Kimberly-Clark Corporation is a global company principally engaged in the manufacturing and marketing of a wide range of products made from natural or synthetic fibers and materials using advanced technologies in fibers, nonwovens and absorbency. The company's portfolio of brands, including Huggies, Kleenex, Scott, Kotex, Cottonelle, Poise, Depend, Andrex, Pull-Ups, GoodNites, Intimus, Plenitud, Sweety, Softex, Viva and WypAll, hold No. 1 or No. 2 share positions in approximately 70 countries and encompass five global daily-need product categories: Baby & Child Care, Adult Care, Feminine Care, Family Care, and Professional. Kimberly-Clark and its trusted brands are an indispensable part of life for people in more than 175 countries and territories.

The company has several major competitors in most of its markets, some of which are larger and more diversified. The principal methods and elements of competition include brand recognition and loyalty, product innovation, quality and performance, price, and marketing and distribution capabilities. Kimberly-Clark's largest customer, Walmart Inc., represented approximately 16% in 2025 and 2024 and 15% in 2023 of net sales from continuing operations, with net sales to Walmart Inc. primarily in the NA segment.

Kimberly-Clark generates revenue by manufacturing and marketing essential products for household and professional use. Products for household use are sold directly to supermarkets, mass merchandisers, drugstores, warehouse clubs, variety and department stores and other retail outlets, as well as through other distributors and e-commerce. Products for professional use are sold through distributors, directly to manufacturing, lodging, office building, food service, and high-volume public facilities, and through e-commerce.

The company's continuing operations are organized into two reportable segments defined by geographic region: North America (NA) and International Personal Care (IPC). The NA segment reported net sales of $10,753 million ¹ and operating profit of $2,553 million ² for the year ended December 31, 2025. The IPC segment reported net sales of $5,694 million ³ and operating profit of $796 million ⁴ for the same period. The company's product categories include Baby & Child Care, Adult Care, Feminine Care, Family Care, and Professional.

On November 2, 2025, Kimberly-Clark entered into an Agreement and Plan of Merger to acquire the outstanding equity interests of Kenvue, Inc. for stock and cash consideration. Under the terms, each share of Kenvue common stock will be converted into the right to receive 0.14625 shares of Kimberly-Clark common stock, plus $3.50 in cash ⁵. In total, the company expects approximately 280 million shares of common stock to be issued and approximately $6.7 billion ⁶ to be paid for the Merger Consideration. On June 5, 2025, the company announced it will form a joint venture with Suzano S.A., whereby Buyer will acquire a 51% interest in the Joint Venture for a purchase price of approximately $1.7 billion ⁷, and Kimberly-Clark will retain a 49% equity interest. During fiscal 2024, the company announced its 2024 Transformation Initiative, with total costs anticipated to be approximately $1.5 billion pre-tax ⁸. During 2025, the company repurchased 1.1 million shares ⁹ of its common stock at a cost of $141 million ¹⁰ through a broker in the open market.

For the year ended December 31, 2025, net sales from continuing operations were $16,447 million ¹¹, a decrease of 2.1% compared to $16,805 million ¹² in 2024. Gross profit was $5,923 million ¹³, a decrease of 5.8% from $6,289 million ¹⁴ in the prior year. Operating profit was $2,351 million ¹⁵, a decrease of 12.9% from $2,700 million ¹⁶ in 2024. Income from continuing operations was $1,649 million ¹⁷, a decrease of 24.8% from $2,192 million ¹⁸ in the prior year. Net income attributable to Kimberly-Clark Corporation was $2,021 million ¹⁹, a decrease of 20.6% from $2,545 million ²⁰ in 2024. Diluted earnings per share from continuing operations was $4.86 ²¹, a decrease of 24.2% from $6.41 ²² in the prior year. Cash provided by operations was $2,777 million ²³ compared to $3,234 million ²⁴ in the prior year.

Management expects total pre-tax savings from the 2024 Transformation Initiative to be $3.0 billion ²⁵ in gross productivity, inclusive of input cost and manufacturing cost savings, and $200 million ²⁶ in selling, general and administrative expenses. Total costs are anticipated to be approximately $1.5 billion pre-tax ²⁷. Cash costs are expected to be approximately 60% ²⁸ of that amount. The 2024 Transformation Initiative is expected to be completed by the end of 2026 ²⁹. For 2026 and 2027, total operating expenses for environmental compliance are expected to be approximately $150 million ³⁰ and $140 million ³¹, respectively.

The company's first growth vector is accelerating pioneering innovation to capture significant growth available in its product categories by investing in science-based and proprietary technology to solve unmet and evolving consumer needs, and delivering breakthrough storytelling to drive category participation and brand love. The second growth vector is optimizing the margin structure to deliver superior consumer propositions at every rung of the good, better, best ladder, 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. The third growth vector is wiring the organization for growth to drive agility, speed, and focused execution that extends competitive advantages further into the future.

