧滌洈 雸勳爜 毵れ稖鞚� 4.0% 臧愳唽頃� 82.2鞏� 雼煬鞓�鞀惦媹雼�. 鞙犼赴鞝� 靹膘灔毳犾潃 2攵勱赴 旮办 +3.9%搿� 旮嶌爼鞝侅澊鞐堨溂雮� 毵り皝, 靷梾 觳犾垬, 頇橃湪 氤�霃欖溂搿� 靸侅噭霅橃棃鞀惦媹雼�.
- GAAP 鞓侅梾鞚挫澋鞚� 鞝勲厔 雽�牍� 9.8% 歃濌皜頃� 5.92鞏� 雼煬搿�, 鞝勲厔霃勳潣 甑“臁办爼 牍勳毄鞚� 鞐嗢棃雿� 鞝愳澊 霃勳泙鞚� 霅橃棃鞀惦媹雼�. 臁办爼 鞓侅梾鞚挫澋鞚� 臧�瓴� 頃橂澖, 鞗愳灛耄� 鞚疙攲霠堨澊靺�, 甏�靹�(鞐瓣皠 鞎� 1.7鞏� 雼煬 鞓來枼)臧� 1.1鞏� 雼煬鞚� 靸濎偘靹� 頄レ儊 須臣毳� 雱橃柎靹滊┐靹� 2.2% 臧愳唽頄堨姷雼堧嫟.
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- 攵�氍鸽硠 於旍劯: 攵侂 毵れ稖 -1.9%, 鞓侅梾鞚挫澋 -4.0%; 甑牅 臧滌澑 鞙勳儩 毵れ稖 +0.4%, 鞓侅梾鞚挫澋 -12.9%電� 頇橃湪 氚� 鞚疙攲霠堨澊靺� 鞓來枼 霑岆鞛呺媹雼�.
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Le rapport 10-Q du deuxi猫me trimestre 2025 de Kimberly-Clark r茅v猫le une l茅g猫re faiblesse du chiffre d'affaires, une pression sur les marges et une restructuration importante, compens茅es par des progr猫s dans le repositionnement strat茅gique du portefeuille.
- Les ventes nettes des activit茅s poursuivies ont recul茅 de 1,6 % en glissement annuel 脿 4,16 milliards de dollars ; les ventes sur six mois ont diminu茅 de 4,0 % 脿 8,22 milliards. La croissance organique a 茅t茅 positive (+3,9 % au T2) mais a 茅t茅 plus que compens茅e par des cessions, des sorties d'activit茅s et des variations de change.
- Le r茅sultat op茅rationnel selon les normes GAAP a augment茅 de 9,8 % en glissement annuel 脿 592 millions de dollars, aid茅 par l'absence de charges de restructuration de l'ann茅e pr茅c茅dente. Le r茅sultat op茅rationnel ajust茅 a diminu茅 de 2,2 % en raison de la baisse des prix, de l'inflation des co没ts des intrants et des tarifs douaniers (impact annuel d'environ 170 millions de dollars), qui ont d茅pass茅 les gains de productivit茅 de 110 millions.
- Le BPA dilu茅 des activit茅s poursuivies a l茅g猫rement diminu茅 脿 1,33 $ (-1,5 %) ; le BPA total s'茅l猫ve 脿 1,53 $ (-5 %). Le BPA cumul茅 depuis le d茅but de l'exercice est de 3,23 $ (-8 %).
- L'initiative de transformation 2024 a enregistr茅 122 millions de dollars de co没ts avant imp么ts au T2 (199 millions depuis le d茅but de l'ann茅e) ; le co没t total attendu est d'environ 1,5 milliard, avec une finalisation pr茅vue d'ici 2026, visant des 茅conomies brutes de productivit茅 de 3,0 milliards.
- Le segment IFP a 茅t茅 reclass茅 en activit茅s abandonn茅es ; la coentreprise avec Suzano g茅n茅rera environ 1,7 milliard de dollars en liquidit茅s pour une participation de 51 % (cl么ture pr茅vue 脿 la mi-2026). Le r茅sultat des activit茅s abandonn茅es au T2 s'茅l猫ve 脿 68 millions (-24 %).
- La tr茅sorerie g茅n茅r茅e par les op茅rations est en baisse 脿 1,10 milliard (-25 % en glissement annuel) en raison d'une augmentation du fonds de roulement ; le solde de tr茅sorerie est de 634 millions contre 1,01 milliard fin 2024. La dette nette a diminu茅 d'environ 177 millions depuis le d茅but de l'ann茅e.
- Tendances par segment : ventes Am茅rique du Nord -1,9 %, r茅sultat op茅rationnel -4,0 % ; ventes International Personal Care +0,4 %, r茅sultat op茅rationnel -12,9 % en raison des effets de change et de l'inflation.
- Le bilan reste solide : les capitaux propres ont augment茅 脿 1,40 milliard (contre 0,98 milliard) gr芒ce 脿 des gains OCI ; l'endettement est ma卯trisable avec une dette 脿 long terme de 6,47 milliards.
Der 10-Q-Bericht von Kimberly-Clark f眉r das zweite Quartal 2025 zeigt eine leichte Umsatzschw盲che, Margendruck und umfangreiche Umstrukturierungen, die durch Fortschritte bei der strategischen Portfolioanpassung ausgeglichen werden.
- Die Nettoums盲tze aus fortgef眉hrten Gesch盲ftsbereichen sanken im Jahresvergleich um 1,6 % auf 4,16 Mrd. USD; der Sechsmonatsumsatz ging um 4,0 % auf 8,22 Mrd. USD zur眉ck. Das organische Wachstum war mit +3,9 % im Q2 positiv, wurde jedoch durch Ver盲u脽erungen, Gesch盲ftsausstiege und W盲hrungseffekte 眉berkompensiert.
- Der GAAP-Betriebsgewinn stieg im Jahresvergleich um 9,8 % auf 592 Mio. USD, beg眉nstigt durch das Wegfallen von Restrukturierungskosten aus dem Vorjahr. Der bereinigte Betriebsgewinn fiel um 2,2 %, da niedrigere Preise, Input-Inflation und Z枚lle (ca. 170 Mio. USD Jahresauswirkung) die Produktivit盲tsgewinne von 110 Mio. USD 眉berstiegen.
- Das verw盲sserte Ergebnis je Aktie aus fortgef眉hrten Gesch盲ftsbereichen sank auf 1,33 USD (-1,5 %); das Gesamtergebnis je Aktie betrug 1,53 USD (-5 %). Das Ergebnis je Aktie im laufenden Jahr liegt bei 3,23 USD (-8 %).
- Die Transformationsinitiative 2024 verzeichnete im Q2 Vorsteuerkosten von 122 Mio. USD (199 Mio. USD seit Jahresbeginn); die Gesamtkosten werden auf ca. 1,5 Mrd. USD gesch盲tzt, mit Abschluss bis 2026, und zielen auf Bruttoproduktivit盲tsgewinne von 3,0 Mrd. USD ab.
- Das IFP-Gesch盲ft wurde als aufgegebener Gesch盲ftsbereich neu klassifiziert; das Joint Venture mit Suzano wird etwa 1,7 Mrd. USD an Liquidit盲t f眉r einen 51%-Anteil generieren (Abschluss Mitte 2026). Der Ertrag aus aufgegebenen Gesch盲ftsbereichen im Q2 betrug 68 Mio. USD (-24 %).
- Der operative Cashflow sank aufgrund von Working-Capital-Aufbau um 25 % auf 1,10 Mrd. USD; der Kassenbestand liegt bei 634 Mio. USD gegen眉ber 1,01 Mrd. USD Ende 2024. Die Nettoverschuldung verringerte sich seit Jahresbeginn um ca. 177 Mio. USD.
- Segmenttrends: Nordamerika-Umsatz -1,9 %, Betriebsergebnis -4,0 %; International Personal Care-Umsatz +0,4 %, Betriebsergebnis -12,9 % aufgrund von Wechselkurs- und Inflationsauswirkungen.
- Die Bilanz bleibt solide: Eigenkapital stieg auf 1,40 Mrd. USD (von 0,98 Mrd.) gest眉tzt durch OCI-Gewinne; die Verschuldung ist mit langfristigen Verbindlichkeiten von 6,47 Mrd. USD beherrschbar.
Positive
- Organic sales growth of 3.9% in Q2 indicates recovering volume momentum despite weak headline revenue.
- Operating profit (GAAP) up 9.8% YoY as prior-year restructuring compares ease.
- Long-term debt reduced to $6.47 bn from $6.85 bn, improving leverage.
- $1.7 bn cash inflow expected from Suzano JV will strengthen balance sheet and sharpen strategic focus.
Negative
- Adjusted gross margin contracted 180 bp due to unfavorable price/cost mix and new U.S. tariffs.
- Diluted EPS fell 5% YoY; YTD EPS down 8%.
- Cash from operations down 25%, driving cash balance to $634 mn.
- International Personal Care operating profit declined 12.9% on inflation and FX headwinds.
Insights
TL;DR Transformation costs mask healthy organic growth; valuation hinge on execution and JV cash infusion.
Organic volumes finally turned positive, suggesting demand elasticity to past price hikes is easing. However, adjusted gross margin contracted 180 bp and tariffs will keep pressure on H2. The $1.7 bn Suzano JV should delever and refocus resources, but closing is a year away. Transformation charges are tracking to plan but dilute near-term EPS. Net debt/EBITDA moves below 2脳 by 2026 if savings hit. Shares likely range-bound until margin traction or JV proceeds crystalize.
TL;DR Moderate downside risk from cost inflation and FX; liquidity adequate, covenant headroom comfortable.
Operating cash flow drop is notable yet still covers dividends (鈮�80% payout). Debt maturity ladder remains light; $634 mn cash plus $3 bn revolver provide flexibility. Transformation liabilities at $86 mn are manageable. Key risks: tariff escalation (NA), emerging-market FX for IPC, and potential delay/regulatory hurdles in the Suzano JV. Overall risk profile unchanged鈥擝BB+ credit looks stable given declining leverage trend.
Il 10-Q del secondo trimestre 2025 di Kimberly-Clark mostra una leggera debolezza nei ricavi, pressione sui margini e pesanti ristrutturazioni, bilanciate dai progressi nella trasformazione strategica del portafoglio.
- Le vendite nette da operazioni continuative sono scese dell'1,6% su base annua a 4,16 miliardi di dollari; le vendite a sei mesi sono diminuite del 4,0% a 8,22 miliardi. La crescita organica 猫 stata positiva (+3,9% nel Q2) ma 猫 stata pi霉 che compensata da cessioni, uscite di business e variazioni valutarie.
- L'utile operativo GAAP 猫 aumentato del 9,8% su base annua a 592 milioni di dollari, grazie all'assenza di oneri di ristrutturazione dell'anno precedente. L'utile operativo rettificato 猫 sceso del 2,2% a causa di prezzi pi霉 bassi, inflazione dei costi di input e tariffe (impatto annuo di circa 170 milioni di dollari), che hanno superato i guadagni di produttivit脿 per 110 milioni.
- L'utile per azione diluito da operazioni continuative 猫 sceso a 1,33 dollari (-1,5%); l'utile per azione totale 猫 stato di 1,53 dollari (-5%). L'utile per azione da inizio anno 猫 di 3,23 dollari (-8%).
- L'iniziativa di trasformazione 2024 ha registrato costi pre-tasse di 122 milioni nel Q2 (199 milioni da inizio anno); il costo totale previsto 猫 di circa 1,5 miliardi, con completamento previsto entro il 2026, mirando a risparmi di produttivit脿 lordi per 3,0 miliardi.
- Il business IFP 猫 stato riclassificato come operazioni cessate; la joint venture con Suzano generer脿 circa 1,7 miliardi di liquidit脿 per il 51% della quota (chiusura prevista a met脿 2026). Il reddito da operazioni cessate nel Q2 猫 stato di 68 milioni (-24%).
- La liquidit脿 generata dalle operazioni 猫 scesa a 1,10 miliardi (-25% su base annua) a causa dell'aumento del capitale circolante; la liquidit脿 disponibile 猫 di 634 milioni rispetto a 1,01 miliardi a fine 2024. Il debito netto 猫 diminuito di circa 177 milioni da inizio anno.
- Tendenze per segmento: vendite Nord America -1,9%, utile operativo -4,0%; vendite International Personal Care +0,4%, utile operativo -12,9% a causa di FX e inflazione.
- Lo stato patrimoniale resta solido: patrimonio netto salito a 1,40 miliardi (da 0,98 miliardi) sostenuto da utili da OCI; leva finanziaria gestibile con debito a lungo termine di 6,47 miliardi.
El informe 10-Q del segundo trimestre de 2025 de Kimberly-Clark muestra una ligera debilidad en los ingresos, presi贸n en los m谩rgenes y una reestructuraci贸n significativa, compensada por avances en el cambio estrat茅gico del portafolio.
- Las ventas netas de operaciones continuas cayeron un 1,6% interanual a 4,16 mil millones de d贸lares; las ventas en seis meses bajaron un 4,0% a 8,22 mil millones. El crecimiento org谩nico fue positivo (+3,9% en el Q2) pero fue m谩s que compensado por desinversiones, salidas de negocios y fluctuaciones cambiarias.
- La utilidad operativa GAAP aument贸 un 9,8% interanual a 592 millones de d贸lares, favorecida por la ausencia de cargos por reestructuraci贸n del a帽o anterior. La utilidad operativa ajustada cay贸 un 2,2% debido a precios m谩s bajos, inflaci贸n en insumos y aranceles (impacto anual aproximado de 170 millones), que superaron los ahorros de productividad por 110 millones.
- Las ganancias por acci贸n diluidas de operaciones continuas bajaron a 1,33 d贸lares (-1,5%); las ganancias por acci贸n totales fueron 1,53 d贸lares (-5%). Las ganancias por acci贸n acumuladas en el a帽o son 3,23 d贸lares (-8%).
- La iniciativa de transformaci贸n 2024 registr贸 costos antes de impuestos de 122 millones en el Q2 (199 millones en lo que va del a帽o); el costo total esperado es de aproximadamente 1,5 mil millones, con finalizaci贸n prevista para 2026, apuntando a ahorros brutos de productividad de 3,0 mil millones.
- El negocio IFP fue reclasificado como operaciones discontinuadas; la joint venture con Suzano generar谩 alrededor de 1,7 mil millones en efectivo por el 51% de participaci贸n (cierre a mediados de 2026). Los ingresos por operaciones discontinuadas en el Q2 fueron 68 millones (-24%).
- El efectivo generado por operaciones cay贸 a 1,10 mil millones (-25% interanual) debido al aumento del capital de trabajo; el saldo de efectivo es de 634 millones frente a 1,01 mil millones a fin de 2024. La deuda neta disminuy贸 aproximadamente 177 millones en lo que va del a帽o.
- Tendencias por segmento: ventas en Norteam茅rica -1,9%, utilidad operativa -4,0%; ventas en Cuidado Personal Internacional +0,4%, utilidad operativa -12,9% debido a FX e inflaci贸n.
- El balance sigue s贸lido: patrimonio neto subi贸 a 1,40 mil millones (desde 0,98 mil millones) impulsado por ganancias OCI; apalancamiento manejable con deuda a largo plazo de 6,47 mil millones.
韨措矊毽伌霛柬伂鞚� 2025雲� 2攵勱赴 10-Q 氤搓碃靹滊姅 毵れ稖鞚� 雼れ唽 霊旐檾, 毵堨 鞎曤皶 氚� 雽�攴滊 甑“臁办爼鞚� 鞛堨棃鞙茧倶 鞝勲灥鞝� 韽姼韽措Μ鞓� 鞝勴櫂鞚� 歆勳爠鞙茧 靸侅噭霅橃棃鞚岇潉 氤挫棳欷嶋媹雼�.
