# 3M (NYSE: MMM) Reports Second-Quarter 2025 Results
**Release Date: July 18, 2025**
3M Company announced their second-quarter financial results for 2025, showcasing a mix of performance metrics compared to the same quarter last year. Here is a summary of the results:
## Key Highlights for Q2 2025 Compared to Q2 2024
– **GAAP Sales**: $6.3 billion, **up** 1.4%
– **Adjusted Sales**: $6.2 billion, **up** 2.3% (organic growth of 1.5% YoY)
– **GAAP EPS**: $1.34, **down** 38%
– **Adjusted EPS**: $2.16, **up** 12% YoY
– **Operating Margin**:
– GAAP: 18.0%, **down** 230 bps from 20.3%
– Adjusted: 24.5%, **up** 290 bps from 21.6%
## Financial Performance
– **Operating Cash Flow**: $(1.0) billion
– **Adjusted Free Cash Flow**: $1.3 billion
– 3M returned **$1.3 billion** to shareholders through dividends and share repurchases.
– **2025 Adjusted EPS Guidance**: Increased from $7.60 – $7.90 to **$7.75 – $8.00**, reflecting the expected impact of tariffs.
## Breakdown of Significant Metrics
– **Organic Sales Growth**:
– By region:
– Americas: 0.6%
– Asia Pacific: 2.3%
– Europe, Middle East, and Africa: **decreased** 2.3%
– **Cash Flow Analysis** for the first six months of 2025:
– Net cash provided by operating activities: $(1.033) billion, compared to $1.788 billion in 2024
– Net cash provided by investing activities: $1.290 billion, compared to $(856) million in 2024
– Net cash used in financing activities: $(2.191) billion, compared to $3.263 billion in 2024
## EPS and Operating Income
– **Net Income from Continuing Operations**:
– Q2 2025: $723 million
– Q2 2024: $1.145 billion, reflecting a **decrease** of approximately 37%.
– **Operating Income** Metrics:
– Total company operating income for Q2 2025: $1.140 billion, **down** from $1.272 billion in Q2 2024.
## Shareholder Returns
– 3M returned a total of **$1.3 billion** to shareholders this quarter.
– The company declared dividends, contributing to a robust return on investment despite fluctuations in profitability metrics.
### Future Outlook
– 3M maintains its confidence in the updated full-year guidance, supported by the strong performance of all three business groups for the third consecutive quarter.
– Increased operating rigor and the 3M eXcellence operating model are expected to assist in achieving strategic goals and improving overall financial performance.
## Special Items Impacting Financials
– **Special Items for Q2 2025**:
– The impact from significant litigation reportedly accounted for **net costs** amounting to approximately $2.509 billion.
– Loss on business divestitures of $3 million was noted.
3M’s results reflect a diverse operational performance across various sectors, showing resilience through strategic initiatives amid challenges. The focus for the rest of 2025 will be on maintaining improved EPS and operating margins as well as navigating the complexities of litigation-related expenses.
### Conclusion
3M’s second-quarter results present a complex yet progressive picture in their financial outlook for 2025, driven primarily by growth in adjusted metrics, operating efficiencies, and increased shareholder returns.
Here are the extracted tables from the press release:
### CONSOLIDATED STATEMENT OF INCOME
*(Millions, except per-share amounts)*
| Three months ended | June 30, 2025 | June 30, 2024 | Six months ended | June 30, 2025 | June 30, 2024 |
|---|---|---|---|---|---|
| Net sales | $6,344 | $6,255 | $12,298 | $12,271 | |
| Operating expenses | |||||
| Cost of sales | 3,646 | 3,571 | 7,124 | 7,056 | |
| Selling, general and administrative | 1,267 | 1,132 | 2,212 | 2,260 | |
| expenses | |||||
| Research, development and related expenses | 288 | 280 | 573 | 534 | |
| Loss on business divestitures | 3 | — | 3 | — | |
| Total operating expenses | 5,204 | 4,983 | 9,912 | 9,850 | |
| Operating income | 1,140 | 1,272 | 2,386 | 2,421 | |
| Other expense (income), net | 217 | -138 | 78 | 82 | |
| Income from continuing operations before income taxes | 923 | 1,410 | 2,308 | 2,339 | |
| Provision for income taxes | 245 | 203 | 510 | 423 | |
| Income from continuing operations of consolidated group | 678 | 1,207 | 1,798 | 1,916 | |
| Income from unconsolidated subsidiaries, net of taxes | 47 | 3 | 49 | 4 | |
| Net income from continuing operations | 725 | 1,210 | 1,847 | 1,920 | |
| including noncontrolling interest | |||||
| Less: net income attributable to noncontrolling interest | 2 | 6 | 8 | 11 | |
| Net income from continuing operations attributable to 3M | 723 | 1,204 | 1,839 | 1,909 | |
| Net income (loss) from discontinued operations, net of taxes | — | -59 | — | 164 | |
| Net income attributable to 3M | $723 | $1,145 | $1,839 | $2,073 | |
| Earnings per share attributable to 3M common shareholders: | |||||
| Weighted average 3M common shares outstanding — basic | 537.4 | 553.8 | 540.6 | 554.4 | |
| Earnings per share from continuing operations — basic | $1.35 | $2.17 | $3.40 | $3.44 | |
| Earnings (loss) per share from discontinued operations — basic | — | -0.10 | — | 0.30 | |
| Earnings per share — basic | $1.35 | $2.07 | $3.40 | $3.74 | |
| Weighted average 3M common shares outstanding — diluted | 540.6 | 554.8 | 544.2 | 555.3 | |
| Earnings per share from continuing operations — diluted | $1.34 | $2.17 | $3.38 | $3.44 | |
| Earnings (loss) per share from discontinued operations — diluted | — | -0.10 | — | 0.29 | |
| Earnings per share — diluted | $1.34 | $2.07 | $3.38 | $3.73 |
### CONDENSED CONSOLIDATED BALANCE SHEET
*(Dollars in millions)*
| June 30, 2025 | December 31, 2024 | |
|---|---|---|
| Assets | ||
| Current assets | ||
| Cash and cash equivalents | $3,712 | $5,600 |
| Marketable securities – current | 502 | 2,128 |
| Accounts receivable – net | 3,760 | 3,194 |
| Inventories | 4,077 | 3,698 |
| Prepaids | 642 | 493 |
| Other current assets | 734 | 771 |
| Total current assets | 13,427 | 15,884 |
| Property, plant and equipment – net | 7,393 | 7,388 |
| Operating lease right of use assets | 573 | 565 |
| Goodwill and intangible assets – net | 7,595 | 7,491 |
| Other assets | 9,001 | 8,540 |
| Total assets | $37,989 | $39,868 |
| Liabilities and equity | ||
| Current liabilities | ||
| Short-term borrowings and current portion of long-term debt | $669 | $1,919 |
| Accounts payable | 2,840 | 2,660 |
| Accrued payroll | 594 | 712 |
| Accrued income taxes | 315 | 331 |
| Operating lease liabilities – current | 180 | 163 |
| Other current liabilities | 3,210 | 5,471 |
| Total current liabilities | 7,808 | 11,256 |
| Long-term debt | 12,477 | 11,125 |
| Other liabilities | 13,353 | 13,593 |
| Total liabilities | 33,638 | 35,974 |
| Total equity | 4,351 | 3,894 |
| Shares outstanding | ||
| June 30, 2025: 532,629,702 | ||
| December 31, 2024: 539,470,303 | ||
| Total liabilities and equity | $37,989 | $39,868 |
