Kimberly-Clark Announces Third Quarter Results, Reaffirms 2026 Standalone
Kimberly-Clark Announces Third Quarter Results, Reaffirms 2026 Standalone Outlook
opportunity and drive the next phase of durable growth DALLAS, November 5, 2026 - Kimberly-Clark Corporation (Nasdaq: KMB) today reported third quarter 2026 results reflecting continued innovation-driven momentum and industry-leading productivity, despite several significant, discrete unfavorable impacts.
“The completion of our Kenvue transaction earlier this week marks a defining moment in the 154 year history of Kimberly-Clark. We embark on an exciting next chapter focused on delivering better care, in more hands, and enabling smarter health.” said Kimberly-Clark Chairman and CEO Mike Hsu. “Our third quarter results reflect a dynamic operating environment and several discrete impacts. Our team continues to execute with agility, and the underlying momentum of our business remains strong. We’re excited to join forces with our Kenvue colleagues and apply our playbook and capabilities across the combined company. We are confident that our proven growth engine, and our continued industry-leading productivity gains, will enable us to build on the momentum we have achieved through Powering Care.”
Hsu continued, “I want to thank all of our Kimberly-Clark employees for their contributions to our transformation, and extend a warm welcome to our Kenvue colleagues. Our teams are energized and focused on realizing the unique, generational value creation opportunity in front of us. As one company, we are well positioned to deliver extraordinary care and lead the future of consumer health.”
• Unless otherwise noted, reported results in this release are based on continuing operations and exclude the International Family Care and Professional ("IFP") business, which is reported as discontinued operations.
• Delivered net sales of $4.1 billion, down 0.4 percent, while organic sales declined 1.3 percent.
• Gross margin was 34.9 percent; adjusted gross margin was 35.5 percent, down 130 basis points versus the prior year.
• Operating profit for the quarter was $516 million, while adjusted operating profit was $677 million, down 0.9 percent versus the prior year.
• Diluted earnings per share ("EPS") from continuing operations were $1.19; adjusted EPS from continuing operations were $1.70, up 17.2 percent versus the prior year.
• Diluted EPS attributable to Kimberly-Clark were $5.37; adjusted EPS attributable to Kimberly-Clark were $1.70, down 6.6 percent versus the prior year.
Net sales of $4.1 billion were relatively flat compared to the prior year, as favorable impacts from sales recognized under supply agreements with the Arbex Joint Venture and favorable currency impacts were largely offset by a -2- decline in organic sales. Organic sales declined 1.3 percent, including an approximately 270 basis point headwind from the China social media disruption, as well as additional headwinds from retailer year-over-year inventory movements in North America.
Gross margin was 34.9 percent compared to 36.0 percent in the prior year, inclusive of $29 million, or approximately 70 basis points, and $34 million, or approximately 80 basis points, respectively, of charges related to the 2024 Transformation Initiative. Excluding these charges, adjusted gross margin was 35.5 percent, a decrease of 130 basis points versus the prior year, driven by unfavorable pricing net of cost inflation and supply chain related investments, partially offset by strong productivity savings.
Third quarter operating profit was $516 million compared to $621 million in the prior year. Current quarter results included charges of $55 million related to the 2024 Transformation Initiative and $106 million related to the Kenvue Acquisition. Prior year results included $62 million of charges related to the 2024 Transformation Initiative. Excluding these items, adjusted operating profit was $677 million compared to $683 million, a decrease of 0.9 percent, driven by unfavorable pricing net of cost inflation and headwinds from the China social media disruption of approximately 530 basis points, partially offset by lower marketing, research and general expenses.
Net interest expense was $32 million versus $59 million in the prior year primarily driven by lower interest expense.
The third quarter effective tax rate was 20.2 percent, compared to 45.4 percent in the prior year. On an adjusted basis, the effective rate was 19.5 percent compared to 26.5 percent in the p rior year. The year-on-year impact was driven primarily by a combination of transitory impacts in the prior year from the One Big Beautiful Bill Act ("OBBBA") and benefits in the current year from certain tax initiatives.
Net income of equity companies was $29 million compared to $46 million in the prior year. The decrease was primarily driven by our share of the Arbex Joint Venture's net loss of $20 million, which was inclusive of $51 million pre-tax ($38 million after-tax) of acquisition accounting and restructuring charges.
Income from discontinued operations, net of income taxes was $1.4 billion compared to $110 million in the prior year. Current year results included a pre- tax gain of approximately $1.4 billion recognized upon completion of the IFP Transaction and $52 million of pre-tax separation costs. Prior year results included $17 million of pre-tax separation costs. Excluding these items, adjusted income (loss) from discontinued operations was $(1) million compared to $123 million in the prior year, reflecting the completion of the IFP Transaction on July 1, 2026.
Diluted EPS from continuing operations were $1.19 compared to $1.01 in the prior year. These reported amounts are inclusive of net charges of $0.51 and $0.44, respectively, for certain items discussed above that management does not believe reflect our underlying and ongoing operations. Excluding these items, adjusted EPS from continuing operations were $1.70, up 17.2 percent, primarily driven by lower net interest expense and a lower adjusted effective tax rate.
Diluted EPS attributable to Kimberly-Clark were $5.37 compared to $1.34 in the prior year. These reported amounts are inclusive of a net benefit of $3.67 and net charges of $0.48, respectively, for certain items discussed above that management does not believe reflect our underlying and ongoing operations. Excluding these items, adjusted EPS attributable to Kimberly-Clark were $1.70, down 6.6 percent, primarily driven by lower adjusted operating profit and adjusted income (loss) from discontinued operations partially offset by lower net interest expense and a lower adjusted effective tax rate. -3-
For the first nine months, net sales of $12.5 billion increased 1.0 percent, as organic sales growth of 0.3 percent and favorable currency impacts of 1.1 percent were partially offset by a 0.5 percent decline from the exit of the company's private label diaper business in the US partially offset by sales recognized under supply agreements with the Arbex Joint Venture. Organic sales growth was driv en by volume-plus-mix growth of 1.0 percent, partially offset by lower pricing of 0.7 percent.
For the first nine months, gross margin was 36.7 percent compared to 36.0 percent in the prior year, inclusive of $93 million, or approximately 70 basis points, and $169 million, or approximately 140 basis points, respectively, of charges related to the 2024 Transformation Initiative. Excluding these charges, adjusted gross margin of 37.4 percent was flat versus the prior year, as one- time tariff refunds and strong productivity savings were largely offset by unfavorable pricing net of cost inflation and supply chain related investments.
Year-to-date operating profit was $1.9 billion compared to $1.8 billion in the prior year, inclusive of net charges of $264 million and $258 million, respectively, for certain items that management does not believe reflect our underlying and ongoing operations. Excluding these items, adjusted operating profit was $2.2 billion compared to $2.1 billion, an increase of 3.0 percent primarily driven by strong productivity savings and favorable currency impacts, partially offset by headwinds from the China social media disruption of approximately 210 basis points.
Year-to-date effective tax rate was 27.5 percent, compared to 30.6 percent in the prior year. On an adj usted basis, the effective r ate was 22.3 percent compared to 22.6 percent in the prior year, with the decrease consistent with the third quarter discussion above.
Net income of equity companies of $137 million was flat versus the prior y ear, as our share of the Arbex Joint Venture's net loss of $20 million, inclusive of acquisition accounting and restructuring charges discussed in the third quarter results above, was offset by higher earnings from Kimberly-Clark de Mexico, S.A.B. de C.V., primarily reflecting favorable currency impacts.
Income from discontinued operations, net of income taxes was $1.4 billion compared to $281 million in the prior year. Current year results included a pre- tax gain of approximately $1.4 billion recognized upon completion of the IFP Transaction, $156 million of pre-tax separation costs and net tax charges of $104 million related to certain reorganization activities associated with the IFP Transaction. Prior year results included $50 million of pre-tax separation costs. Excluding these items, adjusted income from discontinued operations was $231 million compared to $325 million in the prior year, a decrease of 28.9 percent, primarily driven by the inclusion of a full nine months of results for the IFP Business in the prior year.
For the first nine months, diluted EPS from continuing operations were $4.10 compared to $3.73 in the prior year. These reported amounts are inclusive of net charges of $1.00 and $0.97, respectively, for certain items discussed above that management does not believe reflect our underlying and ongoing operations. Excluding these items, adjusted EPS from continuing operations were $5.10, up 8.5 percent, driven by higher adjusted operating profit and lower net interest expense.