- 瓿勳啀 鞓侅梾 攵�氍胳潣 靾滊Г於滌潃 鞝勲厔 雽�牍� 1.6% 臧愳唽頃� 41.6鞏� 雼煬鞓�鞙茧┌, 6臧滌洈 雸勳爜 毵れ稖鞚� 4.0% 臧愳唽頃� 82.2鞏� 雼煬鞓�鞀惦媹雼�. 鞙犼赴鞝� 靹膘灔毳犾潃 2攵勱赴 旮办 +3.9%搿� 旮嶌爼鞝侅澊鞐堨溂雮� 毵り皝, 靷梾 觳犾垬, 頇橃湪 氤�霃欖溂搿� 靸侅噭霅橃棃鞀惦媹雼�.
- GAAP 鞓侅梾鞚挫澋鞚� 鞝勲厔 雽�牍� 9.8% 歃濌皜頃� 5.92鞏� 雼煬搿�, 鞝勲厔霃勳潣 甑“臁办爼 牍勳毄鞚� 鞐嗢棃雿� 鞝愳澊 霃勳泙鞚� 霅橃棃鞀惦媹雼�. 臁办爼 鞓侅梾鞚挫澋鞚� 臧�瓴� 頃橂澖, 鞗愳灛耄� 鞚疙攲霠堨澊靺�, 甏�靹�(鞐瓣皠 鞎� 1.7鞏� 雼煬 鞓來枼)臧� 1.1鞏� 雼煬鞚� 靸濎偘靹� 頄レ儊 須臣毳� 雱橃柎靹滊┐靹� 2.2% 臧愳唽頄堨姷雼堧嫟.
- 瓿勳啀 鞓侅梾 攵�氍胳潣 頋劃 欤茧嫻靾滌澊鞚奠潃 1.33雼煬搿� 1.5% 臧愳唽頄堨溂氅�, 齑� 欤茧嫻靾滌澊鞚奠潃 1.53雼煬搿� 5% 頃橂澖頄堨姷雼堧嫟. 鞐办磮 鞚错泟 欤茧嫻靾滌澊鞚奠潃 3.23雼煬搿� 8% 臧愳唽頄堨姷雼堧嫟.
- 2024雲� 順侅嫚 鞚措媹靺旐嫲敫岆姅 2攵勱赴鞐� 靹胳爠 1.22鞏� 雼煬(鞐办磮 鞚错泟 1.99鞏� 雼煬)鞚� 牍勳毄鞚� 旮半頄堨溂氅�, 齑� 鞓堨儊 牍勳毄鞚� 鞎� 15鞏� 雼煬, 2026雲勱箤歆� 鞕勲 鞓堨爼鞚措┌, 齑� 30鞏� 雼煬鞚� 靸濎偘靹� 鞝堦皭鞚� 氇╉憸搿� 頃╇媹雼�.
- IFP 靷梾鞚� 欷戨嫧 鞓侅梾鞙茧 鞛秳毳橂悩鞐堨溂氅�, Suzano鞕�鞚� 頃╈瀾 韴瀽毳� 韱淀暣 51% 歆�攵勳棎 雽�頃� 鞎� 17鞏� 雼煬鞚� 順勱笀鞚� 頇曤炒頃� 鞓堨爼鞛呺媹雼�(2026雲� 欷戨皹 毵堦皭 鞓堨爼). 2攵勱赴 欷戨嫧 鞓侅梾 靾橃澋鞚� 6800毵� 雼煬搿� 24% 臧愳唽頄堨姷雼堧嫟.
- 鞓侅梾頇滊彊 順勱笀頋愲鞚� 鞖挫爠鞛愲掣 歃濌皜搿� 鞚疙暣 鞝勲厔 雽�牍� 25% 臧愳唽頃� 11鞏� 雼煬鞓�鞙茧┌, 順勱笀 鞛旍暋鞚� 2024雲� 毵� 10.1鞏� 雼煬鞐愳劀 6.34鞏� 雼煬搿� 欷勳棃鞀惦媹雼�. 靾滊秬毂勲姅 鞐办磮 雽�牍� 鞎� 1.77鞏� 雼煬 臧愳唽頄堨姷雼堧嫟.
- 攵�氍鸽硠 於旍劯: 攵侂 毵れ稖 -1.9%, 鞓侅梾鞚挫澋 -4.0%; 甑牅 臧滌澑 鞙勳儩 毵れ稖 +0.4%, 鞓侅梾鞚挫澋 -12.9%電� 頇橃湪 氚� 鞚疙攲霠堨澊靺� 鞓來枼 霑岆鞛呺媹雼�.
- 鞛靸來儨電� 瓴碃頃潉 鞙犾: 鞛愲掣鞚� 9.8鞏� 雼煬鞐愳劀 14鞏� 雼煬搿� 歃濌皜頄堨溂氅�, 旮绊儉韽磩靻愳澋 歃濌皜鞐� 頌橃瀰鞐堨姷雼堧嫟; 鞛リ赴 攵�毂勲姅 64.7鞏� 雼煬搿� 甏�毽� 臧�電ロ暅 靾橃鞛呺媹雼�.
Le rapport 10-Q du deuxi猫me trimestre 2025 de Kimberly-Clark r茅v猫le une l茅g猫re faiblesse du chiffre d'affaires, une pression sur les marges et une restructuration importante, compens茅es par des progr猫s dans le repositionnement strat茅gique du portefeuille.
- Les ventes nettes des activit茅s poursuivies ont recul茅 de 1,6 % en glissement annuel 脿 4,16 milliards de dollars ; les ventes sur six mois ont diminu茅 de 4,0 % 脿 8,22 milliards. La croissance organique a 茅t茅 positive (+3,9 % au T2) mais a 茅t茅 plus que compens茅e par des cessions, des sorties d'activit茅s et des variations de change.
- Le r茅sultat op茅rationnel selon les normes GAAP a augment茅 de 9,8 % en glissement annuel 脿 592 millions de dollars, aid茅 par l'absence de charges de restructuration de l'ann茅e pr茅c茅dente. Le r茅sultat op茅rationnel ajust茅 a diminu茅 de 2,2 % en raison de la baisse des prix, de l'inflation des co没ts des intrants et des tarifs douaniers (impact annuel d'environ 170 millions de dollars), qui ont d茅pass茅 les gains de productivit茅 de 110 millions.
- Le BPA dilu茅 des activit茅s poursuivies a l茅g猫rement diminu茅 脿 1,33 $ (-1,5 %) ; le BPA total s'茅l猫ve 脿 1,53 $ (-5 %). Le BPA cumul茅 depuis le d茅but de l'exercice est de 3,23 $ (-8 %).
- L'initiative de transformation 2024 a enregistr茅 122 millions de dollars de co没ts avant imp么ts au T2 (199 millions depuis le d茅but de l'ann茅e) ; le co没t total attendu est d'environ 1,5 milliard, avec une finalisation pr茅vue d'ici 2026, visant des 茅conomies brutes de productivit茅 de 3,0 milliards.
- Le segment IFP a 茅t茅 reclass茅 en activit茅s abandonn茅es ; la coentreprise avec Suzano g茅n茅rera environ 1,7 milliard de dollars en liquidit茅s pour une participation de 51 % (cl么ture pr茅vue 脿 la mi-2026). Le r茅sultat des activit茅s abandonn茅es au T2 s'茅l猫ve 脿 68 millions (-24 %).
- La tr茅sorerie g茅n茅r茅e par les op茅rations est en baisse 脿 1,10 milliard (-25 % en glissement annuel) en raison d'une augmentation du fonds de roulement ; le solde de tr茅sorerie est de 634 millions contre 1,01 milliard fin 2024. La dette nette a diminu茅 d'environ 177 millions depuis le d茅but de l'ann茅e.
- Tendances par segment : ventes Am茅rique du Nord -1,9 %, r茅sultat op茅rationnel -4,0 % ; ventes International Personal Care +0,4 %, r茅sultat op茅rationnel -12,9 % en raison des effets de change et de l'inflation.
- Le bilan reste solide : les capitaux propres ont augment茅 脿 1,40 milliard (contre 0,98 milliard) gr芒ce 脿 des gains OCI ; l'endettement est ma卯trisable avec une dette 脿 long terme de 6,47 milliards.
Der 10-Q-Bericht von Kimberly-Clark f眉r das zweite Quartal 2025 zeigt eine leichte Umsatzschw盲che, Margendruck und umfangreiche Umstrukturierungen, die durch Fortschritte bei der strategischen Portfolioanpassung ausgeglichen werden.
- Die Nettoums盲tze aus fortgef眉hrten Gesch盲ftsbereichen sanken im Jahresvergleich um 1,6 % auf 4,16 Mrd. USD; der Sechsmonatsumsatz ging um 4,0 % auf 8,22 Mrd. USD zur眉ck. Das organische Wachstum war mit +3,9 % im Q2 positiv, wurde jedoch durch Ver盲u脽erungen, Gesch盲ftsausstiege und W盲hrungseffekte 眉berkompensiert.
- Der GAAP-Betriebsgewinn stieg im Jahresvergleich um 9,8 % auf 592 Mio. USD, beg眉nstigt durch das Wegfallen von Restrukturierungskosten aus dem Vorjahr. Der bereinigte Betriebsgewinn fiel um 2,2 %, da niedrigere Preise, Input-Inflation und Z枚lle (ca. 170 Mio. USD Jahresauswirkung) die Produktivit盲tsgewinne von 110 Mio. USD 眉berstiegen.
- Das verw盲sserte Ergebnis je Aktie aus fortgef眉hrten Gesch盲ftsbereichen sank auf 1,33 USD (-1,5 %); das Gesamtergebnis je Aktie betrug 1,53 USD (-5 %). Das Ergebnis je Aktie im laufenden Jahr liegt bei 3,23 USD (-8 %).
- Die Transformationsinitiative 2024 verzeichnete im Q2 Vorsteuerkosten von 122 Mio. USD (199 Mio. USD seit Jahresbeginn); die Gesamtkosten werden auf ca. 1,5 Mrd. USD gesch盲tzt, mit Abschluss bis 2026, und zielen auf Bruttoproduktivit盲tsgewinne von 3,0 Mrd. USD ab.
- Das IFP-Gesch盲ft wurde als aufgegebener Gesch盲ftsbereich neu klassifiziert; das Joint Venture mit Suzano wird etwa 1,7 Mrd. USD an Liquidit盲t f眉r einen 51%-Anteil generieren (Abschluss Mitte 2026). Der Ertrag aus aufgegebenen Gesch盲ftsbereichen im Q2 betrug 68 Mio. USD (-24 %).
- Der operative Cashflow sank aufgrund von Working-Capital-Aufbau um 25 % auf 1,10 Mrd. USD; der Kassenbestand liegt bei 634 Mio. USD gegen眉ber 1,01 Mrd. USD Ende 2024. Die Nettoverschuldung verringerte sich seit Jahresbeginn um ca. 177 Mio. USD.
- Segmenttrends: Nordamerika-Umsatz -1,9 %, Betriebsergebnis -4,0 %; International Personal Care-Umsatz +0,4 %, Betriebsergebnis -12,9 % aufgrund von Wechselkurs- und Inflationsauswirkungen.
- Die Bilanz bleibt solide: Eigenkapital stieg auf 1,40 Mrd. USD (von 0,98 Mrd.) gest眉tzt durch OCI-Gewinne; die Verschuldung ist mit langfristigen Verbindlichkeiten von 6,47 Mrd. USD beherrschbar.
UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549
FORM 10-Q
(Mark One)
For the quarterly period ended June 30, 2025
OR
For the transition period from ________ to ________
Commission file number 1-225
(Exact name of registrant as specified in its charter)
| (State or other jurisdiction of incorporation) | (I.R.S. Employer Identification No.) | |||||||
(Address of principal executive offices)
(Zip code)
(Registrant's telephone number, including area code)
Securities registered pursuant to Section 12(b) of the Act:
| Title of each class | Trading Symbol(s) | Name of each exchange on which registered | ||||||||||||
Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days. Yes x No o
Indicate by check mark whether the registrant has submitted electronically every Interactive Data File required to be submitted pursuant to Rule 405 of Regulation S-T (§232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit such files). Yes x No o
Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, a smaller reporting company, or an emerging growth company. See the definitions of "large accelerated filer," "accelerated filer," "smaller reporting company" and "emerging growth company" in Rule 12b-2 of the Exchange Act.
x | Smaller reporting company | |||||||||||||
| Accelerated filer | ☐ | Emerging growth company | ||||||||||||
| Non-accelerated filer | ☐ | |||||||||||||
If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ☐
Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act). Yes ☐ No x
As of July 25, 2025, there were 331,779,938 shares of the Corporation's common stock outstanding.
Table of Contents
PART I – FINANCIAL INFORMATION | 1 | ||||
Item 1. Financial Statements | 1 | ||||
Condensed Consolidated Statements of Income for the Three and Six Months Ended June 30, 2025 and 2024 | 1 | ||||
Condensed Consolidated Statements of Comprehensive Income for the Three and Six Months Ended June 30, 2025 and 2024 | 2 | ||||
Condensed Consolidated Balance Sheets as of June 30, 2025 and December 31, 2024 | 3 | ||||
Condensed Consolidated Statements of Stockholders' Equity for the Three and Six Months Ended June 30, 2025 and 2024 | 4 | ||||
Condensed Consolidated Statements of Cash Flows for the Six Months Ended June 30, 2025 and 2024 | 6 | ||||
Notes to the Interim Condensed Consolidated Financial Statements | 7 | ||||
Item 2. Management's Discussion and Analysis of Financial Condition and Results of Operations | 20 | ||||
Item 4. Controls and Procedures | 29 | ||||
PART II – OTHER INFORMATION | 30 | ||||
Item 1. Legal Proceedings | 30 | ||||
Item 2. Unregistered Sales of Equity Securities and Use of Proceeds | 30 | ||||
Item 5. Other Information | 30 | ||||
Item 6. Exhibits | 31 | ||||
Signatures | 32 | ||||
PART I FINANCIAL INFORMATION
Item 1. Financial Statements
KIMBERLY-CLARK CORPORATION AND SUBSIDIARIES
CONDENSED CONSOLIDATED STATEMENTS OF INCOME
(Unaudited)
| Three Months Ended June 30 | Six Months Ended June 30 | |||||||||||||||||||||||||
| (In millions, except per share amounts) | 2025 | 2024 | 2025 | 2024 | ||||||||||||||||||||||
| Net Sales | $ | $ | $ | $ | ||||||||||||||||||||||
| Cost of products sold | ||||||||||||||||||||||||||
| Gross Profit | ||||||||||||||||||||||||||
| Marketing, research and general expenses | ||||||||||||||||||||||||||
| Other (income) and expense, net | ||||||||||||||||||||||||||
| Operating Profit | ||||||||||||||||||||||||||
| Nonoperating expense | ( | ( | ( | ( | ||||||||||||||||||||||
| Interest income | ||||||||||||||||||||||||||
| Interest expense | ( | ( | ( | ( | ||||||||||||||||||||||
| Income from Continuing Operations Before Income Taxes and Equity Interests | ||||||||||||||||||||||||||
| Provision for income taxes | ( | ( | ( | ( | ||||||||||||||||||||||
| Income from Continuing Operations Before Equity Interests | ||||||||||||||||||||||||||
| Share of net income of equity companies | ||||||||||||||||||||||||||
| Income from Continuing Operations | ||||||||||||||||||||||||||
| Income from Discontinued Operations, Net of Income Taxes | ||||||||||||||||||||||||||
| Net Income | ||||||||||||||||||||||||||
| Net income attributable to noncontrolling interests | ( | ( | ( | ( | ||||||||||||||||||||||
| Net Income Attributable to Kimberly-Clark Corporation | $ | $ | $ | $ | ||||||||||||||||||||||
| Per Share Basis | ||||||||||||||||||||||||||
| Net Income Attributable to Kimberly-Clark Corporation | ||||||||||||||||||||||||||
| Basic: | ||||||||||||||||||||||||||
| Continuing operations | $ | $ | $ | $ | ||||||||||||||||||||||
| Discontinued operations | ||||||||||||||||||||||||||
| Basic Earnings per Share | $ | $ | $ | $ | ||||||||||||||||||||||
| Diluted: | ||||||||||||||||||||||||||
| Continuing operations | $ | $ | $ | $ | ||||||||||||||||||||||
| Discontinued operations | ||||||||||||||||||||||||||
| Diluted Earnings per Share | $ | $ | $ | $ | ||||||||||||||||||||||
See Notes to the Unaudited Interim Condensed Consolidated Financial Statements.
