3M Delivers Strong Third-Quarter Results; Increases Full-Year Margin and EPS Guidance

Rhea-AI Summary

3M (NYSE: MMM) reported Q3 2025 results: GAAP sales $6.5B (+3.5% YoY) and GAAP operating margin 22.2% (up 130 bps). GAAP EPS $1.55 (down 38% YoY). On an adjusted basis, sales $6.3B, adjusted organic growth +3.2% YoY, adjusted operating margin 24.7% (up 170 bps) and adjusted EPS $2.19 (up 10% YoY). Operating cash flow was $1.8B with adjusted free cash flow $1.3B. The company returned $0.9B to shareholders via dividends and buybacks.

3M raised full-year 2025 adjusted EPS guidance to $7.95–$8.05, projects adjusted total sales growth >2.5%, adjusted operating margin expansion of 180–200 bps, and adjusted operating cash flow of $5.2–$5.4B with >100% adjusted free cash flow conversion.

Positive

• Adjusted EPS +10% YoY to $2.19
• Adjusted operating margin +170 bps YoY to 24.7%
• Raised full-year adjusted EPS guidance to $7.95–$8.05
• Adjusted operating cash flow guidance of $5.2–$5.4B with >100% FCF conversion
• Returned $0.9B to shareholders in Q3

Negative

• GAAP EPS declined 38% YoY to $1.55
• GAAP results impacted by special items including $0.19 litigation and $0.30 loss on divestitures

• GAAP sales of $6.5 billion , up 3.5%; operating margin 22.2%, up 130 bps; EPS of $1.55, down 38%, all YoY
  • Adjusted sales of $6.3 billion with organic growth of 3.2% YoY
  • Adjusted operating margin of 24.7%, up 170 bps YoY
  • Adjusted EPS of $2.19, up 10% YoY
• Operating cash flow of $1.8 billion with adjusted free cash flow of $1.3 billion
• 2025 adjusted EPS guidance increased from $7.75 - $8.00 to $7.95 - $8.05

ST. PAUL, Minn., Oct. 21, 2025 /PRNewswire/ -- 3M (NYSE: MMM) today reported third-quarter 2025 results.

"I am very pleased with our teams' focus on reinvigorating organic top-line growth and improving operational performance resulting in another strong quarter," said William Brown, 3M Chairman and CEO. "The 3M excellence model helped accelerate organic sales growth, increase margins, grow EPS double-digits and generate robust free cash flow. This progress gives us the confidence to raise our full-year margin and EPS guidance which positions us well to achieve the strategic and financial commitments we made at our Investor Day earlier this year."

Third -quarter highlights:

				Q3  2025		Q3  2024
		GAAP EPS from continuing operations (GAAP EPS)		$          1.55		$          2.48
		Special items:
		Net costs for significant litigation		0.19		0.51
		(Increase) decrease in value of Solventum ownership		0.13		(1.05)
		Manufactured PFAS products		—		0.04
		Loss on business divestitures		0.30		—
		Transformation costs		0.02		—
		Adjusted EPS from continuing operations (adjusted EPS)		$          2.19		$          1.98
		Memo:
		GAAP operating income margin		22.2 %		20.9 %
		Adjusted operating income margin		24.7 %		23.0 %

• GAAP EPS of $1.55 and operating margin of 22.2%.
• Adjusted EPS of $2.19, up 10% year-on-year.
• Adjusted operating income margin of 24.7%, an increase of 170 basis points year-on-year.

				GAAP		Adjusted (non-GAAP)
		Net sales (billions)		$6.5		$6.3
		Sales change
		Total sales		3.5 %		4.1 %
		Components of sales change:
		Organic sales		2.6		3.2
		Acquisitions/divestitures		(0.1)		(0.1)
		Translation		1.0		1.0
		Adjusted sales excludes manufactured PFAS products.

