SEC Form 10-Q filed by Kimberly-Clark Corporation

4/22/25 11:36:55 AM ET

Containers/Packaging

Consumer Discretionary

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kmb-20250331

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

WASHINGTON, D.C. 20549

FORM 10-Q

(Mark One)

☒ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

For the quarterly period ended March 31, 2025

☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

For the transition period from ________ to ________

Commission file number 1-225

KIMBERLY-CLARK CORPORATION

(Exact name of registrant as specified in its charter)


Delaware						39-0394230
(State or other jurisdiction of incorporation)						(I.R.S. Employer Identification No.)

P.O. Box 619100

Dallas, TX

75261-9100

(Address of principal executive offices)

(Zip code)

(972) 281-1200

(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

Common Stock

KMB

New York Stock Exchange

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.

Large accelerated filer

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 April 15, 2025, there were 331,816,035 shares of the Corporation's common stock outstanding.

Table of Contents


PART I – FINANCIAL INFORMATION			1
Item 1. Financial Statements			1
C ondensed C onsolidated S tatements of I ncome for the T hree M onths E nded M arch 3 1 , 202 5 and 2024			1
C ondensed C on solidated S tatements of C omprehensive I ncome for the Three Months Ended M arch 3 1 , 202 5 and 2024			2
C ondensed C onsolidated B alance S heets as of M arch 31 , 202 5 and D ecember 31, 2024			3
Condensed Consolidated Statements of Stockholders' Equity for the Three Months Ended March 31, 2025 and 2024			4
Condensed Consolidated Statements of Cash Flows for the Three Months Ended March 31, 2025 and 2024			5
Notes to the Interim Condensed Consolidated Financial Statements			6
Item 2. Management's Discussion and Analysis of Financial Condition and Results of Operations			14
Item 4. Controls and Procedures			22

PART II – OTHER INFORMATION			23




Item 2. Unregistered Sales of Equity Securities and Use of Proceeds			23
Item 5. Other Information			23
Item 6. Exhibits			24

Signatures			25

PART I FINANCIAL INFORMATION

Item 1. Financial Statements

KIMBERLY-CLARK CORPORATION AND SUBSIDIARIES

CONDENSED CONSOLIDATED STATEMENTS OF INCOME

(Unaudited)


	Three Months Ended March 31
(In millions, except per share amounts)	2025		2024
Net Sales	$	4,840	$	5,149
Cost of products sold	3,107		3,238
Gross Profit	1,733		1,911
Marketing, research and general expenses	941		1,039

Other (income) and expense, net	23		19
Operating Profit	769		853
Nonoperating expense	(18)		(15)
Interest income	7		10
Interest expense	(64)		(67)
Income Before Income Taxes and Equity Interests	694		781
Provision for income taxes	(165)		(184)
Income Before Equity Interests	529		597
Share of net income of equity companies	44		61
Net Income	573		658
Net income attributable to noncontrolling interests	(6)		(11)
Net Income Attributable to Kimberly-Clark Corporation	$	567	$	647

Per Share Basis
Net Income Attributable to Kimberly-Clark Corporation
Basic	$	1.71	$	1.92
Diluted	$	1.70	$	1.91

See notes to the unaudited interim condensed consolidated financial statements.

KIMBERLY-CLARK CORPORATION AND SUBSIDIARIES

CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME

(Unaudited)


	Three Months Ended March 31
(In millions)	2025		2024
Net Income	$	573	$	658
Other Comprehensive Income (Loss), Net of Tax
Unrealized currency translation adjustments	148		(149)
Employee postretirement benefits	(4)		11
Cash flow hedges and other	(13)		63
Total Other Comprehensive Income (Loss), Net of Tax	131		(75)
Comprehensive Income	704		583
Comprehensive income attributable to noncontrolling interests	(6)		(8)
Comprehensive Income Attributable to Kimberly-Clark Corporation	$	698	$	575

See notes to the unaudited interim condensed consolidated financial statements.