1
KIMBERLY-CLARK CORPORATION AND SUBSIDIARIES
CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME
(Unaudited)
| Three Months Ended June 30 | Six Months Ended June 30 | |||||||||||||||||||||||||
| (In millions) | 2025 | 2024 | 2025 | 2024 | ||||||||||||||||||||||
| Net Income | $ | $ | $ | $ | ||||||||||||||||||||||
| Other Comprehensive Income (Loss), Net of Tax | ||||||||||||||||||||||||||
| Unrealized currency translation adjustments | ( | ( | ||||||||||||||||||||||||
| Employee postretirement benefits | ( | ( | ||||||||||||||||||||||||
| Cash flow hedges | ( | ( | ||||||||||||||||||||||||
| Total Other Comprehensive Income (Loss), Net of Tax | ( | |||||||||||||||||||||||||
| Comprehensive Income | ||||||||||||||||||||||||||
| Comprehensive income attributable to noncontrolling interests | ( | ( | ( | ( | ||||||||||||||||||||||
| Comprehensive Income Attributable to Kimberly-Clark Corporation | $ | $ | $ | $ | ||||||||||||||||||||||
See Notes to the Unaudited Interim Condensed Consolidated Financial Statements.
2
KIMBERLY-CLARK CORPORATION AND SUBSIDIARIES
CONDENSED CONSOLIDATED BALANCE SHEETS
(Unaudited)
| (In millions, except par value) | June 30, 2025 | December 31, 2024 | ||||||||||||
| ASSETS | ||||||||||||||
| Current Assets | ||||||||||||||
| Cash and cash equivalents | $ | $ | ||||||||||||
| Accounts receivable, net | ||||||||||||||
| Inventories | ||||||||||||||
| Other current assets | ||||||||||||||
| Current assets of discontinued operations | ||||||||||||||
| Total Current Assets | ||||||||||||||
| Property, Plant and Equipment, Net | ||||||||||||||
| Investments in Equity Companies | ||||||||||||||
| Goodwill | ||||||||||||||
| Other Intangible Assets, Net | ||||||||||||||
| Other Assets | ||||||||||||||
| Non-current Assets of Discontinued Operations | ||||||||||||||
| TOTAL ASSETS | $ | $ | ||||||||||||
| LIABILITIES AND STOCKHOLDERS' EQUITY | ||||||||||||||
| Current Liabilities | ||||||||||||||
| Debt payable within one year | $ | $ | ||||||||||||
| Trade accounts payable | ||||||||||||||
| Accrued expenses and other current liabilities | ||||||||||||||
| Dividends payable | ||||||||||||||
| Current liabilities of discontinued operations | ||||||||||||||
| Total Current Liabilities | ||||||||||||||
| Long-Term Debt | ||||||||||||||
| Non-current Employee Benefits | ||||||||||||||
| Deferred Income Taxes | ||||||||||||||
| Other Liabilities | ||||||||||||||
| Non-current Liabilities of Discontinued Operations | ||||||||||||||
| Redeemable Preferred Securities of Subsidiaries | ||||||||||||||
| Stockholders' Equity | ||||||||||||||
| Kimberly-Clark Corporation | ||||||||||||||
Preferred stock - | ||||||||||||||
Common stock - $ | ||||||||||||||
| Additional paid-in capital | ||||||||||||||
Common stock held in treasury, at cost - | ( | ( | ||||||||||||
| Retained earnings | ||||||||||||||
| Accumulated other comprehensive income (loss) | ( | ( | ||||||||||||
| Total Kimberly-Clark Corporation Stockholders' Equity | ||||||||||||||
| Noncontrolling Interests | ||||||||||||||
| Total Stockholders' Equity | ||||||||||||||
| TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY | $ | $ | ||||||||||||
See Notes to the Unaudited Interim Condensed Consolidated Financial Statements.
3
KIMBERLY-CLARK CORPORATION AND SUBSIDIARIES
CONDENSED CONSOLIDATED STATEMENTS OF STOCKHOLDERS' EQUITY
(Unaudited)
| Three Months Ended June 30, 2025 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| (In millions, except per share amounts. Shares in thousands) | Common Stock Issued | Additional Paid-in Capital | Treasury Stock | Retained Earnings | Accumulated Other Comprehensive Income (Loss) | Non-controlling Interests | Total Stockholders' Equity | |||||||||||||||||||||||||||||||||||||||||||||||||
| Shares | Amount | Shares | Amount | |||||||||||||||||||||||||||||||||||||||||||||||||||||
| Balance at March 31, 2025 | $ | $ | $ | ( | $ | $ | ( | $ | $ | |||||||||||||||||||||||||||||||||||||||||||||||
Net income in stockholders' equity(a) | — | — | — | — | — | — | ||||||||||||||||||||||||||||||||||||||||||||||||||
Other comprehensive income, net of tax(a) | — | — | — | — | — | — | ||||||||||||||||||||||||||||||||||||||||||||||||||
| Stock-based awards exercised or vested | — | — | ( | ( | — | — | — | ( | ||||||||||||||||||||||||||||||||||||||||||||||||
| Repurchases of common stock | — | — | — | ( | — | — | — | ( | ||||||||||||||||||||||||||||||||||||||||||||||||
| Recognition of stock-based compensation | — | — | — | — | — | — | — | |||||||||||||||||||||||||||||||||||||||||||||||||
Dividends declared ($ | — | — | — | — | — | ( | — | ( | ||||||||||||||||||||||||||||||||||||||||||||||||
| Other | — | — | — | ( | ( | ( | ( | |||||||||||||||||||||||||||||||||||||||||||||||||
| Balance at June 30, 2025 | $ | $ | $ | ( | $ | $ | ( | $ | $ | |||||||||||||||||||||||||||||||||||||||||||||||
| Six Months Ended June 30, 2025 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| (In millions, except per share amounts. Shares in thousands) | Common Stock Issued | Additional Paid-in Capital | Treasury Stock | Retained Earnings | Accumulated Other Comprehensive Income (Loss) | Non-controlling Interests | Total Stockholders' Equity | |||||||||||||||||||||||||||||||||||||||||||||||||
| Shares | Amount | Shares | Amount | |||||||||||||||||||||||||||||||||||||||||||||||||||||
| Balance at December 31, 2024 | $ | $ | $ | ( | $ | $ | ( | $ | $ | |||||||||||||||||||||||||||||||||||||||||||||||
Net income in stockholders' equity(a) | — | — | — | — | — | — | ||||||||||||||||||||||||||||||||||||||||||||||||||
Other comprehensive income, net of tax(a) | — | — | — | — | — | — | ||||||||||||||||||||||||||||||||||||||||||||||||||
| Stock-based awards exercised or vested | — | — | ( | ( | — | — | — | ( | ||||||||||||||||||||||||||||||||||||||||||||||||
| Repurchases of common stock | — | — | — | ( | — | — | — | ( | ||||||||||||||||||||||||||||||||||||||||||||||||
| Recognition of stock-based compensation | — | — | — | — | — | — | — | |||||||||||||||||||||||||||||||||||||||||||||||||
Dividends declared ($ | — | — | — | — | — | ( | — | ( | ( | |||||||||||||||||||||||||||||||||||||||||||||||
| Other | — | — | — | ( | ( | ( | ( | |||||||||||||||||||||||||||||||||||||||||||||||||
| Balance at June 30, 2025 | $ | $ | $ | ( | $ | $ | ( | $ | $ | |||||||||||||||||||||||||||||||||||||||||||||||
(a) Excludes redeemable interests' share.
4
KIMBERLY-CLARK CORPORATION AND SUBSIDIARIES
CONDENSED CONSOLIDATED STATEMENTS OF STOCKHOLDERS' EQUITY
(Unaudited)
| Three Months Ended June 30, 2024 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| (In millions, except per share amounts. Shares in thousands) | Common Stock Issued | Additional Paid-in Capital | Treasury Stock | Retained Earnings | Accumulated Other Comprehensive Income (Loss) | Non-controlling Interests | Total Stockholders' Equity | |||||||||||||||||||||||||||||||||||||||||||||||||
| Shares | Amount | Shares | Amount | |||||||||||||||||||||||||||||||||||||||||||||||||||||
| Balance at March 31, 2024 | $ | $ | $ | ( | $ | $ | ( | $ | $ | |||||||||||||||||||||||||||||||||||||||||||||||
Net income in stockholders' equity(a) | — | — | — | — | — | — | ||||||||||||||||||||||||||||||||||||||||||||||||||
Other comprehensive income, net of tax(a) | — | — | — | — | — | — | ( | |||||||||||||||||||||||||||||||||||||||||||||||||
| Stock-based awards exercised or vested | — | — | ( | ( | — | — | — | |||||||||||||||||||||||||||||||||||||||||||||||||
| Repurchases of common stock | — | — | — | ( | — | — | — | ( | ||||||||||||||||||||||||||||||||||||||||||||||||
| Recognition of stock-based compensation | — | — | — | — | — | — | — | |||||||||||||||||||||||||||||||||||||||||||||||||
Dividends declared ($ | — | — | — | — | — | ( | — | ( | ( | |||||||||||||||||||||||||||||||||||||||||||||||
| Other | — | — | — | — | — | |||||||||||||||||||||||||||||||||||||||||||||||||||
| Balance at June 30, 2024 | $ | $ | $ | ( | $ | $ | ( | $ | $ | |||||||||||||||||||||||||||||||||||||||||||||||
| Six Months Ended June 30, 2024 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| (In millions, except per share amounts. Shares in thousands) | Common Stock Issued | Additional Paid-in Capital | Treasury Stock | Retained Earnings | Accumulated Other Comprehensive Income (Loss) | Non-controlling Interests | Total Stockholders' Equity | |||||||||||||||||||||||||||||||||||||||||||||||||
| Shares | Amount | Shares | Amount | |||||||||||||||||||||||||||||||||||||||||||||||||||||
| Balance at December 31, 2023 | $ | $ | $ | ( | $ | $ | ( | $ | $ | |||||||||||||||||||||||||||||||||||||||||||||||
Net income in stockholders' equity(a) | — | — | — | — | — | — | ||||||||||||||||||||||||||||||||||||||||||||||||||
Other comprehensive income, net of tax(a) | — | — | — | — | — | — | ( | ( | ( | |||||||||||||||||||||||||||||||||||||||||||||||
| Stock-based awards exercised or vested | — | — | ( | ( | — | — | — | ( | ||||||||||||||||||||||||||||||||||||||||||||||||
| Repurchases of common stock | — | — | — | ( | — | — | — | ( | ||||||||||||||||||||||||||||||||||||||||||||||||
| Recognition of stock-based compensation | — | — | — | — | — | — | — | |||||||||||||||||||||||||||||||||||||||||||||||||
Dividends declared ($ | — | — | — | — | — | ( | — | ( | ( | |||||||||||||||||||||||||||||||||||||||||||||||
| Other | — | — | — | — | ( | — | — | |||||||||||||||||||||||||||||||||||||||||||||||||
| Balance at June 30, 2024 | $ | $ | $ | ( | $ | $ | ( | $ | $ | |||||||||||||||||||||||||||||||||||||||||||||||
(a) Excludes redeemable interests' share.
See Notes to the Unaudited Interim Condensed Consolidated Financial Statements.
5
KIMBERLY-CLARK CORPORATION AND SUBSIDIARIES
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
(Unaudited)
| Six Months Ended June 30 | ||||||||||||||
| (In millions) | 2025 | 2024 | ||||||||||||
| Operating Activities | ||||||||||||||
| Net income | $ | $ | ||||||||||||
| Depreciation and amortization | ||||||||||||||
| Asset impairments | ||||||||||||||
| Stock-based compensation | ||||||||||||||
| Deferred income taxes | ( | ( | ||||||||||||
| Net (gains) losses on asset and business dispositions | ||||||||||||||
| Equity companies' earnings (in excess of) less than dividends paid | ( | ( | ||||||||||||
| Operating working capital | ( | ( | ||||||||||||
| Postretirement benefits | ||||||||||||||
| Other | ||||||||||||||
| Cash Provided by Operations | ||||||||||||||
| Investing Activities | ||||||||||||||
| Capital spending | ( | ( | ||||||||||||
| Proceeds from asset and business dispositions | ||||||||||||||
| Investments in time deposits | ( | ( | ||||||||||||
| Maturities of time deposits | ||||||||||||||
| Other | ( | |||||||||||||
| Cash Used for Investing | ( | ( | ||||||||||||
| Financing Activities | ||||||||||||||
| Cash dividends paid | ( | ( | ||||||||||||
| Change in short-term debt | ||||||||||||||
| Debt repayments | ( | |||||||||||||
| Proceeds from exercise of stock options | ||||||||||||||
| Repurchases of common stock | ( | ( | ||||||||||||
| Cash dividends paid to noncontrolling interests | ( | ( | ||||||||||||
| Other | ( | ( | ||||||||||||
| Cash Used for Financing | ( | ( | ||||||||||||
| Effect of Exchange Rate Changes on Cash and Cash Equivalents | ( | |||||||||||||
| Change in Cash and Cash Equivalents | ( | |||||||||||||
| Cash and cash equivalents from continuing operations - beginning of period | ||||||||||||||
Cash and cash equivalents from discontinued operations - beginning of period (a) | ||||||||||||||
| Cash and Cash Equivalents - Beginning of Period | ||||||||||||||
| Cash and cash equivalents from continuing operations - end of period | ||||||||||||||
Cash and cash equivalents from discontinued operations - end of period(a) | ||||||||||||||
| Cash and Cash Equivalents - End of Period | $ | $ | ||||||||||||
(a) Included in Current assets of discontinued operations.
See Notes to the Unaudited Interim Condensed Consolidated Financial Statements.
6
KIMBERLY-CLARK CORPORATION AND SUBSIDIARIES
NOTES TO THE UNAUDITED INTERIM CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
Note 1. Accounting Policies
Basis of Presentation
The accompanying Unaudited Interim Condensed Consolidated Financial Statements have been prepared in accordance with accounting principles generally accepted in the United States of America ("GAAP") for interim financial information and instructions to Form 10-Q and Article 10 of Regulation S-X. Accordingly, they do not include all of the information and footnotes required by GAAP for complete financial statements. In the opinion of management, all material adjustments which are of a normal and recurring nature necessary for a fair statement of the results for the periods presented have been reflected. Amounts are reported in millions of dollars, except per share amounts, unless otherwise noted.
For further information, refer to the consolidated financial statements and footnotes included in our Annual Report on Form 10-K for the year ended December 31, 2024. The terms "Corporation," "Company," "Kimberly-Clark," "K-C," "we," "our" and "us" refer to Kimberly-Clark Corporation and its consolidated subsidiaries.
