3M Reports Fourth-Quarter and Full-Year 2025 Results; Initiates Full-Year 2026 Financial Guidance

Core Viewpoint - 3M reported strong financial results for Q4 and full-year 2025, highlighting growth above macroeconomic trends, margin expansion, and a commitment to sustainable value creation [2][5]. Q4 2025 Highlights - GAAP EPS from continuing operations was $1.07, down 20% year-on-year, while adjusted EPS was $1.83, up 9% year-on-year [3][5]. - GAAP operating income margin decreased to 13.0%, down 510 basis points year-on-year, while adjusted operating income margin increased to 21.1%, up 140 basis points year-on-year [3][6]. - Net sales for Q4 2025 were $6.1 billion, reflecting a 2.1% increase year-on-year, with organic sales growth of 0.6% [4][5]. Full-Year 2025 Highlights - Full-year GAAP sales reached $24.9 billion, up 1.5% year-on-year, with adjusted sales of $24.3 billion, up 2.7% year-on-year [8][11]. - GAAP EPS for the full year was $6.00, down 17% year-on-year, while adjusted EPS was $8.06, up 10% year-on-year [7][11]. - Full-year operating cash flow was $2.3 billion, with adjusted free cash flow of $4.4 billion [11]. 2026 Guidance - 3M expects adjusted sales of $6.0 billion for Q1 2026, representing a 3.7% year-on-year increase, with adjusted organic sales growth of 2.2% [10][15]. - The company plans to return $0.9 billion to shareholders through dividends and share repurchases [10].