Kimberly-Clark Corporation Reports Strong Finish to Second Year of Transformation

Dallas, Texas – January 27, 2026

Kimberly-Clark Corporation (NASDAQ: KMB) reported strong fourth quarter and full-year 2025 results, marking a successful conclusion to the second year of its multi-year transformation under its Powering Care strategy. The company delivered continued organic growth, operating momentum, and shareholder returns while advancing a major portfolio and structural transformation.

“In 2025, we accelerated the largest transformation in our 150-year history,” said Chairman and CEO Mike Hsu. “These results position us for enhanced growth and continued outperformance in 2026.”

Key Financial Highlights – Q4 2025

• Net Sales: $4.1 billion (organic growth +2.1%)

• Adjusted Operating Profit: $629 million (+13.1% YoY)

• Adjusted EPS: $1.86 (+24.0% YoY)

• Gross Margin: 35.9% (37.0% adjusted)

• Cash from Operations: Strong productivity-driven performance

Full-Year 2025 Performance

• Net Sales: $16.4 billion (organic growth +1.7%)

• Adjusted Operating Profit: $2.7 billion (flat YoY)

• Adjusted EPS: $7.53 (+3.2%)

• Operating Cash Flow: $2.8 billion

• Capital Expenditure: $1.1 billion

• Total Debt: Reduced to $7.2 billion (from $7.4 billion in 2024)

Strategic & Corporate Updates (Extracted for Investors)

Major Transformation Program

• Ongoing 2024 Transformation Initiative

• Focus on:

  • Portfolio shift to higher-growth, higher-margin personal care

  • Cost discipline and productivity savings

  • Simplified operating structure

• Transformation charges in 2025: $213 million (gross margin) and $348 million (operating profit)

Acquisition & M&A Update

• Pending acquisition of Kenvue

  • Management describes acquisition as a “powerful next step”

  • Integration planning underway

  • Expected to create “generational value”

  • Partial funding from proceeds of IFP transaction

• No merger cancellation or delay disclosed

Divestments / Business Exits

• Exit of U.S. private label diaper business (impacting reported sales)

• Prior PPE business divestiture completed

• International Family Care & Professional (IFP) business classified as discontinued operations

  • Expected transaction close: mid-2026

Capital Allocation & Shareholder Returns

• Dividends & Buybacks (2025):

  • $1.8 billion returned to shareholders

  • Dividends paid: $1.66 billion

  • Share repurchases: $141 million (1.1 million shares)

• Dividend growth continued (+3.3%)

Capital Expenditure & Investments

• Capex increased to $1.1 billion (from $721 million in 2024)

• Focus areas:

  • Supply chain efficiency

  • Innovation capabilities

  • Growth platforms in Personal Care

Layoffs / Restructuring

• No explicit layoff numbers disclosed

• Cost savings driven by:

  • Organizational simplification

  • Lower marketing, R&D, and G&A expenses

  • Productivity initiatives linked to transformation

2026 Outlook

• Organic Sales Growth: In line to ahead of category growth (~2%)

• Adjusted Operating Profit: Mid-to-high single-digit growth (constant currency)

• Adjusted EPS (Continuing Ops): Double-digit growth (constant currency)

• Tax Rate: ~23%

• Currency Tailwind: ~130 basis points to EPS

• Discontinued Ops EPS: Expected decline due to IFP transaction close