KIMBERLY-CLARK CORPORATION AND SUBSIDIARIES

CONDENSED CONSOLIDATED BALANCE SHEETS

(Unaudited)


(In millions, except par value)	March 31, 2025		December 31, 2024
ASSETS
Current Assets
Cash and cash equivalents	$	563	$	1,021
Accounts receivable, net	2,176		2,009
Inventories	1,909		1,822
Other current assets	633		728
Total Current Assets	5,281		5,580
Property, Plant and Equipment, Net	7,507		7,513
Investments in Equity Companies	354		314
Goodwill	1,971		1,964
Other Intangible Assets, Net	85		87
Other Assets	1,107		1,088
TOTAL ASSETS	$	16,305	$	16,546

LIABILITIES AND STOCKHOLDERS' EQUITY
Current Liabilities
Debt payable within one year	$	766	$	568
Trade accounts payable	3,601		3,715
Accrued expenses and other current liabilities	2,139		2,319
Dividends payable	415		402
Total Current Liabilities	6,921		7,004
Long-Term Debt	6,481		6,875
Noncurrent Employee Benefits	640		643
Deferred Income Taxes	319		326
Other Liabilities	683		686
Redeemable Preferred Securities of Subsidiaries	37		37
Stockholders' Equity
Kimberly-Clark Corporation
Preferred stock - no par value - authorized 20.0 million shares, none issued	—		—
Common stock - $1.25 par value - authorized 1,200.0 million shares; issued 378.6 million shares as of March 31, 2025 and December 31, 2024	473		473
Additional paid-in capital	842		862
Common stock held in treasury, at cost - 46.7 and 46.8 million shares as of March 31, 2025 and December 31, 2024, respectively	(5,985)		(5,986)
Retained earnings	9,406		9,257
Accumulated other comprehensive income (loss)	(3,635)		(3,766)
Total Kimberly-Clark Corporation Stockholders' Equity	1,101		840
Noncontrolling Interests	123		135
Total Stockholders' Equity	1,224		975
TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY	$	16,305	$	16,546

See notes to the unaudited interim condensed consolidated financial statements.

KIMBERLY-CLARK CORPORATION AND SUBSIDIARIES

CONDENSED CONSOLIDATED STATEMENTS OF STOCKHOLDERS' EQUITY

(Unaudited)


	Three Months Ended March 31, 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	378,597	$	473	$	862	46,798	$	(5,986)	$	9,257	$	(3,766)	$	135	$	975
Net income in stockholders' equity(a)	—	—		—		—	—		567		—		6		573
Other comprehensive income, net of tax(a)	—	—		—		—	—		—		131		—		131
Stock-based awards exercised or vested	—	—		(53)		(526)	63		—		—		—		10
Repurchases of common stock	—	—		—		458	(62)		—		—		—		(62)
Recognition of stock-based compensation	—	—		31		—	—		—		—		—		31
Dividends declared ($1.26 per share)	—	—		—		—	—		(418)		—		(18)		(436)
Other	—	—		2		—	—		—		—		—		2
Balance at March 31, 2025	378,597	$	473	$	842	46,730	$	(5,985)	$	9,406	$	(3,635)	$	123	$	1,224

(a) Excludes redeemable interests' share.


	Three Months Ended March 31, 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	378,597	$	473	$	878	41,599	$	(5,222)	$	8,368	$	(3,582)	$	153	$	1,068
Net income in stockholders' equity(a)	—	—		—		—	—		647		—		10		657
Other comprehensive income, net of tax(a)	—	—		—		—	—		—		(72)		(4)		(76)
Stock-based awards exercised or vested	—	—		(37)		(235)	26		—		—		—		(11)
Repurchases of common stock	—	—		—		459	(56)		—		—		—		(56)
Recognition of stock-based compensation	—	—		31		—	—		—		—		—		31
Dividends declared ($1.22 per share)	—	—		—		—	—		(411)		—		(19)		(430)
Other	—	—		5		—	—		(3)		(1)		—		1
Balance at March 31, 2024	378,597	$	473	$	877	41,823	$	(5,252)	$	8,601	$	(3,655)	$	140	$	1,184

(a) Excludes redeemable interests' share.

