10-KPeriod: FY2025

3M CO Annual Report, Year Ended Dec 31, 2025

Filed February 3, 2026For Securities:MMM

Summary

3M Company's 2025 Form 10-K highlights a year marked by strategic divestitures, significant litigation settlements, and ongoing operational adjustments. The company completed the spin-off of its Health Care business (Solventum) in April 2024, continuing to report its historical financial results as discontinued operations. Despite a modest 1.5% increase in net sales to $24.9 billion, the company faced challenges impacting profitability, including increased costs related to significant litigation, specifically the PFAS-related New Jersey Settlement and updates to site remediation obligations. These factors, alongside transformation costs and dis-synergies from exiting PFAS manufacturing and the Solventum spin-off, contributed to a decrease in GAAP operating income margin to 18.6% and diluted EPS to $6.00. Operationally, the Safety and Industrial segment showed robust growth with a 3.9% sales increase and improved segment operating income margin. However, the Transportation and Electronics segment experienced a 1.3% sales decline, impacted by headwinds in PFAS-manufactured products and the automotive OEM business. The Consumer segment saw a slight 0.2% decrease in sales. The company continued to manage its capital structure prudently, repurchasing $3.3 billion of its stock and paying $1.6 billion in dividends, while also navigating significant cash outflows related to legal settlements, totaling $8.2 billion paid by the end of 2025 for PFAS and Combat Arms Earplugs settlements. The company ended the year with $5.9 billion in cash, cash equivalents, and marketable securities.

Financial Highlights

53 data points
Beta

Revenue

$24.95B

39.9% Gross Margin

Net Income

$3.25B

13.0% Net Margin

EPS (Diluted)

$6.00

Total Assets

$37.73B

Cash & Equivalents

$5.24B

Free Cash Flow

$1.40B

Financial Statements
Beta
Revenue$24.95B
Cost of Revenue$14.99B
Gross Profit$9.96B
SG&A Expenses$4.00B
Operating Expenses$20.32B
Operating Income$4.63B
Interest Expense$448.00M
Net Income$3.25B
EPS (Basic)$6.05
EPS (Diluted)$6.00
Shares Outstanding (Basic)537.40M
Shares Outstanding (Diluted)541.30M

Key Highlights

  • 1Net sales increased by 1.5% to $24.9 billion in 2025, driven by strength in the Safety and Industrial segment.
  • 2GAAP diluted EPS decreased to $6.00 in 2025 from $7.55 in 2024, impacted by significant litigation expenses and transformation costs.
  • 33M completed the spin-off of its Health Care business (Solventum) on April 1, 2024, with historical results reported as discontinued operations.
  • 4The company exited all PFAS manufacturing by the end of 2025, incurring associated costs and addressing ongoing liabilities.
  • 5Total payments for PFAS and Combat Arms Earplugs settlements reached $8.2 billion by the end of 2025.
  • 6The Safety and Industrial segment reported a 3.9% sales increase and improved operating margins.
  • 7The Transportation and Electronics segment faced headwinds, including PFAS-related product impacts, leading to a 1.3% sales decline.
  • 8The company repurchased $3.3 billion of its common stock in 2025, a significant increase from $1.8 billion in 2024.

Frequently Asked Questions

In 2025, 3M reported net sales of $24.9 billion, a 1.5% increase from 2024. However, GAAP diluted earnings per share (EPS) decreased to $6.00 from $7.55 in the prior year. This decline was primarily due to significant litigation-related charges, including settlements for PFAS and Combat Arms Earplugs, as well as costs associated with the company's ongoing transformation program and the exit from PFAS manufacturing.

3M has incurred substantial costs related to PFAS liabilities. By the end of 2025, the company had paid $8.2 billion towards settlements for PFAS and Combat Arms Earplugs litigation. The company recorded a $7.7 billion accrual for other environmental liabilities, largely driven by PFAS-related matters. These significant expenses directly impacted the company's profitability and cash flows in 2025.

3M completed the separation of its Health Care business (Solventum) on April 1, 2024. As a result, the historical financial results of the Health Care business are reported as discontinued operations. This separation has streamlined 3M's ongoing operations into three core segments: Safety and Industrial, Transportation and Electronics, and Consumer. The company also retained an equity interest in Solventum, which was valued at $2.0 billion as of December 31, 2025.

The Safety and Industrial segment showed strong performance with a 3.9% increase in sales and improved operating margins, driven by demand in key industrial markets. The Transportation and Electronics segment experienced a 1.3% sales decline, affected by challenges in PFAS-manufactured products and the automotive sector. The Consumer segment saw a slight decrease in sales by 0.2%, with mixed performance across its product categories. The company is investing in new product introductions and commercial excellence initiatives across its segments to drive future growth.