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3M's Q3 adjusted EPS of $2.19 beat estimates and rose from $1.98 a year earlier.
Quarterly revenues grew 3.5% year over year to $6.52 billion, topping expectations.
3M raised 2025 EPS guidance to $7.95-$8.05, with over 2.5% expected revenue growth.
3M Company (MMM - Free Report) reported third-quarter 2025 results, wherein revenues and earnings surpassed the Zacks Consensus Estimate.
It’s worth noting that in April 2024, the company completed the spin-off of its Healthcare business into a separate public company.
Inside MMM’s Headlines
3M delivered adjusted earnings of $2.19 per share, which surpassed the Zacks Consensus Estimate of $2.10. The company reported earnings of $1.98 per share in the year-ago quarter.
The company reported net revenues of $6.52 billion in the quarter. The metric increased 3.5% year over year. Organic sales increased 2.6%. Foreign currency translation had a positive impact of 1% while acquisitions/divestitures had a negative impact of 0.1%.
MMM’s adjusted revenues of $6.30 billion beat the consensus estimate of $6.25 billion. On an adjusted basis, organic revenues increased 3.2% year over year.
Region-wise, organic sales in the Americas rose 2.9% year over year while Asia Pacific organic sales increased 2.9%. Organic sales from businesses in Europe, the Middle East and Africa increased 1.3%.
Revenues from Safety and Industrial totaled $2.92 billion, up 5.4% year over year. The Zacks Consensus Estimate for the segment’s revenues was pegged at $2.90 billion. Organic revenues increased 4.1% and foreign currency translation had a positive impact of 1.3%.
Revenues from Transportation & Electronics totaled $2.19 billion, reflecting a year-over-year increase of 2.4%. The upside is attributable to a 1.8% increase in organic sales. The consensus estimate for the segment’s revenues was pegged at $1.98 billion. Foreign currency translation had a 0.9% favorable impact while divestiture had an adverse impact of 0.3% on revenues.
Revenues from the Consumer segment increased 0.9% year over year to $1.31 billion. The consensus estimate for the segment’s revenues was also pegged at $1.31 billion. Organic sales increased 0.3%. Movements in foreign currencies had a positive impact of 0.6%.
MMM’s Margin Profile
3M’s cost of sales increased 4% year over year to $3.79 billion. Selling, general and administrative expenses decreased 22.8% to $820 million. Research, development and related expenses increased 10.4% year over year to $297 million.
In the third quarter, 3M reported an operating income of $1.45 billion, up 10% from the year-ago period.
MMM’s adjusted operating income increased 11.6% year over year to $1.56 billion. The adjusted operating margin was 24.7% compared with 23% in the year-ago quarter. The adjusted tax rate was 19.9% compared with 20.5% in the year-ago quarter.
3M’s Balance Sheet and Cash Flow
Exiting the third quarter, 3M had cash and cash equivalents of $4.7 billion compared with $5.6 billion at the end of December 2024. Long-term debt was $11.9 billion at the end of the quarter compared with $11.1 billion at the end of December 2024.
3M generated net cash of $723 million in operating activities compared with $1 million cash generated in the year-ago quarter. Capital used for purchasing property, plant and equipment decreased 25.6% to $662 million.
Adjusted free cash flow at the end of the quarter was $3.08 billion, up 13% year over year. Adjusted free cash flow conversion was 91% in the quarter.
In the first six months of 2025, 3M rewarded its shareholders with $1.2 billion in dividend payments.
MMM’s 2025 Guidance
For 2025, MMM expects adjusted earnings to be in the range of $7.95-$8.05 per share compared with $7.75-$8.00 previously projected. The midpoint of the guided range is about $8.00, which reflects an increase from earnings of $7.30 per share reported in 2024.
Adjusted total revenues are expected to grow more than 2.5%, while adjusted organic revenue growth is projected to be more than 2%. It expects adjusted operating cash flow of $5.2-$5.4 billion, with more than 100% adjusted free cash flow conversion rate.
MMM’s Zacks Rank
The company currently carries a Zacks Rank #3 (Hold).
Grupo Cibest S.A. (CIB - Free Report) currently sports a Zacks Rank of 1. Grupo Cibest delivered a trailing four-quarter average earnings surprise of 6.5%.
In the past 60 days, the Zacks Consensus Estimate for CIB’s 2025 earnings has increased 3.3%.
ITT Inc. (ITT - Free Report) presently carries a Zacks Rank #2 (Buy). It has a trailing four-quarter average earnings surprise of 1.5%.
The Zacks Consensus Estimate for ITT’s 2025 earnings has increased 0.2% in the past 60 days.
Flowserve Corporation (FLS - Free Report) presently carries a Zacks Rank of 2. FLS delivered a trailing four-quarter average earnings surprise of 5.5%.
In the past 60 days, the consensus estimate for Flowserve’s 2025 earnings has remained steady.