See notes to the unaudited interim condensed consolidated financial statements.

KIMBERLY-CLARK CORPORATION AND SUBSIDIARIES

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS

(Unaudited)


	Three Months Ended March 31
(In millions)	2025		2024
Operating Activities
Net income	$	573	$	658
Depreciation and amortization	218		185


Stock-based compensation	32		32
Deferred income taxes	7		(11)
Net (gains) losses on asset and business dispositions	10		5
Equity companies' earnings (in excess of) less than dividends paid	(39)		(61)
Operating working capital	(476)		(367)
Postretirement benefits	3		2
Other	(1)		(5)
Cash Provided by Operations	327		438
Investing Activities
Capital spending	(204)		(194)


Investments in time deposits	(99)		(97)
Maturities of time deposits	186		119
Other	(2)		(9)
Cash Used for Investing	(119)		(181)
Financing Activities
Cash dividends paid	(405)		(398)
Change in short-term debt	45		4

Debt repayments	(250)		—
Proceeds from exercise of stock options	30		3
Repurchases of common stock	(61)		(54)

Cash dividends paid to noncontrolling interests	(18)		(19)
Other	(24)		(21)
Cash Used for Financing	(683)		(485)
Effect of Exchange Rate Changes on Cash and Cash Equivalents	17		(12)
Change in Cash and Cash Equivalents	(458)		(240)
Cash and Cash Equivalents - Beginning of Period	1,021		1,093
Cash and Cash Equivalents - End of Period	$	563	$	853

See notes to the unaudited interim condensed consolidated financial statements.

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," "Kimberly-Clark," "K-C," "we," "our" and "us" refer to Kimberly-Clark Corporation and its consolidated subsidiaries.

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 March 31, 2025, K-C Argentina had an immaterial net peso monetary position. Net sales of K-C Argentina were approximately 1% of our consolidated net sales for the three months ended March 31, 2025 and 2024.

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 March 31, 2025, K-C Türkiye had an immaterial net lira monetary position. Net sales of K-C Türkiye were less than 1% of our consolidated net sales for the three months ended March 31, 2025 and 2024.

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 half of that amount, primarily related to workforce reductions. 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 March 31, 2025, cumulative pre-tax charges for the 2024 Transformation Initiative were $534 ($416 after-tax).

The following charges were incurred in connection with the 2024 Transformation Initiative:


	Three Months Ended March 31
	2025		2024
Cost of products sold:
Charges for workforce reductions	$	14	$	—


Incremental depreciation	32		—
Other exit costs	7		—
Total	53		—
Marketing, research and general expenses:
Charges for workforce reductions	2		23
Other exit costs	20		22
Total	22		45

Nonoperating expense	2		—
Total charges(a)	77		45
Provision for income taxes	—		(11)


Net charges	$	77	$	34

(a)We do not include 2024 Transformation Initiative charges within our segment operating results. Total impact of these charges to the NA, IPC and IFP segments were $27, $20 and $14, respectively, for the three months ended March 31, 2025, and $38, $3 and $4, respectively, for the three months ended March 31, 2024, with the residual relating to Corporate & Other. See further discussion around our segment operating results in Note 7.

The following summarizes the 2024 Transformation Initiative liabilities activity:


	2025
2024 Transformation Initiative liabilities as of January 1	$	130
Charges for workforce reductions and other cash exit costs	43
Cash payments	(60)
Currency and other	(5)
2024 Transformation Initiative liabilities as of March 31	$	108

2024 Transformation Initiative liabilities as of March 31, 2025 of $108 are recorded in Accrued expenses and other current liabilities. The charges related to the 2024 Transformation Initiative are reflected within Operating Activities of our condensed consolidated statements of cash flows.

Note 3. 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.

