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~~June 3130, 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

Title of each class

Trading Symbol(s)

Name of each exchange on which registered

Common Stock-$1.25 par value

KMB

The Nasdaq Stock Market LLC

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~~July 1525, 2025, there were 331,~~816~~779,~~035~~938 shares of the Corporation's common stock outstanding.

Table of Contents

PART I – FINANCIAL INFORMATION			1
Item 1. Financial Statements			1
Condensed Consolidated Statements of Income for the Three Months Ended March 31, 2025 and 2024			1
Condensed Consolidated Statements of Income for the Three and Six Months Ended June 30, 2025 and 2024			1
Condensed Consolidated Statements of Comprehensive Income for the Three Months Ended March 31, 2025 and 2024			2
Condensed Consolidated Statements of Comprehensive Income for the Three and Six Months Ended June 30, 2025 and 2024			2
Condensed Consolidated Balance Sheets as of March 31, 2025 and December 31, 2024			3
Condensed Consolidated Balance Sheets as of June 30, 2025 and December 31, 2024			3
Condensed Consolidated Statements of Stockholders' Equity for the Three Months Ended March 31, 2025 and 2024			4
Condensed Consolidated Statements of Stockholders' Equity for the Three and Six Months Ended June 30, 2025 and 2024			4
Condensed Consolidated Statements of Cash Flows for the Three Months Ended March 31, 2025 and 2024			5
Condensed Consolidated Statements of Cash Flows for the Six Months Ended June 30, 2025 and 2024			6
Notes to the Interim Condensed Consolidated Financial Statements			67
Item 2. Management's Discussion and Analysis of Financial Condition and Results of Operations			1420
Item 4. Controls and Procedures			2229
PART II – OTHER INFORMATION			2330
Item 2. Unregistered Sales of Equity Securities and Use of Proceeds			23
Item 1. Legal Proceedings			30
Item 5. Other Information			23
Item 2. Unregistered Sales of Equity Securities and Use of Proceeds			30
Item 6. Exhibits			24
Item 5. Other Information			30
Signatures			25
Item 6. Exhibits			31
Signatures			32

PART I FINANCIAL INFORMATION

Item 1. Financial Statements

KIMBERLY-CLARK CORPORATION AND SUBSIDIARIES

CONDENSED CONSOLIDATED STATEMENTS OF INCOME

(Unaudited)

	Three Months Ended March 31
	Three Months EndedJune 30				Six Months EndedJune 30
(In millions, except per share amounts)	2025		2024		2025		2024
Net Sales	$	4,~~840~~163	$	54,~~149~~231	$	8,217	$	8,557
Cost of products sold	32,~~107~~707		32,~~238~~637		5,252		5,277
Gross Profit	1,~~733~~456		1,~~911~~594		2,965		3,280
Marketing, research and general expenses	~~941~~863		~~1,039~~967		1,718		1,918
Other (income) and expense, net	231		1988		24		108
Operating Profit	~~769~~592		~~853~~539		1,223		1,254
Nonoperating expense	(1817)		(15)		(34)		(30)
Interest income	75		109		12		19
Interest expense	(6467)		(6772)		(131)		(139)
Income Before Income Taxes and Equity Interests	694		781
Income from Continuing Operations Before Income Taxes and Equity Interests	513		461		1,070		1,104
Provision for income taxes	(~~165~~116)		(~~184~~60)		(247)		(208)
Income Before Equity Interests	529		597
Income from Continuing Operations Before Equity Interests	397		401		823		896
Share of net income of equity companies	4447		6163		91		124
Net Income	573		658
Income from Continuing Operations	444		464		914		1,020
Net income attributable to noncontrolling interests	(6)		(11)
Income from Discontinued Operations, Net of Income Taxes	68		89		171		191
Net Income Attributable to Kimberly-Clark Corporation	$	567	$	647
Net Income	512		553		1,085		1,211
Net income attributable to noncontrolling interests	(3)		(9)		(9)		(20)
Net Income Attributable to Kimberly-Clark Corporation	$	509	$	544	$	1,076	$	1,191
Per Share Basis
Net Income Attributable to Kimberly-Clark Corporation
Basic	$	1.71	$	1.92
Basic:
Diluted	$	1.70	$	1.91
Continuing operations	$	1.33	$	1.35	$	2.73	$	2.97
Discontinued operations	0.20		0.26		0.51		0.56
Basic Earnings per Share	$	1.53	$	1.61	$	3.24	$	3.53
Diluted:
Continuing operations	$	1.33	$	1.35	$	2.72	$	2.96
Discontinued operations	0.20		0.26		0.51		0.56
Diluted Earnings per Share	$	1.53	$	1.61	$	3.23	$	3.52

See ~~notes~~Notes to the ~~unaudited~~Unaudited ~~interim~~Interim ~~condensed~~Condensed ~~consolidated~~Consolidated ~~financial~~Financial ~~statements~~Statements.

KIMBERLY-CLARK CORPORATION AND SUBSIDIARIES

CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME

(Unaudited)

	Three Months Ended March 31
	Three Months EndedJune 30				Six Months EndedJune 30
(In millions)	2025		2024		2025		2024
Net Income	$	~~573~~512	$	~~658~~553	$	1,085	$	1,211
Other Comprehensive Income (Loss), Net of Tax
Unrealized currency translation adjustments	~~148~~224		(~~149~~48)		372		(197)
Employee postretirement benefits	(45)		1110		(9)		21
Cash flow hedges and other	(13)		63
Cash flow hedges	(86)		57		(99)		120
Total Other Comprehensive Income (Loss), Net of Tax	~~131~~133		~~(75)~~19		264		(56)
Comprehensive Income	~~704~~645		~~583~~572		1,349		1,155
Comprehensive income attributable to noncontrolling interests	(69)		(86)		(15)		(14)
Comprehensive Income Attributable to Kimberly-Clark Corporation	$	~~698~~636	$	~~575~~566	$	1,334	$	1,141

See ~~notes~~Notes to the ~~unaudited~~Unaudited ~~interim~~Interim ~~condensed~~Condensed ~~consolidated~~Consolidated ~~financial~~Financial ~~statements~~Statements.

KIMBERLY-CLARK CORPORATION AND SUBSIDIARIES

CONDENSED CONSOLIDATED BALANCE SHEETS

(Unaudited)

(In millions, except par value)	~~March~~June 3130, 2025		December 31, 2024
ASSETS
Current Assets
Cash and cash equivalents	$	~~563~~634	$	1,~~021~~010
Accounts receivable, net	2,~~176~~007		21,~~009~~728
Inventories	1,~~909~~558		1,~~822~~452
Other current assets	~~633~~572		~~728~~694
Total Current Assets	5,281		5,580
Current assets of discontinued operations	786		696
Property, Plant and Equipment, Net	7,507		7,513
Total Current Assets	5,557		5,580
Investments in Equity Companies	354		314
Property, Plant and Equipment, Net	6,317		6,284
Goodwill	1,971		1,964
Investments in Equity Companies	359		314
Other Intangible Assets, Net	85		87
Goodwill	1,836		1,796
Other Assets	1,107		1,088
Other Intangible Assets, Net	81		80
TOTAL ASSETS	$	16,305	$	16,546
Other Assets	1,001		984
LIABILITIES AND STOCKHOLDERS' EQUITY
Non-current Assets of Discontinued Operations	1,620		1,508
Current Liabilities
TOTAL ASSETS	$	16,771	$	16,546
Debt payable within one year	$	766	$	568
LIABILITIES AND STOCKHOLDERS' EQUITY
Trade accounts payable	3,601		3,715
Current Liabilities
Accrued expenses and other current liabilities	2,139		2,319
Debt payable within one year	$	771	$	564
Dividends payable	415		402
Trade accounts payable	3,253		3,264
Total Current Liabilities	6,921		7,004
Accrued expenses and other current liabilities	2,019		2,091
Long-Term Debt	6,481		6,875
Dividends payable	415		402
Noncurrent Employee Benefits	640		643
Current liabilities of discontinued operations	713		683
Deferred Income Taxes	319		326
Total Current Liabilities	7,171		7,004
Other Liabilities	683		686
Long-Term Debt	6,470		6,854
Redeemable Preferred Securities of Subsidiaries	37		37
Non-current Employee Benefits	619		628
Stockholders' Equity
Deferred Income Taxes	243		300
Kimberly-Clark Corporation
Other Liabilities	680		609
Preferred stock - no par value - authorized 20.0 million shares, none issued	—		—
Non-current Liabilities of Discontinued Operations	148		139
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
Redeemable Preferred Securities of Subsidiaries	37		37
Additional paid-in capital	842		862
Stockholders' Equity
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)
Kimberly-Clark Corporation
Retained earnings	9,406		9,257
Preferred stock - no par value - authorized 20.0 million shares, none issued	—		—
Accumulated other comprehensive income (loss)	(3,635)		(3,766)
Common stock - $1.25 par value - authorized 1,200.0 million shares; issued 378.6 million shares as of June 30, 2025 and December 31, 2024	473		473
Total Kimberly-Clark Corporation Stockholders' Equity	1,101		840
Additional paid-in capital	798		862
Noncontrolling Interests	123		135
Common stock held in treasury, at cost - 46.7 and 46.8 million shares as of June 30, 2025 and December 31, 2024, respectively	(5,986)		(5,986)
Total Stockholders' Equity	1,224		975
Retained earnings	9,494		9,257
TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY	$	16,305	$	16,546
Accumulated other comprehensive income (loss)	(3,508)		(3,766)
Total Kimberly-Clark Corporation Stockholders' Equity	1,271		840
Noncontrolling Interests	132		135
Total Stockholders' Equity	1,403		975
TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY	$	16,771	$	16,546

