3M Company (NYSE:MMM) stock surged after the company reported better-than-expected first-quarter 2025 results.
The company reported net sales of $5.95 billion, a decline of 1.0% year-over-year (Y/Y), beating the consensus of $5.781 billion.
Adjusted net sales totaled $5.8 billion, up 0.8% Y/Y, with adjusted organic sales increase of 1.5% Y/Y.
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Adjusted operating margin expanded 220 bps points to 23.5%, aided by growth along with decline in restructuring cost, productivity, and TSA cost reimbursement.
Adjusted EPS was $1.88, up 10% Y/Y, beating the consensus of $1.77.
Safety & Industrial reported 2.5% adjusted organic growth and adjusted operating margin expansion to 25.5% from 24.3% in the prior year quarter.
Transportation & Electronics reported 1.1% adjusted organic growth, and the adjusted operating margin contracted to 21.5% from 26.3% a year ago. The consumer segment reported adjusted organic growth of 0.3%.
Operating cash outflow stood at $(0.1) billion, with an adjusted free cash flow of $0.5 billion.
MMM returned $1.7 billion to shareholders via dividends and share repurchases.
2025 Guidance: 3M Sees 2025 Adjusted EPS of $7.60-$7.90 (Vs. cons. $7.75) and additional tariff sensitivity of $(0.20) to $(0.40) per share.
In January, MMM provided organic sales growth outlook of 2%-3% for 2025.
William Brown, 3M chairman and CEO said, “In this dynamic environment we remain focused on improving the fundamentals in the business, building a new performance culture and advancing our strategic priorities while leveraging our extensive global network and significant U.S. footprint.”
In February, the company declared a dividend of $0.73 per share for the first quarter of 2025, set to be distributed on March 12, 2025.
Also, 3M revealed approval to buy back as much as $7.5 billion of its outstanding shares. This new authorization replaces the previous repurchase program and will remain active until the company opts to end it.
Investors can gain exposure to GLW via ProShares Smart Materials ETF (NYSE:TINT) and Invesco Exchange-Traded Fund Trust II Invesco S&P Ultra Dividend Revenue ETF (NYSE:RDIV).
Price Action: MMM shares are trading higher by 2.39% at $129.10 premarket at the last check Tuesday.
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