
Post-it maker 3M Company (NYSE:MMM) reported better-than-expected third-quarter 2025 results and raised its full-year guidance.
The company posted GAAP sales of $6.5 billion, up 3.5% year over year (Y/Y).
Adjusted sales came in at $6.3 billion, reflecting 3.2% Y/Y organic growth. Adjusted sales came slightly above the consensus estimate of $6.255 billion.
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The adjusted operating margin expanded 170 basis points to 24.7% in the quarter.
Adjusted earnings per share rose 10% Y/Y to $2.19, topping the Street estimate of $2.07.
3M returned $900 million to shareholders during the quarter and reported adjusted free cash flow of $1.3 billion.
Segment Details
By segment, Safety & Industrial posted 5.4% adjusted sales growth to $2.92 billion, with adjusted operating margin expanding to 26.3% from 24.3%.
Transportation & Electronics’ revenue grew 4.2% Y/Y to $2.00 billion, and its adjusted operating margin contracted to 24.3% from 24.5% a year ago quarter.
The Consumer segment saw modest 0.9% Y/Y growth to $1.31 billion, with adjusted operating margin improving to 22.2% from 20.2% a year ago.
2025 Guidance
3M raised its 2025 adjusted EPS outlook to $7.95-$8.05 (prior $7.75-$8.00) versus the consensus of $7.92.
3M now expects 2025 adjusted sales organic growth of >2% (versus ~2% prior) and adjusted operating profit guidance raised to 180 to 200 bps from 150 to 200 bps guided earlier.
The company sees adjusted operating cash flow of $5.2 billion-$5.4 billion with >100% adjusted free cash flow conversion.
Management Commentary
William Brown, 3M Chairman and CEO, said, “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.”
Investors can gain exposure to the stock via ProShares Smart Materials ETF (NYSE:TINT) and PGIM ETF Trust PGIM Jennison Focused Value ETF (NYSE:PJFV).
Price Action: MMM shares were trading higher by 2.73% to $159.00 premarket at last check Tuesday.
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