3M Reports Strong Q4 2025 Results and Issues 2026 Financial Outlook
On January 20, 2026, 3M Company (NYSE: MMM) unveiled its fourth-quarter and full-year results for 2025, showcasing a resilient performance amidst a challenging economic backdrop. The report confirmed that the company achieved fourth-quarter GAAP sales of $6.1 billion, reflecting a year-over-year increase of 2.1%. However, operating margins were down to 13.0%, a reduction attributed to various cost factors including ongoing transformation and litigation. The fourth-quarter earnings per share (EPS) stood at $1.07, representing a decline of 20% year-over-year.
When adjusted for special items, sales amounted to $6.0 billion with organic growth reaching 2.2%. The adjusted EPS experienced an upward trend, rising to $1.83, marking a 9% increase compared to the same period last year. The adjusted operating margin improved to 21.1%, an increase of 140 basis points from the previous year.
During the fourth quarter, 3M generated an operating cash flow of $1.6 billion, with adjusted free cash flow recorded at $1.3 billion. These robust cash flows underscore the company's solid operational performance and cash conversion capabilities.
For the full year of 2025, 3M reported GAAP sales totaling $24.9 billion, a 1.5% increase year-over-year, despite the operating margin decreasing slightly to 18.6%. The full-year EPS was $6.00, a 17% reduction from 2024. In contrast, adjusted sales reached $24.3 billion, showcasing an organic growth of 2.1%, while adjusted EPS increased by 10%, amounting to $8.06.
In total, 3M returned $4.8 billion to shareholders through dividends and share repurchase programs, signaling confidence in its financial health and future growth opportunities. The company anticipates continued success and differentiation through its innovation strategies and commitment to customer-focused solutions.
Looking ahead, 3M has set their expectations for 2026, targeting a sales growth of approximately 4% and projecting adjusted EPS between $8.50 and $8.70. The anticipated expansion in operating income margins by 70 to 80 basis points underscores their commitment to enhancing operational efficiency and profitability.
William Brown, Chairman and CEO of 3M, expressed gratitude to the team for their dedication and highlighted that the foundation laid in 2025 would facilitate sustained value creation. The company aims to navigate macroeconomic challenges effectively and continue its trajectory of growth and innovation. Combining operational discipline with a robust pipeline of transformative initiatives positions 3M to exceed the financial commitments established at its Investor Day, providing a positive outlook for stakeholders. 3M will host an investor teleconference at 9 a.m. ET today for further discussions and insights into these results and forward-looking strategies.
When adjusted for special items, sales amounted to $6.0 billion with organic growth reaching 2.2%. The adjusted EPS experienced an upward trend, rising to $1.83, marking a 9% increase compared to the same period last year. The adjusted operating margin improved to 21.1%, an increase of 140 basis points from the previous year.
During the fourth quarter, 3M generated an operating cash flow of $1.6 billion, with adjusted free cash flow recorded at $1.3 billion. These robust cash flows underscore the company's solid operational performance and cash conversion capabilities.
For the full year of 2025, 3M reported GAAP sales totaling $24.9 billion, a 1.5% increase year-over-year, despite the operating margin decreasing slightly to 18.6%. The full-year EPS was $6.00, a 17% reduction from 2024. In contrast, adjusted sales reached $24.3 billion, showcasing an organic growth of 2.1%, while adjusted EPS increased by 10%, amounting to $8.06.
In total, 3M returned $4.8 billion to shareholders through dividends and share repurchase programs, signaling confidence in its financial health and future growth opportunities. The company anticipates continued success and differentiation through its innovation strategies and commitment to customer-focused solutions.
Looking ahead, 3M has set their expectations for 2026, targeting a sales growth of approximately 4% and projecting adjusted EPS between $8.50 and $8.70. The anticipated expansion in operating income margins by 70 to 80 basis points underscores their commitment to enhancing operational efficiency and profitability.
William Brown, Chairman and CEO of 3M, expressed gratitude to the team for their dedication and highlighted that the foundation laid in 2025 would facilitate sustained value creation. The company aims to navigate macroeconomic challenges effectively and continue its trajectory of growth and innovation. Combining operational discipline with a robust pipeline of transformative initiatives positions 3M to exceed the financial commitments established at its Investor Day, providing a positive outlook for stakeholders. 3M will host an investor teleconference at 9 a.m. ET today for further discussions and insights into these results and forward-looking strategies.
Topics Financial Services & Investing）
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