• Sales of $6.5 billion, up 3.5% year-on-year with organic sales up 2.6% year-on-year.
• Adjusted sales of $6.3 billion, up 4.1% year-on-year with adjusted organic sales up 3.2% year-on-year.
• 3M returned $0.9 billion to shareholders via dividends and share repurchases.
• Cash from operations of $1.8 billion.
• Adjusted free cash flow of $1.3 billion.

This document includes reference to certain non-GAAP measures. See the "Supplemental Financial Information Non-GAAP Measures" section for applicable information.

Updated full-year guidance

3M updated its full-year 2025 guidance given the company's performance in the first nine months of the year.

• Adjusted total sales growth¹ of >2.5 percent, reflecting adjusted organic sales growth¹ of >2 percent.
• Adjusted operating income margin expansion¹ of 180 bps to 200 bps.
• Adjusted EPS¹ in the range of $7.95 to $8.05.
• Adjusted operating cash flow¹ of $5.2 to $5.4 billion, contributing to >100 percent adjusted free cash flow conversion¹.

¹As further discussed at ⁴ within the "Supplemental Financial Information Non-GAAP Measures" sections, 3M cannot, without unreasonable effort, forecast certain items required to develop meaningful comparable GAAP financial measures and, therefore, does not provide them on a forward-looking basis reflecting these items.

Conference call

3M will conduct an investor teleconference at 9 a.m. ET (8 a.m. CT) today. Investors can access this conference via the following:

• Live webcast at https://investors.3M.com
• Webcast replay at https://investors.3m.com/financials/quarterly-earnings

Consolidated financial statements and supplemental financial information non-GAAP measures

View the Financial Statement Information on 3M's website: https://investors.3m.com/financials/quarterly-earnings

Forward-looking statements

This document contains forward-looking statements. You can identify these statements by the use of words such as "plan," "expect," "aim," "believe," "project," "target," "anticipate," "intend," "estimate," "will," "should," "could," "would," "forecast," "future," "outlook," "guidance" and other words and terms of similar meaning. Forward-looking statements are based on certain assumptions and expectations of future events and trends that are subject to risks and uncertainties. Actual future results and trends may differ materially from historical results or those reflected in any such forward-looking statements depending on a variety of factors. Among the factors that could cause actual results to differ materially are the following: (1) worldwide economic, political, regulatory, international trade, geopolitical, capital markets and other external conditions and other factors beyond the Company's control, including inflation; recession; military conflicts; trade restrictions such as sanctions, tariffs, reciprocal and retaliatory tariffs, and other tariff-related measures; regulatory requirements, legal actions, or enforcement; and natural and other disasters or climate change affecting the operations of the Company or its customers and suppliers; (2) foreign currency exchange rates and fluctuations in those rates; (3) liabilities and the outcome of contingencies related to certain fluorochemicals; known as "PFAS," including liabilities related to claims, lawsuits, and government regulatory proceedings concerning various PFAS-related products and chemistries, as well as risks related to the Company's plans to exit PFAS manufacturing and work to discontinue use of PFAS across its product portfolio; (4) risks related to the class-action settlement ("PWS Settlement") to resolve claims by public water suppliers in the United States regarding PFAS, as well as risks related to other settlements related to PFAS; (5) legal proceedings, including significant developments that could occur in the legal and regulatory proceedings described in the Company's reports on Form 10-K, 10-Q, and 8-K (Reports), as well as compliance risks related to legal or regulatory requirements, government contract requirements, policies and practices, or other matters that require or encourage the Company or its customers, suppliers, vendors, or channel partners to conduct business in a certain way; (6) competitive conditions and customer preferences; (7) the timing and market acceptance of new product and service offerings; (8) the availability and cost of purchased components, compounds, raw materials and energy due to shortages, increased demand and wages, tariffs, supply chain interruptions, or natural or other disasters; (9) unanticipated problems or delays when implementing new business systems and solutions, including with the phased implementation of a global enterprise resource planning (ERP) system, or security breaches and other disruptions to the Company's information or operational technology infrastructure; (10) the impact of acquisitions, strategic alliances, divestitures, and other strategic events resulting from portfolio management actions and other evolving business strategies; (11) operational execution, including the extent to which the Company can realize the benefits of planned productivity improvements, as well as the impact of organizational restructuring activities; (12) financial market risks that may affect the Company's funding obligations under defined benefit pension and postretirement plans; (13) the Company's credit ratings and its cost of capital; (14) tax-related external conditions, including changes in tax rates, laws or regulations; (15) matters relating to the spin-off of the Company's Health Care business, including the risk that the expected benefits will not be realized; the risk that the costs or dis-synergies will exceed the anticipated amounts; potential impacts on the Company's relationships with its customers, suppliers, employees, regulators and other counterparties; the ability to realize the desired tax treatment; risks under the agreements and obligations entered into in connection with the spin-off; and (16) matters relating to Combat Arms Earplugs ("CAE") and related products, including those related to, the August 2023 settlement that is intended to resolve, to the fullest extent possible, all litigation and alleged claims involving the CAE sold or manufactured by the Company's subsidiary Aearo Technologies and certain of its affiliates ("Aearo Entities") and/or the Company ("CAE Settlement"). A further description of these factors is located in the Reports under "Cautionary Note Concerning Factors That May Affect Future Results" and "Risk Factors" in Part I, Items 1 and 1A (Annual Report) and in Part I, Item 2 and Part II, Item 1A (Quarterly Reports). Changes in such assumptions or factors could produce significantly different results. The Company assumes no obligation to update any forward-looking statements discussed herein as a result of new information or future events or developments.