During the three months ended March 31, 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 March 31, 2025 and December 31, 2024, derivative assets were $166 and $189, respectively, and derivative liabilities were $109 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 6 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 March 31, 2025 and December 31, 2024, the securities were valued at $37. The securities are not traded in active markets, and their measurement is considered a level 3 measurement.

Company-owned life insurance ("COLI") assets are measured on a recurring basis at fair value. COLI assets were $71 as of March 31, 2025 and December 31, 2024. 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
		March 31, 2025				December 31, 2024
Assets
Cash and cash equivalents(a)	1	$	563	$	563	$	1,021	$	1,021
Time deposits(b)	1	110		110		196		196
Non-US government bonds(c)	2	7		7		15		15
Liabilities
Short-term debt(d)	2	51		51		3		3

Long-term debt(e)	2	7,196		6,707		7,440		6,853

(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.

(e)Long-term debt includes the current portion of these debt instruments. Fair values were estimated based on quoted prices for financial instruments for which all significant inputs were observable, either directly or indirectly.

Note 4. Earnings Per Share ("EPS")

There are no adjustments required to be made to net income for purposes of computing basic and diluted EPS. The dilutive effect of stock options and other stock-based awards is reflected in diluted EPS by application of the treasury stock method. The average number of common shares outstanding is reconciled to those used in the basic and diluted EPS computations as follows:


	Three Months Ended March 31
(Millions of shares)	2025	2024
Basic	331.8	336.9
Dilutive effect of stock options and restricted share unit awards	1.5	1.4
Diluted	333.3	338.3

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 March 31, 2025 and 2024 was 331.9 million and 336.8 million, respectively.

Note 5. 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 three months ended March 31, 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.

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	$	(2,678)	$	(791)		$	39		$	(152)
Other comprehensive income (loss) before reclassifications	(144)		3			1			60
(Income) loss reclassified from AOCI	—		8		(a)	(1)		(a)	—
Net current period other comprehensive income (loss)	(144)		11			—			60

Balance as of March 31, 2024	$	(2,822)	$	(780)		$	39		$	(92)

Balance as of December 31, 2024	$	(3,068)	$	(775)		$	47		$	30
Other comprehensive income (loss) before reclassifications	148		(10)			(1)			(19)
(Income) loss reclassified from AOCI	—		8		(a)	(1)		(a)	6		(b)
Net current period other comprehensive income (loss)	148		(2)			(2)			(13)

Balance as of March 31, 2025	$	(2,920)	$	(777)		$	45		$	17

(a) Included in Nonoperating expense as part of the computation of net periodic benefit costs.

(b) 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 (see Note 6 for further details).

Note 6. 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 March 31, 2025 and December 31, 2024, derivative assets were $166 and $189, respectively, and derivative liabilities were $109 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.

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 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 March 31, 2025, the aggregate notional values and carrying values of debt subject to outstanding interest rate contracts designated as fair value hedges were $525 and $492, respectively. For the three months ended March 31, 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 March 31, 2025, the aggregate notional value of outstanding foreign exchange derivative contracts designated as cash flow hedges was $3.2 billion. For the three months ended March 31, 2025 and 2024, no material gains or losses were reclassified into Interest expense, Cost of products sold or Other (income) and expense, net as a result of the discontinuance of cash flow hedges due to the original forecasted transaction no longer being probable of occurring. As of March 31, 2025, gains 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 $24. The maximum maturity of cash flow hedges in place as of March 31, 2025 is February 2028.

Net Investment Hedges

For derivative instruments that are designated and qualify as net investment hedges, the aggregate notional value was $1.7 billion as of March 31, 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. 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. For the three months ended March 31, 2025 and 2024, unrealized losses of $20 and unrealized gains of $27, respectively, related to net investment hedge fair value changes were recorded in AOCI and no material amounts were reclassified from AOCI to Interest expense.

For the three months ended March 31, 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 hedging instruments are immediately recognized in Other (income) and expense, net. Gains of $24 and losses of $23 were recorded for the three months ended March 31, 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 March 31, 2025, the notional value of these undesignated derivative instruments was approximately $3.4 billion.