The company's second pillar of its Powering Care strategy is driven by supply chain transformation and investment in three key areas: value stream simplification, network optimization, and scalable automation. The company expects capital spending to be approximately $1.3 billion ³² in 2026, including incremental spending from the 2024 Transformation Initiative. In 2026, management expects net input costs, including as a result of tariffs, to be broadly in line with fiscal 2025, including the impact from currency on non-U.S. operations.

The company expects to contribute approximately $15 million ³³ to its defined benefit pension plans in 2026. Pension expense for defined benefit pension plans is estimated to approximate $45 million ³⁴ in 2026. The company expects capital spending to be approximately $1.3 billion ³⁵ in 2026, including incremental spending from the 2024 Transformation Initiative.

The company's capital allocation approach prioritizes capital investments to drive durable growth, a strong and growing dividend, value accretive acquisitions, and allocation of excess cash flow to share repurchases. The company expects capital spending to be approximately $1.3 billion ³⁶ in 2026. The company repurchased 1.1 million shares ³⁷ of its common stock at a cost of $141 million ³⁸ during 2025. Dividends declared were $5.04 per share ³⁹ in 2025.

The company faces headwinds from increased competitive pressures from private label manufacturers in the Baby and Child Care and Family Care categories. The company also faces headwinds from birth rate declines in key countries, including China, South Korea and the U.S., which have pressured category volume growth rates. The company incurred approximately $100 million ⁴⁰ of incremental tariff-related costs, primarily within its North America segment, related to changes in U.S. trade policy during fiscal 2025.

Management's message emphasizes the execution of the Powering Care business strategy and its three synergistic pillars: accelerating pioneering innovation, optimizing margin structure, and wiring the organization for growth. The company's strong legacy of financial discipline supports this strategy through consistent investment in technologies and brands, sustained supply chain productivity and enhanced working capital efficiency. Management expects total pre-tax savings from the 2024 Transformation Initiative to be $3.0 billion ⁴⁴ in gross productivity and $200 million ⁴⁵ in selling, general and administrative expenses, with total costs anticipated to be approximately $1.5 billion pre-tax ⁴⁶. The strategic priorities emphasized for the period ahead include sharpening portfolio focus and footprint on categories and markets with the greatest long-term potential, and allocating capital in value-creating ways.

For the year ended December 31, 2025, total net sales from continuing operations were $16,447 million ⁴⁷ compared to $16,805 million ⁴⁸ in 2024. Net income attributable to Kimberly-Clark Corporation was $2,021 million ⁴⁹ compared to $2,545 million ⁵⁰ in the prior year. Diluted earnings per share from continuing operations was $4.86 ⁵¹ compared to $6.41 ⁵² in 2024. Gross profit was $5,923 million ⁵³ compared to $6,289 million ⁵⁴ in the prior year, with gross margin of 36.0% ⁵⁵ decreasing 140 basis points. Operating profit was $2,351 million ⁵⁶ compared to $2,700 million ⁵⁷ in 2024. Cash provided by operations was $2,777 million ⁵⁸ compared to $3,234 million ⁵⁹ in the prior year. The effective tax rate was 29.2% ⁶⁰ compared to 18.3% ⁶¹ in the prior year. The NA segment reported net sales of $10,753 million ⁶² and operating profit of $2,553 million ⁶³. The IPC segment reported net sales of $5,694 million ⁶⁴ and operating profit of $796 million ⁶⁵. Total debt from continuing operations was $7.2 billion ⁶⁶ as of December 31, 2025, compared to $7.4 billion ⁶⁷ as of December 31, 2024. The company recognized charges of $351 million ⁶⁸ pre-tax ($295 million ⁶⁹ after-tax) for the 2024 Transformation Initiative and $32 million ⁷⁰ of acquisition-related costs in connection with the Kenvue Acquisition.

Significant increases in prices for raw materials, energy, transportation or other necessary supplies or services, without corresponding increases in selling prices, could adversely affect financial results. Cellulose fiber, in the form of kraft pulp or recycled fiber, is used extensively in tissue products and is subject to significant price fluctuations. The company's international operations are subject to foreign market risks, including changes in foreign currency exchange rates, currency restrictions, political instability, and the imposition of increased or new tariffs. About half of net sales come from markets outside the U.S. The company has manufacturing facilities in 30 countries and sells products in a substantial majority of countries around the world. The company's largest customer, Walmart Inc., represented approximately 16% ⁴¹ in 2025 and 2024 and 15% ⁴² in 2023 of net sales from continuing operations. The pending Kenvue Acquisition and IFP Transaction involve significant risks, including the failure to complete the transactions, the incurrence of substantial transaction-related costs, and the inability to realize anticipated benefits or synergies. Under the Merger Agreement, either party may be required to pay a termination fee of $1.136 billion ⁴³ under specified circumstances.