Diluted EPS attributa ble to Kimberly-Clark were $8.41 compared to $4.57 in the prior year. Thes e reported amounts are inclusive of a net benefit of $2.62 and net charges of $1.10, respectively, for certain items discussed above that management does not believe reflect our underlying and ongoing operations. Excluding these items, adjusted EPS -4- attributable to Kimberly-Cl ark were $5.79, up 2.1 percent, driven by higher adjusted operating profit and lower net interest expense, partially offset by lower adjusted income from discontinued operations.
(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 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. Also includes the impact of sales recognized under supply agreements with the Arbex Joint Venture formed as part of the IFP Transaction.
Net sales of $2.7 billion increased 0.9 percent in the quarter, driven by transactions with the Arbex Joint Venture under supply agreements and organic sales growth of 0.4 percent. Organic sales benefitted from strong volume-led growth of 2.0 percent, despite an unfavorable impact of approximately 130 basis points from retailer year-over-year inventory movements, partially offset by lower pricing from increased promotional activity. Year-to-date organic sales increased 0.5 percent as volume growth of 1.2 percent, led by gains in Family Care and Professional categories, was partially offset by lower pricing from increased promotional activity.
Operating profit of $657 million increased 2.7 percent in the quarter driven by strong productivity savings and lower advertising spend, partially offset by unfavorable pricing net of cost inflation and supply chain related investments. Year-to-date operating profit was up 1.6 percent, as strong productivity savings and one-time tariff refunds more than offset unfavorable pricing net of cost inflation and a 200 basis point headwind from business exits. -5-
Net sales of $1.4 billion decreased 2.8 percent in the quarter, as transactions with the Arbex Joint Venture under supply agreements and favorable currency impacts were more than offset by a decline in organic sales. Organic sales decreased 4.6 percent, as growth in South Korea, Indonesia and Enterprise Markets was more than offset by an approximately 770 basis point headwind from the China social media disruption. Year-to-date organic sales growth was relatively flat compared to the prior year, as volume-plus-mix gains of 0.7 percent, driven by growth across our International Personal Care markets, despite an approximately 300 basis point headwind from the China social media disruption, were largely offset by lower pricing.
Operating profit of $144 million decreased 32.7 percent in the quarter driven by higher input costs and an approximately 16.8 percent headwind from the China social media disruption, partially offset by strong productivity savings. Year- to-date operating profit decreased 3.7 percent, as unfavorable pricing net of cost inflation and an approximately 7.4 percent headwind from the China social media disruption were partially offset by strong productivity savings and favorable currency impacts.
For the first nine months of 2026 cash provided by operations (inclusive of discontinued operations) was $2.4 billion compared to $1.8 billion last year. Year-to-date capital spending was $1.0 billion compared to $741 million last year and the company returned $1.3 billion to shareholders through dividends. Total debt from continuing operations was $6.5 billion as of September 30, 2026, down from $7.2 billion as of December 31, 2025.
The company continues to expect 2026 Organic Sales Growth to be approximately 100 basis points below its weighted average category growth in the categories and countries it competes, which is approximately 1.7 percent on a trailing twelve-month basis. This primarily reflects realized and potential unfavorable impacts amounting to approximately 100 basis points at a total company level from the previously disclosed China social media disruptions. Adjusted Operating Profit is expected to grow mid-single digits on a constant-currency basis. Adjusted Earnings Per Share from Continuing Operations are expected to grow high single digits on a constant-currency basis. Adjusted Earnings Per Share Attributable to Kimberly-Clark are expected to see a low single digit decline on a constant-currency basis.
This outlook reflects assumptions subject to change given the macro environment.
Supplemental materials will be available beginning at approximately 6:30 a.m. Eastern Standard Time on the company's Investor Relations website at investor.kimberly-clark.com. Kimberly-Clark will host a live Q&A session with investors and analysts on November 5, 2026, at 8:00 a.m. Eastern Standard Time, which can be accessed through the same website. A replay of the webcast will be available following the event.
Kimberly-Clark (NASDAQ: KMB) is the preeminent global health and wellness leader, built to deliver extraordinary care. Our portfolio of iconic personal care and consumer health brands, including Huggies, Listerine, Cottonelle, Neutrogena, Depend, Tylenol, Kleenex, Johnson’s, Kotex and Scott, serves consumers across every stage of life in -6- more than 175 countries. We combine consumer-led innovation, leading brand- building and commercial capabilities, and a fast and agile operating model to raise the standard of care for billions of people around the world. We are committed to using sustainable practices designed to support a healthy planet, build strong communities, and enable our business to thrive for decades to come. The KMB stock is a large cap growth and value stock and core S&P 500 equity held by more than 400 Exchange Traded Funds. Kimberly-Clark is considered a Dividend Aristocrat, having paid a dividend for 92 consecutive years and increasing its dividend in each of the past 54 consecutive years. To keep up with the latest news and learn more about the company's more than 150-year history, visit kimberly-clark.com.
Copies of Kimberly-Clark's Annual Report to Stockholders and its proxy statements and other SEC filings, including Annual Reports on Form 10-K, Quarterly Reports on Form 10-Q and Current Reports on Form 8-K, are made available free of charge on the company's website on the same day they are filed with the SEC. To view these filings, visit investor.kimberly-clark.com.
Certain matters contained in this press release concerning our plans and expectations regarding the integration of Kenvue, which we acquired on November 2, 2026, including anticipated synergies, cost savings, integration costs and the timing thereof, the Kenvue Integration Program, including estimates of charges, that we expect to incur in connection with the Kenvue Integration Program, and the timing thereof, the International Family Care and Professional (“IFP”) joint venture (the “Arbex Joint Venture”) transaction with Suzano (“IFP Transaction”), the business outlook, including raw material, energy and other input costs, the anticipated charges and savings from the 2024 Transformation Initiative, cash flow and uses of cash, our indebtedness, including indebtedness incurred or assumed in connection with the Kenvue Acquisition, and anticipated deleveraging, 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, including the outcome of legal proceedings, 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 successful integration of Kenvue and the achievement of future cost savings and projected volume increases. In addition, many factors outside our control could affect the realization of these estimates. These include risks and uncertainties related to the Kenvue Acquisition and the integration of Kenvue’s business, including the risk that the anticipated benefits, synergies and cost savings of the Kenvue Acquisition may not be realized when expected or at all, the risk that integration costs may be higher than expected, the risk that we are not able to realize the anticipated benefits of the Kenvue Integration Program, risks related to the preliminary nature of the estimate of the charges and capital expenditures to be incurred in connection with the Kenvue Integration Program, which is subject to change, risks related to any delays in the timing for implementing the Kenvue Integration Program or potential disruptions to our business or operations as we execute on the Kenvue Integration Program, -7- the risk of loss of key employees, customers, suppliers or other business counterparties, the risk of disruption to our or Kenvue’s operations, the risk of litigation related to the Kenvue Acquisition, our substantially increased indebtedness following the Kenvue Acquisition and our ability to reduce our indebtedness, maintain our credit ratings and refinance indebtedness on favorable terms, legal proceedings and governmental investigations, indemnification obligations to J&J, and the sufficiency of, and J&J’s ability to satisfy, its indemnification obligations, risks related to the IFP Transaction, including risks related to the incurrence of significant transaction and separation costs, adverse market reactions, regulatory or legal challenges, and operational disruptions, our ability 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 other acquisition and disposition activity, impairment of goodwill and intangible assets, including those recorded in connection with the Kenvue Acquisition, 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 Iran), 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, and our ability to maintain key customer relationships.
