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Strength in Safety & Industrial Unit Drives 3M: A Sign of More Upside?
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Key Takeaways
3M's Safety and Industrial segment delivered 8.2% organic sales growth in the second quarter.
Industrial adhesives & tapes sales rose 13%, while personal safety markets increased 9.4%.
3M expects 2026 adjusted organic sales growth above 3.5% and EPS of $8.80-$8.95.
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 abrasives, industrial adhesives and tapes, specialties, roofing granules, personal safety and electrical markets has been driving the segment’s performance. In the second quarter of 2026, sales from the industrial adhesives & tapes markets grew 13%, while sales from personal safety markets increased 9.4%. Also, sales from electrical and industrial specialties markets increased 12% and 10.9%, respectively.
The segment delivered an organic sales growth of 8.2% year over year in the second quarter. The segment’s operating income margin increased year over year, driven by benefits from sales growth and productivity, partially offset by tariffs and continued growth investments in the business.
Backed by strength across its businesses, the company provided a positive outlook. For 2026, 3M expects total adjusted organic sales to grow more than 3.5% on a year-over-year basis. Adjusted earnings are expected to be in the range of $8.80-$8.95 per share. The midpoint of the guided range is about $8.875, which reflects an increase from earnings of $8.06 per share reported in 2025.
Segmental Performance of MMM’s Peers in Q2.
Among 3M’s major peers, Carlisle Companies Incorporated (CSL - Free Report) is experiencing strength in its Construction Materials segment. Revenues from Carlisle’s Construction Materials segment increased 7.8% year over year to $1.18 billion. Organic revenues rose 7.7%, driven by healthy re-roofing demand, strategic initiatives and strong commercial execution, partly offset by continued softness in commercial new construction.
Its another peer, Honeywell International Inc. (HON - Free Report) , is witnessing softness in the Process Automation and Technology segment. In second-quarter 2026, the segment’s organic revenues decreased 1% on a year-over-year basis. This decline was attributable to a 6% drop in organic sales in the aftermarket business owing to lower refining catalyst shipments and project delays. Also, reduced customer demand in the Middle East due to ongoing geopolitical tensions hurt Honeywell’s results.
The Zacks Rundown for MMM
Shares of 3M have gained 14.3% in the year-to-date period against the industry’s decline of 8.5%.
Image Source: Zacks Investment Research
From a valuation standpoint, 3M is trading at a forward price-to-earnings ratio of 19.47X, above the industry average of 16.15X. MMM carries a Value Score of C.
Image Source: Zacks Investment Research
The Zacks Consensus Estimate for MMM’s earnings for 2026 and 2027 has increased 2.5% and 3.6%, respectively, in the past 60 days.
View the Zacks #1 Rank List
Image: Bigstock
Strength in Safety & Industrial Unit Drives 3M: 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 abrasives, industrial adhesives and tapes, specialties, roofing granules, personal safety and electrical markets has been driving the segment’s performance. In the second quarter of 2026, sales from the industrial adhesives & tapes markets grew 13%, while sales from personal safety markets increased 9.4%. Also, sales from electrical and industrial specialties markets increased 12% and 10.9%, respectively.
The segment delivered an organic sales growth of 8.2% year over year in the second quarter. The segment’s operating income margin increased year over year, driven by benefits from sales growth and productivity, partially offset by tariffs and continued growth investments in the business.
Backed by strength across its businesses, the company provided a positive outlook. For 2026, 3M expects total adjusted organic sales to grow more than 3.5% on a year-over-year basis. Adjusted earnings are expected to be in the range of $8.80-$8.95 per share. The midpoint of the guided range is about $8.875, which reflects an increase from earnings of $8.06 per share reported in 2025.
Segmental Performance of MMM’s Peers in Q2.
Among 3M’s major peers, Carlisle Companies Incorporated (CSL - Free Report) is experiencing strength in its Construction Materials segment. Revenues from Carlisle’s Construction Materials segment increased 7.8% year over year to $1.18 billion. Organic revenues rose 7.7%, driven by healthy re-roofing demand, strategic initiatives and strong commercial execution, partly offset by continued softness in commercial new construction.
Its another peer, Honeywell International Inc. (HON - Free Report) , is witnessing softness in the Process Automation and Technology segment. In second-quarter 2026, the segment’s organic revenues decreased 1% on a year-over-year basis. This decline was attributable to a 6% drop in organic sales in the aftermarket business owing to lower refining catalyst shipments and project delays. Also, reduced customer demand in the Middle East due to ongoing geopolitical tensions hurt Honeywell’s results.
The Zacks Rundown for MMM
Shares of 3M have gained 14.3% in the year-to-date period against the industry’s decline of 8.5%.
Image Source: Zacks Investment Research
From a valuation standpoint, 3M is trading at a forward price-to-earnings ratio of 19.47X, above the industry average of 16.15X. MMM carries a Value Score of C.
Image Source: Zacks Investment Research
The Zacks Consensus Estimate for MMM’s earnings for 2026 and 2027 has increased 2.5% and 3.6%, respectively, in the past 60 days.
Image Source: Zacks Investment Research
MMM stock currently carries a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.