3M(US:MMM)2026-01-20 11:34Financial Performance - Full-year operating cash flow of $2.3 billion with adjusted free cash flow of $4.4 billion[10] - Q4 GAAP sales of $6.1 billion, up 2.1% year-on-year; adjusted sales of $6.0 billion, up 3.7% year-on-year[4] - Q4 adjusted EPS of $1.83, up 9% year-on-year; full-year adjusted EPS of $8.06, up 10% year-on-year[9] - Full-year GAAP sales of $24.9 billion, up 1.5% year-on-year; adjusted sales of $24.3 billion, up 2.7% year-on-year[10] - Operating income for the total company decreased to $4,629 million in 2025 from $4,822 million in 2024, a decline of 4.0%[25] - The adjusted EPS for 2025 was $8.06, representing a 10% increase compared to the previous year[38] - The effective tax rate for the total company was 24.5%, reflecting a significant increase in provision for income taxes[35] - The effective tax rate for 2026 is projected to be approximately 20%[40] Cash Flow and Investments - 3M returned $4.8 billion to shareholders via dividends and share repurchases in 2025[10] - Q4 operating cash flow of $1.6 billion with adjusted free cash flow of $1.3 billion[6] - Adjusted free cash flow for 2025 was reported at $4.374 billion, compared to $4.877 billion in 2024[44] - Adjusted free cash flow conversion for 2025 was 100%, indicating effective cash flow management[44] - The company plans to invest approximately $1.1 billion in property, plant, and equipment (PPE) in 2026[46] Segment Performance - The Safety and Industrial segment reported a total sales increase of 3.9% for the year ended December 31, 2025, driven by organic sales growth of 3.2%[22] - The Transportation and Electronics segment experienced a total sales decline of 1.3% for the year ended December 31, 2025, with organic sales down by 1.5%[22] - In the Safety and Industrial segment, GAAP net sales were $665 million, with an operating income margin of 23.2%[35] - The Transportation and Electronics segment reported GAAP net sales of $1,961 million, a decline of 1.7%, with an operating income margin of 7.2%[35] - Total reportable business segments had GAAP net sales of $6,040 million, a 1.9% increase, and an operating income margin of 16.9%[35] Guidance and Forecast - Full-year 2026 guidance includes adjusted EPS in the range of $8.50 to $8.70[14] - Adjusted total sales growth of approximately 4% expected for 2026, reflecting adjusted organic sales growth of approximately 3%[14] - The forecast for 2026 includes an adjusted operating income margin expansion of 70 to 80 basis points and an adjusted EPS ranging from $8.50 to $8.70[40] - The company forecasts total sales growth of approximately 4% for 2026, with organic sales expected to grow around 3%[46] Balance Sheet and Liabilities - Total assets decreased from $39,868 million in 2024 to $37,733 million in 2025, a decline of approximately 5.4%[18] - The company’s total current liabilities decreased from $11,256 million in 2024 to $9,595 million in 2025, a reduction of approximately 14.8%[18] - The company’s total equity increased from $3,894 million in 2024 to $4,747 million in 2025, an increase of approximately 22.0%[18] - The company reported a net cash decrease of $365 million in cash and cash equivalents for the year ended December 31, 2025, compared to a decrease of $333 million in 2024[20] Litigation and Special Items - Special items included a loss of $110 million related to manufactured PFAS products, impacting overall financial performance[35] - The company incurred significant litigation costs amounting to $58 million in 2025, impacting overall profitability[38] - The company reported a net cost of $3.5 billion related to significant litigation in 2025[47] Operational Metrics - Q4 operating margin of 13.0%, down 510 bps year-on-year; adjusted operating margin of 21.1%, up 140 bps year-on-year[4] - Full-year operating margin of 18.6%, down 100 bps year-on-year; adjusted operating margin of 23.4%, up 200 bps year-on-year[9] - The adjusted operating income for the same period was $1,269 million, with an operating margin of 21.1%, reflecting a 140 basis points improvement[35] - Total sales change for the company increased by 1.5%, with organic sales growth of 0.9% and a contribution from translation of 0.4%[42] - Adjusted total company sales growth (non-GAAP) was 2.7%, driven by organic sales growth of 2.1%[42] - For the three months ended December 31, 2025, total sales change was 2.1%, with organic sales growth of 0.6%[40]