International Family Care and Professional ("IFP") Transaction
On June 5, 2025, we announced that the Company will form a joint venture with Suzano S.A. ("Suzano") and Suzano International Holding B.V., a wholly-owned subsidiary of Suzano ("Buyer"), comprised of substantially all the operations of the Company's former International Family Care and Professional ("IFP") segment (the "IFP Business"). To facilitate this transaction, we entered into an Equity and Asset Purchase Agreement (the "Purchase Agreement") with Buyer, pursuant to which we will, among other things, effectuate a reorganization through the transfer of certain assets, liabilities and equity interests of the IFP Business to Kimberly-Clark IFP NewCo B.V., an indirect wholly-owned subsidiary of the Company (the "Joint Venture"). At the time of closing, which is expected to take place in mid-2026 and will only take place following the satisfaction of consultation requirements and customary closing conditions, including obtaining required regulatory approvals, Buyer will acquire a 51 % interest in the Joint Venture for a purchase price of approximately $1.7 billion, subject to certain closing adjustments set forth in the Purchase Agreement, and we will retain a 49 % equity interest (the "IFP Transaction").
In accordance with ASC 205, Presentation of Financial Statements, we determined the IFP Transaction represents a strategic shift that will have a major effect on our operations and financial results. Accordingly, effective in the second quarter of fiscal 2025, the results of the IFP Business are reported as discontinued operations in the accompanying Condensed Consolidated Statements of Income and have been excluded from both continuing operations and segment results for all periods presented. Further, the assets and liabilities of the IFP Business are classified as discontinued operations in the accompanying Condensed Consolidated Balance Sheets for all periods presented, and the Company has ceased depreciating and amortizing the long-lived assets of the IFP Business. The Condensed Consolidated Statements of Comprehensive Income, Stockholders' Equity and Cash Flows are presented on a consolidated basis for both continuing operations and discontinued operations. Unless otherwise noted, amounts and disclosures in the Notes to the Unaudited Interim Condensed Consolidated Financial Statements reflect only Kimberly-Clark's continuing operations. See Note 3 for additional details.
Highly Inflationary Accounting
GAAP requires the use of highly inflationary accounting for countries whose cumulative three-year inflation exceeds 100%. Under highly inflationary accounting, the countries’ functional currency becomes the U.S. dollar, and its income statement and balance sheet are measured in U.S. dollars using both current and historical rates of exchange.
As of July 1, 2018, we adopted highly inflationary accounting for our subsidiaries in Argentina (“K-C Argentina”). The effect of changes in exchange rates on peso-denominated monetary assets and liabilities has been reflected in earnings in Other (income) and expense, net. As of June 30, 2025, K-C Argentina had an immaterial net peso monetary position. Net sales of K-C Argentina were approximately 1
7
As of April 1, 2022, we adopted highly inflationary accounting for our subsidiary in Türkiye (“K-C Türkiye”). The effect of changes in exchange rates on lira-denominated monetary assets and liabilities has been reflected in earnings in Other (income) and expense, net. As of June 30, 2025, K-C Türkiye had an immaterial net lira monetary position. Net sales of K-C Türkiye were less than 1
Recently Issued Accounting Standards
In December 2023, the FASB issued ASU 2023-09, Income Taxes (Topic 740). The new guidance is intended to enhance the transparency and decision usefulness of annual income tax disclosures. The amendments in this ASU are effective for fiscal years beginning after December 15, 2024. Early adoption is permitted, and the amendments should be applied on a prospective basis with retrospective application permitted. As the guidance requires only additional disclosure, there will be no effects of this standard on our financial position, results of operations or cash flows.
In November 2024, the FASB issued ASU No. 2024-03, Income Statement - Reporting Comprehensive Income - Expense Disaggregation Disclosures (Topic 220). The new guidance requires disclosure in the notes to the financial statements of disaggregated information about specific expense categories underlying certain income statement expense line items. The amendments in this ASU are effective for fiscal years beginning after December 15, 2026, and interim periods within fiscal years beginning after December 15, 2027, with early adoption permitted. The amendments should be applied on a prospective basis with retrospective application permitted. We are currently evaluating the impact of this update on our consolidated financial statements and related disclosures.
Note 2. 2024 Transformation Initiative
On March 27, 2024, we announced the 2024 Transformation Initiative intended to improve our focus on growth and reduce our structural cost base by realigning our internal operating and management structure to streamline our global supply chain and improve the efficiency of our corporate and regional overhead cost structures. The transformation is expected to impact our organization in all major geographies, and workforce reductions are expected to be in the range of 4 % to 5 %. Certain actions under the 2024 Transformation Initiative are being finalized for implementation, and accounting for such actions will commence when the actions are authorized for execution.
The 2024 Transformation Initiative is expected to be completed by the end of 2026, with total costs anticipated to be approximately $1.5 billion pre-tax. Cash costs are expected to be approximately 60 % of that amount, primarily related to workforce reductions and other program costs. Expected non-cash charges are primarily related to incremental depreciation and asset write-offs, including losses associated with the expected exit of certain markets. Through June 30, 2025, cumulative pre-tax charges for the 2024 Transformation Initiative were $656 ($511 after-tax).
8
The following charges were incurred in connection with the 2024 Transformation Initiative:
| Three Months Ended June 30 | Six Months Ended June 30 | |||||||||||||||||||||||||
| 2025 | 2024 | 2025 | 2024 | |||||||||||||||||||||||
| Cost of products sold: | ||||||||||||||||||||||||||
| Charges for workforce reductions | $ | $ | $ | $ | ||||||||||||||||||||||
| Asset write-offs | ||||||||||||||||||||||||||
| Incremental depreciation | ||||||||||||||||||||||||||
| Other exit costs | ||||||||||||||||||||||||||
| Total | ||||||||||||||||||||||||||
| Marketing, research and general expenses: | ||||||||||||||||||||||||||
| Charges for workforce reductions | ||||||||||||||||||||||||||
| Other exit costs | ||||||||||||||||||||||||||
| Total | ||||||||||||||||||||||||||
Other (income) and expense, net(a) | ||||||||||||||||||||||||||
| Nonoperating expense | ||||||||||||||||||||||||||
Total charges(b) | ||||||||||||||||||||||||||
| Provision for income taxes | ( | ( | ( | ( | ||||||||||||||||||||||
| Net charges | ||||||||||||||||||||||||||
| Net impact related to noncontrolling interests | ( | ( | ||||||||||||||||||||||||
| Net charges attributable to Kimberly-Clark Corporation | $ | $ | $ | $ | ||||||||||||||||||||||
(a)Other (Income) and expense, net includes losses recognized for the exit of certain businesses and markets as part of the 2024 Transformation Initiative.
(b)We do not include 2024 Transformation Initiative charges within our segment operating results. Total impact of these charges to the NA and IPC segments were $58 and $71 , respectively, for the three months ended June 30, 2025, $27 and $126 , respectively, for the three months ended June 30, 2024, $85 and $91 , respectively, for the six months ended June 30, 2025, and $65 and $129 , respectively, for the six months ended June 30, 2024, with the residual relating to Corporate & Other. See further discussion around our segment operating results in Note 8.
The following summarizes the 2024 Transformation Initiative liabilities activity:
| 2025 | ||||||||
| 2024 Transformation Initiative liabilities as of January 1 | $ | |||||||
| Charges for workforce reductions and other cash exit costs | ||||||||
| Cash payments | ( | |||||||
| Currency and other | ||||||||
| 2024 Transformation Initiative liabilities as of June 30 | $ | |||||||
9
Note 3. Discontinued Operations
As disclosed in Note 1, on June 5, 2025, we announced the sale of a controlling equity interest in a newly formed Joint Venture comprised of our IFP Business. At the time of closing, Buyer will acquire a 51 % interest in the Joint Venture for a purchase price of approximately $1.7 billion, subject to certain post-closing adjustments set forth in the Purchase Agreement. We will retain a 49 % equity interest in the Joint Venture which we expect will initially be recorded at fair value and subsequently accounted for using the equity method of accounting. The transaction is expected to close in mid-2026, pending the satisfaction of consultation requirements and customary closing conditions, including obtaining required regulatory approvals, set forth in the Purchase Agreement.
Financial Information of Discontinued Operations
The following table presents the components of Income from Discontinued Operations, Net of Income Taxes:
| Three Months Ended June 30 | Six Months Ended June 30 | |||||||||||||||||||||||||
| 2025 | 2024 | 2025 | 2024 | |||||||||||||||||||||||
| Net Sales | $ | $ | $ | $ | ||||||||||||||||||||||
| Cost of products sold | ||||||||||||||||||||||||||
| Gross Profit | ||||||||||||||||||||||||||
| Marketing, research and general expenses | ||||||||||||||||||||||||||
| Other (income) and expense, net | ||||||||||||||||||||||||||
| Operating Profit | ||||||||||||||||||||||||||
| Nonoperating expense | ||||||||||||||||||||||||||
| Income from discontinued operations before income taxes | ||||||||||||||||||||||||||
| Provision for income taxes | ( | ( | ( | ( | ||||||||||||||||||||||
| Income from Discontinued Operations, Net of Income Taxes | $ | $ | $ | $ | ||||||||||||||||||||||
As a result of the IFP Transaction, we incurred separation costs of $33 for the three months ended June 30, 2025, which are included in Income from Discontinued Operations, Net of Income Taxes. These costs were primarily related to external advisory, legal, accounting, contractor and other incremental costs directly related to the IFP Transaction.
The following table presents significant non-cash items and capital expenditures of discontinued operations:
| Three Months Ended June 30 | Six Months Ended June 30 | |||||||||||||||||||||||||
| 2025 | 2024 | 2025 | 2024 | |||||||||||||||||||||||
| Depreciation and Amortization | $ | $ | $ | $ | ||||||||||||||||||||||
| Capital Spending | ||||||||||||||||||||||||||
10
The following table presents the components of assets and liabilities classified as discontinued operations:
| June 30, 2025 | December 31, 2024 | |||||||||||||
| Assets | ||||||||||||||
| Cash and cash equivalents | $ | $ | ||||||||||||
| Accounts receivable, net | ||||||||||||||
| Inventories | ||||||||||||||
| Other current assets | ||||||||||||||
| Current Assets of Discontinued Operations | $ | $ | ||||||||||||
| Property, Plant and Equipment, Net | $ | $ | ||||||||||||
| Goodwill | ||||||||||||||
| Other Intangible Assets, Net | ||||||||||||||
| Other Assets | ||||||||||||||
| Non-current Assets of Discontinued Operations | $ | $ | ||||||||||||
| Liabilities | ||||||||||||||
| Debt payable within one year | $ | $ | ||||||||||||
| Trade accounts payable | ||||||||||||||
| Accrued expenses and other current liabilities | ||||||||||||||
| Current Liabilities of Discontinued Operations | $ | $ | ||||||||||||
| Long-Term Debt | $ | $ | ||||||||||||
| Non-current Employee Benefits | ||||||||||||||
| Deferred Income Taxes | ||||||||||||||
| Other Liabilities | ||||||||||||||
| Non-current Liabilities of Discontinued Operations | $ | $ | ||||||||||||
Joint Venture Agreement and Ancillary Agreements
Note 4. Fair Value Information
The following fair value information is based on a fair value hierarchy that prioritizes the inputs to valuation techniques used to measure fair value. The three levels in the hierarchy used to measure fair value are:
Level 1 – Unadjusted quoted prices in active markets accessible at the reporting date for identical assets and liabilities.
Level 2 – Quoted prices for similar assets or liabilities in active markets. Quoted prices for identical or similar assets and liabilities in markets that are not considered active or financial instruments for which all significant inputs are observable, either directly or indirectly.
Level 3 – Prices or valuations that require inputs that are significant to the valuation and are unobservable.
A financial instrument's level within the fair value hierarchy is based on the lowest level of any input that is significant to the fair value measurement.
11
During the six months ended June 30, 2025 and for the full year 2024, there were no significant transfers to or from level 3 fair value determinations.
Derivative assets and liabilities are measured on a recurring basis at fair value. As of June 30, 2025 and December 31, 2024, derivative assets were $82 and $189 , respectively, and derivative liabilities were $253 and $137 , respectively. The fair values of derivatives used to manage interest rate risk and commodity price risk are based on the Secured Overnight Financing Rate ("SOFR") and interest rate swap curves and on commodity price quotations, respectively. The fair values of hedging instruments used to manage foreign currency risk are based on published quotations of spot currency rates and forward points, which are converted into implied forward currency rates. Measurement of our derivative assets and liabilities is considered a level 2 measurement. See Note 7 for additional information on our use of derivative instruments.
Redeemable preferred securities of subsidiaries are measured on a recurring basis at their estimated redemption values, which approximate fair value. As of June 30, 2025 and December 31, 2024, the securities were valued at $37
Company-owned life insurance ("COLI") assets are measured on a recurring basis at fair value. COLI assets were $70 and $71 as of June 30, 2025 and December 31, 2024, respectively. The COLI policies are a source of funding primarily for our nonqualified employee benefits and are included in Other Assets in the Condensed Consolidated Balance Sheets. The COLI policies are measured at fair value using the net asset value per share practical expedient, and therefore, are not classified in the fair value hierarchy.
The following table includes the fair value of our financial instruments for which disclosure of fair value is required:
| Fair Value Hierarchy Level | Carrying Amount | Estimated Fair Value | Carrying Amount | Estimated Fair Value | ||||||||||||||||||||||||||||
| June 30, 2025 | December 31, 2024 | |||||||||||||||||||||||||||||||
| Assets | ||||||||||||||||||||||||||||||||
Cash and cash equivalents(a) | 1 | $ | $ | $ | $ | |||||||||||||||||||||||||||
Time deposits(b) | 1 | |||||||||||||||||||||||||||||||
Non-US government bonds(c) | 2 | |||||||||||||||||||||||||||||||
| Liabilities | ||||||||||||||||||||||||||||||||
Short-term debt(d) | 2 | |||||||||||||||||||||||||||||||
Long-term debt(e) | 2 | |||||||||||||||||||||||||||||||
(a)Cash equivalents are composed of certificates of deposit, time deposits and other interest-bearing investments with original maturity dates of 90 days or less. Cash equivalents are recorded at cost, which approximates fair value.
(b)Time deposits are composed of deposits with original maturities of more than 90 days but less than one year and instruments with original maturities of greater than one year, included in Other current assets or Other Assets in the Condensed Consolidated Balance Sheets, as appropriate. Time deposits are recorded at cost, which approximates fair value.
(c)Non-US government bonds are composed of foreign issued debt securities that are classified as held-to-maturity because we have the positive intent and ability to hold the securities to maturity. These securities are recorded at amortized cost and are included in Other current assets or Other Assets in the Condensed Consolidated Balance Sheets, as appropriate.
(d)Short-term debt is composed of U.S. commercial paper and/or other similar short-term debt issued by non-U.S. subsidiaries, all of which are recorded at cost, which approximates fair value.
12
Note 5. Earnings Per Share
Basic and diluted earnings per share ("EPS") were calculated as follows:
| Three Months Ended June 30 | Six Months Ended June 30 | |||||||||||||||||||||||||
| (In millions, except per share amounts) | 2025 | 2024 | 2025 | 2024 | ||||||||||||||||||||||
| Income from Continuing Operations | $ | $ | $ | $ | ||||||||||||||||||||||
| Less: Net income attributable to noncontrolling interests | ( | ( | ( | ( | ||||||||||||||||||||||
| Income from Continuing Operations Attributable to Kimberly-Clark Corporation | ||||||||||||||||||||||||||
| Income from Discontinued Operations, Net of Income Taxes | ||||||||||||||||||||||||||
| Net Income Attributable to Kimberly-Clark Corporation | $ | $ | $ | $ | ||||||||||||||||||||||
| Weighted-Average Common Shares | ||||||||||||||||||||||||||
| Basic | ||||||||||||||||||||||||||
| Dilutive effect of stock options and restricted share unit awards | ||||||||||||||||||||||||||
| Diluted | ||||||||||||||||||||||||||
| Basic: | ||||||||||||||||||||||||||
| Continuing operations | $ | $ | $ | $ | ||||||||||||||||||||||
| Discontinued operations | ||||||||||||||||||||||||||
| Basic Earnings per Share | $ | $ | $ | $ | ||||||||||||||||||||||
| Diluted: | ||||||||||||||||||||||||||
| Continuing operations | $ | $ | $ | $ | ||||||||||||||||||||||
| Discontinued operations | ||||||||||||||||||||||||||
| Diluted Earnings per Share | $ | $ | $ | $ | ||||||||||||||||||||||
We use the treasury stock method to calculate the dilutive effect of stock options and other stock-based awards. Options outstanding not included in the computation of diluted EPS because their exercise price was greater than the average market price of the common shares were not material. The number of common shares outstanding as of June 30, 2025 and 2024 was 331.9 million and 337.0 million, respectively.
