3M's Q3 Earnings & Revenues Surpass Estimates, Increase Y/Y

Core Insights - 3M Company (MMM) reported third-quarter 2025 results with revenues and earnings exceeding the Zacks Consensus Estimate [1][10] Financial Performance - Adjusted earnings were $2.19 per share, surpassing the Zacks Consensus Estimate of $2.10, and up from $1.98 per share in the same quarter last year [2][10] - Net revenues reached $6.52 billion, reflecting a 3.5% year-over-year increase, with organic sales up 2.6% [2][10] - Adjusted revenues of $6.30 billion also beat the consensus estimate of $6.25 billion, with organic revenues increasing 3.2% year over year [3] Segment Performance - Safety and Industrial segment revenues totaled $2.92 billion, up 5.4% year over year, exceeding the consensus estimate of $2.90 billion [4] - Transportation & Electronics segment revenues were $2.19 billion, reflecting a 2.4% year-over-year increase, surpassing the consensus estimate of $1.98 billion [5] - Consumer segment revenues increased 0.9% year over year to $1.31 billion, matching the consensus estimate [6] Margin and Cost Analysis - Cost of sales increased 4% year over year to $3.79 billion, while selling, general and administrative expenses decreased 22.8% to $820 million [7] - Adjusted operating income rose 11.6% year over year to $1.56 billion, with an adjusted operating margin of 24.7% compared to 23% in the previous year [8] Balance Sheet and Cash Flow - Cash and cash equivalents at the end of the quarter were $4.7 billion, down from $5.6 billion at the end of December 2024, while long-term debt increased to $11.9 billion [11] - Generated net cash from operating activities was $723 million, significantly higher than $1 million in the year-ago quarter [11] - Adjusted free cash flow was $3.08 billion, up 13% year over year, with a conversion rate of 91% [12] 2025 Guidance - For 2025, 3M expects adjusted earnings in the range of $7.95-$8.05 per share, an increase from the previous guidance of $7.75-$8.00 [13] - Adjusted total revenues are projected to grow more than 2.5%, with adjusted organic revenue growth expected to exceed 2% [14]