See ~~notes~~Notes to the ~~unaudited~~Unaudited ~~interim~~Interim ~~condensed~~Condensed ~~consolidated~~Consolidated ~~financial~~Financial ~~statements~~Statements.

KIMBERLY-CLARK CORPORATION AND SUBSIDIARIES

CONDENSED CONSOLIDATED STATEMENTS OF STOCKHOLDERS' EQUITY

(Unaudited)

	Three Months Ended March 31, 2025
	Three Months Ended June 30, 2025
(In millions, except per share amounts. Shares in thousands)	Common StockIssued			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
Net income in stockholders' equity(a)	—	—		—		—	—		509		—		3		512
Other comprehensive income, net of tax(a)	—	—		—		—	—		—		127		6		133
Stock-based awards exercised or vested	—	—		(88)		(505)	67		—		—		—		(21)
Repurchases of common stock	—	—		—		457	(61)		—		—		—		(61)
Recognition of stock-based compensation	—	—		39		—	—		—		—		—		39
Dividends declared ($1.26 per share)	—	—		—		—	—		(419)		—		1		(418)
Other	—	—		5		—	(7)		(2)		—		(1)		(5)
Balance at June 30, 2025	378,597	$	473	$	798	46,682	$	(5,986)	$	9,494	$	(3,508)	$	132	$	1,403


	Six Months Ended June 30, 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)	—	—		—		—	—		1,076		—		9		1,085
Other comprehensive income, net of tax(a)	—	—		—		—	—		—		258		6		264
Stock-based awards exercised or vested	—	—		(141)		(1,031)	130		—		—		—		(11)
Repurchases of common stock	—	—		—		915	(123)		—		—		—		(123)
Recognition of stock-based compensation	—	—		70		—	—		—		—		—		70
Dividends declared ($2.52 per share)	—	—		—		—	—		(837)		—		(17)		(854)
Other	—	—		7		—	(7)		(2)		—		(1)		(3)
Balance at June 30, 2025	378,597	$	473	$	798	46,682	$	(5,986)	$	9,494	$	(3,508)	$	132	$	1,403

(a) Excludes redeemable interests' share.

	Three Months Ended March 31, 2024
(In millions, except per share amounts. Shares in thousands)	Common StockIssued			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~~STOCKHOLDERS' ~~FLOWS~~EQUITY

(Unaudited)

	Three Months Ended March 31
	Three Months Ended June 30, 2024
(In millions)	2025		2024
(In millions, except per share amounts. Shares in thousands)	Common StockIssued				Additional Paid-in Capital		Treasury Stock			Retained Earnings		Accumulated Other Comprehensive Income (Loss)		Non-controlling Interests		Total Stockholders' Equity
Operating Activities
	Shares		Amount				Shares	Amount
Net income	$	573	$	658
Balance at March 31, 2024	378,597		$	473	$	877	41,823	$	(5,252)	$	8,601	$	(3,655)	$	140	$	1,184
Depreciation and amortization	218		185
Net income in stockholders' equity(a)	—		—		—		—	—		544		—		8		552
Stock-based compensation	32		32
Other comprehensive income, net of tax(a)	—		—		—		—	—		—		22		(2)		20
Deferred income taxes	7		(11)
Stock-based awards exercised or vested	—		—		(113)		(997)	114		—		—		—		1
Net (gains) losses on asset and business dispositions	10		5
Repurchases of common stock	—		—		—		762	(103)		—		—		—		(103)
Equity companies' earnings (in excess of) less than dividends paid	(39)		(61)
Recognition of stock-based compensation	—		—		38		—	—		—		—		—		38
Operating working capital	(476)		(367)
Dividends declared ($1.22 per share)	—		—		—		—	—		(411)		—		(1)		(412)
Postretirement benefits	3		2
Other	—		—		—		—	—		—		1		—		1
Other	(1)		(5)
Balance at June 30, 2024	378,597		$	473	$	802	41,588	$	(5,241)	$	8,734	$	(3,632)	$	145	$	1,281
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.


	Six Months Ended June 30, 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)	—	—		—		—	—		1,191		—		18		1,209
Other comprehensive income, net of tax(a)	—	—		—		—	—		—		(50)		(6)		(56)
Stock-based awards exercised or vested	—	—		(150)		(1,232)	140		—		—		—		(10)
Repurchases of common stock	—	—		—		1,221	(159)		—		—		—		(159)
Recognition of stock-based compensation	—	—		69		—	—		—		—		—		69
Dividends declared ($2.44 per share)	—	—		—		—	—		(822)		—		(20)		(842)
Other	—	—		5		—	—		(3)		—		—		2
Balance at June 30, 2024	378,597	$	473	$	802	41,588	$	(5,241)	$	8,734	$	(3,632)	$	145	$	1,281

(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)


	Six Months Ended June 30
(In millions)	2025		2024
Operating Activities
Net income	$	1,085	$	1,211
Depreciation and amortization	440		373
Asset impairments	—		5

Stock-based compensation	73		71
Deferred income taxes	(30)		(79)
Net (gains) losses on asset and business dispositions	36		83
Equity companies' earnings (in excess of) less than dividends paid	(50)		(82)
Operating working capital	(471)		(135)
Postretirement benefits	9		3
Other	5		9
Cash Provided by Operations	1,097		1,459
Investing Activities
Capital spending	(401)		(352)

Proceeds from asset and business dispositions	12		14
Investments in time deposits	(227)		(242)
Maturities of time deposits	282		235
Other	22		(31)
Cash Used for Investing	(312)		(376)
Financing Activities
Cash dividends paid	(824)		(809)
Change in short-term debt	51		7

Debt repayments	(250)		—
Proceeds from exercise of stock options	36		41
Repurchases of common stock	(120)		(156)

Cash dividends paid to noncontrolling interests	(18)		(19)
Other	(58)		(62)
Cash Used for Financing	(1,183)		(998)
Effect of Exchange Rate Changes on Cash and Cash Equivalents	34		(15)
Change in Cash and Cash Equivalents	(364)		70

Cash and cash equivalents from continuing operations - beginning of period	1,010		1,075
Cash and cash equivalents from discontinued operations - beginning of period (a)	11		18
Cash and Cash Equivalents - Beginning of Period	1,021		1,093

Cash and cash equivalents from continuing operations - end of period	634		1,149
Cash and cash equivalents from discontinued operations - end of period(a)	23		14
Cash and Cash Equivalents - End of Period	$	657	$	1,163

(a) Included in Current assets of discontinued operations.

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~~Unaudited ~~interim~~Interim ~~condensed~~Condensed ~~consolidated~~Consolidated ~~financial~~Financial ~~statements~~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," "Company," "Kimberly-Clark," "K-C," "we," "our" and "us" refer to Kimberly-Clark Corporation and its consolidated subsidiaries.

International Family Care and Professional ("IFP") Transaction

On June 5, 2025, we announced that the Company will form a joint venture with Suzano S.A. ("Suzano") and Suzano International Holding B.V., a wholly-owned subsidiary of Suzano ("Buyer"), comprised of substantially all the operations of the Company's former International Family Care and Professional ("IFP") segment (the "IFP Business"). To facilitate this transaction, we entered into an Equity and Asset Purchase Agreement (the "Purchase Agreement") with Buyer, pursuant to which we will, among other things, effectuate a reorganization through the transfer of certain assets, liabilities and equity interests of the IFP Business to Kimberly-Clark IFP NewCo B.V., an indirect wholly-owned subsidiary of the Company (the "Joint Venture"). At the time of closing, which is expected to take place in mid-2026 and will only take place following the satisfaction of consultation requirements and customary closing conditions, including obtaining required regulatory approvals, Buyer will acquire a 51% interest in the Joint Venture for a purchase price of approximately $1.7 billion, subject to certain closing adjustments set forth in the Purchase Agreement, and we will retain a 49% equity interest (the "IFP Transaction").