The factors described under Item 1A, “Risk Factors” in our Annual Report on Form 10-K for the year ended December 31, 2025, as updated by Part II, Item 1A, “Risk Factors” in our Quarterly Report on Form 10-Q for the quarter ended September 30, 2026, 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. -8-
Three Months Ended September 30 2026 2025 Change ────────────────────────────────────────────────────────────────────────────── Net Sales $ 4,134 $ 4,150 (0.4 %) Cost of 2,693 2,657 1.4 % products sold Gross Profit 1,441 1,493 (3.5 %) Marketing, research and 912 855 6.7 % general expenses Other (income) and expense, 13 17 (23.5 %) net Operating 516 621 (16.9 %) Profit Nonoperating -13 -16 (18.8 %) expense Interest income 16 6 166.7 % Interest -48 -65 (26.2 %) expense Income from Continuing Operations Before 471 546 (13.7 %) Income Taxes and Equity Interests Provision for -95 -248 (61.7 %) income taxes Income from Continuing Operations 376 298 26.2 % Before Equity Interests Share of net income of 29 46 (37.0 %) equity companies Income from Continuing 405 344 17.7 % Operations Income from Discontinued 1,395 110 N.M. Operations, Net of Income Taxes Net Income 1,800 454 296.5 % Net income attributable to -7 -8 (12.5 %) noncontrolling interests Net Income Attributable to $ 1,793 $ 446 302.0 % Kimberly-Clark Corporation Per Share Basis Net Income Attributable to Kimberly-Clark Corporation Basic: Continuing $ 1.20 $ 1.01 18.8 % operations Discontinued 4.19 0.33 N.M. operations Basic Earnings $ 5.39 $ 1.34 302.2 % per Share Diluted: Continuing $ 1.19 $ 1.01 17.8 % operations Discontinued 4.18 0.33 N.M. operations Diluted Earnings per $ 5.37 $ 1.34 300.7 % Share Cash Dividends $ 1.28 $ 1.26 1.6 % Declared Common Shares September 30 Outstanding 2026 2025 Outstanding 332.6 331.9 shares as of Average diluted shares for 333.7 333.1 three months ended
Nine Months Ended September 30 2026 2025 Change ────────────────────────────────────────────────────────────────────────────── Net Sales $ 12,486 $ 12,367 1.0 % Cost of 7,908 7,909 — % products sold Gross Profit 4,578 4,458 2.7 % Marketing, research and 2,836 2,573 10.2 % general expenses Other (income) and expense, -160 41 N.M. net Operating 1,902 1,844 3.1 % Profit Nonoperating -40 -50 (20.0 %) expense Interest 25 18 38.9 % income Interest -159 -196 (18.9 %) expense Income from Continuing Operations Before 1,728 1,616 6.9 % Income Taxes and Equity Interests Provision for -476 -495 (3.8 %) income taxes Income from Continuing Operations 1,252 1,121 11.7 % Before Equity Interests Share of net income of 137 137 — % equity companies Income from Continuing 1,389 1,258 10.4 % Operations Income from Discontinued Operations, 1,436 281 411.0 % Net of Income Taxes Net Income 2,825 1,539 83.6 % Net income attributable to -22 -17 29.4 % noncontrolling interests Net Income Attributable to $ 2,803 $ 1,522 84.2 % Kimberly-Clark Corporation Per Share Basis Net Income Attributable to Kimberly-Clark Corporation Basic: Continuing $ 4.11 $ 3.74 9.9 % operations Discontinued 4.33 0.85 409.4 % operations Basic Earnings $ 8.44 $ 4.59 83.9 % per Share Diluted: Continuing $ 4.10 $ 3.73 9.9 % operations Discontinued 4.31 0.84 413.1 % operations Diluted Earnings per $ 8.41 $ 4.57 84.0 % Share Cash Dividends $ 3.84 $ 3.78 1.6 % Declared Common Shares September 30 Outstanding 2026 2025 Average diluted shares for nine 333.4 333.2 months ended
September 30, 2026 December 31, 2025 ────────────────────────────────────────────────────────────────────────────── ASSETS Current Assets Cash and cash equivalents $ 1,874 $ 688 Accounts receivable, net 1,975 1,892 Inventories 1,579 1,475 Other current assets 517 535 Current assets of discontinued — 720 operations Total Current Assets 5,945 5,310 Property, Plant and 7,067 6,775 Equipment, Net Investments in Equity 1,592 330 Companies Goodwill 1,828 1,839 Other Intangible Assets, 72 77 Net Other Assets 1,215 1,062 Non-current Assets of Discontinued — 1,705 Operations TOTAL ASSETS $ 17,719 $ 17,098 LIABILITIES AND STOCKHOLDERS' EQUITY Current Liabilities Debt payable within one $ 621 $ 694 year Trade accounts payable 3,417 3,388 Accrued expenses and other current 2,205 1,888 liabilities Dividends payable 423 415 Current liabilities of discontinued — 740 operations Total Current Liabilities 6,666 7,125 Long-Term Debt 5,870 6,474 Non-current Employee 556 605 Benefits Deferred Income Taxes 420 445 Other Liabilities 1,111 646 Non-current Liabilities of Discontinued — 151 Operations Redeemable Preferred Securities of 22 22 Subsidiaries Stockholders' Equity Kimberly-Clark Corporation 2,932 1,502 Noncontrolling Interests 142 128 Total Stockholders' Equity 3,074 1,630 TOTAL LIABILITIES AND STOCKHOLDERS' $ 17,719 $ 17,098 EQUITY
Nine Months Ended Operating Activities September 30 2026 2025 ────────────────────────────────────────────────────────────────────────────── Net income $ 2,825 $ 1,539 Depreciation and 544 616 amortization Stock-based 106 115 compensation Deferred income taxes -177 204 Net (gains) losses on asset and business -1,497 42 dispositions Equity companies' earnings (in excess -48 -56 of) less than dividends paid Operating working 265 -679 capital Proceeds from long-term license 444 — agreement Postretirement benefits 1 17 Other -55 7 Cash Provided by 2,408 1,805 Operations Investing Activities Capital spending -1,039 -741 Proceeds from asset and business 445 12 dispositions Investments in time -210 -375 deposits Maturities of time 223 416 deposits Other 29 38 Cash Used for Investing -552 -650 Financing Activities Cash dividends paid -1,268 -1,242 Change in short-term -274 414 debt Debt proceeds 1,329 — Debt repayments -400 -550 Proceeds from exercise — 40 of stock options Repurchases of common — -140 stock Cash dividends paid to noncontrolling -15 -18 interests Other -45 -75 Cash Used for Financing -673 -1,571 Effect of Exchange Rate Changes on Cash -10 29 and Cash Equivalents Change in Cash and Cash 1,173 -387 Equivalents Cash and cash equivalents from continuing operations - 688 1,010 beginning of period Cash and cash equivalents from discontinued operations 13 11 - beginning of period(a) Cash and Cash Equivalents - Beginning 701 1,021 of Period Cash and cash equivalents from 1,874 617 continuing operations - end of period Cash and cash equivalents from discontinued operations — 17 - end of period(a) Cash and Cash Equivalents - End of $ 1,874 $ 634 Period
(a) Included in Current assets of discontinued operations for periods prior to the completion of the IFP Transaction. -12-
(a) Segment Operating Profit is a non-GAAP financial measure as it excludes certain results included within Corporate & Other, as discussed below. Refer to "Summary of Non-GAAP Financial Measures" below for further discussion of how we utilize non-GAAP financial measures. As shown above, we have included a reconciliation to Total Operating Profit, as determined in accordance with GAAP.
(b) Corporate & Other includes income and expense not associated with the ongoing operations of the segments, including 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. -13-
The following provides the reconciliation of the non-GAAP financial measures provided in this press release to the most closely related GAAP measure. These measures include: Organic Sales Growth, Adjusted Gross Profit, Adjusted Operating Profit, Adjusted Earnings per Share from Continuing Operations, Adjusted Earnings per Share Attributable to Kimberly-Clark, Adjusted Effective Tax Rate, and Adjusted Income from Discontinued Operations. Unless specifically stated, 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 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 from Continuing Operations, Adjusted Earnings per Share Attributable to Kimberly- Clark, Adjusted Effective Tax Rate, and Adjusted Income from Discontinued Operations are defined as Gross Profit, Operating Profit, Diluted Earnings per Share from Continuing Operations, Diluted Earnings per Share Attributable to Kimberly-Clark, Effective Tax Rate, and Income from Discontinued Operations, Net of Income Taxes, 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 from Continuing Operations, Adjusted Earnings per Share Attributable to Kimberly-Clark and Adjusted Income from Discontinued Operations 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 pre- tax income and provision for income taxes.
We use these non-GAAP financial measures to assist in comparing our performance on a consistent basis for purposes of business decision making by removing the impact of certain items that we do not believe reflect our underlying and ongoing operations. We believe that presenting these non-GAAP financial measures is useful to investors because it (i) provides investors with meaningful supplemental information regarding financial performance by excluding certain items, (ii) permits investors to view performance using the same tools that management uses to budget, make operating and strategic decisions, and evaluate historical performance, and (iii) otherwise provides supplemental information that may be useful to investors in evaluating our results. We believe that the presentation of these non-GAAP financial measures, when considered together with the corresponding U.S. GAAP financial measures and the reconciliation to those measures, provides investors with additional understanding of the factors and trends affecting our business than could be obtained absent these disclosures.
These non-GAAP financial measures are not meant to be considered in isolation or as a substitute for the comparable GAAP measures, and they should be read only in conjunction with our 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. Certain non-GAAP financial measures referenced in this press release are presented on a forward-looking basis. Kimberly-Clark does not provide a reconciliation of these forward-looking non-GAAP financial measures to the most directly comparable GAAP financial measures on a forward-looking basis because it is unable to predict certain adjustment items without unreasonable effort. Please note that these items could be material to Kimberly-Clark’s results calculated in accordance with GAAP.
