Kimberly-Clark (KMB) Q2 2026 Prepared Remarks earnings summary

Executive summary

• Achieved net sales of $4.2 billion in Q2 2026, up 0.6% year-over-year, with organic sales flat due to China social media disruption impacting diaper sales.

• Adjusted operating profit rose 6.2% to $757 million, driven by productivity savings and one-time tariff refunds, despite headwinds from business exits and China disruption.

• Adjusted EPS from continuing operations increased 10.4% to $1.80, supported by operating profit growth, lower net interest expense, and higher equity income.

• Transformation initiatives advanced, including the Arbex joint venture with Suzano, Kenvue acquisition progress, and launch of a proprietary alternative natural fiber innovation program.

• Innovation and marketing momentum continued in North America and international focus markets, with share gains in Vietnam, India, Indonesia, and Australia.

Financial highlights

• Q2 2026 net sales were $4.2 billion (+0.6%); H1 net sales were $8.4 billion (+1.6%).

• Q2 adjusted operating profit was $757 million (+6.2%); H1 adjusted operating profit was $1.5 billion (+4.9%).

• Q2 adjusted EPS from continuing operations was $1.80 (+10.4%); H1 was $3.40 (+4.6%).

• Adjusted free cash flow for H1 reached $1.1 billion, on pace for $2 billion for the full year.

• Cash provided by operations in H1 was $1.7 billion; capital spending was $776 million; $843 million returned to shareholders via dividends.

Outlook and guidance

• 2026 organic sales growth expected to be ~100 basis points below category average due to China disruption.

• Adjusted operating profit projected to grow mid-single digits (constant currency); adjusted EPS from continuing operations to grow high single digits.

• Adjusted EPS attributable expected to see a low single-digit decline (constant currency).

• Full-year capital spending is expected to be ~$1.3 billion, including transformation-related investments.

• Free cash flow guidance maintained at ~$2 billion.