01—Abstract
Summary
Summary of the 8-K filed October 30, 2025. Cited figures are marked; the original filing is the authoritative source.
Kimberly-Clark Corporation reported third quarter 2025 results on October 30, 2025, as furnished under Item 2.02 with Exhibit 99.1 (a press release) and updated its 2025 outlook.
Reported net sales were $4.15 billiona, flat versus the prior year (up 0.1 percent), with organic sales growth of 2.5 percent driven by 2.4 percent volume growth. Results are on a continuing operations basis, excluding the International Family Care and Professional (IFP) business, which is reported as discontinued operations. Reported diluted EPS attributable to Kimberly-Clark was $1.34, down from $2.69, and adjusted EPS was $1.82 versus $1.83 in the prior year.
Reported operating profit fell 39.5 percent to $621 millionb, while adjusted operating profit was $683 million, in line with the prior year. Adjusted gross margin was 36.8 percent, down 170 basis points, reflecting pricing investments and incremental tariff-related costs. For the first nine months, net sales were $12.4 billion, down 2.6 percent, with organic sales growth of 1.6 percent.
Adjusted EPS was $5.67c versus $5.80 a year earlier, down 2.2 percent. Year-to-date cash provided by operations was $1.8 billion versus $2.4 billion, and total debt was $7.3 billion at September 30, 2025. The company returned $1.4 billion to shareholders through dividends and repurchases.
For 2025, Kimberly-Clark expects organic sales growth broadly in line with categories growing at approximately two percent, a negative impact of approximately 100 basis points from currency on reported net sales, and adjusted operating profit growth at a low single digit rate on a constant-currency basis. Adjusted EPS is expected to grow at a low-to-mid single digit rate on a constant-currency basis, and adjusted free cash flow is expected to be approximately $2 billiond.
02—Key points
Key Highlights
- Q3 2025 net sales of $4.15 billion were flat year over year (up 0.1 percent), with organic sales growth of 2.5 percent driven by 2.4 percent volume growth, offset by a 2.2 percent impact from divestitures and business exits.
- Reported diluted EPS was $1.34 versus $2.69 a year earlier; adjusted EPS was $1.82, broadly in line with the prior year's $1.83.
- Adjusted gross margin was 36.8 percent, down 170 basis points, reflecting planned price:value investments and incremental tariff-driven costs, partly offset by productivity gains.
- Adjusted operating profit was $683 million, in line with the prior year, as lower marketing, research and general expenses offset gross margin headwinds.
- Q3 reported effective tax rate was 45.4 percent versus 19.4 percent a year earlier; the adjusted rate was 26.5 percent versus 21.5 percent, driven by transitory One Big Beautiful Bill Act (OBBBA) impacts.
- Year-to-date cash provided by operations was $1.8 billion versus $2.4 billion, with capital spending of $741 million versus $512 million; total debt was $7.3 billion at September 30, 2025.
- 2025 outlook expects adjusted free cash flow of approximately $2 billion and includes a negative 380 basis point impact on adjusted operating profit growth from the PPE divestiture and the exit of the US private label diaper business.
03—Questions
Frequently Asked Questions
How did Kimberly-Clark perform in the third quarter of 2025?
Net sales were $4.15 billion, essentially flat year over year, with organic sales growth of 2.5 percent led by volume. Reported operating profit fell to $621 million from $1,026 million, while adjusted operating profit was $683 million, in line with the prior year. Reported diluted EPS was $1.34 and adjusted EPS was $1.82.
Why did reported earnings decline so sharply compared with adjusted earnings?
The prior-year quarter included a $565 million gain from the sale of the PPE business, and the current quarter includes 2024 Transformation Initiative charges of $62 million at the operating profit level. Adjusted results exclude these and other items, such as OBBBA-related tax charges of $0.29 per share in the quarter, so reported EPS is not directly comparable to adjusted EPS.
What is the company's updated 2025 outlook?
Kimberly-Clark expects organic sales growth broadly in line with categories growing at about two percent, a negative impact of approximately 100 basis points from currency on reported net sales, and adjusted operating profit growth at a low single digit rate on a constant-currency basis. Adjusted EPS is expected to grow at a low-to-mid single digit rate on a constant-currency basis, and adjusted free cash flow is expected to be approximately $2 billion.
What is the status of the IFP business?
The International Family Care and Professional (IFP) business is reported as discontinued operations. Income from discontinued operations was $110 million in the third quarter. The company's adjusted EPS and adjusted free cash flow outlook continue to include IFP until the close of the joint venture transaction with Suzano, anticipated to occur mid-year 2026.
How is the company's cash position and balance sheet?
Year-to-date cash provided by operations was $1.8 billion, down from $2.4 billion, driven by lower operating profit and working capital timing. The company returned $1.4 billion to shareholders through dividends and repurchases, and total debt was $7.3 billion as of September 30, 2025, compared with $7.4 billion at December 31, 2024.
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