Note 7. Segment Reporting

In the fourth quarter of 2024, we realigned our internal operating and management structure as part of the 2024 Transformation Initiative. As result, we manage and report our operations through operating segments that have been aggregated into three reportable segments defined by geographic regions and product groupings: North America ("NA"), International Personal Care ("IPC") and International Family Care and Professional ("IFP"). Further, our measure of segment profitability was changed to include the effects of changes in exchange rates on monetary assets and liabilities for subsidiaries where we have adopted highly inflationary accounting. Segment results for the historical period presented in these condensed consolidated financial statements have been recast to reflect these changes.

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, and costs related to our reorganization activities that are not associated with the ongoing operations of the segments. 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.

•International Family Care and Professional consists of two core categories — Family Care and Professional, including facial and bathroom tissue, paper towels, napkins, wipers, tissue, towels, soaps and sanitizers and other related products. These products are sold under the Kleenex, Scott, Viva, Andrex, Scottex, Wypall 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:


	Three Months Ended March 31, 2025
	NA		IPC		IFP		Total
Net Sales	$	2,666	$	1,383	$	791	$	4,840

Cost of Products Sold	1,563		908		574		3,045
Advertising and Promotion Expense	165		105		18		288
Research, Selling and General Expense	262		175		93		530
Other (Income) and Expense, net(a)	—		1		—		1
Segment Operating Profit	$	676	$	194	$	106	$	976
Corporate & Other							(207)
Total Operating Profit							$	769


	Three Months Ended March 31, 2024
	NA		IPC		IFP		Total
Net Sales	$	2,774	$	1,518	$	857	$	5,149

Cost of Products Sold	1,627		982		628		3,237
Advertising and Promotion Expense	190		110		16		316
Research, Selling and General Expense	290		175		102		567
Other (Income) and Expense, net(a)	—		9		1		10
Segment Operating Profit	$	667	$	242	$	110	$	1,019
Corporate & Other							(166)
Total Operating Profit							$	853

(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.

Depreciation and amortization expense by segment was:


	Three Months Ended March 31
	2025		2024
NA	$	104	$	104
IPC	65		47
IFP	40		32
Total Segment Depreciation and Amortization	209		183
Corporate & Other	9		2
Total	$	218	$	185

Capital spending by segment was:


	Three Months Ended March 31
	2025		2024
NA	$	143	$	118
IPC	36		42
IFP	25		32
Total Segment Capital Spending	204		192
Corporate & Other	—		2
Total	$	204	$	194

Sales of Principal Products:


	Three Months Ended March 31
	2025		2024
Baby and Child Care	$	1,637	$	1,773
Family Care	1,569		1,599
Professional	689		823
Adult Care	475		463
Feminine Care	443		467
All other	27		24
Consolidated	$	4,840	$	5,149

Note 8. Supplemental Balance Sheet Data

The following schedule presents a summary of inventories by major class:


	March 31, 2025						December 31, 2024
	LIFO		Non-LIFO		Total		LIFO		Non-LIFO		Total
Raw materials	$	128	$	260	$	388	$	122	$	261	$	383
Work in process	110		83		193		116		74		190
Finished goods	566		652		1,218		510		631		1,141
Supplies and other	—		316		316		—		308		308
	804		1,311		2,115		748		1,274		2,022
Excess of FIFO or weighted-average cost over LIFO cost	(206)		—		(206)		(200)		—		(200)
Total	$	598	$	1,311	$	1,909	$	548	$	1,274	$	1,822

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:


	March 31, 2025		December 31, 2024
Land	$	157	$	157
Buildings	2,948		2,901
Machinery and equipment	15,246		15,020
Construction in progress	816		854
	19,167		18,932
Less accumulated depreciation	(11,660)		(11,419)
Total	$	7,507	$	7,513

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. The outstanding amount related to the suppliers participating in this program was $1.0 billion as of March 31, 2025 and December 31, 2024, and was recorded within Trade accounts payable.