Note 6. Stockholders' Equity
Net unrealized currency gains or losses resulting from the translation of assets and liabilities of foreign subsidiaries, except those in highly inflationary economies, are recorded in Accumulated Other Comprehensive Income ("AOCI"). For these operations, changes in exchange rates generally do not affect cash flows; therefore, unrealized translation adjustments are recorded in AOCI rather than net income. Upon sale or substantially complete liquidation of any of these subsidiaries, the applicable unrealized translation adjustment would be removed from AOCI and reported as part of the gain or loss on the sale or liquidation. The change in unrealized currency translation for the six months ended June 30, 2025 was primarily due to the strengthening of certain foreign currencies versus the U.S. dollar.
Also included in unrealized translation amounts are the effects of foreign exchange rate changes on intercompany balances of a long-term investment nature and transactions designated as hedges of net foreign investments.
13
The changes in the components of AOCI attributable to Kimberly-Clark, net of tax, are as follows:
| Unrealized Translation | Defined Benefit Pension Plans | Other Postretirement Benefit Plans | Cash Flow Hedges | ||||||||||||||||||||||||||
| Balance as of December 31, 2023 | $ | ( | $ | ( | $ | $ | ( | ||||||||||||||||||||||
| Other comprehensive income (loss) before reclassifications | ( | ( | |||||||||||||||||||||||||||
| (Income) loss reclassified from AOCI | (b) | (a) | ( | (a) | (c) | ||||||||||||||||||||||||
| Net current period other comprehensive income (loss) | ( | ( | |||||||||||||||||||||||||||
| Balance as of June 30, 2024 | $ | ( | $ | ( | $ | $ | ( | ||||||||||||||||||||||
| Balance as of December 31, 2024 | $ | ( | $ | ( | $ | $ | |||||||||||||||||||||||
| Other comprehensive income (loss) before reclassifications | ( | ( | |||||||||||||||||||||||||||
| (Income) loss reclassified from AOCI | (a) | ( | (a) | (c) | |||||||||||||||||||||||||
| Net current period other comprehensive income (loss) | ( | ( | |||||||||||||||||||||||||||
| Balance as of June 30, 2025 | $ | ( | $ | ( | $ | $ | ( | ||||||||||||||||||||||
(a) Included in Nonoperating expense as part of the computation of net periodic benefit costs.
(b) Included in Other (income) and expense, net as part of the charges related to the 2024 Transformation Initiative (see Note 2).
(c) Included in Interest expense, Cost of products sold or Other (income) and expense, net, based on the income statement line that the hedged exposure affects earnings. For the six months ended June 30, 2025, losses of $20 were reclassified into Income from Discontinued Operations, Net of Income Taxes due to the discontinuance of cash flow hedge accounting as a result of the IFP Transaction (see Note 7 for further details) .
Note 7. Objectives and Strategies for Using Derivatives
As a multinational enterprise, we are exposed to financial risks, such as changes in foreign currency exchange rates, interest rates, and commodity prices. We employ a number of practices to manage these risks, including operating and financing activities and, where appropriate, the use of derivative instruments.
As of June 30, 2025 and December 31, 2024, derivative assets were $82 and $189 , respectively, and derivative liabilities were $253 and $137 , respectively, primarily comprised of foreign currency exchange, interest rate and commodity price contracts. Derivative assets are recorded in Other current assets or Other Assets, as appropriate, and derivative liabilities are recorded in Accrued expenses and other current liabilities or Other Liabilities, as appropriate.
Foreign Currency Exchange Rate Risk
Translation adjustments result from translating foreign entities' financial statements into U.S. dollars from their functional currencies. The risk to any particular entity's net assets is reduced to the extent that the entity is financed with local currency borrowings. A portion of our balance sheet translation exposure for certain affiliates, which results from changes in translation rates between the affiliates’ functional currencies and the U.S. dollar, is hedged with cross-currency swap contracts and certain foreign denominated debt which are designated as net investment hedges. The foreign currency exposure on certain non-functional currency denominated monetary assets and liabilities, primarily intercompany loans and accounts payable, is hedged primarily with undesignated derivative instruments.
Derivative instruments are used to hedge a portion of forecasted cash flows denominated in foreign currencies for non-U.S. operations' purchases of raw materials, which are priced in U.S. dollars, and imports of intercompany finished goods and work-in-process priced predominantly in U.S. dollars and euros. The derivative instruments used to manage these exposures are designated as cash flow hedges.
Interest Rate Risk
Interest rate risk is managed using a portfolio of variable and fixed-rate debt composed of short and long-term instruments. Interest rate swap contracts may be used to facilitate the maintenance of the desired ratio of variable and fixed-rate debt and are designated as fair value hedges. From time to time, we also hedge the anticipated issuance of fixed-rate debt, and these contracts are designated as cash flow hedges.
14
Commodity Price Risk
We use derivative instruments, such as commodity forward and price swap contracts, to hedge a portion of our exposure to market risk arising from changes in prices of certain commodities. These derivatives are primarily designated as cash flow hedges of specific quantities of the underlying commodity expected to be purchased in future months. In addition, we utilize negotiated contracts of varying durations along with strategic pricing mechanisms to manage volatility for a portion of our commodity costs.
Fair Value Hedges
Derivative instruments that are designated and qualify as fair value hedges are predominantly used to manage interest rate risk. The fair values of these derivative instruments are recorded as an asset or liability, as appropriate, with the offset recorded in Interest expense. The offset to the change in fair values of the related debt is also recorded in Interest expense. Any realized gain or loss on the derivatives that hedge interest rate risk is amortized to Interest expense over the life of the related debt. As of June 30, 2025, the aggregate notional values and carrying values of debt subject to outstanding interest rate contracts designated as fair value hedges were $525 and $501 , respectively. For the six months ended June 30, 2025 and 2024, gains or losses recognized in Interest expense for interest rate swaps were not material.
Cash Flow Hedges
For derivative instruments that are designated and qualify as cash flow hedges, the gain or loss on the derivative instrument is initially recorded in AOCI, net of related income taxes, and recognized in earnings in the same income statement line and period that the hedged exposure affects earnings. As of June 30, 2025, the aggregate notional value of outstanding foreign exchange and commodity derivative contracts designated as cash flow hedges was $2.6 billion. For the six months ended June 30, 2025, we discontinued cash flow hedge accounting for certain foreign exchange and commodity instruments with a notional value of $681 because the forecasted transactions were no longer probable of occurring due to the IFP Transaction. As a result, pre-tax losses of $20 were reclassified from AOCI into Income from Discontinued Operations, Net of Income Taxes. For the six months ended June 30, 2024, no material gains or losses were reclassified from AOCI into earnings as a result of the discontinuance of cash flow hedge accounting. As of June 30, 2025, losses expected to be reclassified from AOCI into Interest expense, Cost of products sold or Other (income) and expense, net during the next twelve months are $32 . The maximum maturity of cash flow hedges in place as of June 30, 2025 is May 2028.
Net Investment Hedges
For derivative instruments that are designated and qualify as net investment hedges, the aggregate notional value was $1.3 billion as of June 30, 2025. We exclude the interest accruals on cross-currency swap contracts and the forward points on foreign exchange forward contracts from the assessment and measurement of hedge effectiveness. We recognize the interest accruals on cross-currency swap contracts in earnings within Interest expense. We amortize the forward points on foreign exchange contracts into earnings within Interest expense over the life of the hedging relationship. Unrealized gains and losses related to changes in fair value of net investment hedges are recorded in AOCI and offset the change in the value of the net investment being hedged. Unrealized losses of $128 and unrealized gains of $18 were recorded in AOCI for the three months ended June 30, 2025 and 2024, respectively. Unrealized losses of $148 and unrealized gains of $45 were recorded in AOCI for the six months ended June 30, 2025 and 2024, respectively. For the six months ended June 30, 2025 and 2024, no material amounts were reclassified from AOCI to Interest expense.
For the six months ended June 30, 2025 and 2024, no material amounts were excluded from the assessment of net investment, fair value or cash flow hedge effectiveness.
Undesignated Hedging Instruments
Gains or losses on undesignated foreign exchange and commodity hedging instruments are immediately recognized in Other (income) and expense, net. Gains of $38 and losses of $9 were recorded for the three months ended June 30, 2025 and 2024, respectively. Gains of $62 and losses of $32 were recorded in the six months ended June 30, 2025 and 2024, respectively. The effect on earnings from the use of these non-designated derivatives is substantially neutralized by the transactional gains and losses recorded on the underlying assets and liabilities. As of June 30, 2025, the notional value of these undesignated derivative instruments was approximately $5.2 billion.
15
Note 8. Segment Reporting
The Company's continuing operations are organized into two reportable segments defined by geographic region: North America ("NA") and International Personal Care ("IPC").
These segments differ from those used in prior periods due to changes to our reportable segments effective in the fourth quarter of 2024 (refer to our Annual Report on Form 10-K for further details) and the following changes effective in the second quarter of 2025:
IFP Transaction
As a result of the IFP Transaction discussed in Notes 1 and 3, the results of operations and applicable assets and liabilities of the IFP Business are reported as discontinued operations in the Company's financial statements and are excluded from segment results for all periods presented. This includes certain costs that were previously allocated to the IPC segment that relate to assets or activities that are part of the IFP Transaction. These costs have been removed from the results of the IPC segment and are reported as discontinued operations. Additionally, certain operations and commercial activities of the former IFP segment retained by K-C are now reported in the NA and IPC segments.
Corporate and Other
Corporate and Other was updated for all periods presented to include the following:
•Operations of the former IFP segment that were divested prior to the IFP Transaction and therefore not reported as discontinued operations.
•Costs previously allocated to the former IFP segment that are not directly attributable to the operations included in the IFP Transaction and therefore are not reported as discontinued operations.
The reportable segments were determined in accordance with how our Chief Executive Officer, who is our chief operating decision maker ("CODM"), develops and executes global strategies to drive growth and profitability. These strategies include global plans for branding and product positioning, technology, research and development programs, cost reductions including supply chain management, and capacity and capital investments for each of these businesses. The primary measure of segment profitability utilized by our CODM is segment operating profit. Our CODM uses this measure to assess the operating results and performance of our segments, perform analytical comparisons to budget and allocate resources to each segment. Segment operating profit excludes Corporate & Other, which primarily encompasses certain unallocated general corporate expenses, impairment charges, one-time (gains) or losses associated with acquisitions and divestitures, costs related to our reorganization activities that are not associated with the ongoing operations of the segments, certain operations of the former IFP segment that were divested prior to the IFP Transaction, and costs previously allocated to the former IFP segment that aren't reported as discontinued operations. Our CODM does not use assets by segment to evaluate performance or allocate resources. Therefore, we do not disclose assets by segment.
The principal sources of revenue in each segment are described below:
•North America consists of products encompassing each of our five global daily-need categories across consumer and professional channels including disposable diapers, training and youth pants, swimpants, baby wipes, feminine and incontinence care products, reusable underwear, facial and bathroom tissue, paper towels, napkins, wipers, tissue, towels, soaps and sanitizers and other related products. These products are sold under the Huggies, Pull-Ups, GoodNites, Kotex, Poise, Depend, Kleenex, Scott, Cottonelle, Viva, Wypall and other brand names.
•International Personal Care consists of three core categories — Baby & Child Care, Adult Care and Feminine Care, including disposable diapers, training and youth pants, swimpants, baby wipes, feminine and incontinence care products, reusable underwear and other related products. These products are sold under the Huggies, Kotex, Goodfeel, Intimus, Depend and other brand names.
The tables below present net sales and the significant expense categories that are included in Segment Operating Profit and regularly provided to our CODM:
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| Three Months Ended June 30, 2025 | ||||||||||||||||||||
| NA | IPC | Total | ||||||||||||||||||
| Segment Net Sales | $ | $ | $ | |||||||||||||||||
| Corporate & Other | ||||||||||||||||||||
| Total Net Sales | $ | |||||||||||||||||||
| Cost of Products Sold | ||||||||||||||||||||
| Advertising and Promotion Expense | ||||||||||||||||||||
| Research, Selling and General Expense | ||||||||||||||||||||
Other (Income) and Expense, net(a) | ||||||||||||||||||||
| Segment Operating Profit | $ | $ | $ | |||||||||||||||||
| Corporate & Other | ( | |||||||||||||||||||
| Total Operating Profit | $ | |||||||||||||||||||
| Six Months Ended June 30, 2025 | ||||||||||||||||||||
| NA | IPC | Total | ||||||||||||||||||
| Segment Net Sales | $ | $ | $ | |||||||||||||||||
| Corporate & Other | ||||||||||||||||||||
| Total Net Sales | $ | |||||||||||||||||||
| Cost of Products Sold | ||||||||||||||||||||
| Advertising and Promotion Expense | ||||||||||||||||||||
| Research, Selling and General Expense | ||||||||||||||||||||
Other (Income) and Expense, net(a) | ||||||||||||||||||||
| Segment Operating Profit | $ | $ | $ | |||||||||||||||||
| Corporate & Other | ( | |||||||||||||||||||
| Total Operating Profit | $ | |||||||||||||||||||
| Three Months Ended June 30, 2024 | ||||||||||||||||||||
| NA | IPC | Total | ||||||||||||||||||
| Segment Net Sales | $ | $ | $ | |||||||||||||||||
| Corporate & Other | ||||||||||||||||||||
| Total Net Sales | $ | |||||||||||||||||||
| Cost of Products Sold | ||||||||||||||||||||
| Advertising and Promotion Expense | ||||||||||||||||||||
| Research, Selling and General Expense | ||||||||||||||||||||
Other (Income) and Expense, net(a) | ||||||||||||||||||||
| Segment Operating Profit | $ | $ | $ | |||||||||||||||||
| Corporate & Other | ( | |||||||||||||||||||
| Total Operating Profit | $ | |||||||||||||||||||
(a) Other (income) and expense, net primarily includes the effects of changes in exchange rates on monetary assets and liabilities for subsidiaries where we have adopted highly inflationary accounting.
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| Six Months Ended June 30, 2024 | ||||||||||||||||||||
| NA | IPC | Total | ||||||||||||||||||
| Segment Net Sales | $ | $ | $ | |||||||||||||||||
| Corporate & Other | ||||||||||||||||||||
| Total Net Sales | $ | |||||||||||||||||||
| Cost of Products Sold | ||||||||||||||||||||
| Advertising and Promotion Expense | ||||||||||||||||||||
| Research, Selling and General Expense | ||||||||||||||||||||
Other (Income) and Expense, net(a) | ||||||||||||||||||||
| Segment Operating Profit | $ | $ | $ | |||||||||||||||||
| Corporate & Other | ( | |||||||||||||||||||
| Total Operating Profit | $ | |||||||||||||||||||
Depreciation and amortization expense by segment was:
| Three Months Ended June 30 | Six Months Ended June 30 | |||||||||||||||||||||||||
| 2025 | 2024 | 2025 | 2024 | |||||||||||||||||||||||
| NA | $ | $ | $ | $ | ||||||||||||||||||||||
| IPC | ||||||||||||||||||||||||||
| Total Segment Depreciation and Amortization | ||||||||||||||||||||||||||
| Corporate & Other | ||||||||||||||||||||||||||
Total(a) | $ | $ | $ | $ | ||||||||||||||||||||||
(a) Excludes discontinued operations. See Note 3 for depreciation and amortization of discontinued operations.
