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3M's Q4 Earnings Top Estimates, Safety and Industrial Sales Increase Y/Y
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Key Takeaways
MMM beat Q4 earnings estimates as EPS rose to $1.83, while adjusted revenues fell short of expectations.
MMM saw Safety and Industrial sales rise 6%, offset by declines in Consumer segment.
MMM guided 2026 adjusted EPS of $8.50-$8.70, with total revenues expected to grow about 4% year over year.
3M Company (MMM - Free Report) reported fourth-quarter 2025 results, wherein earnings surpassed the Zacks Consensus Estimate while revenues missed the same.
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 $1.83 per share, which surpassed the Zacks Consensus Estimate of $1.82. The company reported earnings of $1.68 per share in the year-ago quarter.
The company reported net revenues of $6.13 billion in the quarter. The metric increased 2.1% year over year. Organic sales increased 0.6%. Foreign currency translation had a positive impact of 1.6% while acquisitions/divestitures had a negative impact of 0.1%.
MMM’s adjusted revenues of $6.02 billion missed the consensus estimate of $6.08 billion. On an adjusted basis, organic revenues increased 2.2% year over year.
Region-wise, organic sales in the Americas rose 0.1% year over year, other Asia organic sales increased 5%, while China organic sales decreased 1.9%. Organic sales from businesses in Europe, the Middle East and Africa decreased 0.6%.
In 2025, MMM reported net revenues of $24.9 billion, which increased 1.5% year over year. The company’s adjusted earnings were $8.06 per share, up 10% year over year.
3M’s Segmental Results
Revenues from Safety and Industrial totaled $2.87 billion, up 6% year over year, driven by strength in safety, industrial adhesives and tapes, abrasives and electrical markets. The Zacks Consensus Estimate for the segment’s revenues was pegged at $2.84 billion. Organic revenues increased 3.8% and foreign currency translation had a positive impact of 2.2%.
Revenues from Transportation & Electronics totaled $1.85 billion, reflecting a year-over-year increase of 3.3%. The upside is attributable to a 2.4% increase in organic sales. Foreign currency translation had a 1.2% favorable impact, while divestiture had an adverse impact of 0.3% on revenues.
Revenues from the Consumer segment decreased 1.2% year over year to $1.21 billion. The consensus estimate for the segment’s revenues was also pegged at $1.24 billion. Organic sales decreased 2.2%. Movements in foreign currencies had a positive impact of 1%.
3M’s cost of sales increased 8.8% year over year to $4.08 billion. Selling, general and administrative expenses increased 7.3% to $965 million. Research, development and related expenses increased 6% year over year to $299 million.
In the fourth quarter, 3M reported an operating income of $796 million, down 26.6% from the year-ago period.
MMM’s adjusted operating income increased 10.9% year over year to $1.27 billion. The adjusted operating margin was 21.1% compared with 19.7% in the year-ago quarter. The adjusted tax rate was 17.7% compared with 17.9% in the year-ago quarter.
3M’s Balance Sheet and Cash Flow
Exiting 2025, 3M had cash and cash equivalents of $5.24 billion compared with $5.6 billion at the end of December 2024. Long-term debt was $10.9 billion at the end of the quarter compared with $11.1 billion at the end of December 2024.
3M generated net cash of $2.31 billion in operating activities compared with $1.82 billion cash generated in the previous year. Capital used for purchasing property, plant and equipment decreased 22.9% to $910 million.
Adjusted free cash flow at the end of the year was $4.37 billion, down 10.3% year over year. Adjusted free cash flow conversion was 100% in the year.
In 2025, 3M rewarded its shareholders with $1.6 billion in dividend payments.
MMM’s 2026 Guidance
For 2026, MMM expects adjusted earnings to be in the range of $8.50-$8.70 per share. The midpoint of the guided range is about $8.60, which reflects an increase from earnings of $8.06 per share reported in 2025.
Adjusted total revenues are expected to grow approximately 4%, while adjusted organic revenue growth is projected to be about 3%. It expects adjusted operating cash flow of $5.6-$5.8 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 carries a Zacks Rank #2 (Buy). Grupo Cibest delivered a trailing four-quarter average earnings surprise of 10.4%.
In the past 60 days, the Zacks Consensus Estimate for CIB’s 2025 earnings has increased 12.8%.
Nordson Corporation (NDSN - Free Report) presently carries a Zacks Rank of 2. NDSN delivered a trailing four-quarter average earnings surprise of 2.2%.
In the past 60 days, the consensus estimate for Nordson’s fiscal 2026 (ending October 2026) earnings has increased 2.3%.
Watts Water Technologies, Inc. (WTS - Free Report) presently carries a Zacks Rank of 2. WTS delivered a trailing four-quarter average earnings surprise of 10.9%.