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 months ended March 31, 2025 to the same period in 2024. 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.

The United States has recently announced changes to U.S. trade policy, including increasing tariffs on imports, in some cases significantly, and potentially negotiating or terminating existing trade agreements. For example, on April 2, 2025, the United States announced a new universal baseline tariff of 10%, plus an additional country-specific tariff for select trading partners, on all U.S. imports. These actions, and retaliatory tariffs imposed by other countries on U.S. exports, have led to significant volatility and uncertainty in global markets. Based on preliminary analysis of the potential effects of the new tariffs that are currently in effect in the U.S. as well as in other markets in which we operate, we estimate incremental costs of approximately $300 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.

In the fourth quarter of 2024, we realigned our internal operating and management structure as part of the 2024 Transformation Initiative. As result, we manage and report our operations through three reportable segments defined by geographic regions and product groupings: North America ("NA"), International Personal Care ("IPC") and International Family Care and Professional ("IFP"). Further, our measure of segment profitability was changed to include the effects of changes in exchange rates on monetary assets and liabilities for subsidiaries where we have adopted highly inflationary accounting. Segment results for the historical period presented in these condensed consolidated financial statements have been recast to reflect these changes. These segments are described in greater detail in Item 1, Note 7 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.

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 half of that amount, primarily related to workforce reductions. 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 March 31, 2025 and 2024, total 2024 Transformation Initiative charges were $77 pre-tax ($77 after-tax) and $45 pre-tax ($34 after-tax), respectively. Through March 31, 2025, cumulative pre-tax charges for the 2024 Transformation Initiative were $534 ($416 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 March 31
	2025			2024			% Change
Net Sales	$	4,840		$	5,149		(6.0)	%
Gross Profit	1,733			1,911			(9.3)	%
Operating Profit	769			853			(9.8)	%
Provision for income taxes	(165)			(184)			(10.3)	%
Net Income Attributable to Kimberly-Clark Corporation	567			647			(12.4)	%
Diluted Earnings per Share	1.70			1.91			(11.0)	%

Adjusted Gross Profit(a)	1,786			1,911			(6.5)	%
Adjusted Operating Profit(a)	844			898			(6.0)	%
Adjusted Earnings per Share(a)	1.93			2.01			(4.0)	%
Adjusted Effective Tax Rate(a)	21.4		%	23.6		%	(2.2)	%

(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.

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	(0.2)	0.1	(1.5)	(2.0)	(2.4)	(6.0)	(1.6)

(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 $4.8 billion for the three months ended March 31, 2025 declined 6.0% primarily due to unfavorable currency impacts, divestitures and business exits and lower organic sales. Organic sales decreased 1.6% driven by lower pricing as a result of ongoing strategic investments in price-pack architecture and enhancing value propositions across our portfolio, while volume and mix were flat compared to the prior year.

Gross and Operating Profits

Gross profit of $1.7 billion for the three months ended March 31, 2025 decreased 9.3%, while gross margin of 35.8% decreased 130 basis points. Gross margin in the current year included approximately 110 basis points for charges related to the 2024 Transformation Initiative, primarily for incremental depreciation expense and workforce reductions. Excluding these charges, adjusted gross margin decreased 20 basis points to 36.9% primarily due to higher manufacturing costs and unfavorable pricing net of cost inflation, partially offset by gross productivity savings from integrated margin management of approximately $110.

Operating profit of $769 for the three months ended March 31, 2025 decreased 9.8%. Results in 2025 and 2024 included charges of $75 and $45 related to the 2024 Transformation Initiative, respectively. Excluding these items, adjusted operating profit for the three months ended March 31, 2025 and 2024, was $844 and $898, respectively.

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	(3.0)	(8.5)	(3.1)	4.5	(2.2)	6.3	(6.0)

(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 resulted from lower net sales and adjusted gross profit discussed above partially offset by lower marketing, research and general expenses.

