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3M's Safety & Industrial Growth Picks Up: Can the Momentum Sustain?
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Key Takeaways
MMM's Safety & Industrial segment posted 7% organic growth in Q3, with operating margin rising to 30.1%.
Solid demand in personal safety, adhesives, electrical and fire safety markets fueled 3M's growth.
MMM expects over 3.5% adjusted organic sales growth in 2026, with adjusted EPS projected at $9.10-$9.15.
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 personal safety, industrial adhesives and tapes, industrial specialties, automotive aftermarket, fire safety & rescue and electrical markets has been driving the segment’s performance.
In the third quarter of 2026, sales from both industrial adhesives & tapes and personal safety markets grew 7.8% year over year, while sales from the industrial specialties market increased 5.1%. Also, sales from the electrical and fire safety and rescue markets increased 13.4% and 90.7%, respectively.
3M’s Safety and Industrial segment delivered organic sales growth of 7% year over year in the third quarter. The segment’s operating income margin increased 300 basis points to 30.1%, driven by benefits from sales growth and productivity, partially offset by cost dis-synergies and continued growth investments.
Backed by strength across general industrial, safety and data center markets, 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 $9.10-$9.15 per share. The guided range suggests growth of 11-12% on a year-over-year basis. Adjusted operating cash flow is projected to be about $5.9 billion, with adjusted free cash flow of $4.8 billion.
Segmental Performance of MMM’s Peers in Q2
Among 3M’s major peers, Honeywell International Inc. (HON - Free Report) is witnessing strength in its Building Automation segment. In third-quarter 2026, the segment’s revenues totaled $2 billion, up 8% year over year. Organic sales increased 8% year over year. The upside was driven by continued strength in Honeywell’s building products and building solutions businesses. While organic sales from Honeywell’s building products business grew 11%, the same from the building solutions business increased 4%.
Another peer, Carlisle Companies Incorporated (CSL - Free Report) , is experiencing solid momentum in its Construction Materials segment. Revenues from Carlisle’s Construction Materials segment increased 8% year over year to $1.1 billion in the third quarter. Organic revenues rose 9%, driven by healthy re-roofing demand, strategic initiatives and strong commercial execution, partly offset by continued softness in commercial new construction.
The Zacks Rundown for MMM
Image Source: Zacks Investment Research
Shares of 3M have gained 7.3% in the past three months against the industry’s decline of 4.8%.
Image Source: Zacks Investment Research
From a valuation standpoint, 3M is trading at a forward price-to-earnings ratio of 19.99X, above the industry average of 15.26X. 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 1.3% and 0.4%, respectively, in the past 60 days.
View the Zacks #1 Rank List
Image: Bigstock
3M's Safety & Industrial Growth Picks Up: Can the Momentum Sustain?
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 personal safety, industrial adhesives and tapes, industrial specialties, automotive aftermarket, fire safety & rescue and electrical markets has been driving the segment’s performance.
In the third quarter of 2026, sales from both industrial adhesives & tapes and personal safety markets grew 7.8% year over year, while sales from the industrial specialties market increased 5.1%. Also, sales from the electrical and fire safety and rescue markets increased 13.4% and 90.7%, respectively.
3M’s Safety and Industrial segment delivered organic sales growth of 7% year over year in the third quarter. The segment’s operating income margin increased 300 basis points to 30.1%, driven by benefits from sales growth and productivity, partially offset by cost dis-synergies and continued growth investments.
Backed by strength across general industrial, safety and data center markets, 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 $9.10-$9.15 per share. The guided range suggests growth of 11-12% on a year-over-year basis. Adjusted operating cash flow is projected to be about $5.9 billion, with adjusted free cash flow of $4.8 billion.
Segmental Performance of MMM’s Peers in Q2
Among 3M’s major peers, Honeywell International Inc. (HON - Free Report) is witnessing strength in its Building Automation segment. In third-quarter 2026, the segment’s revenues totaled $2 billion, up 8% year over year. Organic sales increased 8% year over year. The upside was driven by continued strength in Honeywell’s building products and building solutions businesses. While organic sales from Honeywell’s building products business grew 11%, the same from the building solutions business increased 4%.
Another peer, Carlisle Companies Incorporated (CSL - Free Report) , is experiencing solid momentum in its Construction Materials segment. Revenues from Carlisle’s Construction Materials segment increased 8% year over year to $1.1 billion in the third quarter. Organic revenues rose 9%, driven by healthy re-roofing demand, strategic initiatives and strong commercial execution, partly offset by continued softness in commercial new construction.
The Zacks Rundown for MMM
Image Source: Zacks Investment Research
Shares of 3M have gained 7.3% in the past three months against the industry’s decline of 4.8%.
Image Source: Zacks Investment Research
From a valuation standpoint, 3M is trading at a forward price-to-earnings ratio of 19.99X, above the industry average of 15.26X. 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 1.3% and 0.4%, respectively, in the past 60 days.
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.