01—Abstract
Summary
Summary of the 8-K filed August 1, 2025. Cited figures are marked; the original filing is the authoritative source.
Kimberly-Clark Corporation (Nasdaq: KMB) furnished an 8-K on August 1, 2025 attaching its press release reporting second quarter 2025 results for the quarter ended June 30, 2025, and raising its 2025 outlook.
Net sales were $4.2 billiona (reported $4,163 million), down 1.6 percent, driven primarily by divestitures and business exits and unfavorable currency translation, while organic sales grew 3.9 percent on 5.0 percent volume growth. Reported diluted EPS attributable to Kimberly-Clark was $1.53, versus $1.61 a year earlier, and adjusted EPS was $1.92, down 2.0 percent. Adjusted operating profit was $713 million, down 2.2 percent, as gross profit headwinds were partially offset by lower marketing, research and general expenses.
Adjusted gross margin was 36.9 percent, down 180 basis points. The company presented the International Family Care and Professional (IFP) business as discontinued operations, and its full-year outlook now reflects the remaining North America and International Personal Care segments. Management's 2025 outlook calls for organic sales growth to outpace category growth of approximately two percent, adjusted operating profit to grow at a low-to-mid single digit rate on a constant-currency basis, and adjusted free cash flow of approximately $2 billionb.
Year-to-date cash provided by operations was $1.1 billionc, and total debt was $7.2 billion as of June 30, 2025. The filing states that the press release is furnished under Item 2.02 and is not deemed filed for purposes of Section 18 of the Exchange Act. Investors should note that the IFP business is pending a joint venture transaction with Suzano, anticipated to close mid-year 2026, and that the 2024 Transformation Initiative continues to generate significant charges.
02—Key points
Key Highlights
- Net sales of $4.2 billion (reported $4,163 million) fell 1.6 percent, while organic sales grew 3.9 percent on 5.0 percent volume growth, partly offset by 1.2 percent net price investment.
- Diluted EPS attributable to Kimberly-Clark was $1.53 versus $1.61 a year earlier; adjusted EPS was $1.92, down 2.0 percent.
- Adjusted operating profit was $713 million, down 2.2 percent, as gross profit headwinds were partly offset by lower marketing, research and general expenses.
- Adjusted gross margin was 36.9 percent, down 180 basis points, reflecting pricing investments net of cost inflation and incremental tariff-driven costs.
- North America organic sales rose 4.3 percent and International Personal Care organic sales rose 3.3 percent in the quarter; IPC operating profit fell 12.9 percent.
- The 2025 outlook was adjusted to present IFP as discontinued operations; Adjusted Free Cash Flow is expected to be approximately $2 billion in 2025.
- Total debt was $7.2 billion as of June 30, 2025, down from $7.4 billion at December 31, 2024.
03—Questions
Frequently Asked Questions
How did Kimberly-Clark perform in the second quarter of 2025?
Net sales were $4.2 billion, down 1.6 percent, mainly due to divestitures and business exits and unfavorable currency translation. Organic sales grew 3.9 percent, driven by 5.0 percent volume growth. Reported diluted EPS was $1.53, and adjusted EPS was $1.92, down 2.0 percent.
Why did the company raise its 2025 outlook?
The filing's headline states that the company raised its 2025 outlook, and the outlook section notes it was adjusted to reflect IFP as discontinued operations. The filing describes the outlook as subject to change given the macro environment.
What is the impact of the IFP business being reported as discontinued operations?
Income from discontinued operations was $68 million in the quarter versus $89 million a year earlier, driven primarily by $33 million of pre-tax separation costs. The 2025 outlook for net sales, organic sales growth and adjusted operating profit now reflects only North America and IPC, while adjusted EPS and adjusted free cash flow continue to include IFP until the Suzano joint venture closes, anticipated mid-year 2026.
How significant were the 2024 Transformation Initiative charges this quarter?
Operating profit included $121 million of 2024 Transformation Initiative charges in the quarter, compared with $190 million a year earlier. Reported gross margin of 35.0 percent included $82 million of such charges, and reported diluted EPS included $0.27 per share of these charges.
What did year-to-date cash flow and the balance sheet look like?
Year-to-date cash provided by operations, including discontinued operations, was $1.1 billion versus $1.5 billion last year. The company returned $944 million to shareholders through dividends and repurchases, and total debt was $7.2 billion as of June 30, 2025.
04—Continue