3M Reports Fourth-Quarter and Full-Year 2024 Results; Initiates Full-Year 2025 Financial Guidance
Rhea-AI Summary
3M (MMM) reported Q4 2024 results with sales of $6.0 billion, up 0.1% year-over-year, and adjusted sales of $5.8 billion showing organic growth of 2.1%. Q4 GAAP EPS from continuing operations reached $1.33, up 17% YoY, while adjusted EPS was $1.68, down 2% YoY.
For full-year 2024, the company posted sales of $24.6 billion, down 0.1% YoY, with adjusted sales of $23.6 billion showing organic growth of 1.2%. Full-year GAAP EPS from continuing operations was $7.26, with adjusted EPS of $7.30, up 21% YoY. The company generated operating cash flow of $1.8 billion and adjusted free cash flow of $4.9 billion.
Looking ahead to 2025, 3M expects adjusted total sales growth of 0.5% to 1.5%, with adjusted organic sales growth of 2% to 3%. The company projects adjusted EPS between $7.60 and $7.90, and adjusted operating cash flow of $5.2 to $5.3 billion.
Positive
- Q4 organic sales growth of 2.1% YoY
- Full-year adjusted EPS up 21% to $7.30
- Strong adjusted free cash flow of $4.9 billion
- Returned $3.8 billion to shareholders via dividends and share repurchases
- Improved GAAP operating margin to 19.6% from -43.4% in previous year
Negative
- Q4 adjusted EPS declined 2% YoY to $1.68
- Full-year sales declined 0.1% to $24.6 billion
- Q4 adjusted operating margin decreased 0.2 percentage points YoY
- $3.8 billion net after-tax payments for litigation costs
News Market Reaction
On the day this news was published, MMM gained 4.16%, reflecting a moderate positive market reaction.
Data tracked by StockTitan Argus on the day of publication.
- Q4 sales of
$6.0 billion 0.1% YoY; adjusted sales of$5 2.1% YoY - Q4 GAAP EPS from continuing operations of
$1.33 17% YoY; adjusted EPS from continuing operations of$1.68 2% YoY - Full-year sales of
$24.6 billion 0.1% YoY; adjusted sales of$23.6 billion 1.2% YoY - Full-year GAAP EPS from continuing operations of
$7.26 $7.30 21% YoY - Full-year operating cash flow of
$1.8 billion $4.9 billion
"Our fourth quarter capped a year of strong results as we returned to positive organic revenue growth in the full year," said William Brown, 3M Chief Executive Officer. "I would like to thank the 3M team for their strong operational execution which helped us deliver double-digit earnings growth and robust free cash flow while returning
Fourth-Quarter Highlights:
Q4 2024 | Q4 2023 | |||||||
GAAP EPS from continuing operations (GAAP EPS) | $ 1.33 | $ 1.14 | ||||||
Special items: | ||||||||
Net costs for significant litigation | (0.07) | 0.36 | ||||||
(Increase) decrease in value of Solventum ownership | 0.24 | — | ||||||
Other special items, net | 0.18 | 0.20 | ||||||
Adjusted EPS from continuing operations (Adjusted EPS) | $ 1.68 | $ 1.70 | ||||||
Memo: | ||||||||
GAAP operating income margin | 18.1 % | 15.0 % | ||||||
Adjusted operating income margin | 19.7 % | 19.9 % |
- GAAP EPS of
$1.33 18.1% . - Adjusted EPS of
$1.68 2% year-on-year. - Adjusted operating income margin of
19.7% , a decrease of 0.2 percentage points year-on-year.
GAAP | Adjusted (Non-GAAP) | |||||||
Net sales (Millions) | ||||||||
Sales change | ||||||||
Total sales | 0.1 % | 2.2 % | ||||||
Components of sales change: | ||||||||
Organic sales1 | — % | 2.1 % | ||||||
Acquisitions/divestitures | 0.9 % | 0.9 % | ||||||
Translation | (0.8) % | (0.8) % | ||||||
Adjusted sales excludes manufactured PFAS products. | ||||||||
1Above adjusted organic sales increase includes a 70 basis point headwind from product portfolio initiatives and exit of | ||||||||
- Sales of
$6.0 billion 0.1% year-on-year with organic sales flat year-on-year. - Adjusted sales of
$5.8 billion 2.2% year-on-year with adjusted organic sales up2.1% year-on-year. - 3M returned
$1.1 billion - Cash from operations of
$1.8 billion - Adjusted free cash flow of
$1.3 billion
Full-Year Highlights:
Full Year 2024 | Full Year 2023 | |||||||
GAAP earnings (loss) per share from continuing operations | $ 7.26 | $ (15.17) | ||||||
Special items: | ||||||||
(Increase) decrease in value of Solventum ownership | (2.83) | — | ||||||
Net costs for significant litigation | 1.32 | 21.00 | ||||||
Pension risk transfer charge | 1.11 | — | ||||||
Other special items, net | 0.44 | 0.21 | ||||||
Adjusted earnings per share (EPS) from continuing operations | $ 7.30 | $ 6.04 | ||||||
Memo: | ||||||||
GAAP operating income (loss) margin | 19.6 % | (43.4) % | ||||||
Adjusted operating income margin | 21.4 % | 18.6 % |
- GAAP EPS of
$7.26 19.6% . - Adjusted EPS of
$7.30 21% year-on-year.
GAAP | Adjusted (Non-GAAP) | |||||||
Net sales (Millions) | ||||||||
Sales change | ||||||||
Total sales | (0.1) % | 1.3 % | ||||||
Components of sales change: | ||||||||
Organic sales2 | (0.2) % | 1.2 % | ||||||
Acquisitions/divestitures | 0.8 % | 0.9 % | ||||||
Translation | (0.7) % | (0.8) % | ||||||
Adjusted sales excludes manufactured PFAS products. | ||||||||
2Above adjusted organic sales increase includes a 110 basis point headwind from product portfolio initiatives | ||||||||
- Sales of
$24.6 billion - Adjusted sales of
$23.6 billion - 3M returned
$3.8 billion - Cash from operations of
$1.8 billion $3.8 billion - Adjusted free cash flow of
$4.9 billion
This document includes reference to certain non-GAAP measures. See the "Supplemental Financial Information Non-GAAP Measures" section for applicable information.
Full-Year 2025 Guidance
3M provided the following full-year 2025 expectations.
- Adjusted total sales growth3 in the range of 0.5 to 1.5 percent, reflecting adjusted organic sales3 growth of 2 to 3 percent.
- Adjusted EPS3 in the range of
$7.60 $7.90 - Adjusted operating cash flow3 of
$5.2 $5.3 billion
3As further discussed at 6 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 news release 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" 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, 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 to resolve claims by public water suppliers in
About 3M
3M (NYSE: MMM) believes science helps create a brighter world for everyone. By unlocking the power of people, ideas and science to reimagine what's possible, our global team uniquely addresses the opportunities and challenges of our customers, communities, and planet. Learn how we're working to improve lives and make what's next 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:
Sean Lynch, slynch2@mmm.com
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SOURCE 3M Company
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