Tear Sheet: Kimberly-Clark Corp.

This report does not constitute a rating action. Management lowered its adjusted operating profit outlook for fiscal year 2025 to reflect changes in the geopolitical landscape, primarily President Trump?s upwardly revised 145% tariff on goods imported from China. This downward revision (equating to flattish 2025 adjusted operating profit, which compares with its previous expectation for a high-single-digit percent increase) incorporates $300 million of incremental costs, of which about $200 million relates to the tariff headwinds on China goods, $100 million to tariffs from other countries on U.S.-sourced goods, and--to a lesser extent--tariffs by the U.S. on other countries. We believe the company?s guidance revision is relatively conservative because it incorporates the full 145% tariff rate (whereas recent reports indicate the

...April 24, 2025 This report does not constitute a rating action. Kimberly-Clark lowered its 2025 profit outlook primarily due to higher tariff rates. Management lowered its adjusted operating profit outlook for fiscal year 2025 to reflect changes in the geopolitical landscape, primarily President Trump's upwardly revised 145% tariff on goods imported from China. This downward revision (equating to flattish 2025 adjusted operating profit, which compares with its previous expectation for a high-single-digit percent increase) incorporates $300 million of incremental costs, of which about $200 million relates to the tariff headwinds on China goods, $100 million to tariffs from other countries on U.S.-sourced goods, and--to a lesser extent--tariffs by the U.S. on other countries. We believe the company's guidance revision is relatively conservative because it incorporates the full 145% tariff rate (whereas recent reports indicate the potential for a significant reduction, albeit subject to Chinese...

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