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.
• Kenvue Acquisition - Acquisition-related costs incurred in connection with the Kenvue Acquisition, primarily related to external advisory, legal, accounting, and other related costs.
• Unrealized (Gains) Losses on Commodity Hedges - Mark‑to‑market impacts from undesignated commodity derivatives utilized to mitigate price volatility for forecasted transactions. These mark-to-market impacts are excluded until the related gains and losses are realized in order to facilitate comparisons of our underlying operating performance across periods. -14- • Brazil Business Tax Credits - Favorable legal ruling resolving certain matters related to prior years' business taxes in Brazil.
• Insurance Recovery – Settlement of insurance claims related to a previous acquisition.
• Equity Company Adjustments - Kimberly-Clark's proportionate share of charges recognized by the Arbex Joint Venture formed as part of the completion of the IFP Transaction for certain acquisition-related accounting impacts and restructuring charges.
• IFP Repatriated Earnings – In connection with the IFP Transaction, we recognized deferred tax liabilities for certain permanently reinvested earnings from the IFP Business that are expected to be repatriated.
• IFP Separation Costs - Costs incurred in connection with the IFP Transaction related to external advisory, legal, accounting, contractor and other incremental costs, and are reported in discontinued operations.
• IFP Reorganization Tax Charges - Net income tax charges primarily related to the U.S. federal tax impacts from an intercompany intellectual property transaction and reorganization activities completed in connection with the IFP Transaction.
• IFP Transaction Gain - Gain recognized in connection with the completion of the IFP Transaction.
• IFP Tax Basis Adjustment - In connection with the IFP Transaction, we recognized a deferred tax liability on the difference between our book and tax basis for certain of our investments in subsidiaries reported as discontinued operations.
• U.S. Tax Reform Related Matters (OBBBA) - In 2025, we recognized a valuation allowance on prior year U.S. foreign tax credits as a result of provisions within the One Big Beautiful Bill Act ("OBBBA") that impact our ability to use credits.
The following tables provide a reconciliation of Organic Sales Growth from continuing operations:
The following table provides a reconciliation of Adjusted Gross Profit from continuing operations:
-15- The following table provides a reconciliation of Adjusted Operating Profit from continuing operations:
The following table provides a reconciliation of Adjusted Earnings per Share from continuing operations:
(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. -16- The following table provides a reconciliation of Adjusted Earnings per Share Attributable to Kimberly-Clark:
(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 the continuing operations adjustments included herein on Kimberly-Clark’s estimated provision for income taxes. Refer to the Adjusted Income (Loss) from Discontinued Operations reconciliation below for the tax effect of the discontinued operations adjustments included herein. Equity Company Adjustments are presented net of $13 million of tax for the three and nine months ended September 30, 2026. The following tables provide a reconciliation of the continuing operations Adjusted Effective Tax Rate:
The following table provides a reconciliation of Adjusted Income (Loss) from Discontinued Operations:
(a) 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 non-GAAP adjustments. Tax amounts for the IFP Transaction Gain were not material. Investor Relations contact: Christopher Jakubik, CFA, KC.InvestorRelations@kcc.com
Full text with the tables
Exhibit 99.1
Kimberly-Clark Announces Third Quarter Results, Reaffirms 2026 Standalone
Outlook
Well-positioned to capitalize on a generational value creation
opportunity and drive the next phase of durable growth
DALLAS, November 5, 2026 - Kimberly-Clark Corporation (Nasdaq: KMB) today
reported third quarter 2026 results reflecting continued innovation-driven
momentum and industry-leading productivity, despite several significant,
discrete unfavorable impacts.
“The completion of our Kenvue transaction earlier this week marks a defining
moment in the 154 year history of Kimberly-Clark. We embark on an exciting next
chapter focused on delivering better care, in more hands, and enabling smarter
health.” said Kimberly-Clark Chairman and CEO Mike Hsu. “Our third quarter
results reflect a dynamic operating environment and several discrete impacts.
Our team continues to execute with agility, and the underlying momentum of our
business remains strong. We’re excited to join forces with our Kenvue colleagues
and apply our playbook and capabilities across the combined company. We are
confident that our proven growth engine, and our continued industry-leading
productivity gains, will enable us to build on the momentum we have achieved
through Powering Care.”
Hsu continued, “I want to thank all of our Kimberly-Clark employees for their
contributions to our transformation, and extend a warm welcome to our Kenvue
colleagues. Our teams are energized and focused on realizing the unique,
generational value creation opportunity in front of us. As one company, we are
well positioned to deliver extraordinary care and lead the future of consumer
health.”
Qu
arter Highlights
• Unless otherwise noted, reported results in this release are based on
continuing operations and exclude the International Family Care and Professional
("IFP") business, which is reported as discontinued operations.
• Delivered net sales of $4.1 billion, down 0.4 percent, while organic sales
declined 1.3 percent.
• Gross margin was 34.9 percent; adjusted gross margin was 35.5 percent, down
130 basis points versus the prior year.
• Operating profit for the quarter was $516 million, while adjusted operating
profit was $677 million, down 0.9 percent versus the prior year.
• Diluted earnings per share ("EPS") from continuing operations were $1.19;
adjusted EPS from continuing operations were $1.70, up 17.2 percent versus the
prior year.
• Diluted EPS attributable to Kimberly-Clark were $5.37; adjusted EPS
attributable to Kimberly-Clark were $1.70, down 6.6 percent versus the prior
year.
Third Quarter 2026 Results
Net sales of $4.1 billion were relatively flat compared to the prior year, as
favorable impacts from sales recognized under supply agreements with the Arbex
Joint Venture and favorable currency impacts were largely offset by a
-2-
decline in organic sales. Organic sales declined 1.3 percent, including an
approximately 270 basis point headwind from the China social media disruption,
as well as additional headwinds from retailer year-over-year inventory movements
in North America.
Gross margin was 34.9 percent compared to 36.0 percent in the prior year,
inclusive of $29 million, or approximately 70 basis points, and $34 million, or
approximately 80 basis points, respectively, of charges related to the 2024
Transformation Initiative. Excluding these charges, adjusted gross margin was
35.5 percent, a decrease of 130 basis points versus the prior year, driven by
unfavorable pricing net of cost inflation and supply chain related investments,
partially offset by strong productivity savings.
Third quarter operating profit was $516 million compared to $621 million in the
prior year. Current quarter results included charges of $55 million related to
the 2024 Transformation Initiative and $106 million related to the Kenvue
Acquisition. Prior year results included $62 million of charges related to the
2024 Transformation Initiative. Excluding these items, adjusted operating profit
was $677 million compared to $683 million, a decrease of 0.9 percent, driven by
unfavorable pricing net of cost inflation and headwinds from the China social
media disruption of approximately 530 basis points, partially offset by lower
marketing, research and general expenses.
Net interest expense was $32 million versus $59 million in the prior year
primarily driven by lower interest expense.
The third quarter effective tax rate was 20.2 percent, compared to 45.4 percent
in the prior year. On an adjusted basis, the effective rate was 19.5 percent
compared to 26.5 percent in the p rior year. The year-on-year impact was driven
primarily by a combination of transitory impacts in the prior year from the One
Big Beautiful Bill Act ("OBBBA") and benefits in the current year from certain
tax initiatives.
Net income of equity companies was $29 million compared to $46 million in the
prior year. The decrease was primarily driven by our share of the Arbex Joint
Venture's net loss of $20 million, which was inclusive of $51 million pre-tax
($38 million after-tax) of acquisition accounting and restructuring charges.
Income from discontinued operations, net of income taxes was $1.4 billion
compared to $110 million in the prior year. Current year results included a pre-
tax gain of approximately $1.4 billion recognized upon completion of the IFP
Transaction and $52 million of pre-tax separation costs. Prior year results
included $17 million of pre-tax separation costs. Excluding these items,
adjusted income (loss) from discontinued operations was $(1) million compared to
$123 million in the prior year, reflecting the completion of the IFP Transaction
on July 1, 2026.
Diluted EPS from continuing operations were $1.19 compared to $1.01 in the prior
year. These reported amounts are inclusive of net charges of $0.51 and $0.44,
respectively, for certain items discussed above that management does not believe
reflect our underlying and ongoing operations. Excluding these items, adjusted
EPS from continuing operations were $1.70, up 17.2 percent, primarily driven by
lower net interest expense and a lower adjusted effective tax rate.
Diluted EPS attributable to Kimberly-Clark were $5.37 compared to $1.34 in the
prior year. These reported amounts are inclusive of a net benefit of $3.67 and
net charges of $0.48, respectively, for certain items discussed above that
management does not believe reflect our underlying and ongoing operations.