Capital spending by segment was:
| Three Months Ended June 30 | Six Months Ended June 30 | |||||||||||||||||||||||||
| 2025 | 2024 | 2025 | 2024 | |||||||||||||||||||||||
| NA | $ | $ | $ | $ | ||||||||||||||||||||||
| IPC | ||||||||||||||||||||||||||
| Total Segment Capital Spending | ||||||||||||||||||||||||||
| Corporate & Other | ||||||||||||||||||||||||||
Total(a) | $ | $ | $ | $ | ||||||||||||||||||||||
(a) Excludes discontinued operations. See Note 3 for depreciation and amortization of discontinued operations.
Sales of Principal Products:
| Three Months Ended June 30 | Six Months Ended June 30 | |||||||||||||||||||||||||
| 2025 | 2024 | 2025 | 2024 | |||||||||||||||||||||||
| Baby and Child Care | $ | $ | $ | $ | ||||||||||||||||||||||
| Family Care | ||||||||||||||||||||||||||
| Professional | ||||||||||||||||||||||||||
| Adult Care | ||||||||||||||||||||||||||
| Feminine Care | ||||||||||||||||||||||||||
| All other | ||||||||||||||||||||||||||
| Total | $ | $ | $ | $ | ||||||||||||||||||||||
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Note 9. Supplemental Balance Sheet Data
The following schedule presents a summary of inventories by major class:
| June 30, 2025 | December 31, 2024 | |||||||||||||||||||||||||||||||||||||
| LIFO | Non-LIFO | Total | LIFO | Non-LIFO | Total | |||||||||||||||||||||||||||||||||
| Raw materials | $ | $ | $ | $ | $ | $ | ||||||||||||||||||||||||||||||||
| Work in process | ||||||||||||||||||||||||||||||||||||||
| Finished goods | ||||||||||||||||||||||||||||||||||||||
| Supplies and other | ||||||||||||||||||||||||||||||||||||||
| Excess of FIFO or weighted-average cost over LIFO cost | ( | ( | ( | ( | ||||||||||||||||||||||||||||||||||
| Total | $ | $ | $ | $ | $ | $ | ||||||||||||||||||||||||||||||||
Inventories are valued at the lower of cost or net realizable value, determined on the FIFO or weighted-average cost methods, and at the lower of cost or market, determined on the LIFO cost method.
The following schedule presents a summary of property, plant and equipment, net:
| June 30, 2025 | December 31, 2024 | |||||||||||||
| Land | $ | $ | ||||||||||||
| Buildings | ||||||||||||||
| Machinery and equipment | ||||||||||||||
| Construction in progress | ||||||||||||||
| Less accumulated depreciation | ( | ( | ||||||||||||
| Total | $ | $ | ||||||||||||
Supplier Finance Program
We have a supplier finance program managed through two global financial institutions under which we agree to pay the financial institutions the stated amount of confirmed invoices from our participating suppliers on the invoice due date. We, or the global financial institutions, may terminate our agreements at any time upon 30 days written notice. The global financial institutions may terminate our agreements at any time upon three days written notice in the event there are insufficient funds available for disbursement. We do not provide any forms of guarantees under these agreements. Supplier participation in the program is solely up to the supplier, and the participating suppliers negotiate their arrangements directly with the global financial institutions. We have no economic interest in a supplier’s decision to participate in the program, and their participation has no bearing on our payment terms or amounts due. The payment terms that we have with our suppliers under this program generally range from 75 to 180 days and are considered commercially reasonable. As of June 30, 2025 and December 31, 2024, the outstanding amounts related to the suppliers participating in this program were $1.0 213 and $185 , respectively, are reported as discontinued operations. Amounts are recorded within Trade accounts payable and Current liabilities of discontinued operations.
Note 10. Legal Matters
We are party to certain legal proceedings relating to our former health care business, Avanos Medical, Inc. ("Avanos", previously Halyard Health, Inc.), as described in our Form 10-K for the year ended December 31, 2024, including a qui tam matter and certain subpoena and document requests from the federal government. The subpoena and document requests include subpoenas from the United States Department of Justice (“DOJ”) concerning allegations of potential criminal and civil violations of federal laws, including the Food, Drug, and Cosmetic Act, in connection with the manufacturing, marketing and sale of surgical gowns by our former health care business. During the second quarter of 2025, we entered into a settlement agreement to resolve the qui tam matter which provides for a payment by us in an amount that is not expected to materially affect our financial position, results of operations or cash flows. We continue to cooperate in the DOJ investigation and have progressed our efforts to reach a resolution of all related matters.
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Item 2. Management's Discussion and Analysis of Financial Condition and Results of Operations
Introduction
This Management's Discussion and Analysis ("MD&A") of Financial Condition and Results of Operations is intended to provide investors with an understanding of our recent performance, financial condition, cash flows and future prospects. The following MD&A should be read in conjunction with our Annual Report on Form 10-K for the year ended December 31, 2024 and the Unaudited Interim Condensed Consolidated Financial Statements and related notes contained in this Quarterly Report on Form 10-Q. Our analysis compares results for the three and six months ended June 30, 2025 to the same period in 2024. As discussed in the Notes to the Unaudited Interim Condensed Consolidated Financial Statements, the results and related assets and liabilities of the IFP Business are reported as discontinued operations. As a result, unless specifically stated, all discussions included below reflect continuing operations for all periods presented. Amounts are reported in millions of dollars, except per share amounts, unless otherwise noted. The following will be discussed and analyzed:
•Overview of Business and Recent Developments
•Consolidated Results
•Segment Results
•Liquidity and Capital Resources
Throughout this MD&A, we refer to financial measures that have not been calculated in accordance with accounting principles generally accepted in the U.S., or GAAP, and are therefore referred to as non-GAAP financial measures. We believe these measures provide our investors with additional information about our underlying results and trends, as well as insight to some of the financial measures used to evaluate management. For additional information and reconciliations to the most closely comparable financial measures presented in our Condensed Consolidated Financial Statements, which are calculated in accordance with U.S. GAAP, see "Summary of Non-GAAP Financial Measures" below.
Overview of Business and Recent Developments
We are a global company focused on delivering products and solutions that provide better care for a better world, with manufacturing facilities in 30 countries, including our equity affiliates, and products sold in more than 175 countries and territories. Our products are sold under well-known brands such as Kleenex, Scott, Huggies, Pull-Ups, Kotex and Depend.
Changes to U.S. trade policy, including increasing tariffs on imports have led to significant volatility and uncertainty in global markets. We estimate that the incremental costs of the new tariffs that are currently in effect in the U.S., as well as in other markets in which we operate, to be approximately $170 in 2025, most of which will be incurred by the North America segment. We are continuing to evaluate these developments and our ability to offset a portion of these costs to mitigate the impact on our business, consolidated results of operations, and financial condition.
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International Family Care and Professional ("IFP") Transaction
On June 5, 2025, we announced that the Company will form a joint venture with Suzano S.A. ("Suzano") and Suzano International Holding B.V., a wholly-owned subsidiary of Suzano ("Buyer"), comprised of substantially all the operations of the Company's former IFP segment (the "IFP Business"). To facilitate this transaction, we entered into an Equity and Asset Purchase Agreement (the "Purchase Agreement") with Buyer, pursuant to which we will, among other things, effectuate a reorganization through the transfer of certain assets, liabilities and equity interests of the IFP Business to Kimberly-Clark IFP NewCo B.V., an indirect wholly-owned subsidiary of the Company (the "Joint Venture"). At the time of closing, which is expected to take place in mid-2026 and will only take place following the satisfaction of consultation requirements and customary closing conditions, including obtaining required regulatory approvals, Buyer will acquire a 51% interest in the Joint Venture for a purchase price of approximately $1.7 billion, subject to certain closing adjustments set forth in the Purchase Agreement, and we will retain a 49% equity interest (the "IFP Transaction"). As a result, the results of operations and applicable assets and liabilities of the IFP Business are reported as discontinued operations in the Company's financial statements for all periods presented and the Company has ceased depreciating and amortizing the long-lived assets of the IFP Business. See Item 1, Notes 1 and 3 to the Unaudited Interim Condensed Consolidated Financial Statements for further details.
As a result of the IFP Transaction discussed above and the changes to our reportable segments effective in the fourth quarter of 2024 (refer to our Annual Report on Form 10-K for further details), the Company's continuing operations are now organized into two reportable segments defined by geographic region: North America ("NA") and International Personal Care ("IPC"). The results of the IFP Business, including certain costs that were previously allocated to the IPC segment that relate to assets or activities that are part of the IFP Transaction, are reported as discontinued operations and excluded from segment results for all periods presented. Additionally, certain operations and commercial activities of the former IFP segment retained by the Company are now reported in the NA and IPC segments. Further, Corporate and Other was updated for all periods presented to include the following:
•Operations of the former IFP segment that were divested prior to the IFP Transaction and therefore not reported as discontinued operations.
•Costs previously allocated to the former IFP segment that are not directly attributable to the operations included in the IFP Transaction and therefore are not reported as discontinued operations.
Segments are described in greater detail in Item 1, Note 8 to the Unaudited Interim Condensed Consolidated Financial Statements.
2024 Transformation Initiative
The 2024 Transformation Initiative is designed to sharpen our strategic focus through a new operating model that leverages three synergistic forces:
•Accelerating pioneering innovation to capture significant growth available in our categories by investing in science and technology to satisfy unmet and evolving consumer needs;
•Optimizing our margin structure to deliver superior consumer propositions and implement initiatives and deploy technology and data analytics designed to create a fast, adaptable, integrated supply chain with greater visibility that can deliver continuous improvement; and
•Wiring our organization for growth to drive agility, speed, and focused execution that extends our competitive advantages further into the future and improves the efficiency of our corporate and regional overhead cost structures.
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The transformation is expected to impact our organization in all major geographies, and workforce reductions are expected to be in the range of 4% to 5%. Certain actions under the 2024 Transformation Initiative are being finalized for implementation, and accounting for such actions will commence when the actions are authorized for execution. The 2024 Transformation Initiative is expected to be completed by the end of 2026. Total pre-tax savings are expected to be $3.0 billion in gross productivity; inclusive of input cost and manufacturing cost savings, and $200 in selling, general and administrative expenses. Total costs are anticipated to be approximately $1.5 billion pre-tax. Cash costs are expected to be approximately 60% of that amount, primarily related to workforce reductions and other program costs. Expected non-cash charges are primarily related to incremental depreciation and asset write-offs, including losses associated with the expected exit of certain markets. For the three months ended June 30, 2025 and 2024, total 2024 Transformation Initiative charges were $122 pre-tax ($95 after-tax) and $190 pre-tax ($117 after-tax), respectively. For the six months ended June 30, 2025 and 2024, total 2024 Transformation Initiative charges were $199 pre-tax ($172 after-tax), and $235 pre-tax ($151 after-tax), respectively. Through June 30, 2025, cumulative pre-tax charges for the 2024 Transformation Initiative were $656 ($511 after-tax).
War in Ukraine
Consistent with the humanitarian nature of our products, we manufacture and sell only essential items in Russia, such as baby diapers and feminine pads, which are critical to the health and hygiene of women, girls and babies. Beginning in March 2022, we significantly adjusted our business in Russia, substantially curtailing media, advertising and promotional activity and suspending capital investments, other than certain maintenance investments, in our sole manufacturing facility in Russia. Our Russia business has represented approximately 1% to 2% of our net global sales, operating profit and total assets. Our ability to continue our operations in Russia may change as the situation evolves. We have experienced high input costs, supply chain complexities, reduced consumer demand, restricted access to raw materials and production assets, and restricted access to financial institutions, as well as supply chain, professional services, monetary, currency, trade and payment/investment sanctions and related controls. As the business, geopolitical and regulatory environment concerning Russia evolves, we may not be able to sustain the limited manufacture and sale of our products, and our assets may be partially or fully impaired.
Consolidated Results
| Three Months Ended June 30 | Six Months Ended June 30 | |||||||||||||||||||||||||||||||||||||
| 2025 | 2024 | % Change | 2025 | 2024 | % Change | |||||||||||||||||||||||||||||||||
| Net Sales | $ | 4,163 | $ | 4,231 | (1.6) | % | $ | 8,217 | $ | 8,557 | (4.0) | % | ||||||||||||||||||||||||||
| Gross Profit | 1,456 | 1,594 | (8.7) | % | 2,965 | 3,280 | (9.6) | % | ||||||||||||||||||||||||||||||
| Operating Profit | 592 | 539 | 9.8 | % | 1,223 | 1,254 | (2.5) | % | ||||||||||||||||||||||||||||||
| Provision for income taxes | (116) | (60) | 93.3 | % | (247) | (208) | 18.8 | % | ||||||||||||||||||||||||||||||
| Income from Continuing Operations | 444 | 464 | (4.3) | % | 914 | 1,020 | (10.4) | % | ||||||||||||||||||||||||||||||
| Income from Discontinued Operations, Net of Income Taxes | 68 | 89 | (23.6) | % | 171 | 191 | (10.5) | % | ||||||||||||||||||||||||||||||
| Net Income Attributable to Kimberly-Clark Corporation | 509 | 544 | (6.4) | % | 1,076 | 1,191 | (9.7) | % | ||||||||||||||||||||||||||||||
| Diluted Earnings per Share from Continuing Operations | 1.33 | 1.35 | (1.5) | % | 2.72 | 2.96 | (8.1) | % | ||||||||||||||||||||||||||||||
| Diluted Earnings per Share from Discontinued Operations | 0.20 | 0.26 | (23.1) | % | 0.51 | 0.56 | (8.9) | % | ||||||||||||||||||||||||||||||
| Adjusted Results - Continuing Operations | ||||||||||||||||||||||||||||||||||||||
Adjusted Gross Profit(a) | 1,538 | 1,639 | (6.2) | % | 3,100 | 3,325 | (6.8) | % | ||||||||||||||||||||||||||||||
Adjusted Operating Profit(a) | 713 | 729 | (2.2) | % | 1,419 | 1,489 | (4.7) | % | ||||||||||||||||||||||||||||||
Adjusted Earnings per Share(a) | 1.63 | 1.70 | (4.1) | % | 3.25 | 3.41 | (4.7) | % | ||||||||||||||||||||||||||||||
Adjusted Effective Tax Rate(a) | 20.9 | % | 20.4 | % | 0.5 | % | 20.8 | % | 21.8 | % | (1.0) | % | ||||||||||||||||||||||||||
(a) Adjusted amounts are non-GAAP financial measures. See "Summary of Non-GAAP Financial Measures" below for reconciliations of our GAAP to Non-GAAP measures.
22
Net Sales
Drivers of the changes in net sales were:
| Percent Change in Net Sales | Volume | Mix/Other | Net Price | Divestitures and Business Exits(c) | Currency Translation | Total(a) | Organic(b) | |||||||||||||||||||||||||||||||||||||
| Three Months Ended | 5.0 | (0.1) | (1.2) | (4.4) | (1.0) | (1.6) | 3.9 | |||||||||||||||||||||||||||||||||||||
| Six Months Ended | 2.3 | — | (1.2) | (3.4) | (1.7) | (4.0) | 1.2 | |||||||||||||||||||||||||||||||||||||
(a) Total may not sum across due to rounding.
(b) Represents the change in net sales excluding the impacts of currency translation and divestitures and business exits. Organic Sales Growth is a non-GAAP financial measure. See "Summary of Non-GAAP Financial Measures" below for reconciliations of our GAAP to non-GAAP measures.
(c) Impact of the sale of the PPE business, the exit of the Company's private label diaper business in the United States, and other exited businesses and markets in conjunction with the 2024 Transformation Initiative.
Net sales of $4.2 billion for the three months ended June 30, 2025 declined 1.6% primarily due to divestitures and business exits and unfavorable currency impacts, partially offset by organic sales. Organic sales increased 3.9% driven by volume gains, partially offset by lower pricing, while mix was flat compared to the prior year.