In accordance with ASC 205, Presentation of Financial Statements, we determined the IFP Transaction represents a strategic shift that will have a major effect on our operations and financial results. Accordingly, effective in the second quarter of fiscal 2025, the results of the IFP Business are reported as discontinued operations in the accompanying Condensed Consolidated Statements of Income and have been excluded from both continuing operations and segment results for all periods presented. Further, the assets and liabilities of the IFP Business are classified as discontinued operations in the accompanying Condensed Consolidated Balance Sheets for all periods presented, and the Company has ceased depreciating and amortizing the long-lived assets of the IFP Business. The Condensed Consolidated Statements of Comprehensive Income, Stockholders' Equity and Cash Flows are presented on a consolidated basis for both continuing operations and discontinued operations. Unless otherwise noted, amounts and disclosures in the Notes to the Unaudited Interim Condensed Consolidated Financial Statements reflect only Kimberly-Clark's continuing operations. See Note 3 for additional details.

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~~June 3130, 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 and six months ended ~~March~~June 3130, 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 2024.7

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 June 30, 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 and six months ended June 30, 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.

6The 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 60% of that amount, primarily related to workforce reductions and other program costs. 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 June 30, 2025, cumulative pre-tax charges for the 2024 Transformation Initiative were $656 ($511 after-tax).

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). 8

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

	Three Months Ended March 31
	Three Months EndedJune 30				Six Months EndedJune 30
	2025		2024		2025		2024
Cost of products sold:
Charges for workforce reductions	$	14—	$	—34	$	14	$	34
Incremental depreciation	32		—
Asset write-offs	20		5		20		5
Other exit costs	7		—
Incremental depreciation	57		3		89		3
Total	53		—
Other exit costs	5		3		12		3
Total	82		45		135		45
Marketing, research and general expenses:
Charges for workforce reductions	213		2346		15		69
Other exit costs	2026		2224		46		46
Total	2239		4570		61		115
Nonoperating expense	2		—
Other (income) and expense, net(a)	—		75		—		75
Total charges(a)	77		45
Nonoperating expense	1		—		3		—
Provision for income taxes	—		(11)
Total charges(b)	122		190		199		235
Net charges	$	77	$	34
Provision for income taxes	(27)		(73)		(27)		(84)
Net charges	95		117		172		151
Net impact related to noncontrolling interests	(4)		—		(4)		—
Net charges attributable to Kimberly-Clark Corporation	$	91	$	117	$	168	$	151

(a)WeOther do(Income) ~~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~~expense, ~~$20~~net ~~and~~includes ~~$14,~~losses ~~respectively,~~recognized for the ~~three~~exit ~~months~~of ~~ended~~certain ~~March 31,~~businesses ~~2025,~~ and ~~$38,~~markets $3as ~~and~~part ~~$4,~~of ~~respectively, for~~ the ~~three months ended March 31,~~ 2024, ~~with~~Transformation ~~the residual relating to Corporate & Other~~Initiative. ~~See further discussion around our segment operating results in Note 7.~~

(b)We do not include 2024 Transformation Initiative charges within our segment operating results. Total impact of these charges to the NA and IPC segments were $58 and $71, respectively, for the three months ended June 30, 2025, $27 and $126, respectively, for the three months ended June 30, 2024, $85 and $91, respectively, for the six months ended June 30, 2025, and $65 and $129, respectively, for the six months ended June 30, 2024, with the residual relating to Corporate & Other. See further discussion around our segment operating results in Note 8.

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	4386
Cash payments	(60130)
Currency and other	~~(5)~~—
2024 Transformation Initiative liabilities as of March 31	$	108
2024 Transformation Initiative liabilities as of June 30	$	86

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~~Condensed ~~consolidated~~Consolidated ~~statements~~Statements of ~~cash~~Cash ~~flows~~Flows.

~~Note 3. Fair Value Information~~9

Note 3. Discontinued Operations

As disclosed in Note 1, on June 5, 2025, we announced the sale of a controlling equity interest in a newly formed Joint Venture comprised of our IFP Business. At the time of closing, Buyer will acquire a 51% interest in the Joint Venture for a purchase price of approximately $1.7 billion, subject to certain post-closing adjustments set forth in the Purchase Agreement. We will retain a 49% equity interest in the Joint Venture which we expect will initially be recorded at fair value and subsequently accounted for using the equity method of accounting. The transaction is expected to close in mid-2026, pending the satisfaction of consultation requirements and customary closing conditions, including obtaining required regulatory approvals, set forth in the Purchase Agreement.

Financial Information of Discontinued Operations

The following table presents the components of Income from Discontinued Operations, Net of Income Taxes:


	Three Months Ended June 30				Six Months Ended June 30
	2025		2024		2025		2024
Net Sales	$	802	$	798	$	1,588	$	1,621
Cost of products sold	592		582		1,154		1,180
Gross Profit	210		216		434		441
Marketing, research and general expenses	108		99		194		187
Other (income) and expense, net	2		1		2		—
Operating Profit	100		116		238		254
Nonoperating expense	1		—		—		—
Income from discontinued operations before income taxes	101		116		238		254
Provision for income taxes	(33)		(27)		(67)		(63)
Income from Discontinued Operations, Net of Income Taxes	$	68	$	89	$	171	$	191

As a result of the IFP Transaction, we incurred separation costs of $33 for the three months ended June 30, 2025, which are included in Income from Discontinued Operations, Net of Income Taxes. These costs were primarily related to external advisory, legal, accounting, contractor and other incremental costs directly related to the IFP Transaction.

The following table presents significant non-cash items and capital expenditures of discontinued operations:


	Three Months Ended June 30				Six Months Ended June 30
	2025		2024		2025		2024
Depreciation and Amortization	$	28	$	32	$	68	$	64
Capital Spending	21		22		46		54

The following table presents the components of assets and liabilities classified as discontinued operations:


	June 30, 2025		December 31, 2024
Assets
Cash and cash equivalents	$	23	$	11
Accounts receivable, net	330		281
Inventories	415		370
Other current assets	18		34
Current Assets of Discontinued Operations	$	786	$	696

Property, Plant and Equipment, Net	$	1,318	$	1,229

Goodwill	184		168
Other Intangible Assets, Net	7		7
Other Assets	111		104
Non-current Assets of Discontinued Operations	$	1,620	$	1,508

Liabilities
Debt payable within one year	$	5	$	4
Trade accounts payable	475		451
Accrued expenses and other current liabilities	233		228

Current Liabilities of Discontinued Operations	$	713	$	683

Long-Term Debt	$	20	$	21
Non-current Employee Benefits	15		15
Deferred Income Taxes	32		26
Other Liabilities	81		77
Non-current Liabilities of Discontinued Operations	$	148	$	139

Joint Venture Agreement and Ancillary Agreements

Upon the closing, K-C, Buyer and the Joint Venture will enter into a joint venture agreement (the "JVA"), which will set forth provisions relating to, among other things, the governance of the Joint Venture following closing, transfer restrictions with respect to the parties’ interests in the Joint Venture, and the option of Buyer to purchase K-C's equity interests in the Joint Venture. We will also enter into certain ancillary agreements including intellectual property rights, transition services agreements (the "TSA") and transitional supply arrangements (the "Supply Agreements"). Pursuant to the TSA, K-C will provide certain services to the Joint Venture, on an interim, transitional basis from and after the closing for an initial duration of 18 months, with certain extension rights provided therein. Pursuant to the Supply Agreements, K-C will manufacture and supply certain products to the Joint Venture and, similarly, the Joint Venture will manufacture and supply certain products to K-C for a period of up to 36 months following the closing with certain extension rights provided therein.

Note 4. 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.