Net Income and Diluted EPS

Net income of $567 for the three months ended March 31, 2025 decreased 12.4% primarily due to the decrease in operating profit discussed above. Net interest expense of $57 was in line with the prior year. Our share of net income of equity companies was $44, a decrease of 27.9% primarily driven by Kimberly-Clark de Mexico, S.A.B. de C.V., due to unfavorable foreign currency effects, partially offset by pricing, lower general and administrative expenses and productivity savings. The effective tax rate was 23.8% in 2025 compared to 23.6% in 2024. The adjusted effective tax rate for the three months ended March 31, 2025 was 21.4% compared to 23.6% in 2024. The first quarter of 2025 benefited from the resolution of certain tax matters.

Diluted earnings per share of $1.70 for the three months ended March 31, 2025 decreased 11.0% reflective of the decrease in net income discussed above. Adjusted earnings per share of $1.93 decreased 4.0% primarily driven by lower adjusted operating profit, which more than offset the benefits from a lower adjusted effective rate and lower dilutive shares outstanding.

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	(0.1)	0.1	(0.6)	(2.9)	(0.4)	(3.9)	(0.6)
IPC	(0.6)	0.3	(2.5)	—	(6.0)	(8.9)	(2.8)
IFP	0.5	(0.1)	(2.6)	(2.9)	(2.6)	(7.7)	(2.3)


Percent Change in Segment Operating Profit	Volume	Net Price	Input Costs	Other Manufacturing Costs(d)	Currency Translation	Other(e)	Total
Three Months Ended
NA	(3.0)	(2.5)	(2.3)	1.9	(0.5)	7.7	1.3
IPC	(2.8)	(15.4)	(9.5)	12.7	(5.0)	0.2	(19.8)
IFP	(0.1)	(20.4)	9.2	10.3	(3.8)	1.2	(3.6)

(a) Total may not sum across due to rounding.

(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.

North America


	Three Months Ended March 31
	2025		2024		% change
Net Sales	$	2,666	$	2,774	(3.9)	%
Operating Profit	676		667		1.3	%

Net sales of $2.7 billion decreased 3.9%, primarily due to the sale of the PPE business and the exit of the private label diaper business in the US. Organic sales decreased 0.6% due to lower pricing, reflecting strategic investments to optimize our product offerings and value propositions across consumer and professional channels.

Operating profit of $676 increased 1.3% primarily due to lower marketing, research and general expenses and gross productivity savings, partially offset by the impacts of divestitures and business exits, unfavorable pricing net of cost inflation and lower volumes.

International Personal Care


	Three Months Ended March 31
	2025		2024		% change
Net Sales	$	1,383	$	1,518	(8.9)	%
Operating Profit	194		242		(19.8)	%

Net sales of $1.4 billion decreased 8.9% primarily due to unfavorable currency impacts of 6.0% and lower organic sales. Organic sales decreased 2.8% mainly driven by lower pricing reflecting planned investments to improve our price-value tiers across the portfolio. Volume and mix were slightly down compared to the prior year as volume growth in China was offset by declines in Latin America.

Operating profit of $194 decreased 19.8% primarily due to unfavorable pricing net of cost inflation and currency impacts, partially offset by gross productivity savings.

International Family Care & Professional


	Three Months Ended March 31
	2025		2024		% change
Net Sales	$	791	$	857	(7.7)	%
Operating Profit	106		110		(3.6)	%

Net sales of $791 decreased 7.7% primarily due to divestitures and business exits, unfavorable currency impacts and lower organic sales. Organic sales decreased 2.3% driven by lower pricing, reflecting actions taken in response to increased competition in the United Kingdom, Latin America and Australia.

Operating profit of $106 decreased 3.6% driven by unfavorable pricing net of cost inflation and currency impacts, partially offset by gross productivity savings.