Net sales of $8.2 billion for the six months ended June 30, 2025 declined 4.0%, while organic sales increased 1.2%. Impacts related to divestitures and business exits, currency impacts and the components of organic sales are consistent with the drivers discussed above.
Gross and Operating Profits
Gross profit of $1.5 billion for the three months ended June 30, 2025 decreased 8.7%, while gross margin of 35.0% decreased 270 basis points. Gross margin in the current and prior year included approximately 190 basis points and 100 basis points, respectively, for charges related to the 2024 Transformation Initiative, primarily for incremental depreciation expense, workforce reductions and asset write-offs. Excluding these charges, adjusted gross margin decreased 180 basis points to 36.9% primarily due to unfavorable pricing net of cost inflation, including recent tariff impacts, partially offset by gross productivity savings from integrated margin management of approximately $110.
Gross profit of $3.0 billion for the six months ended June 30, 2025 decreased 9.6%, while gross margin of 36.1% decreased 220 basis points. Gross margin in the current and prior year included approximately 160 basis points and 60 basis points, respectively, for charges related to the 2024 Transformation Initiative, primarily for incremental depreciation expense, workforce reductions and asset write-offs. Excluding these charges, adjusted gross margin decreased 120 basis points to 37.7% primarily due to unfavorable pricing net of cost inflation, partially offset by gross productivity savings from integrated margin management of approximately $200.
Operating profit for the three and six months ended June 30, 2025 was $592 and $1.2 billion, respectively, compared to $539 and $1.3 billion in the prior year. Results included charges related to the 2024 Transformation Initiative of $121 and $196 for the three and six months ended June 30, 2025, respectively, and $190 and $235 for the three and six months ended June 30, 2024. Excluding these items, adjusted operating profit for the three and six months ended June 30, 2025 was $713 and $1.4 billion, respectively, representing a 2.2% and 4.7% decrease compared to the prior year.
Drivers of the changes in adjusted operating profit were:
| Percent Change in Adjusted Operating Profit | Volume | Net Price | Input Costs | Other Manufacturing Costs(a) | Currency Translation | Other(b) | Total(c) | |||||||||||||||||||||||||||||||||||||
| Three Months Ended | 6.6 | (7.0) | (10.5) | 1.2 | (0.4) | 7.9 | (2.2) | |||||||||||||||||||||||||||||||||||||
| Six Months Ended | 1.1 | (7.0) | (7.7) | 2.5 | (1.2) | 7.6 | (4.7) | |||||||||||||||||||||||||||||||||||||
(a) Includes net impact of productivity initiatives, product and supply chain investments and other changes in cost of products sold.
(b) Includes impact of changes in product mix, marketing, research and general expenses and other (income) and expense, net.
(c) Adjusted Operating Profit is a non-GAAP financial measure. See "Summary of Non-GAAP Financial Measures" below for reconciliations of our GAAP to non-GAAP measures.
The decrease in adjusted operating profit for the three and six months ended June 30, 2025 resulted from lower net sales and adjusted gross profit discussed above partially offset by lower marketing, research and general expenses.
23
Income from Continuing Operations
Income from Continuing Operations for the three and six months ended June 30, 2025 was $444 and $914, respectively, compared to $464 and $1.0 billion in the prior year. Apart from the operating profit drivers discussed above, the decrease was primarily related to a higher effective tax rate and lower income from equity companies.
Net interest expense for the three and six months ended June 30, 2025 of $62 and $119, respectively, was in line with the prior year.
Our share of net income of equity companies for the three and six months ended June 30, 2025 was $47 and $91, respectively, compared to $63 and $124 for the prior year. The decrease was primarily driven by Kimberly-Clark de Mexico, S.A.B. de C.V., due to unfavorable foreign currency effects, higher inputs costs and lower volumes, partially offset by pricing, productivity savings and lower general and administrative expenses.
The effective tax rate for the three and six months ended June 30, 2025 was 22.6% and 23.1%, respectively, compared to 13.0% and 18.8% in the prior year. The adjusted effective tax rate for the three and six months ended June 30, 2025 was 20.9% and 20.8%, respectively, compared to 20.4% and 21.8% in the prior year. The first half of 2025 benefited from the resolution of certain tax matters.
Diluted earnings per share for the three and six months ended June 30, 2025 were $1.33 and $2.72, respectively, compared to $1.35 and $2.96 for the prior year. Adjusted diluted earnings per share for the three and six months ended June 30, 2025 were $1.63 and $3.25, respectively, representing a 4.1% and 4.7% decrease compared to the prior year. The decrease was primarily driven by lower adjusted operating profit and lower income from equity companies, which more than offset the benefits from lower dilutive shares outstanding.
Income from Discontinued Operations, Net of Income Taxes
Income from discontinued operations, net of income taxes for the three and six months ended June 30, 2025 was $68 and $171, respectively, compared to $89 and $191 in the prior year. The decrease was primarily driven by pre-tax separation costs of $33 million.
Segment Results
Drivers of the changes in segment net sales and operating profit were:
| Percent Change in Segment Net Sales | Volume | Mix/Other | Net Price | Divestitures and Business Exits(c) | Currency Translation | Total(a) | Organic(b) | |||||||||||||||||||||||||||||||||||||
| Three Months Ended | ||||||||||||||||||||||||||||||||||||||||||||
| NA | 5.2 | (0.7) | (0.4) | (5.7) | (0.2) | (1.9) | 4.3 | |||||||||||||||||||||||||||||||||||||
| IPC | 4.8 | 1.2 | (2.7) | (0.3) | (2.6) | 0.4 | 3.3 | |||||||||||||||||||||||||||||||||||||
| Six Months Ended | ||||||||||||||||||||||||||||||||||||||||||||
| NA | 2.6 | (0.3) | (0.5) | (4.3) | (0.3) | (2.9) | 1.8 | |||||||||||||||||||||||||||||||||||||
| IPC | 2.0 | 0.7 | (2.6) | (0.3) | (4.3) | (4.5) | 0.1 | |||||||||||||||||||||||||||||||||||||
| Percent Change in Segment Operating Profit | Volume | Net Price | Input Costs | Other Manufacturing Costs(d) | Currency Translation | Other(e) | Total | |||||||||||||||||||||||||||||||||||||
| Three Months Ended | ||||||||||||||||||||||||||||||||||||||||||||
| NA | 3.3 | (1.8) | (4.9) | (1.8) | (0.1) | 1.3 | (4.0) | |||||||||||||||||||||||||||||||||||||
| IPC | 15.2 | (18.4) | (20.8) | 7.6 | (1.1) | 4.6 | (12.9) | |||||||||||||||||||||||||||||||||||||
| Six Months Ended | ||||||||||||||||||||||||||||||||||||||||||||
| NA | 0.2 | (2.1) | (3.6) | — | (0.3) | 4.5 | (1.3) | |||||||||||||||||||||||||||||||||||||
| IPC | 5.4 | (16.5) | (14.4) | 9.7 | (3.1) | 2.2 | (16.7) | |||||||||||||||||||||||||||||||||||||
(a) Total may not sum across due to rounding.
(b) Represents the change in net sales excluding the impacts of currency translation and divestitures and business exits. Organic Sales Growth is a non-GAAP financial measure. See "Summary of Non-GAAP Financial Measures" below for reconciliations of our GAAP to non-GAAP measures.
(c) Impact of the sale of the PPE business, the exit of the Company's private label diaper business in the United States, and other exited businesses and markets in conjunction with the 2024 Transformation Initiative.
(d) Includes net impact of productivity initiatives, product and supply chain investments and other changes in cost of products sold.
(e) Includes impact of changes in product mix, marketing, research and general expenses and other (income) and expense, net.
24
North America
| Three Months Ended June 30 | Six Months Ended June 30 | |||||||||||||||||||||||||||||||||||||
| 2025 | 2024 | % change | 2025 | 2024 | % change | |||||||||||||||||||||||||||||||||
| Net Sales | $ | 2,730 | $ | 2,783 | (1.9) | % | $ | 5,398 | $ | 5,559 | (2.9) | % | ||||||||||||||||||||||||||
| Operating Profit | 655 | 682 | (4.0) | % | 1,333 | 1,351 | (1.3) | % | ||||||||||||||||||||||||||||||
Net sales of $2.7 billion for the three months ended June 30, 2025 decreased 1.9%, primarily due to the sale of the PPE business and the exit of the private label diaper business in the US. Organic sales increased 4.3% primarily due to volume gains of 5.2%, partially offset by lower pricing and mix. Net sales of $5.4 billion for the six months ended June 30, 2025 decreased 2.9%, while organic sales increased 1.8%. Impacts of divestitures and business exits and the components of organic growth are consistent with the drivers discussed above.
Operating profit for the three and six months ended June 30, 2025 of $655 and $1.3 billion decreased 4.0% and 1.3%, respectively, primarily due to impacts of divestitures and business exits, unfavorable pricing net of cost inflation, including recent tariff impacts, partially offset by gross productivity savings and lower marketing, research and general expenses.
International Personal Care
| Three Months Ended June 30 | Six Months Ended June 30 | |||||||||||||||||||||||||||||||||||||
| 2025 | 2024 | % change | 2025 | 2024 | % Change | |||||||||||||||||||||||||||||||||
| Net Sales | $ | 1,433 | $ | 1,427 | 0.4 | % | $ | 2,819 | $ | 2,953 | (4.5) | % | ||||||||||||||||||||||||||
| Operating Profit | 182 | 209 | (12.9) | % | 383 | 460 | (16.7) | % | ||||||||||||||||||||||||||||||
Net sales of $1.4 billion for the three months ended June 30, 2025 increased 0.4% primarily due to an increase in organic sales of 3.3%, partially offset by unfavorable currency impacts. Organic sales benefited from volume and mix gains of 4.8% and 1.2%, respectively, partially offset by lower pricing. Net sales of $2.8 billion for the six months ended June 30, 2025 decreased 4.5% primarily driven by unfavorable currency impacts, while organic sales were in line with the prior year.
Operating profit for the three and six months ended June 30, 2025 of $182 and $383 decreased 12.9% and 16.7%, respectively, primarily due to unfavorable pricing net of cost inflation and currency impacts, partially offset by gross productivity savings and volume gains.
Liquidity and Capital Resources
As detailed in Item 1, Note 1 to the Unaudited Interim Condensed Consolidated Financial Statements, the Condensed Consolidated Statements of Cash Flows are presented on a consolidated basis for both continuing operations and discontinued operations. As a result, unless specifically stated, the following discussion reflects Kimberly Clark's consolidated results for all periods presented.
Cash Provided by Operations
Cash provided by operations was $1.1 billion during the six months ended June 30, 2025 compared to $1.5 billion in the prior year. The decrease was driven by lower operating profit and unfavorable changes in operating working capital, including higher cash payments related to our 2024 Transformation Initiative.
Investing
Cash used for investing was $312 during the six months ended June 30, 2025 compared to $376 in the prior year, primarily due to incremental cash flows from net maturities of time deposits. During the six months ended June 30, 2025, our capital spending was $401 compared to $352 in the prior year. We anticipate that full year capital spending will be approximately $1.0 to $1.2 billion, including incremental spending from the 2024 Transformation Initiative.
Financing
Cash used for financing was $1.2 billion during the six months ended June 30, 2025 compared to $998 in the prior year. This increase was primarily due to debt repayments during the current year. During the six months ended June 30, 2025, we repurchased 915 thousand shares of our common stock pursuant to our publicly announced share repurchase programs at a total cost of $120 through a broker in the open market.
25
Our short-term debt, which consists of U.S. commercial paper with original maturities up to 90 days and/or other short-term debt issued by non-U.S. subsidiaries, was $59 as of June 30, 2025 (included in Debt payable within one year on the Condensed Consolidated Balance Sheets). The average month-end balance of short-term debt for the six months ended June 30, 2025 was $127. These short-term borrowings provide supplemental funding to support our operations. The level of short-term debt generally fluctuates depending upon the amount of operating cash flows and the timing of customer receipts and payments for items such as dividends and income taxes.
As of June 30, 2025 and December 31, 2024, total debt from continuing operations was $7.2 billion and $7.4 billion, respectively.
We maintain a $2.0 billion revolving credit facility which expires in June 2028 and a $750 revolving credit facility which expires in May 2026. These facilities, currently unused, support our commercial paper program and would provide liquidity in the event our access to the commercial paper markets is unavailable for any reason.
On July 4, 2025, the One Big Beautiful Bill Act (“OBBBA”) was enacted in the U.S. The OBBBA includes significant provisions, such as the permanent extension of certain expiring provisions of the Tax Cuts and Jobs Act, modifications to the international tax framework and the restoration of favorable tax treatment for certain business provisions. The legislation has multiple effective dates, with certain provisions effective in 2025 and others implemented through 2027. We are expecting favorable cash tax impacts in the near and medium term as a result of the OBBBA, however, we are still assessing its impact on our consolidated financial statements.
We have evaluated the effects of the Global anti-Base Erosion rules set forth by the Organization for Economic Co-Operation and Development, referred to as “Pillar 2,” which establishes a global minimum corporate tax rate of 15%. We have (1) determined that Pillar 2 legislation has been enacted in one or more of the jurisdictions in which the Company operates and the Company is within the scope of such legislation, (2) assessed such enacted legislation and, as applicable, the Transitional Safe Harbor provisions for Pillar 2 that apply, and (3) determined the impact will be immaterial to our financial results. We intend to file a Qualified Country-by-Country Report for the current year for each jurisdiction in which we intend to rely on the Transitional Country-by-Country Reporting Safe Harbor provisions.
We believe that our ability to generate cash from operations and our capacity to issue short-term and long-term debt are adequate to fund working capital, obligations related to our 2024 Transformation Initiative, capital spending, pension contributions, share repurchases, dividends and other needs for the foreseeable future. Further, we do not expect restrictions or taxes on repatriation of cash held outside of the U.S. to have a material effect on our overall business, liquidity, financial condition or results of operations for the foreseeable future.
Information Concerning Forward-Looking Statements
Certain matters contained in this report concerning the business outlook, including raw material, energy and other input costs, our plans and expectations regarding the pending IFP Transaction, the anticipated charges and savings from the 2024 Transformation Initiative, cash flow and uses of cash, growth initiatives, innovations, marketing and other spending, net sales, anticipated currency rates and exchange risks, including the impact in Argentina and Türkiye, effective tax rate, contingencies and anticipated transactions of Kimberly-Clark, including dividends, share repurchases and pension contributions, constitute "forward-looking statements" within the meaning of the Private Securities Litigation Reform Act of 1995 and are based upon management's expectations and beliefs concerning future events impacting Kimberly-Clark. There can be no assurance that these future events will occur as anticipated or that our results will be as estimated. Forward-looking statements speak only as of the date they were made, and we undertake no obligation to publicly update them.
The assumptions used as a basis for the forward-looking statements include many estimates that, among other things, depend on the achievement of future cost savings and projected volume increases. In addition, many factors outside our control, including risks and uncertainties around the pending IFP Transaction (including risks related to delays or failure to complete the proposed transaction, the incurrence of significant transaction and separation costs, adverse market reactions, regulatory or legal challenges, and operational disruptions), risks that we are not able to realize the anticipated benefits of the 2024 Transformation Initiative (including risks related to disruptions to our business or operations or related to any delays in implementation), war in Ukraine (including the related responses of consumers, customers, and suppliers and sanctions issued by the U.S., the European Union, Russia or other countries), government trade or similar regulatory actions (including current and potential trade and tariff actions affecting the countries where we operate and the resulting negative impacts on our supply chain, commodity costs, and consumer spending), pandemics, epidemics, fluctuations in foreign currency exchange rates, the prices and availability of our raw materials, supply chain disruptions, disruptions in the capital and credit markets,
26
counterparty defaults (including customers, suppliers and financial institutions with which we do business), failure to realize the expected benefits or synergies from our acquisition and disposition activity, impairment of goodwill and intangible assets and our projections of operating results and other factors that may affect our impairment testing, changes in customer preferences, severe weather conditions, regional instabilities and hostilities (including the war in Israel), potential competitive pressures on selling prices for our products, energy costs, general economic and political conditions globally and in the markets in which we do business, as well as our ability to maintain key customer relationships, could affect the realization of these estimates.
