KMB · 10-Q · 2026Q2 · Full report

2024 Transformation Initiative

KIMBERLY CLARK CORP · 2026-08-04 · Importance 64 · Surprise 42 · No source text

The 2024 Transformation Initiative is being extended through the end of 2028 and is intended to improve innovation, margins, productivity and organizational agility across major geographies. Management expects $3.0 billion of gross productivity savings, including $200 million of selling, general and administrative savings, against approximately $1.5 billion of pre-tax costs, with cash costs representing about 60%. Workforce reductions are expected to range from 4% to 5%; cumulative pre-tax charges reached $913 million through June 30, 2026, and 95% of expected SG&A savings had been realized or approved.

Key facts

• Total pre-tax savings from the 2024 Transformation Initiative are expected to be $3.0 billion in gross productivity and $200 in selling, general and administrative expenses. source
• Total pre-tax costs for the 2024 Transformation Initiative are anticipated to be approximately $1.5 billion, with cash costs expected to be approximately 60% of that amount. source
• Through June 30, 2026, cumulative pre-tax charges for the 2024 Transformation Initiative were $913 ($706 after-tax), and approximately 95% of the total expected selling, general and administrative expense savings have been realized or approved for action. source
• For the three months ended June 30, 2026 and 2025, 2024 Transformation Initiative charges were $54 pre-tax ($40 after-tax) and $122 pre-tax ($95 after-tax), respectively. source
• For the six months ended June 30, 2026 and 2025, 2024 Transformation Initiative charges were $105 pre-tax ($72 after-tax) and $199 pre-tax ($172 after-tax), respectively. source
• The Board approved an extension of the 2024 Transformation Initiative through the end of 2028 during Q2 2026. source

Impact estimates