3M Reports Second-Quarter 2025 Results, Increases Full-Year EPS Guidance

3M, a global science and innovation company, has released its second-quarter 2025 financial results, showcasing a mix of growth and challenges. The company reported a slight increase in sales and a notable rise in adjusted earnings per share (EPS), despite facing some operational hurdles.

Financial Highlights

For the second quarter of 2025, 3M reported GAAP sales of $6.3 billion, marking a 1.4% increase year-over-year. However, the GAAP operating margin declined by 230 basis points to 18.0%, and GAAP EPS from continuing operations fell by 38% to $1.34. On an adjusted basis, sales were $6.2 billion with organic growth of 1.5% year-over-year. The adjusted operating margin improved by 290 basis points to 24.5%, and adjusted EPS rose by 12% to $2.16.

Business and Operational Highlights

3M's business segments showed varied performance. The Safety and Industrial segment saw a 2.6% increase in organic sales, while the Transportation and Electronics segment experienced a 1.5% decline. The Consumer segment reported a modest 0.3% growth in organic sales. Geographically, organic sales grew by 0.6% in the Americas and 2.3% in Asia Pacific, but declined by 2.3% in Europe, the Middle East, and Africa.

Strategic Initiatives and Corporate Developments

3M returned $1.3 billion to shareholders through dividends and share repurchases during the quarter. The company also faced significant litigation costs, primarily related to Public Water Systems and Combat Arms Earplugs, which impacted its operating cash flow, resulting in a negative $1.0 billion. However, adjusted free cash flow was positive at $1.3 billion.

Management's Perspective

William Brown, 3M Chairman and CEO, expressed confidence in the company's performance, stating, "We delivered strong results in the second quarter, posting positive organic sales growth and double-digit EPS growth. This continues our trend from Q1 with all three business groups growing organically for the third quarter in a row. Our 3M eXcellence operating model is the foundation for delivering on each of our strategic priorities, and it drives the operating rigor and rhythm of our performance culture."

Future Outlook

3M has updated its full-year 2025 guidance, now expecting adjusted EPS to be in the range of $7.75 to $8.00, up from the previous range of $7.60 to $7.90. The company also anticipates adjusted total sales growth of approximately 2.5%, with adjusted organic sales growth of around 2.0%. Adjusted operating cash flow is projected to be between $5.1 billion and $5.5 billion.

SEC Filing: 3M CO [ MMM ] - 8-K - Jul. 18, 2025