Excluding these items, adjusted EPS attributable to Kimberly-Clark were $1.70,
down 6.6 percent, primarily driven by lower adjusted operating profit and
adjusted income (loss) from discontinued operations partially offset by lower
net interest expense and a lower adjusted effective tax rate.
-3-
Year-To-Date Results
For the first nine months, net sales of $12.5 billion increased 1.0 percent, as
organic sales growth of 0.3 percent and favorable currency impacts of 1.1
percent were partially offset by a 0.5 percent decline from the exit of the
company's private label diaper business in the US partially offset by sales
recognized under supply agreements with the Arbex Joint Venture. Organic sales
growth was driv en by volume-plus-mix growth of 1.0 percent, partially offset by
lower pricing of 0.7 percent.
For the first nine months, gross margin was 36.7 percent compared to 36.0
percent in the prior year, inclusive of $93 million, or approximately 70 basis
points, and $169 million, or approximately 140 basis points, respectively, of
charges related to the 2024 Transformation Initiative. Excluding these charges,
adjusted gross margin of 37.4 percent was flat versus the prior year, as one-
time tariff refunds and strong productivity savings were largely offset by
unfavorable pricing net of cost inflation and supply chain related investments.
Year-to-date operating profit was $1.9 billion compared to $1.8 billion in the
prior year, inclusive of net charges of $264 million and $258 million,
respectively, for certain items that management does not believe reflect our
underlying and ongoing operations. Excluding these items, adjusted operating
profit was $2.2 billion compared to $2.1 billion, an increase of 3.0 percent
primarily driven by strong productivity savings and favorable currency impacts,
partially offset by headwinds from the China social media disruption of
approximately 210 basis points.
Year-to-date effective tax rate was 27.5 percent, compared to 30.6 percent in
the prior year. On an adj usted basis, the effective r ate was 22.3 percent
compared to 22.6 percent in the prior year, with the decrease consistent with
the third quarter discussion above.
Net income of equity companies of $137 million was flat versus the prior y ear,
as our share of the Arbex Joint Venture's net loss of $20 million, inclusive of
acquisition accounting and restructuring charges discussed in the third quarter
results above, was offset by higher earnings from Kimberly-Clark de Mexico,
S.A.B. de C.V., primarily reflecting favorable currency impacts.
Income from discontinued operations, net of income taxes was $1.4 billion
compared to $281 million in the prior year. Current year results included a pre-
tax gain of approximately $1.4 billion recognized upon completion of the IFP
Transaction, $156 million of pre-tax separation costs and net tax charges of
$104 million related to certain reorganization activities associated with the
IFP Transaction. Prior year results included $50 million of pre-tax separation
costs. Excluding these items, adjusted income from discontinued operations was
$231 million compared to $325 million in the prior year, a decrease of 28.9
percent, primarily driven by the inclusion of a full nine months of results for
the IFP Business in the prior year.
For the first nine months, diluted EPS from continuing operations were $4.10
compared to $3.73 in the prior year. These reported amounts are inclusive of net
charges of $1.00 and $0.97, respectively, for certain items discussed above that
management does not believe reflect our underlying and ongoing operations.
Excluding these items, adjusted EPS from continuing operations were $5.10, up
8.5 percent, driven by higher adjusted operating profit and lower net interest
expense.
Diluted EPS attributa ble to Kimberly-Clark were $8.41 compared to $4.57 in the
prior year. Thes e reported amounts are inclusive of a net benefit of $2.62 and
net charges of $1.10, respectively, for certain items discussed above that
management does not believe reflect our underlying and ongoing operations.
Excluding these items, adjusted EPS
-4-
attributable to Kimberly-Cl ark were $5.79, up 2.1 percent, driven by higher
adjusted operating profit and lower net interest expense, partially offset by
lower adjusted income from discontinued operations.
Business Segment Results
(Unaudited)
Q3
chan… Dives…
vs Volume Mix/O… Net and Curre… Total… Organi…
year Price Busin… Trans…
ago Exits…
(%)
Cons… -0.3 0.1 -1.1 0.7 0.3 -0.4 -1.3
NA 2.0 0.1 -1.8 0.6 -0.1 0.9 0.4
IPC -4.6 — 0.1 0.9 0.9 -2.8 -4.6
YTD
chan… Dives…
vs Volume Mix/O… Net and Curre… Total… Organi…
year Price Busin… Trans…
ago Exits…
(%)
Cons… 0.7 0.3 -0.7 -0.5 1.1 1.0 0.3
NA 1.2 0.1 -0.8 -0.9 0.1 -0.3 0.5
IPC -0.1 0.8 -0.5 0.3 3.0 3.4 0.1
(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 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. Also includes the impact of sales recognized
under supply agreements with the Arbex Joint Venture formed as part of the IFP
Transaction.
North America ("NA")
Net sales of $2.7 billion increased 0.9 percent in the quarter, driven by
transactions with the Arbex Joint Venture under supply agreements and organic
sales growth of 0.4 percent. Organic sales benefitted from strong volume-led
growth of 2.0 percent, despite an unfavorable impact of approximately 130 basis
points from retailer year-over-year inventory movements, partially offset by
lower pricing from increased promotional activity. Year-to-date organic sales
increased 0.5 percent as volume growth of 1.2 percent, led by gains in Family
Care and Professional categories, was partially offset by lower pricing from
increased promotional activity.
Operating profit of $657 million increased 2.7 percent in the quarter driven by
strong productivity savings and lower advertising spend, partially offset by
unfavorable pricing net of cost inflation and supply chain related investments.
Year-to-date operating profit was up 1.6 percent, as strong productivity savings
and one-time tariff refunds more than offset unfavorable pricing net of cost
inflation and a 200 basis point headwind from business exits.
-5-
International Personal Care ("IPC")
Net sales of $1.4 billion decreased 2.8 percent in the quarter, as transactions
with the Arbex Joint Venture under supply agreements and favorable currency
impacts were more than offset by a decline in organic sales. Organic sales
decreased 4.6 percent, as growth in South Korea, Indonesia and Enterprise
Markets was more than offset by an approximately 770 basis point headwind from
the China social media disruption. Year-to-date organic sales growth was
relatively flat compared to the prior year, as volume-plus-mix gains of 0.7
percent, driven by growth across our International Personal Care markets,
despite an approximately 300 basis point headwind from the China social media
disruption, were largely offset by lower pricing.
Operating profit of $144 million decreased 32.7 percent in the quarter driven by
higher input costs and an approximately 16.8 percent headwind from the China
social media disruption, partially offset by strong productivity savings. Year-
to-date operating profit decreased 3.7 percent, as unfavorable pricing net of
cost inflation and an approximately 7.4 percent headwind from the China social
media disruption were partially offset by strong productivity savings and
favorable currency impacts.
Cash Flow and Balance Sheet
For the first nine months of 2026 cash provided by operations (inclusive of
discontinued operations) was $2.4 billion compared to $1.8 billion last year.
Year-to-date capital spending was $1.0 billion compared to $741 million last
year and the company returned $1.3 billion to shareholders through dividends.
Total debt from continuing operations was $6.5 billion as of September 30, 2026,
down from $7.2 billion as of December 31, 2025.
2026 Outlook
The company continues to expect 2026 Organic Sales Growth to be approximately
100 basis points below its weighted average category growth in the categories
and countries it competes, which is approximately 1.7 percent on a trailing
twelve-month basis. This primarily reflects realized and potential unfavorable
impacts amounting to approximately 100 basis points at a total company level
from the previously disclosed China social media disruptions. Adjusted Operating
Profit is expected to grow mid-single digits on a constant-currency basis.
Adjusted Earnings Per Share from Continuing Operations are expected to grow high
single digits on a constant-currency basis. Adjusted Earnings Per Share
Attributable to Kimberly-Clark are expected to see a low single digit decline on
a constant-currency basis.
This outlook reflects assumptions subject to change given the macro environment.
Supplemental Materials and Live Webcast
Supplemental materials will be available beginning at approximately 6:30 a.m.
Eastern Standard Time on the company's Investor Relations website at
investor.kimberly-clark.com. Kimberly-Clark will host a live Q&A session with
investors and analysts on November 5, 2026, at 8:00 a.m. Eastern Standard Time,
which can be accessed through the same website. A replay of the webcast will be
available following the event.
