10-QPeriod: Q3 FY2025

3M CO Quarterly Report for Q3 Ended Sep 30, 2025

Filed October 21, 2025For Securities:MMM

Summary

3M Company reported net sales of $6.517 billion for the third quarter of 2025, a 3.5% increase year-over-year, driven by growth in Safety and Industrial, and Transportation and Electronics segments. Net income attributable to 3M for the quarter was $834 million, resulting in diluted earnings per share of $1.55. While top-line growth was positive, the company faced challenges, including a significant increase in 'Other expense (income), net,' primarily due to a $494 million change in the value of its Solventum ownership, impacting profitability. The company also recorded a $161 million loss on business divestitures related to its precision grinding and finishing business. Despite these headwinds, 3M demonstrated operational improvements in SG&A expenses and continued its strategic initiatives, including share repurchases and dividend payments, while managing significant litigation and environmental liabilities, particularly related to PFAS and the Combat Arms Earplugs settlement.

Financial Highlights

53 data points
Beta

Revenue

$6.52B

41.8% Gross Margin

Net Income

$834.00M

12.8% Net Margin

EPS (Diluted)

$1.55

Total Assets

$37.61B

Cash & Equivalents

$4.67B

Free Cash Flow

$1.54B

Financial Statements
Beta
Revenue$6.52B
Cost of Revenue$3.79B
Gross Profit$2.73B
SG&A Expenses$820.00M
Operating Expenses$5.07B
Operating Income$1.45B
Interest Expense$114.00M
Net Income$834.00M
EPS (Basic)$1.56
EPS (Diluted)$1.55
Shares Outstanding (Basic)534.10M
Shares Outstanding (Diluted)538.10M

Key Highlights

  • 1Net sales increased by 3.5% to $6.517 billion in Q3 2025 compared to Q3 2024, driven by organic growth across key segments.
  • 2Operating income saw a year-over-year increase of 10%, reaching $1.447 billion, with operating income margins improving to 22.2%.
  • 3Diluted earnings per share (EPS) from continuing operations decreased to $1.55 in Q3 2025 from $2.48 in Q3 2024, impacted by higher 'Other expense (income), net' and specific charges.
  • 4The company recorded a $161 million loss on business divestitures related to its precision grinding and finishing business, which is expected to close in the first half of 2026.
  • 5Significant litigation and environmental liabilities, particularly PFAS and Combat Arms Earplugs settlements, continue to impact financial results, with the company increasing accruals for PFAS-related environmental liabilities by approximately $0.7 billion in the first nine months of 2025.
  • 63M repurchased approximately $2.7 billion of its common stock in the first nine months of 2025 under a new $7.5 billion repurchase program.
  • 7The Safety and Industrial segment showed strong performance with sales up 5.4% and operating income margins increasing significantly, indicating resilience in core industrial markets.

Frequently Asked Questions

3M reported a 3.5% increase in net sales to $6.517 billion for the third quarter of 2025. However, diluted earnings per share decreased to $1.55 from $2.48 in the prior year's quarter, primarily due to a significant increase in 'Other expense (income), net,' driven by changes in the value of its Solventum ownership and other factors.

Profitability was impacted by a notable increase in 'Other expense (income), net,' largely due to a $494 million change in the value of 3M's retained ownership interest in Solventum. Additionally, a $161 million loss on business divestitures was recorded, and ongoing litigation and environmental liabilities, especially those related to PFAS and the Combat Arms Earplugs settlement, continue to create significant charges and impact financial results.

The Safety and Industrial segment showed robust growth with a 5.4% increase in sales and improved operating income margins. The Transportation and Electronics segment experienced a 2.4% sales increase, driven by aerospace and electronics, although negatively impacted by PFAS headwinds. The Consumer segment saw modest sales growth of 0.9%, facing headwinds from soft consumer discretionary spending.

3M continues to manage significant litigation and environmental liabilities, particularly those related to PFAS and the Combat Arms Earplugs settlement. The company increased its accruals for PFAS-related environmental liabilities by approximately $0.7 billion in the first nine months of 2025, and made substantial payments related to these matters and the Combat Arms Earplugs settlement.