711

During the ~~three~~six months ended ~~March~~June 3130, 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~~June 3130, 2025 and December 31, 2024, derivative assets were $~~166~~82 and $189, respectively, and derivative liabilities were $~~109~~253 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 67 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~~June 3130, 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 $70 and $71 as of ~~March~~June 3130, 2025 and December 31, 2024, respectively. The COLI policies are a source of funding primarily for our nonqualified employee benefits and are included in Other Assets in the ~~condensed~~Condensed ~~consolidated~~Consolidated ~~balance~~Balance ~~sheets~~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

June 30, 2025

December 31, 2024

Assets

Cash and cash equivalents(a)

~~563~~634

1,~~021~~010

Time deposits(b)

~~110~~142

~~196~~181

Non-US government bonds(c)

7—

Liabilities

Short-term debt(d)

5159

Long-term debt(e)

7,~~196~~182

6,~~707~~733

7,~~440~~415

6,~~853~~828

(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~~Condensed ~~consolidated~~Consolidated ~~balance~~Balance ~~sheets~~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~~Condensed ~~consolidated~~Consolidated ~~balance~~Balance ~~sheets~~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.

812

Note 45. Earnings Per Share ~~("EPS")~~

~~There~~Basic ~~are no adjustments required to be made to net income for purposes of computing basic~~ and diluted ~~EPS.~~earnings ~~The~~per ~~dilutive~~share ~~effect of stock options and other stock-based awards is reflected in diluted~~ ("EPS") bywere ~~application~~calculated ~~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
	Three Months EndedJune 30				Six Months EndedJune 30
(Millions of shares)	2025		2024
(In millions, except per share amounts)	2025		2024		2025		2024
Basic	331.8		336.9
Income from Continuing Operations	$	444	$	464	$	914	$	1,020
Dilutive effect of stock options and restricted share unit awards	1.5		1.4
Less: Net income attributable to noncontrolling interests	(3)		(9)		(9)		(20)
Diluted	333.3		338.3
Income from Continuing Operations Attributable to Kimberly-Clark Corporation	441		455		905		1,000
Income from Discontinued Operations, Net of Income Taxes	68		89		171		191
Net Income Attributable to Kimberly-Clark Corporation	$	509	$	544	$	1,076	$	1,191
Weighted-Average Common Shares
Basic	332.1		337.1		331.9		337.0
Dilutive effect of stock options and restricted share unit awards	1.2		0.9		1.4		1.2
Diluted	333.3		338.0		333.3		338.2
Basic:
Continuing operations	$	1.33	$	1.35	$	2.73	$	2.97
Discontinued operations	0.20		0.26		0.51		0.56
Basic Earnings per Share	$	1.53	$	1.61	$	3.24	$	3.53
Diluted:
Continuing operations	$	1.33	$	1.35	$	2.72	$	2.96
Discontinued operations	0.20		0.26		0.51		0.56
Diluted Earnings per Share	$	1.53	$	1.61	$	3.23	$	3.52

We use the treasury stock method to calculate the dilutive effect of stock options and other stock-based awards. 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~~June 3130, 2025 and 2024 was 331.9 million and ~~336~~337.80 million, respectively.

Note 56. 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~~six months ended ~~March~~June 3130, 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~~232)			37			(1)			6092
(Income) loss reclassified from AOCI	—45		(b)	815		(a)	(1)		(a)	—25		(c)
Net current period other comprehensive income (loss)	(~~144~~187)			1122			—(2)			60117
Balance as of March 31, 2024	$	(2,822)		$	(780)		$	39		$	(92)
Balance as of June 30, 2024	$	(2,865)		$	(769)		$	37		$	(35)
Balance as of December 31, 2024	$	(3,068)		$	(775)		$	47		$	30
Other comprehensive income (loss) before reclassifications	~~148~~362			(1029)			~~(1)~~5			(19107)
(Income) loss reclassified from AOCI	—			817		(a)	(12)		(a)	612		(bc)
Net current period other comprehensive income (loss)	~~148~~362			(212)			~~(2)~~3			(1395)
Balance as of March 31, 2025	$	(2,920)		$	(777)		$	45		$	17
Balance as of June 30, 2025	$	(2,706)		$	(787)		$	50		$	(65)

(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~~as onpart of the ~~income~~charges ~~statement~~related ~~line~~to ~~that~~ the ~~hedged~~2024 ~~exposure~~Transformation ~~affects~~Initiative ~~earnings~~ (see Note ~~6 for further details~~2).

~~Note 6.~~(c) ~~Objectives~~Included in Interest expense, Cost of products sold or Other (income) and ~~Strategies~~expense, net, based on the income statement line that the hedged exposure affects earnings. For the six months ended June 30, 2025, losses of $20 were reclassified into Income from Discontinued Operations, Net of Income Taxes due to the discontinuance of cash flow hedge accounting as a result of the IFP Transaction (see Note 7 for ~~Using~~further ~~Derivatives~~details).

Note 7. 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.

9As of June 30, 2025 and December 31, 2024, derivative assets were $82 and $189, respectively, and derivative liabilities were $253 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.

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 primarily 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~~June 3130, 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~~501, respectively. For the ~~three~~six months ended ~~March~~June 3130, 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~~June 3130, 2025, the aggregate notional value of outstanding foreign exchange and commodity derivative contracts designated as cash flow hedges was $3.2.6 billion. For the ~~three~~six months ended ~~March~~June 3130, 2025, we discontinued cash flow hedge accounting for certain foreign exchange and ~~2024,~~commodity instruments with a notional value of $681 because the forecasted transactions were no ~~material~~longer ~~gains~~probable orof occurring due to the IFP Transaction. As a result, pre-tax losses of $20 were reclassified from AOCI into ~~Interest~~Income ~~expense~~from Discontinued Operations, ~~Cost~~Net of ~~products~~Income ~~sold~~Taxes. orFor ~~Other~~the ~~(income)~~six ~~and~~months ~~expense~~ended June 30, ~~net~~2024, asno amaterial ~~result~~gains ofor ~~the~~losses ~~discontinuance~~were ofreclassified ~~cash~~from ~~flow~~AOCI ~~hedges~~into ~~due~~earnings toas ~~the~~a ~~original~~result ~~forecasted~~of ~~transaction~~the nodiscontinuance ~~longer~~of ~~being~~cash ~~probable~~flow ofhedge ~~occurring~~accounting. As of ~~March~~June 3130, 2025, ~~gains~~losses 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 $2432. The maximum maturity of cash flow hedges in place as of ~~March~~June 3130, 2025 is ~~February~~May 2028.

Net Investment Hedges

For derivative instruments that are designated and qualify as net investment hedges, the aggregate notional value was $1.73 billion as of ~~March~~June 3130, 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. Unrealized gains and losses related to 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. Unrealized losses of $128 and unrealized gains of $18 were recorded in AOCI for the three months ended June 30, 2025 and 2024, respectively. Unrealized losses of $148 and unrealized gains of $45 were recorded in AOCI for the six months ended June 30, 2025 and 2024, respectively. For the six months ended June 30, 2025 and 2024, no material amounts were reclassified from AOCI to Interest expense.

10For the six months ended June 30, 2025 and 2024, no material amounts were excluded from the assessment of net investment, fair value or cash flow hedge effectiveness.

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 and commodity hedging instruments are immediately recognized in Other (income) and expense, net. Gains of $2438 and losses of $239 were recorded for the three months ended ~~March~~June 3130, 2025 and 2024, respectively. Gains of $62 and losses of $32 were recorded in the six months ended June 30, 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~~June 3130, 2025, the notional value of these undesignated derivative instruments was approximately $35.42 billion.

~~Note 7. Segment Reporting~~15

InNote ~~the fourth quarter of 2024, we realigned our internal operating and management structure as part of the 2024 Transformation Initiative~~8. 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.~~ Reporting

The ~~reportable~~Company's ~~segments~~continuing ~~were~~operations ~~determined~~are inorganized ~~accordance~~into ~~with~~two ~~how~~reportable ~~our~~segments ~~Chief~~defined ~~Executive~~by ~~Officer,~~geographic ~~who~~region: isNorth ~~our~~America ~~chief operating decision maker~~ ("~~CODM~~NA"), ~~develops~~ and ~~executes~~International ~~global~~Personal ~~strategies~~Care 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~~"IPC") ~~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.~~

These segments differ from those used in prior periods due to changes to our reportable segments effective in the fourth quarter of 2024 (refer to our Annual Report on Form 10-K for further details) and the following changes effective in the second quarter of 2025:

IFP Transaction

As a result of the IFP Transaction discussed in Notes 1 and 3, the results of operations and applicable assets and liabilities of the IFP Business are reported as discontinued operations in the Company's financial statements and are excluded from segment results for all periods presented. This includes certain costs that were previously allocated to the IPC segment that relate to assets or activities that are part of the IFP Transaction. These costs have been removed from the results of the IPC segment and are reported as discontinued operations. Additionally, certain operations and commercial activities of the former IFP segment retained by K-C are now reported in the NA and IPC segments.

