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Kimberly-Clark Announces Second Quarter and First Half 2026 Results, Updates 2026 Outlook

KMB
  • Kimberly-Clark reported second quarter 2026 net sales of $4.2 billion, a 0.6 percent increase driven by favorable currency impacts that were partially offset by the exit of its US private label diaper business & a 50 basis point negative impact from social media disruptions in China.
  • Adjusted operating profit for the quarter reached $757 million, up 6.2 percent year-over-year, supported by one-time tariff refunds, productivity savings, & favorable currency movements, while being partially offset by business exits & the China disruption.
  • Adjusted diluted EPS from continuing operations was $1.80, an increase of 10.4 percent, whereas reported diluted EPS from continuing operations was $1.22 due to charges related to the 2024 Transformation Initiative, the Kenvue acquisition, & Brazil tax credits.
  • The company successfully launched the strategic joint venture Arbex with Suzano & announced the construction of an alternative natural fibers pilot plant in the US Southwest to advance its sustainable materials innovation platform.
  • Pending acquisition of Kenvue remains on track to close by the end of 2026.
  • Second quarter results were negatively impacted by false allegations regarding diaper quality in the China market, which independent testing refuted but which caused significant sales & profit headwinds in the region.
  • Year-to-date net sales for the first half of 2026 totaled $8.4 billion, an increase of 1.6 percent, with organic sales growth of 1.2 percent driven by volume increases across segments.
  • North America segment net sales decreased 1.2 percent in the quarter due to the private label exit & headwinds from the Los Angeles Distribution Center fire, while International Personal Care (IPC) net sales grew 4.0 percent.
  • Cash provided by operations for the first six months of 2026 was $1.7 billion, up from $1.1 billion the prior year, while total debt decreased to $6.5 billion from $7.2 billion at the end of 2025.
  • The company updated its 2026 outlook to expect organic sales growth of approximately 100 basis points below category growth due to the China disruption, with adjusted operating profit growth expected in the mid-single digits & adjusted EPS attributable to Kimberly-Clark expected to see a low single-digit decline.