We use cookies to understand how you use our site and to improve your experience.
This includes personalizing content and advertising.
By pressing "Accept All" or closing out of this banner, you consent to the use of all cookies and similar technologies and the sharing of information they collect with third parties.
You can reject marketing cookies by pressing "Deny Optional," but we still use essential, performance, and functional cookies.
In addition, whether you "Accept All," Deny Optional," click the X or otherwise continue to use the site, you accept our Privacy Policy and Terms of Service, revised from time to time.
You are being directed to ZacksTrade, a division of LBMZ Securities and licensed broker-dealer. ZacksTrade and Zacks.com are separate companies. The web link between the two companies is not a solicitation or offer to invest in a particular security or type of security. ZacksTrade does not endorse or adopt any particular investment strategy, any analyst opinion/rating/report or any approach to evaluating individual securities.
If you wish to go to ZacksTrade, click OK. If you do not, click Cancel.
3M's Safety & Industrial Growth Picks Up: A Sign of More Upside?
Read MoreHide Full Article
Key Takeaways
MMM's Safety and Industrial segment grew 2.5% organically in Q1, led by strength in key product markets.
Demand for cable accessories and bonding solutions drove sales amid data center and energy project growth.
MMM forecasts 2025 adjusted EPS of $7.60-$7.90, up from $7.30 in 2024, with 2-3% organic sales growth.
The strongest driver of 3M Company’s (MMM - Free Report) business at the moment is the persistent strength in its Safety and Industrial segment. Strong momentum in electrical, roofing granules, industrial adhesives and tapes, industrial specialties and personal safety markets has been driving the segment’s performance. In the first quarter of 2025, sales from the electrical and industrial adhesives & tapes markets grew in high-single-digit, while sales from roofing granules, industrial specialties and personal safety markets increased in low-single-digit.
Solid demand for cable accessories, driven by an increase in the construction of data centers and renewable energy projects, led the segment’s growth. Also, an increase in orders for industrial and electronics bonding solutions proved beneficial. The segment delivered an organic sales growth of 2.5% year over year in the first quarter. The segment’s operating income margin increased year over year, driven by benefits from sales growth, productivity and lower restructuring costs, partially offset by continued growth investments in the business.
Backed by strength across its businesses, the company provided a positive outlook. For 2025, 3M expects total adjusted organic sales to grow 2-3% on a year-over-year basis. Adjusted earnings are projected to be in the range of $7.60-$7.90 per share. The midpoint of the guided range is $7.75, which reflects an increase from earnings of $7.30 per share reported in 2024.
Segmental Performance of MMM’s Peers in Q1
Among 3M’s major peers, Honeywell International Inc. (HON - Free Report) is witnessing strength in its commercial aviation aftermarket business, driven by growth in air transport flight hours, higher shipset deliveries and supply-chain improvements. In the first quarter, Honeywell’s commercial aviation aftermarket sales increased 14% year over year. Strength in Honeywell’s defense and space business, owing to stable U.S. and international defense spending volumes, has also been proving beneficial.
Its another peer, Carlisle Companies Incorporated (CSL - Free Report) , is benefiting from strength in the Construction Materials segment, driven by robust demand for reroofing products. Higher sales in the non-residential construction market in the United States and Europe, driven by the acquisition of MTL and growing re-roof activity as a result of pent-up demand, have been driving Carlisle’s performance. In the first quarter, revenues from the Carlisle Construction Materials segment increased 2% year over year.
The Zacks Rundown for MMM
Shares of 3M have gained 14% in the year-to-date period compared with the industry’s growth of 0.7%.
Image Source: Zacks Investment Research
From a valuation standpoint, 3M is trading at a forward price-to-earnings ratio of 18.57X, above the industry average of 16.72X. The metric is pegged higher than its five-year median of 15.98X. MMM carries a Value Score of D.
Image Source: Zacks Investment Research
The Zacks Consensus Estimate for MMM’s earnings for second-quarter 2025 and 2025 has declined 1% and 1.3%, respectively, in the past 60 days.
Image Source: Zacks Investment Research
MMM stock currently carries a Zacks Rank #3 (Hold).
Image: Bigstock
3M's Safety & Industrial Growth Picks Up: A Sign of More Upside?
Key Takeaways
The strongest driver of 3M Company’s (MMM - Free Report) business at the moment is the persistent strength in its Safety and Industrial segment. Strong momentum in electrical, roofing granules, industrial adhesives and tapes, industrial specialties and personal safety markets has been driving the segment’s performance. In the first quarter of 2025, sales from the electrical and industrial adhesives & tapes markets grew in high-single-digit, while sales from roofing granules, industrial specialties and personal safety markets increased in low-single-digit.
Solid demand for cable accessories, driven by an increase in the construction of data centers and renewable energy projects, led the segment’s growth. Also, an increase in orders for industrial and electronics bonding solutions proved beneficial. The segment delivered an organic sales growth of 2.5% year over year in the first quarter. The segment’s operating income margin increased year over year, driven by benefits from sales growth, productivity and lower restructuring costs, partially offset by continued growth investments in the business.
Backed by strength across its businesses, the company provided a positive outlook. For 2025, 3M expects total adjusted organic sales to grow 2-3% on a year-over-year basis. Adjusted earnings are projected to be in the range of $7.60-$7.90 per share. The midpoint of the guided range is $7.75, which reflects an increase from earnings of $7.30 per share reported in 2024.
Segmental Performance of MMM’s Peers in Q1
Among 3M’s major peers, Honeywell International Inc. (HON - Free Report) is witnessing strength in its commercial aviation aftermarket business, driven by growth in air transport flight hours, higher shipset deliveries and supply-chain improvements. In the first quarter, Honeywell’s commercial aviation aftermarket sales increased 14% year over year. Strength in Honeywell’s defense and space business, owing to stable U.S. and international defense spending volumes, has also been proving beneficial.
Its another peer, Carlisle Companies Incorporated (CSL - Free Report) , is benefiting from strength in the Construction Materials segment, driven by robust demand for reroofing products. Higher sales in the non-residential construction market in the United States and Europe, driven by the acquisition of MTL and growing re-roof activity as a result of pent-up demand, have been driving Carlisle’s performance. In the first quarter, revenues from the Carlisle Construction Materials segment increased 2% year over year.
The Zacks Rundown for MMM
Shares of 3M have gained 14% in the year-to-date period compared with the industry’s growth of 0.7%.
Image Source: Zacks Investment Research
From a valuation standpoint, 3M is trading at a forward price-to-earnings ratio of 18.57X, above the industry average of 16.72X. The metric is pegged higher than its five-year median of 15.98X. MMM carries a Value Score of D.
Image Source: Zacks Investment Research
The Zacks Consensus Estimate for MMM’s earnings for second-quarter 2025 and 2025 has declined 1% and 1.3%, respectively, in the past 60 days.
Image Source: Zacks Investment Research
MMM stock currently carries a Zacks Rank #3 (Hold).
You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.