Corporate and Other

Corporate and Other was updated for all periods presented to include the following:

•Operations of the former IFP segment that were divested prior to the IFP Transaction and therefore not reported as discontinued operations.

•Costs previously allocated to the former IFP segment that are not directly attributable to the operations included in the IFP Transaction and therefore are not reported as discontinued operations.

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, costs related to our reorganization activities that are not associated with the ongoing operations of the segments, certain operations of the former IFP segment that were divested prior to the IFP Transaction, and costs previously allocated to the former IFP segment that aren't reported as discontinued operations. 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
	Three Months Ended June 30, 2025
	NA		IPC		~~IFP~~Total		~~Total~~
Net Sales	$	2,774	$	1,518	$	857	$	5,149
Segment Net Sales	$	2,730	$	1,433	$	4,163
Cost of Products Sold	1,627		982		628		3,237
Corporate & Other					—
Advertising and Promotion Expense	190		110		16		316
Total Net Sales					$	4,163
Research, Selling and General Expense	290		175		102		567
Cost of Products Sold	1,642		967		2,609
Other (Income) and Expense, net(a)	—		9		1		10
Advertising and Promotion Expense	170		98		268
Segment Operating Profit	$	667	$	242	$	110	$	1,019
Research, Selling and General Expense	263		183		446
Corporate & Other							(166)
Other (Income) and Expense, net(a)	—		3		3
Total Operating Profit							$	853
Segment Operating Profit	$	655	$	182	$	837
Corporate & Other					(245)
Total Operating Profit					$	592


	Six Months Ended June 30, 2025
	NA		IPC		Total
Segment Net Sales	$	5,398	$	2,819	$	8,217
Corporate & Other					—
Total Net Sales					$	8,217

Cost of Products Sold	3,205		1,873		5,078
Advertising and Promotion Expense	335		203		538
Research, Selling and General Expense	525		356		881
Other (Income) and Expense, net(a)	—		4		4
Segment Operating Profit	$	1,333	$	383	$	1,716
Corporate & Other					(493)
Total Operating Profit					$	1,223


	Three Months Ended June 30, 2024
	NA		IPC		Total
Segment Net Sales	$	2,783	$	1,427	$	4,210
Corporate & Other					21
Total Net Sales					$	4,231

Cost of Products Sold	1,627		930		2,557
Advertising and Promotion Expense	186		101		287
Research, Selling and General Expense	288		185		473
Other (Income) and Expense, net(a)	—		2		2
Segment Operating Profit	$	682	$	209	$	891
Corporate & Other					(352)
Total Operating Profit					$	539

(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.


	Six Months Ended June 30, 2024
	NA		IPC		Total
Segment Net Sales	$	5,559	$	2,953	$	8,512
Corporate & Other					45
Total Net Sales					$	8,557

Cost of Products Sold	3,254		1,913		5,167
Advertising and Promotion Expense	376		210		586
Research, Selling and General Expense	578		359		937
Other (Income) and Expense, net(a)	—		11		11
Segment Operating Profit	$	1,351	$	460	$	1,811
Corporate & Other					(557)
Total Operating Profit					$	1,254

Depreciation and amortization expense by segment was:

	Three Months Ended March 31
	Three Months EndedJune 30				Six Months EndedJune 30
	2025		2024		2025		2024
NA	$	~~104~~124	$	~~104~~106	$	228	$	210
IPC	6570		4748		135		95
IFP	40		32
Total Segment Depreciation and Amortization	194		154		363		305
Total Segment Depreciation and Amortization	209		183
Corporate & Other	—		2		9		4
Corporate & Other	9		2
Total(a)	$	194	$	156	$	372	$	309
Total	$	218	$	185

(a) Excludes discontinued operations. See Note 3 for depreciation and amortization of discontinued operations.

Capital spending by segment was:

	Three Months Ended March 31
	Three Months EndedJune 30				Six Months EndedJune 30
	2025		2024		2025		2024
NA	$	~~143~~141	$	~~118~~99	$	284	$	217
IPC	3635		4235		71		77
IFP	25		32
Total Segment Capital Spending	176		134		355		294
Total Segment Capital Spending	204		192
Corporate & Other	—		2		—		4
Corporate & Other	—		2
Total(a)	$	176	$	136	$	355	$	298
Total	$	204	$	194

12(a) Excludes discontinued operations. See Note 3 for depreciation and amortization of discontinued operations.

Sales of Principal Products:

	Three Months Ended March 31
	Three Months EndedJune 30				Six Months EndedJune 30
	2025		2024		2025		2024
Baby and Child Care	$	1,~~637~~768	$	1,~~773~~814	$	3,405	$	3,587
Family Care	~~1,569~~997		~~1,599~~939		2,024		1,971
Professional	~~689~~465		~~823~~591		911		1,159
Adult Care	~~475~~492		~~463~~455		968		918
Feminine Care	~~443~~412		~~467~~413		855		880
All other	2729		2419		54		42
Consolidated	$	4,840	$	5,149
Total	$	4,163	$	4,231	$	8,217	$	8,557

~~Note 8. Supplemental Balance Sheet Data~~18

Note 9. Supplemental Balance Sheet Data

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

	March 31, 2025						December 31, 2024
	June 30, 2025						December 31, 2024
	LIFO		Non-LIFO		Total		LIFO		Non-LIFO		Total
Raw materials	$	~~128~~124	$	~~260~~220	$	~~388~~344	$	122	$	~~261~~201	$	~~383~~323
Work in process	~~110~~113		8339		~~193~~152		116		7432		~~190~~148
Finished goods	~~566~~559		~~652~~455		1,~~218~~014		510		~~631~~428		~~1,141~~938
Supplies and other	—		~~316~~255		~~316~~255		—		~~308~~243		~~308~~243
	804		1,311		2,115		748		1,274		2,022
	796		969		1,765		748		904		1,652
Excess of FIFO or weighted-average cost over LIFO cost	(~~206~~207)		—		(~~206~~207)		(200)		—		(200)
Total	$	~~598~~589	$	~~1,311~~969	$	1,~~909~~558	$	548	$	~~1,274~~904	$	1,~~822~~452

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
			June 30, 2025				December 31, 2024
Land	$	~~157~~	$	112	$	~~157~~	$	110
Buildings	~~2,948~~		2,392		~~2,901~~		2,314
Machinery and equipment	~~15,246~~		12,750		~~15,020~~		12,498
Construction in progress	~~816~~		824		~~854~~		780
	19,167				18,932
			16,078				15,702
Less accumulated depreciation	~~(11,660)~~		(9,761)		~~(11,419)~~		(9,418)
Total	$	~~7,507~~	$	6,317	$	~~7,513~~	$	6,284

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~~As of June 30, 2025 and December 31, 2024, the outstanding ~~amount~~amounts related to the suppliers participating in this program ~~was~~were $1.0 billion, as of ~~March 31,~~which ~~2025~~$213 and ~~December 31~~$185, ~~2024~~respectively, ~~and~~are ~~was~~reported as discontinued operations. Amounts are recorded within Trade accounts payable and Current liabilities of discontinued operations.

13Note 10. Legal Matters

We are party to certain legal proceedings relating to our former health care business, Avanos Medical, Inc. ("Avanos", previously Halyard Health, Inc.), as described in our Form 10-K for the year ended December 31, 2024, including a qui tam matter and certain subpoena and document requests from the federal government. The subpoena and document requests include subpoenas from the United States Department of Justice (“DOJ”) concerning allegations of potential criminal and civil violations of federal laws, including the Food, Drug, and Cosmetic Act, in connection with the manufacturing, marketing and sale of surgical gowns by our former health care business. During the second quarter of 2025, we entered into a settlement agreement to resolve the qui tam matter which provides for a payment by us in an amount that is not expected to materially affect our financial position, results of operations or cash flows. We continue to cooperate in the DOJ investigation and have progressed our efforts to reach a resolution of all related matters.