About 3M
3M (NYSE: MMM) is focused on transforming industries around the world by applying science and creating innovative, customer-focused solutions. Our multi-disciplinary team is working to solve tough customer problems by leveraging diverse technology platforms, differentiated capabilities, global footprint, and operational excellence. Discover how 3M is shaping the future at 3M.com/news.

Please note that the company announces material financial, business and operational information using the 3M investor relations website, SEC filings, press releases, public conference calls and webcasts. The company also uses the 3M News Center and social media to communicate with our customers and the public about the company, products and services and other matters. It is possible that the information 3M posts on the News Center and social media could be deemed to be material information. Therefore, the company encourages investors, the media and others interested in 3M to review the information posted on 3M's News Center and the social media channels such as @3M or @3MNews.

Contacts
3M
Investor Contacts:
Diane Farrow, 612-202-2449
or
Eric Herron, 651-233-0043
Media Contact:
3MNews@mmm.com

 

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SOURCE 3M Company

FAQ

What were 3M's Q3 2025 GAAP sales and EPS (NYSE: MMM)?

GAAP sales were $6.5B (up 3.5% YoY) and GAAP EPS was $1.55 (down 38% YoY).

How did 3M's adjusted Q3 2025 results compare year-over-year for MMM?

Adjusted sales were $6.3B with adjusted EPS $2.19 (+10% YoY) and adjusted operating margin 24.7% (+170 bps).

What is 3M's updated full-year 2025 adjusted EPS guidance for MMM?

3M raised full-year adjusted EPS guidance to a range of $7.95–$8.05 for 2025.

What adjusted operating cash flow and free cash flow guidance did 3M give for 2025 (MMM)?

3M expects adjusted operating cash flow of $5.2–$5.4B and >100% adjusted free cash flow conversion for 2025.

How much did 3M return to shareholders in Q3 2025 (MMM)?

3M returned $0.9B to shareholders via dividends and share repurchases in Q3 2025.

What drove the difference between 3M's GAAP and adjusted EPS in Q3 2025?

Special items reduced GAAP EPS, including $0.19 of net litigation costs and a $0.30 loss on business divestitures, while adjusted EPS excludes these items.