Industrial conglomerate 3M has kicked off its first-quarter 2025 earnings season on a strong note, delivering results that surpassed market expectations. The adjusted earnings per share (EPS) from continuing operations reached $1.88, exceeding the analysts' consensus of $1.77. This represents a 10% increase year-on-year. Net sales came in at $5.8 billion, also beating market forecasts but falling short of the prior year's figure.
Performance across business segments was varied. The Safety & Industrial division reported organic sales growth of 2.5%, followed by Consumer at 0.3%. In contrast, the Transportation & Electronics segment experienced a 4% decline in organic sales. The adjusted operating margin expanded to 23.5%, marking a 2.2 percentage point improvement compared to the same period last year.
Start investing today or test a free demo
Create account Try a demo Download mobile app Download mobile appThe company reaffirmed its full-year adjusted EPS guidance range of $7.60–$7.90, aligning closely with the market consensus of $7.74. However, 3M cautioned that potential tariff impacts could reduce this year's earnings by $0.20–$0.40 per share, introducing an element of uncertainty related to the macroeconomic environment and trade policies. The company projects organic sales growth for 2025 to be in the range of 2–3%.
In terms of cash flow, 3M generated $0.5 billion in free cash flow during the first quarter and returned $1.7 billion to shareholders through dividends and share repurchases.
Market response to 3M's results has been positive, with pre-market trading indicating a near 2% rise in the company's share price. While not a high-growth stock, the solid performance amidst current uncertainties, coupled with robust guidance, appears sufficient to reassure investors.
The company's shares are expected to rebound from a key technical support level during today's trading session, although the stock has experienced a roughly 20% correction since its February peak. Source: xStation5
This content has been created by XTB S.A. This service is provided by XTB S.A., with its registered office in Warsaw, at Prosta 67, 00-838 Warsaw, Poland, entered in the register of entrepreneurs of the National Court Register (Krajowy Rejestr Sądowy) conducted by District Court for the Capital City of Warsaw, XII Commercial Division of the National Court Register under KRS number 0000217580, REGON number 015803782 and Tax Identification Number (NIP) 527-24-43-955, with the fully paid up share capital in the amount of PLN 5.869.181,75. XTB S.A. conducts brokerage activities on the basis of the license granted by Polish Securities and Exchange Commission on 8th November 2005 No. DDM-M-4021-57-1/2005 and is supervised by Polish Supervision Authority.