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~~Unaudited ~~interim~~Interim ~~condensed~~Condensed ~~consolidated~~Consolidated ~~financial~~Financial ~~statements~~Statements and related notes contained in this Quarterly Report on Form 10-Q. Our analysis compares results for the three and six months ended ~~March~~June 3130, 2025 to the same period in 2024. As discussed in the Notes to the Unaudited Interim Condensed Consolidated Financial Statements, the results and related assets and liabilities of the IFP Business are reported as discontinued operations. As a result, unless specifically stated, all discussions included below reflect continuing operations for all periods presented. 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~~Condensed ~~consolidated~~Consolidated ~~financial~~Financial ~~statements~~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~~Changes ~~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~~We onestimate ~~preliminary~~that ~~analysis of~~ the ~~potential~~incremental ~~effects~~costs of the new tariffs that are currently in effect in the U.S., as well as in other markets in which we operate, weto ~~estimate~~be ~~incremental costs of~~ approximately $~~300~~170 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. 20

14International Family Care and Professional ("IFP") Transaction

On June 5, 2025, we announced that the Company will form a joint venture with Suzano S.A. ("Suzano") and Suzano International Holding B.V., a wholly-owned subsidiary of Suzano ("Buyer"), comprised of substantially all the operations of the Company's former IFP segment (the "IFP Business"). To facilitate this transaction, we entered into an Equity and Asset Purchase Agreement (the "Purchase Agreement") with Buyer, pursuant to which we will, among other things, effectuate a reorganization through the transfer of certain assets, liabilities and equity interests of the IFP Business to Kimberly-Clark IFP NewCo B.V., an indirect wholly-owned subsidiary of the Company (the "Joint Venture"). At the time of closing, which is expected to take place in mid-2026 and will only take place following the satisfaction of consultation requirements and customary closing conditions, including obtaining required regulatory approvals, Buyer will acquire a 51% interest in the Joint Venture for a purchase price of approximately $1.7 billion, subject to certain closing adjustments set forth in the Purchase Agreement, and we will retain a 49% equity interest (the "IFP Transaction"). As a result, the results of operations and applicable assets and liabilities of the IFP Business are reported as discontinued operations in the Company's financial statements for all periods presented and the Company has ceased depreciating and amortizing the long-lived assets of the IFP Business. See Item 1, Notes 1 and 3 to the Unaudited Interim Condensed Consolidated Financial Statements for further details.

As a result of the IFP Transaction discussed above and the changes to our reportable segments effective in the fourth quarter of 2024 (refer to our Annual Report on Form 10-K for further details), the Company's continuing operations are now organized into two reportable segments defined by geographic region: North America ("NA") and International Personal Care ("IPC"). The results of the IFP Business, including certain costs that were previously allocated to the IPC segment that relate to assets or activities that are part of the IFP Transaction, are reported as discontinued operations and excluded from segment results for all periods presented. Additionally, certain operations and commercial activities of the former IFP segment retained by the Company are now reported in the NA and IPC segments. Further, Corporate and Other was updated for all periods presented to include the following:

•Operations of the former IFP segment that were divested prior to the IFP Transaction and therefore not reported as discontinued operations.

•Costs previously allocated to the former IFP segment that are not directly attributable to the operations included in the IFP Transaction and therefore are not reported as discontinued operations.

Segments are described in greater detail in Item 1, Note 8 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). 21

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 60% of that amount, primarily related to workforce reductions and other program costs. 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 June 30, 2025 and 2024, total 2024 Transformation Initiative charges were $122 pre-tax ($95 after-tax) and $190 pre-tax ($117 after-tax), respectively. For the six months ended June 30, 2025 and 2024, total 2024 Transformation Initiative charges were $199 pre-tax ($172 after-tax), and $235 pre-tax ($151 after-tax), respectively. Through June 30, 2025, cumulative pre-tax charges for the 2024 Transformation Initiative were $656 ($511 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
	Three Months Ended June 30								Six Months Ended June 30
	2025			2024			% Change		2025			2024			% Change
Net Sales	$	4,~~840~~163		$	54,~~149~~231		(61.06)	%	$	8,217		$	8,557		(4.0)	%
Gross Profit	1,~~733~~456			1,~~911~~594			(98.37)	%	2,965			3,280			(9.6)	%
Operating Profit	~~769~~592			~~853~~539			(9.8)	%	1,223			1,254			(2.5)	%
Provision for income taxes	(~~165~~116)			(~~184~~60)			~~(10~~93.3)	%	(247)			(208)			18.8	%
Net Income Attributable to Kimberly-Clark Corporation	567			647			(12.4)	%
Income from Continuing Operations	444			464			(4.3)	%	914			1,020			(10.4)	%
Diluted Earnings per Share	1.70			1.91			(11.0)	%
Income from Discontinued Operations, Net of Income Taxes	68			89			(23.6)	%	171			191			(10.5)	%
Adjusted Gross Profit(a)	1,786			1,911			(6.5)	%
Net Income Attributable to Kimberly-Clark Corporation	509			544			(6.4)	%	1,076			1,191			(9.7)	%
Adjusted Operating Profit(a)	844			898			(6.0)	%
Diluted Earnings per Share from Continuing Operations	1.33			1.35			(1.5)	%	2.72			2.96			(8.1)	%
Adjusted Earnings per Share(a)	1.93			2.01			(4.0)	%
Diluted Earnings per Share from Discontinued Operations	0.20			0.26			(23.1)	%	0.51			0.56			(8.9)	%
Adjusted Effective Tax Rate(a)	21.4		%	23.6		%	(2.2)	%
Adjusted Results - Continuing Operations
Adjusted Gross Profit(a)	1,538			1,639			(6.2)	%	3,100			3,325			(6.8)	%
Adjusted Operating Profit(a)	713			729			(2.2)	%	1,419			1,489			(4.7)	%
Adjusted Earnings per Share(a)	1.63			1.70			(4.1)	%	3.25			3.41			(4.7)	%
Adjusted Effective Tax Rate(a)	20.9		%	20.4		%	0.5	%	20.8		%	21.8		%	(1.0)	%

(a) Adjusted amounts are ~~Non~~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	(05.2)0	(0.1)	(1.52)	(24.04)	(21.40)	(61.06)	(13.6)9
Six Months Ended	2.3	—	(1.2)	(3.4)	(1.7)	(4.0)	1.2

(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 $4.82 billion for the three months ended ~~March~~June 3130, 2025 declined 61.06% primarily due to ~~unfavorable currency impacts,~~ divestitures and business exits and ~~lower~~unfavorable currency impacts, partially offset by organic sales. Organic sales ~~decreased~~increased 13.69% driven by ~~lower~~volume ~~pricing~~gains, aspartially aoffset ~~result~~by oflower ~~ongoing strategic investments in price-pack architecture and enhancing value propositions across our portfolio~~pricing, while ~~volume and~~ mix ~~were~~was flat compared to the prior year.

Net sales of $8.2 billion for the six months ended June 30, 2025 declined 4.0%, while organic sales increased 1.2%. Impacts related to divestitures and business exits, currency impacts and the components of organic sales are consistent with the drivers discussed above.

Gross and Operating Profits

Gross profit of $1.75 billion for the three months ended ~~March~~June 3130, 2025 decreased 98.37%, while gross margin of 35.80% decreased ~~130~~270 basis points. Gross margin in the current and prior year included approximately ~~110~~190 basis points and 100 basis points, respectively, for charges related to the 2024 Transformation Initiative, primarily for incremental depreciation expense, ~~and~~ workforce reductions and asset write-offs. Excluding these charges, adjusted gross margin decreased 20180 basis points to 36.9% primarily due to ~~higher manufacturing costs and~~ unfavorable pricing net of cost inflation, including recent tariff impacts, partially offset by gross productivity savings from integrated margin management of approximately $110.

~~Operating~~Gross profit of $~~769~~3.0 billion for the ~~three~~six months ended ~~March~~June 3130, 2025 decreased 9.86%, while gross margin of 36.1% ~~Results~~decreased 220 basis points. Gross margin in ~~2025~~the current and ~~2024~~prior year included ~~charges~~approximately of160 ~~$75~~basis points and ~~$45~~60 basis points, respectively, for charges related to the 2024 Transformation Initiative, ~~respectively~~primarily for incremental depreciation expense, workforce reductions and asset write-offs. Excluding these ~~items~~charges, adjusted ~~operating~~gross ~~profit~~margin ~~for~~decreased ~~the three~~120 ~~months~~basis ~~ended~~points ~~March 31,~~to ~~2025~~37.7% ~~and~~primarily ~~2024,~~due ~~was~~to ~~$844~~unfavorable ~~and~~pricing ~~$898~~net of cost inflation, ~~respectively~~partially offset by gross productivity savings from integrated margin management of approximately $200.

16Operating profit for the three and six months ended June 30, 2025 was $592 and $1.2 billion, respectively, compared to $539 and $1.3 billion in the prior year. Results included charges related to the 2024 Transformation Initiative of $121 and $196 for the three and six months ended June 30, 2025, respectively, and $190 and $235 for the three and six months ended June 30, 2024. Excluding these items, adjusted operating profit for the three and six months ended June 30, 2025 was $713 and $1.4 billion, respectively, representing a 2.2% and 4.7% decrease compared to the prior year.