In the past 60 days, the consensus estimate for Watts Water’s 2025 earnings has increased 0.5%.
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3M's Q4 Earnings Top Estimates, Safety and Industrial Sales Increase Y/Y
Key Takeaways
3M Company (MMM - Free Report) reported fourth-quarter 2025 results, wherein earnings surpassed the Zacks Consensus Estimate while revenues missed the same.
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 $1.83 per share, which surpassed the Zacks Consensus Estimate of $1.82. The company reported earnings of $1.68 per share in the year-ago quarter.
The company reported net revenues of $6.13 billion in the quarter. The metric increased 2.1% year over year. Organic sales increased 0.6%. Foreign currency translation had a positive impact of 1.6% while acquisitions/divestitures had a negative impact of 0.1%.
MMM’s adjusted revenues of $6.02 billion missed the consensus estimate of $6.08 billion. On an adjusted basis, organic revenues increased 2.2% year over year.
Region-wise, organic sales in the Americas rose 0.1% year over year, other Asia organic sales increased 5%, while China organic sales decreased 1.9%. Organic sales from businesses in Europe, the Middle East and Africa decreased 0.6%.
In 2025, MMM reported net revenues of $24.9 billion, which increased 1.5% year over year. The company’s adjusted earnings were $8.06 per share, up 10% year over year.
3M’s Segmental Results
Revenues from Safety and Industrial totaled $2.87 billion, up 6% year over year, driven by strength in safety, industrial adhesives and tapes, abrasives and electrical markets. The Zacks Consensus Estimate for the segment’s revenues was pegged at $2.84 billion. Organic revenues increased 3.8% and foreign currency translation had a positive impact of 2.2%.
Revenues from Transportation & Electronics totaled $1.85 billion, reflecting a year-over-year increase of 3.3%. The upside is attributable to a 2.4% increase in organic sales. Foreign currency translation had a 1.2% favorable impact, while divestiture had an adverse impact of 0.3% on revenues.
Revenues from the Consumer segment decreased 1.2% year over year to $1.21 billion. The consensus estimate for the segment’s revenues was also pegged at $1.24 billion. Organic sales decreased 2.2%. Movements in foreign currencies had a positive impact of 1%.
3M Company Price, Consensus and EPS Surprise
3M Company price-consensus-eps-surprise-chart | 3M Company Quote
MMM’s Margin Profile
3M’s cost of sales increased 8.8% year over year to $4.08 billion. Selling, general and administrative expenses increased 7.3% to $965 million. Research, development and related expenses increased 6% year over year to $299 million.
In the fourth quarter, 3M reported an operating income of $796 million, down 26.6% from the year-ago period.
MMM’s adjusted operating income increased 10.9% year over year to $1.27 billion. The adjusted operating margin was 21.1% compared with 19.7% in the year-ago quarter. The adjusted tax rate was 17.7% compared with 17.9% in the year-ago quarter.
3M’s Balance Sheet and Cash Flow
Exiting 2025, 3M had cash and cash equivalents of $5.24 billion compared with $5.6 billion at the end of December 2024. Long-term debt was $10.9 billion at the end of the quarter compared with $11.1 billion at the end of December 2024.
3M generated net cash of $2.31 billion in operating activities compared with $1.82 billion cash generated in the previous year. Capital used for purchasing property, plant and equipment decreased 22.9% to $910 million.
Adjusted free cash flow at the end of the year was $4.37 billion, down 10.3% year over year. Adjusted free cash flow conversion was 100% in the year.
In 2025, 3M rewarded its shareholders with $1.6 billion in dividend payments.
MMM’s 2026 Guidance
For 2026, MMM expects adjusted earnings to be in the range of $8.50-$8.70 per share. The midpoint of the guided range is about $8.60, which reflects an increase from earnings of $8.06 per share reported in 2025.
Adjusted total revenues are expected to grow approximately 4%, while adjusted organic revenue growth is projected to be about 3%. It expects adjusted operating cash flow of $5.6-$5.8 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
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Grupo Cibest S.A. (CIB - Free Report) currently carries a Zacks Rank #2 (Buy). Grupo Cibest delivered a trailing four-quarter average earnings surprise of 10.4%.
In the past 60 days, the Zacks Consensus Estimate for CIB’s 2025 earnings has increased 12.8%.
Nordson Corporation (NDSN - Free Report) presently carries a Zacks Rank of 2. NDSN delivered a trailing four-quarter average earnings surprise of 2.2%.
In the past 60 days, the consensus estimate for Nordson’s fiscal 2026 (ending October 2026) earnings has increased 2.3%.
Watts Water Technologies, Inc. (WTS - Free Report) presently carries a Zacks Rank of 2. WTS delivered a trailing four-quarter average earnings surprise of 10.9%.
In the past 60 days, the consensus estimate for Watts Water’s 2025 earnings has increased 0.5%.