Kimberly-Clark reports strong organic growth in Q2 2025

Kimberly-Clark reported its second quarter 2025 results, highlighting continued momentum in its transformation strategy and solid organic growth despite macroeconomic headwinds. With net sales of $4.2 billion, the company delivered 3.9% organic growth in the quarter, driven by a 5.0% volume increase — the company’s highest in five years.

“Our second quarter results are indicative of the exceptional progress we are making executing our Powering Care strategy” said Mike Hsu, Chairman and CEO of Kimberly-Clark. “This was a very active quarter and one of the strongest in our recent history. We delivered strong organic sales growth, fueled by the highest volume growth we’ve achieved in five years. Our durable brands, differentiated value propositions and innovation investments enabled us to enhance and maintain leading market share positions across categories and price tiers”.

STRONG PERFORMANCE IN NORTH AMERICA

In North America, net sales totaled $2.7 billion, down 1.9%, mainly due to the divestiture of the PPE business and the exit from the private label diaper segment in the U.S. However, organic sales increased by 4.3%, supported by a robust 5.2% volume increase.

Personal care categories gained 60 basis points in weighted share during the quarter, reflecting the success of recent product innovations and commercial activations. Operating profit reached $655 million, impacted by the business exits but supported by strong volume growth and productivity gains.

GROWTH IN INTERNATIONAL PERSONAL CARE

The International Personal Care (IPC) segment reported net sales of $1.4 billion, with 3.3% organic growth. This was driven by a 4.8% increase in volume and a favorable product mix, partially offset by unfavorable foreign exchange impacts. Operating profit was $182 million, down 12.9%, reflecting strategic investments in pricing and value realignment across the portfolio.

The company continues to prioritize enhanced value propositions in international markets to drive long-term competitive strength.

TRANSFORMATION-RELATED IMPACTS AND FINANCIAL OVERVIEW

The quarter also reflected the company’s 2024 Transformation Initiative. Adjusted gross margin was 36.9%, down 180 basis points year-over-year, impacted by pricing actions and additional tariffs. Nonetheless, adjusted operating profit totaled $713 million, a slight 2.2% decline.

For the first half of 2025, Kimberly-Clark reported net sales of $8.2 billion, down 4.0% due to divestitures and currency impact. Organic sales were up 1.2%, and adjusted operating profit was $1.4 billion, compared to $1.5 billion in the first half of 2024.

2025 OUTLOOK

Following the reclassification of its IFP (International Family Care and Professional) business as discontinued operations, the company revised its full-year outlook to reflect the remaining North America and IPC segments. Kimberly-Clark expects organic sales to grow above the category average, supported by innovation and brand strength.

The company anticipates low-to-mid single-digit growth in adjusted operating profit on a constant-currency basis, despite a 380 basis point impact from the PPE divestiture and U.S. diaper business exit.

Kimberly-Clark also projects approximately $2 billion in adjusted free cash flow for 2025.

“We are well-positioned to deliver a strong second year of our transformation,” said Hsu. “Our strategy comes to life through our people —I’m proud of how our team continues to perform as we transform. Despite a dynamic operating environment”.