Liquidity and Capital Resources

Cash Provided by Operations

Cash provided by operations was $327 during the three months ended March 31, 2025 compared to $438 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 $119 during the three months ended March 31, 2025 compared to $181 in the prior year, primarily due to incremental cash flows from maturities of time deposits. During the three months ended March 31, 2025, our capital spending was $204 compared to $194 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 $683 during the three months ended March 31, 2025 compared to $485 in the prior year. This increase was primarily due to debt repayments during the current year. During the three months ended March 31, 2025, we repurchased 458 thousand shares of our common stock pursuant to our publicly announced share repurchase programs at a total cost of $61 through a broker in the open market.

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 $51 as of March 31, 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 three months ended March 31, 2025 was $41. 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 March 31, 2025 and December 31, 2024, total debt 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 2025. 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.

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, 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 the risk 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, 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.

•Organic Sales Growth is defined as the change in consolidated 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 consolidated 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 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.

The following table provides a reconciliation of Organic Sales Growth:


	Three Months Ended March 31, 2025
	Percent change vs. the prior year period
	NA	IPC	IFP	Consolidated
Net Sales Growth	(3.9)	(8.9)	(7.7)	(6.0)
Currency Translation	0.4	6.0	2.6	2.4
Divestitures and Business Exits	2.9	—	2.9	2.0
Organic Sales Growth(a)	(0.6)	(2.8)	(2.3)	(1.6)

(a) Table may not foot due to rounding.

The following table provides a reconciliation of Adjusted Gross Profit:


	Three Months Ended March 31
	2025		2024
Gross Profit	$	1,733	$	1,911
2024 Transformation Initiative	53		—


Adjusted Gross Profit	$	1,786	$	1,911

The following table provides a reconciliation of Adjusted Operating Profit:


	Three Months Ended March 31
	2025		2024
Operating Profit	$	769	$	853
2024 Transformation Initiative	75		45




Adjusted Operating Profit	$	844	$	898

The following table provides a reconciliation of Adjusted Earnings per Share:


	Three Months Ended March 31
	2025		2024
Diluted Earnings per Share	$	1.70	$	1.91
2024 Transformation Initiative	0.23		0.10






Adjusted Earnings per Share(a)	$	1.93	$	2.01

(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.

The following table provides a reconciliation of the Adjusted Effective Tax Rate:


	Three Months Ended March 31
	2025					2024
	Income Before Income Taxes and Equity Interests		Provision for Income Taxes			Income Before Income Taxes and Equity Interests		Provision for Income Taxes
As Reported	$	694	$	(165)		$	781	$	(184)
2024 Transformation Initiative	77		—			45		(11)






As Adjusted	$	771	$	(165)		$	826	$	(195)

Effective Tax Rate
As Reported			23.8		%			23.6		%
As Adjusted			21.4		%			23.6		%

Item 4. Controls and Procedures

As of March 31, 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 March 31, 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.

PART II OTHER INFORMATION

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 March 31, 2025 were made through a broker in the open market.

The following table contains information for shares repurchased during the three months ended March 31, 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)
January 1 to January 31	156,276	$	127.95	8,286,009	31,713,991
February 1 to February 28	146,499	134.86		8,432,508	31,567,492
March 1 to March 31	154,848	141.01		8,587,356	31,412,644
Total	457,623

(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 March 31, 2025, no such plans or other arrangements were adopted or terminated.

Item 6. Exhibits

(a)Exhibits

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

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 S. Drexler
						Andrew S. Drexler
						Vice President and Controller
						(Principal Accounting Officer)

April 22, 2025

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Date	Price Target	Rating	Analyst
1/8/2025	$145.00	Buy → Hold	TD Cowen
7/23/2024	$161.00	Buy	TD Cowen
6/24/2024	$146.00	Neutral	Exane BNP Paribas
6/13/2024	$115.00 → $160.00	Underperform → Buy	BofA Securities
6/3/2024	$126.00 → $165.00	Sector Perform → Outperform	RBC Capital Mkts
3/28/2024	$133.00 → $150.00	In-line → Outperform	Evercore ISI
3/1/2024	$135.00	Buy	Goldman
12/15/2023	$135.00 → $115.00	Neutral → Underperform	BofA Securities

SEC Form 10-Q filed by Kimberly-Clark Corporation

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