Overview
- Fourth-quarter adjusted EPS came in at $1.83 versus $1.80 expected, with adjusted sales of $6.023 billion slightly topping the $6.012 billion consensus and organic growth of 2.2%.
- For 2025, 3M reported 2.1% organic growth, adjusted EPS of $8.06 up 10% year over year, free cash flow conversion slightly above 100%, and $4.8 billion returned to shareholders.
- Management guided for roughly 3% organic growth in 2026, 70–80 basis points of margin expansion, EPS of $8.50–$8.70, free cash flow conversion above 100%, and about $2.5 billion in gross share repurchases.
- Operational metrics and innovation accelerated with 284 product launches in 2025 and a 350 target for 2026, OTIF above 90% and OEE around 63%, while industrial and electronics outperformed as consumer and roofing granules lagged.
- CFO Anurag Maheshwari cited a $275 million benefit from volume, productivity and lower restructuring, partly offset by roughly $50 million of growth investments and about $100 million of tariff and stranded-cost headwinds plus a $55 million transformation charge excluded from adjusted results, as Bank of America’s Andrew Obin raised EPS estimates and shares rose about 0.76% to $157.30.