The factors described under Item 1A, "Risk Factors" in our Annual Report on Form 10-K for the year ended December 31, 2024, or in our other SEC filings, among others, could cause our future results to differ from those expressed in any forward-looking statements made by us or on our behalf. Other factors not presently known to us or that we presently consider immaterial could also affect our business operations and financial results.
SUMMARY OF NON-GAAP FINANCIAL MEASURES
The following provides the reconciliation of the non-GAAP financial measures provided in this report to the most closely related GAAP measure. These measures include: Organic Sales Growth, Adjusted Gross Profit, Adjusted Operating Profit, Adjusted Earnings per Share, and Adjusted Effective Tax Rate. All discussions regarding non-GAAP financial measures reflect results from our continuing operations for all periods presented.
•Organic Sales Growth is defined as the change in Net Sales, as determined in accordance with U.S. GAAP, excluding the impacts of currency translation and divestitures and business exits.
•Adjusted Gross and Operating Profit, Adjusted Earnings per Share, and Adjusted Effective Tax Rate are defined as Gross Profit, Operating Profit, Diluted Earnings per Share, and Effective Tax Rate, respectively, as determined in accordance with U.S. GAAP, excluding the impacts of certain items that management believes do not reflect our underlying operations, and which are discussed in further detail below.
The income tax effect of these non-GAAP items on the Company's Adjusted Earnings per Share is calculated based upon the tax laws and statutory income tax rates applicable in the tax jurisdiction(s) of the underlying non-GAAP adjustment. The impact of these non-GAAP items on the Company’s effective tax rate represents the difference in the effective tax rate calculated with and without the non-GAAP adjustment on Income from Continuing Operations Before Income Taxes and Equity Interests and Provision for income taxes.
We use these non-GAAP financial measures to assist in comparing our performance on a consistent basis for purposes of business decision making by removing the impact of certain items that we do not believe reflect our underlying and ongoing operations. We believe that presenting these non-GAAP financial measures is useful to investors because it (i) provides investors with meaningful supplemental information regarding financial performance by excluding certain items, (ii) permits investors to view performance using the same tools that management uses to budget, make operating and strategic decisions, and evaluate historical performance, and (iii) otherwise provides supplemental information that may be useful to investors in evaluating our results. We believe that the presentation of these non-GAAP financial measures, when considered together with the corresponding U.S. GAAP financial measures and the reconciliation to those measures, provides investors with additional understanding of the factors and trends affecting our business than could be obtained absent these disclosures.
These non-GAAP financial measures are not meant to be considered in isolation or as a substitute for the comparable GAAP measures, and they should be read only in conjunction with our Unaudited Interim Condensed Consolidated Financial Statements prepared in accordance with GAAP. There are limitations to these non-GAAP financial measures because they are not prepared in accordance with GAAP and may not be comparable to similarly titled measures of other companies due to potential differences in methods of calculation and items being excluded. We compensate for these limitations by using these non-GAAP financial measures as a supplement to the GAAP measures and by providing reconciliations of the non-GAAP and comparable GAAP financial measures.
The non-GAAP financial measures exclude the following items for the relevant time periods:
•2024 Transformation Initiative - We initiated this transformation to create a more agile and focused operating structure that will accelerate our proprietary pipeline of innovation in right-to-win spaces and improve our growth trajectory, profitability, and returns on investment. See Item 1, Note 2 to the Unaudited Interim Condensed Consolidated Financial Statements for details.
•IFP Repatriated Earnings – In connection with the IFP Transaction, we recognized a deferred tax liability for certain permanently reinvested earnings from the IFP Business that are expected to be repatriated prior to the close of the transaction.
27
The following tables provide a reconciliation of Organic Sales Growth from continuing operations:
| Three Months Ended June 30, 2025 | ||||||||||||||||||||
| Percent change vs. the prior year period | ||||||||||||||||||||
| NA | IPC | Total | ||||||||||||||||||
| Net Sales Growth | (1.9) | 0.4 | (1.6) | |||||||||||||||||
| Currency Translation | 0.2 | 2.6 | 1.0 | |||||||||||||||||
| Divestitures and Business Exits | 5.7 | 0.3 | 4.4 | |||||||||||||||||
Organic Sales Growth(a) | 4.3 | 3.3 | 3.9 | |||||||||||||||||
| Six Months Ended June 30, 2025 | ||||||||||||||||||||
| Percent change vs. the prior year period | ||||||||||||||||||||
| NA | IPC | Total | ||||||||||||||||||
| Net Sales Growth | (2.9) | (4.5) | (4.0) | |||||||||||||||||
| Currency Translation | 0.3 | 4.3 | 1.7 | |||||||||||||||||
| Divestitures and Business Exits | 4.3 | 0.3 | 3.4 | |||||||||||||||||
Organic Sales Growth(a) | 1.8 | 0.1 | 1.2 | |||||||||||||||||
(a) Table may not foot due to rounding.
The following table provides a reconciliation of Adjusted Gross Profit from continuing operations:
| Three Months Ended June 30 | Six Months Ended June 30 | |||||||||||||||||||||||||
| 2025 | 2024 | 2025 | 2024 | |||||||||||||||||||||||
| Gross Profit | $ | 1,456 | $ | 1,594 | $ | 2,965 | $ | 3,280 | ||||||||||||||||||
| 2024 Transformation Initiative | 82 | 45 | 135 | 45 | ||||||||||||||||||||||
| Adjusted Gross Profit | $ | 1,538 | $ | 1,639 | $ | 3,100 | $ | 3,325 | ||||||||||||||||||
The following table provides a reconciliation of Adjusted Operating Profit from continuing operations:
| Three Months Ended June 30 | Six Months Ended June 30 | |||||||||||||||||||||||||
| 2025 | 2024 | 2025 | 2024 | |||||||||||||||||||||||
| Operating Profit | $ | 592 | $ | 539 | $ | 1,223 | $ | 1,254 | ||||||||||||||||||
| 2024 Transformation Initiative | 121 | 190 | 196 | 235 | ||||||||||||||||||||||
| Adjusted Operating Profit | $ | 713 | $ | 729 | $ | 1,419 | $ | 1,489 | ||||||||||||||||||
The following table provides a reconciliation of Adjusted Earnings per Share from continuing operations:
| Three Months Ended June 30 | Six Months Ended June 30 | |||||||||||||||||||||||||
| 2025 | 2024 | 2025 | 2024 | |||||||||||||||||||||||
| Diluted Earnings per Share | $ | 1.33 | $ | 1.35 | $ | 2.72 | $ | 2.96 | ||||||||||||||||||
| 2024 Transformation Initiative | 0.27 | 0.35 | 0.50 | 0.45 | ||||||||||||||||||||||
| IFP Repatriated Earnings | 0.03 | — | 0.03 | — | ||||||||||||||||||||||
Adjusted Earnings per Share(a) | $ | 1.63 | $ | 1.70 | $ | 3.25 | $ | 3.41 | ||||||||||||||||||
(a) The non-GAAP adjustments included above are presented net of tax. The income tax effect of these non-GAAP items is calculated based upon the tax laws and statutory income tax rates applicable in the tax jurisdiction(s) of the underlying non-GAAP adjustment. Refer to the Adjusted Effective Tax Rate reconciliation below for the tax effect of these adjustments on the Company's reported Provision for income taxes.
28
The following tables provide a reconciliation of the continuing operations Adjusted Effective Tax Rate:
| Three Months Ended June 30 | ||||||||||||||||||||||||||
| 2025 | 2024 | |||||||||||||||||||||||||
| Income From Continuing Operations Before Income Taxes and Equity Interests | Provision for Income Taxes | Income From Continuing Operations Before Income Taxes and Equity Interests | Provision for Income Taxes | |||||||||||||||||||||||
| As Reported | $ | 513 | $ | (116) | $ | 461 | $ | (60) | ||||||||||||||||||
| 2024 Transformation Initiative | 122 | (27) | 190 | (73) | ||||||||||||||||||||||
| IFP Repatriated Earnings | — | 10 | — | — | ||||||||||||||||||||||
| As Adjusted | $ | 635 | $ | (133) | $ | 651 | $ | (133) | ||||||||||||||||||
| Effective Tax Rate | ||||||||||||||||||||||||||
| As Reported | 22.6 | % | 13.0 | % | ||||||||||||||||||||||
| As Adjusted | 20.9 | % | 20.4 | % | ||||||||||||||||||||||
| Six Months Ended June 30 | ||||||||||||||||||||||||||
| 2025 | 2024 | |||||||||||||||||||||||||
| Income From Continuing Operations Before Income Taxes and Equity Interests | Provision for Income Taxes | Income From Continuing Operations Before Income Taxes and Equity Interests | Provision for Income Taxes | |||||||||||||||||||||||
| As Reported | $ | 1,070 | $ | (247) | $ | 1,104 | $ | (208) | ||||||||||||||||||
| 2024 Transformation Initiative | 199 | (27) | 235 | (84) | ||||||||||||||||||||||
| IFP Repatriated Earnings | — | 10 | — | — | ||||||||||||||||||||||
| As Adjusted | $ | 1,269 | $ | (264) | $ | 1,339 | $ | (292) | ||||||||||||||||||
| Effective Tax Rate | ||||||||||||||||||||||||||
| As Reported | 23.1 | % | 18.8 | % | ||||||||||||||||||||||
| As Adjusted | 20.8 | % | 21.8 | % | ||||||||||||||||||||||
Item 4. Controls and Procedures
As of June 30, 2025, an evaluation was performed under the supervision and with the participation of management, including the Chief Executive Officer and Chief Financial Officer, of the effectiveness of the design and operation of our disclosure controls and procedures. Based on that evaluation, management, including the Chief Executive Officer and Chief Financial Officer, concluded that our disclosure controls and procedures were effective as of June 30, 2025. There were no changes in our internal control over financial reporting during the quarter covered by this report that have materially affected, or are reasonably likely to materially affect, our internal control over financial reporting.
29
PART II OTHER INFORMATION
Item 1. Legal Proceedings
See Part I, Item 1, Note 10 to the Unaudited Interim Condensed Consolidated Financial Statements, which is incorporated in this Item 1 by reference.
Item 2. Unregistered Sales of Equity Securities and Use of Proceeds
Purchases of Equity Securities by the Issuer and Affiliated Purchasers
We repurchase shares of Kimberly-Clark common stock from time to time pursuant to publicly announced share repurchase programs. All our share repurchases during the three months ended June 30, 2025 were made through a broker in the open market.
The following table contains information for shares repurchased during the three months ended June 30, 2025. None of the shares in this table were repurchased directly from any of our officers or directors.
| Period | Total Number of Shares Purchased(a) | Average Price Paid Per Share | Total Number of Shares Purchased as Part of Publicly Announced Plans or Programs | Maximum Number of Shares That May Yet Be Purchased Under the Plans or Programs(a) | ||||||||||||||||||||||
| April 1 to April 30 | 135,211 | $ | 138.42 | 8,722,567 | 31,277,433 | |||||||||||||||||||||
| May 1 to May 31 | — | — | 8,722,567 | 31,277,433 | ||||||||||||||||||||||
| June 1 to June 30 | 322,680 | 130.14 | 9,045,247 | 30,954,753 | ||||||||||||||||||||||
| Total | 457,891 | |||||||||||||||||||||||||
(a)Share repurchases were made pursuant to a share repurchase program authorized by our Board of Directors on January 22, 2021 (the "2021 Program"). The 2021 Program allows for the repurchase of 40 million shares in an amount not to exceed $5 billion.
Item 5. Other Information
(c)Our directors and officers may from time to time enter into plans or other arrangements for the purchase or sale of our shares that are intended to satisfy the affirmative defense conditions of Rule 10b5-1(c) or may represent a non-Rule 10b5-1 trading arrangement under the Securities Exchange Act of 1934, as amended. During the three months ended June 30, 2025, no such plans or other arrangements were adopted terminated
30
Item 6. Exhibits
(a)Exhibits
Exhibit No. (10)q. Form of Award Agreements under 2021 Equity Participation Plan for Performance Restricted Stock Units, filed herewith.
Exhibit No. (10)r. Form of Award Agreements under 2021 Equity Participation Plan for Off-Cycle Time-Vested Restricted Stock Units, filed herewith.
Exhibit No. (10)t. Form of Award Agreements under 2021 Equity Participation Plan for Annual Time-Vested Restricted Stock Units, filed herewith.
Exhibit No. (10)u. Equity and Asset Purchase Agreement, dated as of June 4, 2025, by and among Kimberly-Clark Corporation, as the Seller, Kimberly-Clark IFP Newco B.V., as the Company, and Suzano International Holding B.V., as the Buyer, filed herewith.
Exhibit No. (31)a. Certification of Chief Executive Officer required by Rule 13a-14(a) or Rule 15d-14(a) of the Exchange Act, filed herewith.
Exhibit No. (31)b. Certification of Chief Financial Officer required by Rule 13a-14(a) or Rule 15d-14(a) of the Exchange Act, filed herewith.
Exhibit No. (32)a. Certification of Chief Executive Officer required by Rule 13a-14(b) or Rule 15d-14(b) of the Exchange Act and Section 1350 of Chapter 63 of Title 18 of the United States Code, furnished herewith.
Exhibit No. (32)b. Certification of Chief Financial Officer required by Rule 13a-14(b) or Rule 15d-14(b) of the Exchange Act and Section 1350 of Chapter 63 of Title 18 of the United States Code, furnished herewith.
Exhibit No. (101).INS XBRL Instance Document - the instance document does not appear in the Interactive Data File because its XBRL tags are embedded within the Inline XBRL document
Exhibit No. (101).SCH XBRL Taxonomy Extension Schema Document
Exhibit No. (101).CAL XBRL Taxonomy Extension Calculation Linkbase Document
Exhibit No. (101).DEF XBRL Taxonomy Extension Definition Linkbase Document
Exhibit No. (101).LAB XBRL Taxonomy Extension Label Linkbase Document
Exhibit No. (101).PRE XBRL Taxonomy Extension Presentation Linkbase Document
Exhibit No. (104) The cover page from this Current Report on Form 10-Q formatted as Inline XBRL
31
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned thereunto duly authorized.
| KIMBERLY-CLARK CORPORATION | ||||||||
| (Registrant) | ||||||||
| By: | /s/ Andrew Scribner | |||||||
| Andrew Scribner | ||||||||
| Vice President and Controller | ||||||||
| (Principal Accounting Officer) | ||||||||
August 1, 2025
32
Source:
FAQ
How did KMB's Q2 2025 revenue perform?
Net sales were $4.16 bn, down 1.6% YoY; organic sales rose 3.9% as volume recovered.
What is the status of the International Family Care & Professional (IFP) transaction?
KMB will sell 51% to Suzano for 鈮�$1.7 bn; closing targeted mid-2026, with IFP results now in discontinued operations.
How much did the 2024 Transformation Initiative cost this quarter?
Q2 2025 charges were $122 mn pre-tax; cumulative charges now total $656 mn.
What was Q2 2025 diluted EPS for KMB?
Diluted EPS was $1.53 (continuing $1.33, discontinued $0.20), down from $1.61 last year.
Is the dividend covered by cash flow?
Yes. Operating cash flow of $1.10 bn comfortably covered dividends paid of $824 mn during the first half.
How are segment results trending?
North America sales -1.9%, OP -4.0%; International Personal Care sales +0.4%, OP -12.9% for Q2 2025.
Kimberly-Clark Corp
NASDAQ:KMB
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Jul 29, 2025
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