About Kimberly-Clark
Kimberly-Clark (NASDAQ: KMB) is the preeminent global health and wellness
leader, built to deliver extraordinary care. Our portfolio of iconic personal
care and consumer health brands, including Huggies, Listerine, Cottonelle,
Neutrogena, Depend, Tylenol, Kleenex, Johnson’s, Kotex and Scott, serves
consumers across every stage of life in
-6-
more than 175 countries. We combine consumer-led innovation, leading brand-
building and commercial capabilities, and a fast and agile operating model to
raise the standard of care for billions of people around the world. We are
committed to using sustainable practices designed to support a healthy planet,
build strong communities, and enable our business to thrive for decades to come.
The KMB stock is a large cap growth and value stock and core S&P 500 equity held
by more than 400 Exchange Traded Funds. Kimberly-Clark is considered a Dividend
Aristocrat, having paid a dividend for 92 consecutive years and increasing its
dividend in each of the past 54 consecutive years. To keep up with the latest
news and learn more about the company's more than 150-year history, visit
kimberly-clark.com.
Copies of Kimberly-Clark's Annual Report to Stockholders and its proxy
statements and other SEC filings, including Annual Reports on Form 10-K,
Quarterly Reports on Form 10-Q and Current Reports on Form 8-K, are made
available free of charge on the company's website on the same day they are filed
with the SEC. To view these filings, visit investor.kimberly-clark.com.
Forward-Looking Statements
Certain matters contained in this press release concerning our plans and
expectations regarding the integration of Kenvue, which we acquired on November
2, 2026, including anticipated synergies, cost savings, integration costs and
the timing thereof, the Kenvue Integration Program, including estimates of
charges, that we expect to incur in connection with the Kenvue Integration
Program, and the timing thereof, the International Family Care and Professional
(“IFP”) joint venture (the “Arbex Joint Venture”) transaction with Suzano (“IFP
Transaction”), the business outlook, including raw material, energy and other
input costs, the anticipated charges and savings from the 2024 Transformation
Initiative, cash flow and uses of cash, our indebtedness, including indebtedness
incurred or assumed in connection with the Kenvue Acquisition, and anticipated
deleveraging, 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, including the outcome
of legal proceedings, 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 successful integration of
Kenvue and the achievement of future cost savings and projected volume
increases. In addition, many factors outside our control could affect the
realization of these estimates. These include risks and uncertainties related to
the Kenvue Acquisition and the integration of Kenvue’s business, including the
risk that the anticipated benefits, synergies and cost savings of the Kenvue
Acquisition may not be realized when expected or at all, the risk that
integration costs may be higher than expected, the risk that we are not able to
realize the anticipated benefits of the Kenvue Integration Program, risks
related to the preliminary nature of the estimate of the charges and capital
expenditures to be incurred in connection with the Kenvue Integration Program,
which is subject to change, risks related to any delays in the timing for
implementing the Kenvue Integration Program or potential disruptions to our
business or operations as we execute on the Kenvue Integration Program,
-7-
the risk of loss of key employees, customers, suppliers or other business
counterparties, the risk of disruption to our or Kenvue’s operations, the risk
of litigation related to the Kenvue Acquisition, our substantially increased
indebtedness following the Kenvue Acquisition and our ability to reduce our
indebtedness, maintain our credit ratings and refinance indebtedness on
favorable terms, legal proceedings and governmental investigations,
indemnification obligations to J&J, and the sufficiency of, and J&J’s ability to
satisfy, its indemnification obligations, risks related to the IFP Transaction,
including risks related to the incurrence of significant transaction and
separation costs, adverse market reactions, regulatory or legal challenges, and
operational disruptions, our ability 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
other acquisition and disposition activity, impairment of goodwill and
intangible assets, including those recorded in connection with the Kenvue
Acquisition, 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 Iran),
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, and our ability to maintain key customer relationships.
The factors described under Item 1A, “Risk Factors” in our Annual Report on Form
10-K for the year ended December 31, 2025, as updated by Part II, Item 1A, “Risk
Factors” in our Quarterly Report on Form 10-Q for the quarter ended September
30, 2026, 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.
-8-
KIMBERLY-CLARK CORPORATION
CONDENSED CONSOLIDATED STATEMENTS OF INCOME
(Millions, except per share amounts)
(Unaudited)
Three Months
Ended
September 30 2026 2025 Change
──────────────────────────────────────────────────────────────────────────────
Net Sales $ 4,134 $ 4,150 (0.4 %)
Cost of 2,693 2,657 1.4 %
products sold
Gross Profit 1,441 1,493 (3.5 %)
Marketing,
research and 912 855 6.7 %
general
expenses
Other (income)
and expense, 13 17 (23.5 %)
net
Operating 516 621 (16.9 %)
Profit
Nonoperating -13 -16 (18.8 %)
expense
Interest income 16 6 166.7 %
Interest -48 -65 (26.2 %)
expense
Income from
Continuing
Operations
Before 471 546 (13.7 %)
Income Taxes
and Equity
Interests
Provision for -95 -248 (61.7 %)
income taxes
Income from
Continuing
Operations 376 298 26.2 %
Before
Equity
Interests
Share of net
income of 29 46 (37.0 %)
equity
companies
Income from
Continuing 405 344 17.7 %
Operations
Income from
Discontinued 1,395 110 N.M.
Operations, Net
of Income Taxes
Net Income 1,800 454 296.5 %
Net income
attributable to -7 -8 (12.5 %)
noncontrolling
interests
Net Income
Attributable to $ 1,793 $ 446 302.0 %
Kimberly-Clark
Corporation
Per Share Basis
Net Income
Attributable to
Kimberly-Clark
Corporation
Basic:
Continuing $ 1.20 $ 1.01 18.8 %
operations
Discontinued 4.19 0.33 N.M.
operations
Basic Earnings $ 5.39 $ 1.34 302.2 %
per Share
Diluted:
Continuing $ 1.19 $ 1.01 17.8 %
operations
Discontinued 4.18 0.33 N.M.
operations
Diluted
Earnings per $ 5.37 $ 1.34 300.7 %
Share
Cash Dividends $ 1.28 $ 1.26 1.6 %
Declared
Common Shares September 30
Outstanding
2026 2025
Outstanding 332.6 331.9
shares as of
Average diluted
shares for 333.7 333.1
three months
ended
N.M. - Not Meaningful
-9-
KIMBERLY-CLARK CORPORATION
CONDENSED CONSOLIDATED STATEMENTS OF INCOME
(Millions, except per share amounts)
(Unaudited)
Nine Months
Ended
September 30 2026 2025 Change
──────────────────────────────────────────────────────────────────────────────
Net Sales $ 12,486 $ 12,367 1.0 %
Cost of 7,908 7,909 — %
products sold
Gross Profit 4,578 4,458 2.7 %
Marketing,
research and 2,836 2,573 10.2 %
general
expenses
Other (income)
and expense, -160 41 N.M.
