3M(MMM) - 2025 Q3 - Quarterly Results

Executive Summary & Highlights This section summarizes 3M's strong Q3 2025 performance and updated full-year guidance Third-Quarter Performance Highlights 3M reported strong Q3 2025 results, with accelerated organic sales growth, increased margins, double-digit EPS growth, and robust free cash flow - 3M's Chairman and CEO, William Brown, expressed satisfaction with the company's focus on reinvigorating organic top-line growth and improving operational performance, attributing success to the '3M excellence model'[2] Q3 2025 Financial Performance (Millions) | Metric | Q3 2025 (GAAP) | Q3 2025 (Adjusted) | Q3 2024 (GAAP) | Q3 2024 (Adjusted) | | :----------------------------------- | :--------------- | :----------------- | :--------------- | :----------------- | | EPS from continuing operations | $1.55 | $2.19 | $2.48 | $1.98 | | Operating income margin | 22.2% | 24.7% | 20.9% | 23.0% | | Net sales (billions) | $6.5 | $6.3 | - | - | | Total sales change | 3.5% | 4.1% | - | - | | Organic sales change | 2.6% | 3.2% | - | - | - The company generated $1.8 billion in operating cash flow and $1.3 billion in adjusted free cash flow in Q3 2025[4][6] - 3M returned $0.9 billion to shareholders through dividends and share repurchases during the quarter[6] Updated Full-Year Guidance 3M updated its full-year 2025 guidance, raising expectations for adjusted EPS and operating income margin expansion 2025 Full-Year Guidance | Metric | 2025 Guidance (Updated) | | :----------------------------------- | :---------------------- | | Adjusted total sales growth | >2.5% | | Adjusted organic sales growth | >2% | | Adjusted operating income margin expansion | 180 bps to 200 bps | | Adjusted EPS | $7.95 to $8.05 | | Adjusted operating cash flow | $5.2 to $5.4 billion | | Adjusted free cash flow conversion | >100% | Forward-Looking Statements & Risk Factors This section outlines factors that could cause actual results to differ from forward-looking statements, covering economic, political, regulatory, and operational risks Forward-Looking Statements This section outlines various factors that could cause actual future results to differ materially from forward-looking statements, emphasizing the inherent risks and uncertainties in business operations and external conditions - Forward-looking statements are based on assumptions and expectations subject to risks and uncertainties, which may cause actual results to differ materially[10] - Key risk factors include worldwide economic, political, regulatory, and geopolitical conditions (e.g., inflation, recession, military conflicts, trade restrictions), foreign currency fluctuations, liabilities related to PFAS, legal proceedings, competitive conditions, supply chain disruptions, and impacts from acquisitions, divestitures, and the spin-off of the Health Care business[10] Consolidated Financial Statements This section presents 3M's consolidated financial statements, including the statement of income, balance sheet, and cash flows for Q3 and 9M 2025 Consolidated Statement of Income The consolidated statement of income shows a decrease in net income and EPS for Q3 and 9M 2025 compared to 2024, despite a slight increase in net sales, primarily due to higher other expenses and provision for income taxes Consolidated Statement of Income (Millions) | Metric | Q3 2025 (Millions) | Q3 2024 (Millions) | 9M 2025 (Millions) | 9M 2024 (Millions) | | :----------------------------------------- | :----------------- | :----------------- | :----------------- | :----------------- | | Net sales | $6,517 | $6,294 | $18,815 | $18,565 | | Operating income | $1,447 | $1,316 | $3,833 | $3,737 | | Income from continuing operations before taxes | $1,147 | $1,721 | $3,455 | $4,060 | | Net income attributable to 3M | $834 | $1,372 | $2,673 | $3,445 | | Diluted EPS | $1.55 | $2.48 | $4.93 | $6.21 | Condensed Consolidated Balance Sheet The condensed consolidated balance sheet indicates a decrease in total assets and liabilities, while total equity increased from December 