01—Abstract
Summary
Summary of the 10-K filed February 12, 2026. Cited figures are marked; the original filing is the authoritative source.
Kimberly-Clark Corporation reported 2025 net sales from continuing operations of $16.45 billiona, down 2.1% from $16.81 billion in 2024, with organic sales growth of 1.7% driven by volume gains of 2.5%, partially offset by lower pricing.
Operating profit fell 12.9% to $2.35 billionb, including $351 million of 2024 Transformation Initiative charges and a $32 million Kenvue Acquisition cost. Adjusted operating profit was $2.73 billion, in line with the prior year. Diluted EPS from continuing operations was $4.86 versus $6.41, and adjusted EPS was $6.12 versus $6.16.
Net income attributable to Kimberly-Clark was $2.02 billionc, and cash provided by operations declined to $2.78 billion from $3.23 billion. The company entered into a Merger Agreement on November 2, 2025 to acquire Kenvue, Inc. for 0.14625 Kimberly-Clark shares plus $3.50 cash per Kenvue share, with roughly 280 million shares and about $6.7 billion of merger consideration expected. Kimberly-Clark stockholders approved the share issuance on January 29, 2026, and the HSR waiting period expired February 4, 2026; completion is expected in the second half of 2026 subject to foreign regulatory approvals.
The filing states that K-C stockholders would own about 54% of the combined company. Total debt from continuing operations was $7.2 billiond at year-end, and the company arranged a $4.0 billion revolving credit facility and a $1.8 billion delayed draw term loan to fund the cash consideration.
Also pending is the International Family Care and Professional (IFP) transaction, under which Suzano will acquire a 51% interest in a joint venture for approximately $1.7 billion, with Kimberly-Clark retaining 49%; closing is expected in mid-2026. IFP results are reported as discontinued operations, which contributed $400 million of net income in 2025.
02—Key points
Key Highlights
- Net sales from continuing operations were $16.45 billion, down 2.1%; organic sales grew 1.7% on volume gains of 2.5%.
- Operating profit declined 12.9% to $2.35 billion; adjusted operating profit was $2.73 billion, in line with 2024.
- Diluted EPS from continuing operations was $4.86 (vs. $6.41); adjusted EPS was $6.12 (vs. $6.16).
- Gross margin was 36.0%, down 140 basis points; adjusted gross margin was 37.3%, down 100 basis points, reflecting unfavorable pricing net of cost inflation including tariffs.
- Pending Kenvue acquisition: about 280 million shares and roughly $6.7 billion of merger consideration; expected to close in the second half of 2026.
- Cash provided by operations was $2.78 billion versus $3.23 billion; capital spending rose to $1.14 billion and dividends paid were $1.66 billion.
- 2024 Transformation Initiative total costs are estimated at about $1.5 billion pre-tax, with $3.0 billion gross productivity savings targeted by end of 2026.
03—One dollar
Follow one dollar
Of each $1.00 of revenue in FY2025, Kimberly-Clark kept $0.12.
- Revenue$16.45B100.0%
- Cost of revenue−$10.52B64.0%
- Gross profit$5.92B36.0%
- Operating costs−$3.57B21.7%
- Operating income$2.35B14.3%
- Interest, other & tax−$330.0M2.0%
- Net income$2.02B12.3%
Where FY2025 revenue went
$16.45B- Cost of revenue: $10.52B, 64% of revenue
- Other operating costs: $3.25B, 20% of revenue
- Net income: $2.02B, 12% of revenue
- R&D: $326.0M, 2.0% of revenue
- Interest, other & tax: $330.0M, 2.0% of revenue
Kept 12% as net income
Full revenue history →04—Financials
Financial Highlights
Figures from 10-KFY2025filed February 12, 2026Financial Statements
FY2025 against FY2024
| Line item | FY2025FY2024 | Change |
|---|---|---|
| Revenue | $16.45B$16.80B | −2.1% |
| Cost of Revenue | $10.52B$10.52B | +0.1% |
| Gross Profit | $5.92B$6.29B | −5.8% |
| R&D Expenses | $326.00M$328.00M | −0.6% |
| Operating Income | $2.35B$2.70B | −12.9% |
| Interest Expense | $256.00M$270.00M | −5.2% |
| Net Income | $2.02B$2.54B | −20.6% |
| EPS (Basic) | $6.09$7.58 | −19.7% |
| EPS (Diluted) | $6.07$7.55 | −19.6% |
| Shares Outstanding (Basic) | 331.90M335.60M | −1.1% |
| Shares Outstanding (Diluted) | 333.20M337.00M | −1.1% |
05—Questions
Frequently Asked Questions
Why did reported earnings fall so sharply in 2025?
Income from continuing operations fell 24.8% to $1.65 billion. Operating profit was pressured by 2024 Transformation Initiative charges of $348 million and Kenvue acquisition costs of $32 million, and the prior year included a $565 million gain on the PPE business sale. The effective tax rate rose to 29.2% from 18.3%, mainly due to a valuation allowance on U.S. foreign tax credits tied to the One Big Beautiful Bill Act. Excluding these items, adjusted operating profit was flat at $2.73 billion.
What are the terms of the Kenvue acquisition?
Each Kenvue share will be converted into 0.14625 Kimberly-Clark common shares plus $3.50 in cash. The company expects about 280 million shares to be issued and about $6.7 billion paid in merger consideration. K-C stockholders are expected to own about 54% of the combined company. If the merger is terminated in certain circumstances, either party may owe a $1.136 billion termination fee.
How will the Kenvue deal affect leverage?
The filing states that the combined company's indebtedness will be substantially greater than K-C's standalone indebtedness. K-C had about $7.2 billion of outstanding debt at December 31, 2025. The company secured a $7.7 billion bridge commitment, of which $3.8 billion was terminated in December 2025 when it entered a new $4.0 billion revolving credit facility and a $1.8 billion delayed draw term loan. Debt from the Kenvue deal will fund the cash consideration.
What is the IFP transaction and when does it close?
Kimberly-Clark will form a joint venture with Suzano comprising substantially all of its former International Family Care and Professional segment. Suzano will acquire a 51% interest for approximately $1.7 billion, and Kimberly-Clark will retain 49%. Closing is expected in mid-2026, subject to consultation requirements and regulatory approvals. The IFP business is reported as discontinued operations.
What do the 2026 cost and capital expectations look like?
Kimberly-Clark expects capital spending of approximately $1.3 billion in 2026, including incremental spending from the 2024 Transformation Initiative. Net input costs, including tariffs, are expected to be broadly in line with 2025. Pension expense is estimated at about $45 million, and the company expects to contribute about $15 million to defined benefit pension plans in 2026.
06—Continue