net
Operating 1,902 1,844 3.1 %
Profit
Nonoperating -40 -50 (20.0 %)
expense
Interest 25 18 38.9 %
income
Interest -159 -196 (18.9 %)
expense
Income from
Continuing
Operations
Before 1,728 1,616 6.9 %
Income Taxes
and Equity
Interests
Provision for -476 -495 (3.8 %)
income taxes
Income from
Continuing
Operations 1,252 1,121 11.7 %
Before
Equity
Interests
Share of net
income of 137 137 — %
equity
companies
Income from
Continuing 1,389 1,258 10.4 %
Operations
Income from
Discontinued
Operations, 1,436 281 411.0 %
Net
of Income
Taxes
Net Income 2,825 1,539 83.6 %
Net income
attributable
to -22 -17 29.4 %
noncontrolling
interests
Net Income
Attributable
to $ 2,803 $ 1,522 84.2 %
Kimberly-Clark
Corporation
Per Share
Basis
Net Income
Attributable
to
Kimberly-Clark
Corporation
Basic:
Continuing $ 4.11 $ 3.74 9.9 %
operations
Discontinued 4.33 0.85 409.4 %
operations
Basic Earnings $ 8.44 $ 4.59 83.9 %
per Share
Diluted:
Continuing $ 4.10 $ 3.73 9.9 %
operations
Discontinued 4.31 0.84 413.1 %
operations
Diluted
Earnings per $ 8.41 $ 4.57 84.0 %
Share
Cash Dividends $ 3.84 $ 3.78 1.6 %
Declared
Common Shares September 30
Outstanding
2026 2025
Average
diluted shares
for nine 333.4 333.2
months
ended
N.M. - Not Meaningful
-10-
KIMBERLY-CLARK CORPORATION
CONDENSED CONSOLIDATED BALANCE SHEETS
(Millions)
(Unaudited)
September 30, 2026 December 31, 2025
──────────────────────────────────────────────────────────────────────────────
ASSETS
Current Assets
Cash and cash equivalents $ 1,874 $ 688
Accounts receivable, net 1,975 1,892
Inventories 1,579 1,475
Other current assets 517 535
Current assets of
discontinued — 720
operations
Total Current Assets 5,945 5,310
Property, Plant and 7,067 6,775
Equipment, Net
Investments in Equity 1,592 330
Companies
Goodwill 1,828 1,839
Other Intangible Assets, 72 77
Net
Other Assets 1,215 1,062
Non-current Assets of
Discontinued — 1,705
Operations
TOTAL ASSETS $ 17,719 $ 17,098
LIABILITIES AND
STOCKHOLDERS' EQUITY
Current Liabilities
Debt payable within one $ 621 $ 694
year
Trade accounts payable 3,417 3,388
Accrued expenses and other
current 2,205 1,888
liabilities
Dividends payable 423 415
Current liabilities of
discontinued — 740
operations
Total Current Liabilities 6,666 7,125
Long-Term Debt 5,870 6,474
Non-current Employee 556 605
Benefits
Deferred Income Taxes 420 445
Other Liabilities 1,111 646
Non-current Liabilities of
Discontinued — 151
Operations
Redeemable Preferred
Securities of 22 22
Subsidiaries
Stockholders' Equity
Kimberly-Clark Corporation 2,932 1,502
Noncontrolling Interests 142 128
Total Stockholders' Equity 3,074 1,630
TOTAL LIABILITIES AND
STOCKHOLDERS' $ 17,719 $ 17,098
EQUITY
-11-
KIMBERLY-CLARK CORPORATION
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
(Millions)
(Unaudited)
Nine Months Ended
Operating Activities September 30 2026 2025
──────────────────────────────────────────────────────────────────────────────
Net income $ 2,825 $ 1,539
Depreciation and 544 616
amortization
Stock-based 106 115
compensation
Deferred income taxes -177 204
Net (gains) losses on
asset and business -1,497 42
dispositions
Equity companies'
earnings (in excess -48 -56
of) less than dividends
paid
Operating working 265 -679
capital
Proceeds from long-term
license 444 —
agreement
Postretirement benefits 1 17
Other -55 7
Cash Provided by 2,408 1,805
Operations
Investing Activities
Capital spending -1,039 -741
Proceeds from asset and
business 445 12
dispositions
Investments in time -210 -375
deposits
Maturities of time 223 416
deposits
Other 29 38
Cash Used for Investing -552 -650
Financing Activities
Cash dividends paid -1,268 -1,242
Change in short-term -274 414
debt
Debt proceeds 1,329 —
Debt repayments -400 -550
Proceeds from exercise — 40
of stock options
Repurchases of common — -140
stock
Cash dividends paid to
noncontrolling -15 -18
interests
Other -45 -75
Cash Used for Financing -673 -1,571
Effect of Exchange Rate
Changes on Cash -10 29
and Cash Equivalents
Change in Cash and Cash 1,173 -387
Equivalents
Cash and cash
equivalents from
continuing operations - 688 1,010
beginning of
period
Cash and cash
equivalents from
discontinued operations 13 11
- beginning of
period(a)
Cash and Cash
Equivalents - Beginning 701 1,021
of
Period
Cash and cash
equivalents from 1,874 617
continuing operations -
end of period
Cash and cash
equivalents from
discontinued operations — 17
- end of
period(a)
Cash and Cash
Equivalents - End of $ 1,874 $ 634
Period
(a) Included in Current assets of discontinued operations for periods prior to
the completion of the IFP Transaction.
-12-
KIMBERLY-CLARK CORPORATION
BUSINESS SEGMENT RESULTS
(Millions)
(Unaudited)
T… N…
M… M…
E… E…
S… S…
N… 30 30
S… 2… 2… C… 2… 2… C…
──────────────────────────────────────────────────────────────────────────────
NA $ 2,… $ 2,… 0.9 % $ 8,… $ 8,… (0… %)
I… 1,… 1,… (2… %) 4,… 4,… 3.4 %
T…
N… $ 4,… $ 4,… (0… %) $ 12… $ 12… 1.0 %
S…
O…
P…
NA $ 657 $ 640 2.7 % $ 2,… $ 1,… 1.6 %
I… 144 214 (3… %) 575 597 (3… %)
S…
O… 801 854 (6… %) 2,… 2,… 0.4 %
P…
C…
& -2… -2… 22… % -6… -7… (6… %)
O…
T…
O… $ 516 $ 621 (1… %) $ 1,… $ 1,… 3.1 %
P…
(a) Segment Operating Profit is a non-GAAP financial measure as it excludes
certain results included within Corporate & Other, as discussed below. Refer to
"Summary of Non-GAAP Financial Measures" below for further discussion of how we
utilize non-GAAP financial measures. As shown above, we have included a
reconciliation to Total Operating Profit, as determined in accordance with GAAP.
(b) Corporate & Other includes income and expense not associated with the
ongoing operations of the segments, including 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.
-13-
SUMMARY OF NON-GAAP FINANCIAL MEASURES
The following provides the reconciliation of the non-GAAP financial measures
provided in this press release to the most closely related GAAP measure. These
measures include: Organic Sales Growth, Adjusted Gross Profit, Adjusted
Operating Profit, Adjusted Earnings per Share from Continuing Operations,
Adjusted Earnings per Share Attributable to Kimberly-Clark, Adjusted Effective
Tax Rate, and Adjusted Income from Discontinued Operations. Unless specifically
stated, 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 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 from
Continuing Operations, Adjusted Earnings per Share Attributable to Kimberly-
Clark, Adjusted Effective Tax Rate, and Adjusted Income from Discontinued
Operations are defined as Gross Profit, Operating Profit, Diluted Earnings per
Share from Continuing Operations, Diluted Earnings per Share Attributable to
Kimberly-Clark, Effective Tax Rate, and Income from Discontinued Operations, Net
of Income Taxes, 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 from Continuing Operations, Adjusted Earnings per Share Attributable
to Kimberly-Clark and Adjusted Income from Discontinued Operations 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 pre-
tax income and provision for income taxes.
We use these non-GAAP financial measures to assist in comparing our performance
on a consistent basis for purposes of business decision making by removing the
impact of certain items that we do not believe reflect our underlying and
ongoing operations. We believe that presenting these non-GAAP financial measures
is useful to investors because it (i) provides investors with meaningful
supplemental information regarding financial performance by excluding certain
items, (ii) permits investors to view performance using the same tools that
management uses to budget, make operating and strategic decisions, and evaluate
historical performance, and (iii) otherwise provides supplemental information
that may be useful to investors in evaluating our results. We believe that the
presentation of these non-GAAP financial measures, when considered together with
the corresponding U.S. GAAP financial measures and the reconciliation to those
measures, provides investors with additional understanding of the factors and
trends affecting our business than could be obtained absent these disclosures.
These non-GAAP financial measures are not meant to be considered in isolation or
as a substitute for the comparable GAAP measures, and they should be read only
in conjunction with our 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. Certain non-GAAP financial measures referenced in this
press release are presented on a forward-looking basis. Kimberly-Clark does not
provide a reconciliation of these forward-looking non-GAAP financial measures to
the most directly comparable GAAP financial measures on a forward-looking basis
because it is unable to predict certain adjustment items without unreasonable
effort. Please note that these items could be material to Kimberly-Clark’s
results calculated in accordance with GAAP.
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.
• Kenvue Acquisition - Acquisition-related costs incurred in connection with the
Kenvue Acquisition, primarily related to external advisory, legal, accounting,
and other related costs.
• Unrealized (Gains) Losses on Commodity Hedges - Mark‑to‑market impacts from
undesignated commodity derivatives utilized to mitigate price volatility for
forecasted transactions. These mark-to-market impacts are excluded until the
related gains and losses are realized in order to facilitate comparisons of our
underlying operating performance across periods.
-14-
• Brazil Business Tax Credits - Favorable legal ruling resolving certain matters
related to prior years' business taxes in Brazil.
• Insurance Recovery – Settlement of insurance claims related to a previous
acquisition.
• Equity Company Adjustments - Kimberly-Clark's proportionate share of charges
recognized by the Arbex Joint Venture formed as part of the completion of the
IFP Transaction for certain acquisition-related accounting impacts and
restructuring charges.
• IFP Repatriated Earnings – In connection with the IFP Transaction, we
recognized deferred tax liabilities for certain permanently reinvested earnings
from the IFP Business that are expected to be repatriated.
• IFP Separation Costs - Costs incurred in connection with the IFP Transaction
related to external advisory, legal, accounting, contractor and other
incremental costs, and are reported in discontinued operations.