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3M's Q3 Earnings & Revenues Surpass Estimates, Increase Y/Y
Key Takeaways
3M Company (MMM - Free Report) reported third-quarter 2025 results, wherein revenues and earnings surpassed the Zacks Consensus Estimate.
It’s worth noting that in April 2024, the company completed the spin-off of its Healthcare business into a separate public company.
Inside MMM’s Headlines
3M delivered adjusted earnings of $2.19 per share, which surpassed the Zacks Consensus Estimate of $2.10. The company reported earnings of $1.98 per share in the year-ago quarter.
The company reported net revenues of $6.52 billion in the quarter. The metric increased 3.5% year over year. Organic sales increased 2.6%. Foreign currency translation had a positive impact of 1% while acquisitions/divestitures had a negative impact of 0.1%.
MMM’s adjusted revenues of $6.30 billion beat the consensus estimate of $6.25 billion. On an adjusted basis, organic revenues increased 3.2% year over year.
Region-wise, organic sales in the Americas rose 2.9% year over year while Asia Pacific organic sales increased 2.9%. Organic sales from businesses in Europe, the Middle East and Africa increased 1.3%.
3M Company Price, Consensus and EPS Surprise
3M Company price-consensus-eps-surprise-chart | 3M Company Quote
3M’s Segmental Results
Revenues from Safety and Industrial totaled $2.92 billion, up 5.4% year over year. The Zacks Consensus Estimate for the segment’s revenues was pegged at $2.90 billion. Organic revenues increased 4.1% and foreign currency translation had a positive impact of 1.3%.
Revenues from Transportation & Electronics totaled $2.19 billion, reflecting a year-over-year increase of 2.4%. The upside is attributable to a 1.8% increase in organic sales. The consensus estimate for the segment’s revenues was pegged at $1.98 billion. Foreign currency translation had a 0.9% favorable impact while divestiture had an adverse impact of 0.3% on revenues.
Revenues from the Consumer segment increased 0.9% year over year to $1.31 billion. The consensus estimate for the segment’s revenues was also pegged at $1.31 billion. Organic sales increased 0.3%. Movements in foreign currencies had a positive impact of 0.6%.
MMM’s Margin Profile
3M’s cost of sales increased 4% year over year to $3.79 billion. Selling, general and administrative expenses decreased 22.8% to $820 million. Research, development and related expenses increased 10.4% year over year to $297 million.
In the third quarter, 3M reported an operating income of $1.45 billion, up 10% from the year-ago period.
MMM’s adjusted operating income increased 11.6% year over year to $1.56 billion. The adjusted operating margin was 24.7% compared with 23% in the year-ago quarter. The adjusted tax rate was 19.9% compared with 20.5% in the year-ago quarter.
3M’s Balance Sheet and Cash Flow
Exiting the third quarter, 3M had cash and cash equivalents of $4.7 billion compared with $5.6 billion at the end of December 2024. Long-term debt was $11.9 billion at the end of the quarter compared with $11.1 billion at the end of December 2024.
3M generated net cash of $723 million in operating activities compared with $1 million cash generated in the year-ago quarter. Capital used for purchasing property, plant and equipment decreased 25.6% to $662 million.
Adjusted free cash flow at the end of the quarter was $3.08 billion, up 13% year over year. Adjusted free cash flow conversion was 91% in the quarter.
In the first six months of 2025, 3M rewarded its shareholders with $1.2 billion in dividend payments.
MMM’s 2025 Guidance
For 2025, MMM expects adjusted earnings to be in the range of $7.95-$8.05 per share compared with $7.75-$8.00 previously projected. The midpoint of the guided range is about $8.00, which reflects an increase from earnings of $7.30 per share reported in 2024.
Adjusted total revenues are expected to grow more than 2.5%, while adjusted organic revenue growth is projected to be more than 2%. It expects adjusted operating cash flow of $5.2-$5.4 billion, with more than 100% adjusted free cash flow conversion rate.
MMM’s Zacks Rank
The company currently carries a Zacks Rank #3 (Hold).
You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Stocks to Consider
Better-ranked companies are discussed below.
Grupo Cibest S.A. (CIB - Free Report) currently sports a Zacks Rank of 1. Grupo Cibest delivered a trailing four-quarter average earnings surprise of 6.5%.
In the past 60 days, the Zacks Consensus Estimate for CIB’s 2025 earnings has increased 3.3%.
ITT Inc. (ITT - Free Report) presently carries a Zacks Rank #2 (Buy). It has a trailing four-quarter average earnings surprise of 1.5%.
The Zacks Consensus Estimate for ITT’s 2025 earnings has increased 0.2% in the past 60 days.
Flowserve Corporation (FLS - Free Report) presently carries a Zacks Rank of 2. FLS delivered a trailing four-quarter average earnings surprise of 5.5%.
In the past 60 days, the consensus estimate for Flowserve’s 2025 earnings has remained steady.