Core Insights - Kimberly-Clark Corporation reported strong second quarter results driven by innovation-led volume growth, effective cost management, and resilient consumer demand [1][2][4] - The company is executing its "Powering Care" transformation strategy, which has led to one of the strongest quarters in recent history [2][3] Financial Performance - Net sales for Q2 2025 were $4.2 billion, a decrease of 1.6% from the previous year, impacted by divestitures and foreign currency translation [4][10] - Organic sales increased by 3.9%, primarily due to a 5.0% volume-led growth, partially offset by a 1.2% investment in pricing [4][10] - Gross margin was reported at 35.0%, with an adjusted gross margin of 36.9%, down 180 basis points year-over-year due to pricing pressures and cost inflation [5][10] - Operating profit for Q2 was $592 million, up from $539 million in the prior year, with adjusted operating profit at $713 million, a decline of 2.2% [6][10] Year-to-Date Results - For the first half of 2025, sales totaled $8.2 billion, down 4.0% compared to the same period last year, with organic sales growth of 1.2% [11][12] - Year-to-date gross margin was 36.1%, with an adjusted gross margin of 37.7%, reflecting a decline of 120 basis points year-over-year [12] - Year-to-date operating profit was $1.2 billion, including $196 million in transformation initiative costs, with adjusted operating profit at $1.4 billion, down 4.7% from 2024 [13] Business Segment Performance - North America net sales decreased by 1.9% to $2.7 billion, while organic sales grew by 4.3% driven by strong volume growth [19][20] - International Personal Care (IPC) net sales increased by 0.4% to $1.4 billion, with organic sales growth of 3.3% [21][22] Cash Flow and Balance Sheet - Year-to-date cash provided by operations was $1.1 billion, down from $1.5 billion last year, with capital spending at $401 million [23] - The company returned $944 million to shareholders through dividends and stock repurchases, with total debt at $7.2 billion as of June 30, 2025 [23] 2025 Outlook - The company adjusted its full-year outlook, expecting organic sales growth to outpace the average growth in its categories, which are currently at approximately 2% [24][25] - Adjusted operating profit is anticipated to grow at a low-to-mid single-digit rate on a constant-currency basis, with a negative impact from divestitures and currency translation [26][27] - Adjusted earnings per share are expected to grow at a low-to-mid single-digit rate, factoring in various impacts including higher net interest expense and a higher effective tax rate [27]