• IFP Reorganization Tax Charges - Net income tax charges primarily related to
the U.S. federal tax impacts from an intercompany intellectual property
transaction and reorganization activities completed in connection with the IFP
Transaction.
• IFP Transaction Gain - Gain recognized in connection with the completion of
the IFP Transaction.
• IFP Tax Basis Adjustment - In connection with the IFP Transaction, we
recognized a deferred tax liability on the difference between our book and tax
basis for certain of our investments in subsidiaries reported as discontinued
operations.
• U.S. Tax Reform Related Matters (OBBBA) - In 2025, we recognized a valuation
allowance on prior year U.S. foreign tax credits as a result of provisions
within the One Big Beautiful Bill Act ("OBBBA") that impact our ability to use
credits.
The following tables provide a reconciliation of Organic Sales Growth from
continuing operations:
Three Months Ended
September
30, 2026
──────────────────────────────────────────────────────────────────────────────
Percent change vs.
the prior year
period
NA IPC Total
Net Sales Growth 0.9 -2.8 -0.4
Currency 0.1 -0.9 -0.3
Translation
Divestitures and -0.6 -0.9 -0.7
Business Exits
Organic Sales 0.4 -4.6 -1.3
Growth(a)
Nine Months Ended
September
30, 2026
──────────────────────────────────────────────────────────────────────────────
Percent change vs.
the prior year
period
NA IPC Total
Net Sales Growth -0.3 3.4 1.0
Currency -0.1 -3.0 -1.1
Translation
Divestitures and 0.9 -0.3 0.5
Business Exits
Organic Sales 0.5 0.1 0.3
Growth(a)
(a) Table may not foot due to rounding.
The following table provides a reconciliation of Adjusted Gross Profit from
continuing operations:
Three Nine
Months Months
Ended Ended
September September
2026 30 2025 2026 30 2025
──────────────────────────────────────────────────────────────────────────────
Gross $ 1,441 $ 1,493 $ 4,578 $ 4,458
Profit
2024
Transfo… 29 34 93 169
Initiat…
Unreali…
(Gains)
Losses -2 — -2 —
on
Commodi…
Hedges
Adjusted
Gross $ 1,468 $ 1,527 $ 4,669 $ 4,627
Profit
-15-
The following table provides a reconciliation of Adjusted Operating Profit from
continuing operations:
Three Nine
Months Months
Ended Ended
September September
2026 30 2025 2026 30 2025
──────────────────────────────────────────────────────────────────────────────
Operating $ 516 $ 621 $ 1,902 $ 1,844
Profit
2024
Transfor… 55 62 160 258
Initiati…
Kenvue 106 — 263 —
Acquisit…
Unrealiz…
(Gains)
Losses on -2 — -2 —
Commodity
Hedges
Brazil
Business 2 — -37 —
Tax
Credits
Insurance — — -120 —
Recovery
Adjusted
Operating $ 677 $ 683 $ 2,166 $ 2,102
Profit
The following table provides a reconciliation of Adjusted Earnings per Share
from continuing operations:
Three Nine
Months Months
Ended Ended
September September
2026 30 2025 2026 30 2025
──────────────────────────────────────────────────────────────────────────────
Diluted
Earnings $ 1.19 $ 1.01 $ 4.10 $ 3.73
per Share
2024
Transfor… 0.13 0.14 0.34 0.64
Initiati…
Kenvue 0.27 — 0.70 —
Acquisit…
Unrealiz…
(Gains)
Losses on -0.01 — -0.01 —
Commodity
Hedges
Brazil
Business — — -0.09 —
Tax
Credits
Insurance — — -0.32 —
Recovery
Equity
Company 0.12 — 0.12 —
Adjustme…
IFP
Repatria… — 0.01 0.26 0.04
Earnings
OBBBA — 0.29 — 0.29
Adjusted
Earnings $ 1.70 $ 1.45 $ 5.10 $ 4.70
per
Share(a)
(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.
-16-
The following table provides a reconciliation of Adjusted Earnings per Share
Attributable to Kimberly-Clark:
Three Nine
Months Months
Ended Ended
September September
2026 30 2025 2026 30 2025
──────────────────────────────────────────────────────────────────────────────
Diluted
Earnings
per Share $ 5.37 $ 1.34 $ 8.41 $ 4.57
Attribut…
to
Kimberly…
2024
Transfor… 0.13 0.14 0.34 0.64
Initiati…
Kenvue 0.27 — 0.70 —
Acquisit…
Unrealiz…
(Gains)
Losses on -0.01 — -0.01 —
Commodity
Hedges
Brazil
Business — — -0.09 —
Tax
Credits
Insurance — — -0.32 —
Recovery
Equity
Company 0.12 — 0.12 —
Adjustme…
IFP
Separati… 0.16 0.04 0.40 0.11
Costs
IFP
Repatria… — 0.01 0.26 0.04
Earnings
IFP
Reorgani… -0.01 — 0.31 —
Tax
Charges
IFP
Transact… -4.33 — -4.33 —
Gain
IFP Tax
Basis — — — 0.02
Adjustme…
OBBBA — 0.29 — 0.29
Adjusted
Earnings
per Share $ 1.70 $ 1.82 $ 5.79 $ 5.67
Attribut…
to
Kimberly…
(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 the continuing operations adjustments
included herein on Kimberly-Clark’s estimated provision for income taxes. Refer
to the Adjusted Income (Loss) from Discontinued Operations reconciliation below
for the tax effect of the discontinued operations adjustments included herein.
Equity Company Adjustments are presented net of $13 million of tax for the three
and nine months ended September 30, 2026.
The following tables provide a reconciliation of the continuing operations
Adjusted Effective Tax Rate:
Three
Months
Ended
Septe…
30
2026 2025
Income Income
from from
Conti… Conti…
Opera… Opera…
Before Before
Income Income
Taxes Provis… Taxes Provis…
and for and for
Equity Income Equity Income
Inter… Taxes Inter… Taxes
──────────────────────────────────────────────────────────────────────────────
As $ 471 $ -95 $ 546 $ -248
Repor…
2024
Trans… 55 -11 62 -12
Initi…
Kenvue 106 -16 — —
Acqui…
Unrea…
(Gain…
Losses -2 — — —
on
Commo…
Hedges
Brazil
Busin… 2 -1 — —
Tax
Credi…
IFP
Repat… — — — 3
Earni…
OBBBA — — — 96
As $ 632 $ -123 $ 608 $ -161
Adjus…
Effec…
Tax
Rate
As 20.2 % 45.4 %
Repor…
As 19.5 % 26.5 %
Adjus…
-17-
Nine
Months
Ended
Septe…
30
2026 2025
Income Income
from from
Conti… Conti…
Opera… Opera…
Before Before
Income Income
Taxes Provi… Taxes Prov…
and for and for
Equity Income Equity Inco…
Inter… Taxes Inter… Taxes
──────────────────────────────────────────────────────────────────────────────
As $ 1,728 $ -476 $ 1,616 $ -495
Repo…
2024
Tran… 160 -44 261 -39
Init…
Kenv… 263 -31 — —
Acqu…
Unre…
(Gai…
Loss… -2 — — —
on
Comm…
Hedg…
Braz…
Busi… -37 6 — —
Tax
Cred…
Insu… -120 14 — —
Reco…
IFP
Repa… — 87 — 13
Earn…
OBBBA — — — 96
As $ 1,992 $ -444 $ 1,877 $ -425
Adju…
Effe…
Tax
Rate
As 27.5 % 30.6 %
Repo…
As 22.3 % 22.6 %
Adju…
The following table provides a reconciliation of Adjusted Income (Loss) from
Discontinued Operations:
Three Nine
Months Months
Ended Ended
September September
2026 30 2025 2026 30 2025
──────────────────────────────────────────────────────────────────────────────
Income
from
Disconti…
Operatio… $ 1,395 $ 110 $ 1,436 $ 281
Net
of Income
Taxes
IFP
Separati… 52 17 156 50
Costs
Tax
Effect on
IFP -1 -4 -21 -12
Separati…
Costs(a)
IFP
Reorgani… -3 — 104 —
Tax
Charges
IFP
Transact… -1,444 — -1,444 —
Gain(a)
IFP Tax
Basis — — — 6
Adjustme…
Adjusted
Income
(Loss) $ -1 $ 123 $ 231 $ 325
from
Disconti…
Operatio…
(a) 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 non-GAAP adjustments. Tax amounts for the IFP Transaction Gain were not
material.
Investor Relations contact: Christopher Jakubik, CFA,
KC.InvestorRelations@kcc.com
Media Relations contact: Kyrsten Aspegren, media.relations@kcc.com
[KMB-F]
###