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	(36.0)6	(87.50)	(310.15)	41.52	(20.24)	67.39	(62.02)
Six Months Ended	1.1	(7.0)	(7.7)	2.5	(1.2)	7.6	(4.7)

(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 for the three and six months ended June 30, 2025 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~~23

~~Net~~Income 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~~Continuing ~~resolution of certain tax matters.~~Operations

~~Diluted~~Income ~~earnings~~from ~~per~~Continuing ~~share~~Operations ~~of $1.70~~ for the three and six months ended ~~March~~June 3130, 2025 ~~decreased~~was ~~11.0%~~$444 ~~reflective~~and of$914, ~~the~~respectively, ~~decrease~~compared into ~~net~~$464 ~~income~~and ~~discussed above~~$1.0 ~~Adjusted~~billion ~~earnings~~in ~~per~~the ~~share~~prior ~~of $1~~year.93 ~~decreased~~Apart ~~4.0%~~from ~~primarily~~the ~~driven~~operating byprofit ~~lower~~drivers ~~adjusted~~discussed ~~operating profit~~above, ~~which~~the ~~more~~decrease ~~than~~was ~~offset~~primarily ~~the~~related ~~benefits~~to ~~from~~ a ~~lower~~higher ~~adjusted~~ effective tax rate and lower ~~dilutive~~income ~~shares~~from ~~outstanding~~equity companies.

17Net interest expense for the three and six months ended June 30, 2025 of $62 and $119, respectively, was in line with the prior year.

Our share of net income of equity companies for the three and six months ended June 30, 2025 was $47 and $91, respectively, compared to $63 and $124 for the prior year. The decrease was primarily driven by Kimberly-Clark de Mexico, S.A.B. de C.V., due to unfavorable foreign currency effects, higher inputs costs and lower volumes, partially offset by pricing, productivity savings and lower general and administrative expenses.

The effective tax rate for the three and six months ended June 30, 2025 was 22.6% and 23.1%, respectively, compared to 13.0% and 18.8% in the prior year. The adjusted effective tax rate for the three and six months ended June 30, 2025 was 20.9% and 20.8%, respectively, compared to 20.4% and 21.8% in the prior year. The first half of 2025 benefited from the resolution of certain tax matters.

Diluted earnings per share for the three and six months ended June 30, 2025 were $1.33 and $2.72, respectively, compared to $1.35 and $2.96 for the prior year. Adjusted diluted earnings per share for the three and six months ended June 30, 2025 were $1.63 and $3.25, respectively, representing a 4.1% and 4.7% decrease compared to the prior year. The decrease was primarily driven by lower adjusted operating profit and lower income from equity companies, which more than offset the benefits from lower dilutive shares outstanding.

Income from Discontinued Operations, Net of Income Taxes

Income from discontinued operations, net of income taxes for the three and six months ended June 30, 2025 was $68 and $171, respectively, compared to $89 and $191 in the prior year. The decrease was primarily driven by pre-tax separation costs of $33 million.

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	(05.1)2	(0.17)	(0.64)	(25.97)	(0.42)	(31.9)	(04.6)3
IPC	(04.6)8	01.32	(2.57)	—(0.3)	(62.06)	(80.9)4	(23.8)3
IFP	0.5	(0.1)	(2.6)	(2.9)	(2.6)	(7.7)	(2.3)
Six Months Ended
NA	2.6	(0.3)	(0.5)	(4.3)	(0.3)	(2.9)	1.8
IPC	2.0	0.7	(2.6)	(0.3)	(4.3)	(4.5)	0.1

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)3	(21.58)	(24.39)	(1.98)	(0.51)	71.73	1(4.30)
IPC	(215.8)2	(1518.4)	(920.58)	~~12.~~7.6	(51.01)	04.26	(1912.89)
IFP	(0.1)	(20.4)	9.2	10.3	(3.8)	1.2	(3.6)
Six Months Ended
NA	0.2	(2.1)	(3.6)	—	(0.3)	4.5	(1.3)
IPC	5.4	(16.5)	(14.4)	9.7	(3.1)	2.2	(16.7)

(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
	Three Months Ended June 30						Six Months Ended June 30
	2025		2024		% change		2025		2024		% change
Net Sales	$	2,~~666~~730	$	2,~~774~~783	(31.9)	%	$	5,398	$	5,559	(2.9)	%
Operating Profit	~~676~~655		~~667~~682		1(4.30)	%	1,333		1,351		(1.3)	%

Net sales of $2.7 billion for the three months ended June 30, 2025 decreased 31.9%, primarily due to the sale of the PPE business and the exit of the private label diaper business in the US. Organic sales ~~decreased~~increased 04.63% primarily due to volume gains of 5.2%, partially offset by lower pricing and mix. Net sales of $5.4 billion for the six months ended June 30, ~~reflecting~~2025 ~~strategic~~decreased ~~investments~~2.9%, towhile ~~optimize~~organic ~~our~~sales ~~product~~increased ~~offerings~~1.8%. ~~and~~Impacts ~~value~~of ~~propositions~~divestitures ~~across~~and ~~consumer~~business exits and ~~professional~~the ~~channels.~~components of organic growth are consistent with the drivers discussed above.

Operating profit offor ~~$676~~the ~~increased~~three ~~1.3%~~and ~~primarily~~six ~~due~~months toended ~~lower marketing~~June 30, ~~research~~2025 of $655 and ~~general~~$1.3 ~~expenses~~billion ~~and~~decreased ~~gross~~4.0% ~~productivity~~and ~~savings~~1.3%, ~~partially~~respectively, ~~offset~~primarily bydue ~~the~~to impacts of divestitures and business exits, unfavorable pricing net of cost inflation, including recent tariff impacts, partially offset by gross productivity savings and lower ~~volumes~~marketing, research and general expenses.

International Personal Care

	Three Months Ended March 31
	Three Months Ended June 30						Six Months Ended June 30
	2025		2024		% change		2025		2024		% Change
Net Sales	$	1,~~383~~433	$	1,~~518~~427	(80.9)4	%	$	2,819	$	2,953	(4.5)	%
Operating Profit	~~194~~182		~~242~~209		(1912.89)	%	383		460		(16.7)	%

Net sales of $1.4 billion ~~decreased~~for 8the three months ended June 30, 2025 increased 0.94% primarily due to ~~unfavorable~~an ~~currency~~increase ~~impacts~~in organic sales of 63.03%, partially ~~and~~offset ~~lower~~by ~~organic~~unfavorable ~~sales~~currency impacts. Organic sales ~~decreased~~benefited ~~2.8%~~from ~~mainly~~volume ~~driven~~and bymix ~~lower~~gains ~~pricing~~of ~~reflecting~~4.8% ~~planned~~and ~~investments~~1.2%, torespectively, ~~improve~~partially ~~our~~offset ~~price-value~~by ~~tiers~~lower ~~across~~pricing. ~~the~~Net ~~portfolio~~sales of $2.8 ~~Volume~~billion ~~and~~for ~~mix~~the ~~were~~six ~~slightly~~months ~~down~~ended ~~compared~~June 30, to2025 ~~the~~decreased ~~prior~~4.5% ~~year~~primarily asdriven ~~volume~~by ~~growth~~unfavorable incurrency ~~China~~impacts, ~~was~~while ~~offset~~organic bysales ~~declines~~were in ~~Latin~~line ~~America~~with the prior year.

Operating profit for the three and six months ended June 30, 2025 of $~~194~~182 and $383 decreased 1912.89% and 16.7%, respectively, primarily due to unfavorable pricing net of cost inflation and currency impacts, partially offset by gross productivity savings and volume gains.

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

As detailed in Item 1, Note 1 to the Unaudited Interim Condensed Consolidated Financial Statements, the Condensed Consolidated Statements of Cash Flows are presented on a consolidated basis for both continuing operations and discontinued operations. As a result, unless specifically stated, the following discussion reflects Kimberly Clark's consolidated results for all periods presented.