31, 2024, to September 30, 2025 Condensed Consolidated Balance Sheet (Millions) | Metric | September 30, 2025 (Millions) | December 31, 2024 (Millions) | | :-------------------------- | :---------------------------- | :--------------------------- | | Total assets | $37,611 | $39,868 | | Total liabilities | $32,936 | $35,974 | | Total equity | $4,675 | $3,894 | | Cash and cash equivalents | $4,671 | $5,600 | Condensed Consolidated Statement of Cash Flows For the nine months ended September 30, 2025, 3M reported positive net cash from operating activities, a significant increase in net cash from investing activities, and a substantial net cash outflow from financing activities Condensed Consolidated Statement of Cash Flows (Millions) | Cash Flow Category | 9M 2025 (Millions) | 9M 2024 (Millions) | | :----------------------------------------- | :----------------- | :----------------- | | Net cash provided by (used in) operating activities | $723 | $1 | | Net cash provided by (used in) investing activities | $1,755 | $(2,060) | | Net cash provided by (used in) financing activities | $(3,399) | $2,178 | | Cash and cash equivalents at end of period | $4,671 | $6,050 | Sales Performance Analysis This section analyzes 3M's sales performance, breaking down changes by geographic area and business segment for both quarterly and nine-month periods Sales Change by Geographic Area In Q3 2025, Europe, Middle East, and Africa (EMEA) showed the highest total sales change, driven by translation effects, while all regions reported positive organic sales growth. For the nine months, Americas and Asia Pacific had positive organic sales, while EMEA experienced a decline Sales Change by Geographic Area | Geographic Area | Q3 2025 Organic Sales Change | Q3 2025 Total Sales Change | 9M 2025 Organic Sales Change | 9M 2025 Total Sales Change | | :------------------------ | :--------------------------- | :------------------------- | :--------------------------- | :------------------------- | | Americas | 2.9% | 2.9% | 1.7% | 1.5% | | Asia Pacific | 2.9% | 2.8% | 1.5% | 1.3% | | Europe, Middle East & Africa | 1.3% | 7.2% | (2.1)% | 0.8% | | Worldwide | 2.6% | 3.5% | 1.0% | 1.3% | Sales Change by Business Segment For Q3 2025, the Safety and Industrial segment led in organic and total sales growth, while Transportation and Electronics and Consumer segments also showed positive growth. For the nine months, Safety and Industrial and Consumer segments had positive organic sales, but Transportation and Electronics experienced a decline Sales Change by Business Segment | Business Segment | Q3 2025 Organic Sales Change | Q3 2025 Total Sales Change | 9M 2025 Organic Sales Change | 9M 2025 Total Sales Change | | :-------------------------- | :--------------------------- | :------------------------- | :--------------------------- | :------------------------- | | Safety and Industrial | 4.1% | 5.4% | 3.1% | 3.2% | | Transportation and Electronics | 1.8% | 2.4% | (1.2)% | (1.2)% | | Consumer | 0.3% | 0.9% | 0.3% | 0.1% | Business Segment Performance This section details the net sales and operating income performance across 3M's key business segments and the "Corporate and Other" category Segment Sales and Operating Income The Safety and Industrial segment demonstrated strong performance in Q3 and 9M 2025 with increased net sales and operating income. The Transportation and Electronics segment saw increased sales but a slight decrease in operating income for the nine-month period, while the Consumer segment showed modest growth Segment Net Sales (Millions) | Business Segment | Q3 2025 Net Sales (Millions) | Q3 2024 Net Sales (Millions) | 9M 2025 Net Sales (Millions) | 9M 2024 Net Sales (Millions) | | :-------------------------- | :--------------------------- | :--------------------------- | :--------------------------- | :--------------------------- | | Safety and Industrial | $2,917 | $2,767 | $8,519 | $8,258 | | Transportation and Electronics | $2,191 | $2,139 | $6,311 | $6,386 | | Consumer | $1,312 | $1,299 | $3,706 | $3,702 | | **Total