3M(US:MMM) The Motley Fool·2025-11-03 00:14Core Viewpoint - 3M has shown significant operational improvements under CEO Bill Brown, leading to a 70% increase in stock price since his appointment, despite challenging end markets [5][6]. Group 1: Investment Case - The investment case for 3M is based on the potential for value creation through restructuring, independent of economic conditions [3]. - 3M's stock has increased nearly 30% year-to-date, outperforming the S&P 500 [2]. Group 2: Operational Improvements - Bill Brown's strategy includes enhancing machinery utilization, improving on-time delivery (OTIF) to 91.6%, and reducing inventory holding days [7][11]. - The overall equipment effectiveness (OEE) has improved to 63%, up from 60% last year [11]. Group 3: New Product Introductions (NPIs) - In Q3, 3M released 70 NPIs, totaling 196 for 2025, a 70% increase compared to the same period in 2024, with a target of 250 NPIs for the full year [9][10]. - The focus on NPIs includes both incremental line extensions and novel products that could open new markets [8][10]. Group 4: Future Outlook - CFO Anurag Maheshwari anticipates high-single-digit earnings-per-share (EPS) growth in 2026, driven by operational performance [12]. - There is potential for revenue growth to improve from the current 2% to 3% rate to a mid-single-digit range as end markets recover [13].