Cash Provided by Operations

Cash provided by operations was $~~327~~1.1 billion during the ~~three~~six months ended ~~March~~June 3130, 2025 compared to $~~438~~1.5 billion 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~~312 during the ~~three~~six months ended ~~March~~June 3130, 2025 compared to $~~181~~376 in the prior year, primarily due to incremental cash flows from net maturities of time deposits. During the ~~three~~six months ended ~~March~~June 3130, 2025, our capital spending was $~~204~~401 compared to $~~194~~352 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~~1.2 billion during the ~~three~~six months ended ~~March~~June 3130, 2025 compared to $~~485~~998 in the prior year. This increase was primarily due to debt repayments during the current year. During the ~~three~~six months ended ~~March~~June 3130, 2025, we repurchased ~~458~~ 915 thousand shares of our common stock pursuant to our publicly announced share repurchase programs at a total cost of $61120 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.25

AsOur ofshort-term ~~March 31~~debt, ~~2025~~which consists of U.S. commercial paper with original maturities up to 90 days and/or ~~December 31~~other short-term debt issued by non-U.S. subsidiaries, ~~2024~~was $59 as of June 30, ~~total~~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 six months ended June 30, 2025 was $7127.2 ~~billion~~These ~~and~~short-term ~~$7.4~~borrowings ~~billion,~~provide ~~respectively~~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.

WeAs ~~maintain~~of ~~a $2.0 billion revolving credit facility which expires in~~ June 30, ~~2028~~2025 and aDecember 31, ~~$750~~2024, ~~revolving~~total ~~credit~~debt ~~facility~~from ~~which~~continuing ~~expires~~operations inwas ~~May 2025~~$7.2 ~~These~~billion ~~facilities,~~and ~~currently~~$7.4 ~~unused~~billion, ~~support our commercial paper program and would provide liquidity in the event our access to the commercial paper markets is unavailable for any reason~~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 2026. 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.

On July 4, 2025, the One Big Beautiful Bill Act (“OBBBA”) was enacted in the U.S. The OBBBA includes significant provisions, such as the permanent extension of certain expiring provisions of the Tax Cuts and Jobs Act, modifications to the international tax framework and the restoration of favorable tax treatment for certain business provisions. The legislation has multiple effective dates, with certain provisions effective in 2025 and others implemented through 2027. We are expecting favorable cash tax impacts in the near and medium term as a result of the OBBBA, however, we are still assessing its impact on our consolidated financial statements.

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.

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, our plans and expectations regarding the pending IFP Transaction, 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 risks and uncertainties around the ~~risk~~pending IFP Transaction (including risks related to delays or failure to complete the proposed transaction, the incurrence of significant transaction and separation costs, adverse market reactions, regulatory or legal challenges, and operational disruptions), risks 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.

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. All discussions regarding non-GAAP financial measures reflect results from our continuing operations for all periods presented.

•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 from Continuing Operations 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.

20These 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.

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~~Unaudited ~~interim~~Interim ~~condensed~~Condensed ~~consolidated~~Consolidated ~~financial~~Financial ~~statements~~Statements for details.

~~The~~•IFP ~~following~~Repatriated ~~table~~Earnings ~~provides~~– In connection with the IFP Transaction, we recognized a ~~reconciliation~~deferred tax liability for certain permanently reinvested earnings from the IFP Business that are expected to be repatriated prior to the close of ~~Organic~~the ~~Sales~~transaction. ~~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)

The following tables provide a reconciliation of Organic Sales Growth from continuing operations:


	Three Months Ended June 30, 2025
	Percent change vs. the prior year period
	NA	IPC	Total
Net Sales Growth	(1.9)	0.4	(1.6)
Currency Translation	0.2	2.6	1.0
Divestitures and Business Exits	5.7	0.3	4.4
Organic Sales Growth(a)	4.3	3.3	3.9


	Six Months Ended June 30, 2025
	Percent change vs. the prior year period
	NA	IPC	Total
Net Sales Growth	(2.9)	(4.5)	(4.0)
Currency Translation	0.3	4.3	1.7
Divestitures and Business Exits	4.3	0.3	3.4
Organic Sales Growth(a)	1.8	0.1	1.2

(a) Table may not foot due to rounding.

The following table provides a reconciliation of Adjusted Gross Profit from continuing operations:

	Three Months Ended March 31
	Three Months Ended June 30				Six Months Ended June 30
	2025		2024		2025		2024
Gross Profit	$	1,~~733~~456	$	1,~~911~~594	$	2,965	$	3,280
2024 Transformation Initiative	5382		—45		135		45
Adjusted Gross Profit	$	1,~~786~~538	$	1,~~911~~639	$	3,100	$	3,325

The following table provides a reconciliation of Adjusted Operating Profit from continuing operations:

	Three Months Ended March 31
	Three Months Ended June 30				Six Months Ended June 30
	2025		2024		2025		2024
Operating Profit	$	~~769~~592	$	~~853~~539	$	1,223	$	1,254
2024 Transformation Initiative	75121		45190		196		235
Adjusted Operating Profit	$	~~844~~713	$	~~898~~729	$	1,419	$	1,489

21The following table provides a reconciliation of Adjusted Earnings per Share from continuing operations:

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


	Three Months Ended June 30				Six Months Ended June 30
	2025		2024		2025		2024
Diluted Earnings per Share	$	1.33	$	1.35	$	2.72	$	2.96
2024 Transformation Initiative	0.27		0.35		0.50		0.45
IFP Repatriated Earnings	0.03		—		0.03		—





Adjusted Earnings per Share(a)	$	1.63	$	1.70	$	3.25	$	3.41

	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:~~28

	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		%

The following tables provide a reconciliation of the continuing operations Adjusted Effective Tax Rate:


	Three Months Ended June 30
	2025					2024
	Income From Continuing Operations Before Income Taxes and Equity Interests		Provision for Income Taxes			Income From Continuing Operations Before Income Taxes and Equity Interests		Provision for Income Taxes
As Reported	$	513	$	(116)		$	461	$	(60)
2024 Transformation Initiative	122		(27)			190		(73)
IFP Repatriated Earnings	—		10			—		—





As Adjusted	$	635	$	(133)		$	651	$	(133)

Effective Tax Rate
As Reported			22.6		%			13.0		%
As Adjusted			20.9		%			20.4		%


	Six Months Ended June 30
	2025					2024
	Income From Continuing Operations Before Income Taxes and Equity Interests		Provision for Income Taxes			Income From Continuing Operations Before Income Taxes and Equity Interests		Provision for Income Taxes
As Reported	$	1,070	$	(247)		$	1,104	$	(208)
2024 Transformation Initiative	199		(27)			235		(84)
IFP Repatriated Earnings	—		10			—		—





As Adjusted	$	1,269	$	(264)		$	1,339	$	(292)

Effective Tax Rate
As Reported			23.1		%			18.8		%
As Adjusted			20.8		%			21.8		%

Item 4. Controls and Procedures

As of ~~March~~June 3130, 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~~June 3130, 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.

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PART II OTHER INFORMATION

Item 1. Legal Proceedings

See Part I, Item 1, Note 10 to the Unaudited Interim Condensed Consolidated Financial Statements, which is incorporated in this Item 1 by reference.

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~~June 3130, 2025 were made through a broker in the open market.

The following table contains information for shares repurchased during the three months ended ~~March~~June 3130, 2025. None of the shares in this table were repurchased directly from any of our officers or directors.

Period	Total Numberof SharesPurchased(a)	AveragePrice PaidPer Share		Total Number ofShares Purchasedas Part of PubliclyAnnounced Plansor Programs	Maximum Numberof Shares That MayYet Be PurchasedUnder the Plans orPrograms(a)
January 1 to January 31	156,276	$	127.95	8,286,009	31,713,991
April 1 to April 30	135,211	$	138.42	8,722,567	31,277,433
February 1 to February 28	146,499	134.86		8,432,508	31,567,492
May 1 to May 31	—	—		8,722,567	31,277,433
March 1 to March 31	154,848	141.01		8,587,356	31,412,644
June 1 to June 30	322,680	130.14		9,045,247	30,954,753
Total	457,~~623~~891

(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~~June 3130, 2025, no such plans or other arrangements were adopted or terminated.

2330

Item 6. Exhibits

(a)Exhibits

Exhibit No. (10)q. Form of Award Agreements under 2021 Equity Participation Plan for Performance Restricted Stock Units, filed herewith.

Exhibit No. (10)r . Form of Award Agreemen ts under 2021 Equity Participation P lan for Off-Cycle Time-V est ed Restricted Stock Unit s, filed herewit h.

Exhibit No. (10 )t . Form of Award Agreements under 2021 Equity Par t icipation Plan for Annual Time-Vested Restricted Stock Unit s, filed herewith.

Exhibit No. (10)u. Equity and Asset Purchase Agreement, dated as of June 4, 2025, by and among Kimberly-Clark Corporation, as the Seller, Kimberly-Clark IFP Newco B.V., as the Company, and Suzano International Holding B.V., as the Buyer, filed herewith.

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

2431

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

~~April~~August 221, 2025

2532

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