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MMM Rides on Strong Safety & Industrial Segment: More Upside Ahead?
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Key Takeaways
3M's Safety and Industrial segment benefited from broad-based demand across key end markets.
3M saw Q2 sales rise 13% in industrial adhesives and tapes and 9.4% in personal safety.
3M expects 2026 adjusted organic sales to grow more than 3.5%, with EPS of $8.80-$8.95.
3M Company’s (MMM - Free Report) Safety and Industrial segment continues to provide solid support to its overall growth, driven by broad-based demand across key end markets. The segment is seeing strength across industrial adhesives and tapes, electrical, industrial specialties and personal safety markets. In the second quarter of 2026, sales in industrial adhesives and tapes climbed 13%, while personal safety sales advanced 9.4% year over year. Electrical and industrial specialties markets also posted strong growth of 12% and 10.9% in the second quarter, respectively.
Stable demand for electrical infrastructure products like medium voltage cable accessories and insulation tapes further aided performance. Also, new product launches and an increase in demand for industrial adhesives and electronics bonding solutions bode well for it. The segment’s organic sales increased 8.2% year over year in the second quarter. The segment’s operating income margin improved year over year, benefiting from higher sales and productivity gains, although the improvement was partly offset by tariff impacts and ongoing investments to support business growth.
Supported by strength across its businesses, 3M provided an upbeat outlook for 2026. The company expects total adjusted organic sales to increase more than 3.5% year over year, while adjusted earnings are projected to range between $8.80 and $8.95 per share. At the midpoint of $8.875, the earnings outlook represents an improvement from the $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 in the second quarter of 2026. 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.
Another peer of MMM, 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 7.4% in the year-to-date period against the industry’s decline of 13.4%.
Image Source: Zacks Investment Research
From a valuation standpoint, 3M is trading at a forward price-to-earnings ratio of 18.07X, above the industry average of 15.06X. MMM carries a Value Score of D.
Image Source: Zacks Investment Research
The Zacks Consensus Estimate for MMM’s earnings for 2026 and 2027 has increased 2.9% and 4.4%, respectively, in the past 60 days.
View the Zacks #1 Rank List
Image: Bigstock
MMM Rides on Strong Safety & Industrial Segment: More Upside Ahead?
Key Takeaways
3M Company’s (MMM - Free Report) Safety and Industrial segment continues to provide solid support to its overall growth, driven by broad-based demand across key end markets. The segment is seeing strength across industrial adhesives and tapes, electrical, industrial specialties and personal safety markets. In the second quarter of 2026, sales in industrial adhesives and tapes climbed 13%, while personal safety sales advanced 9.4% year over year. Electrical and industrial specialties markets also posted strong growth of 12% and 10.9% in the second quarter, respectively.
Stable demand for electrical infrastructure products like medium voltage cable accessories and insulation tapes further aided performance. Also, new product launches and an increase in demand for industrial adhesives and electronics bonding solutions bode well for it. The segment’s organic sales increased 8.2% year over year in the second quarter. The segment’s operating income margin improved year over year, benefiting from higher sales and productivity gains, although the improvement was partly offset by tariff impacts and ongoing investments to support business growth.
Supported by strength across its businesses, 3M provided an upbeat outlook for 2026. The company expects total adjusted organic sales to increase more than 3.5% year over year, while adjusted earnings are projected to range between $8.80 and $8.95 per share. At the midpoint of $8.875, the earnings outlook represents an improvement from the $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 in the second quarter of 2026. 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.
Another peer of MMM, 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 7.4% in the year-to-date period against the industry’s decline of 13.4%.
Image Source: Zacks Investment Research
From a valuation standpoint, 3M is trading at a forward price-to-earnings ratio of 18.07X, above the industry average of 15.06X. MMM carries a Value Score of D.
Image Source: Zacks Investment Research
The Zacks Consensus Estimate for MMM’s earnings for 2026 and 2027 has increased 2.9% and 4.4%, 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.