MW 3M stock rallies on its 'solid game plan' for tariffs

By Steve Gelsi

Company's stock jumped 8% as it looks to shift production to U.S. to reduce costs

3M Co.'s stock rallied Tuesday after the maker of Scotch tape and Post-it Notes said tariffs could impact its full-year 2025 earnings by up to 40 cents a share, but it may be able to manage the costs by shifting more production to the U.S.

3M $(MMM.AU)$ said it expects adjusted 2025 earnings of $7.60 to $7.90 a share, with "additional tariff sensitivity" of 20 cents to 40 cents a share. Based on the numbers of shares outstanding in the first quarter, that would translate to a cost of about $110 million to roughly $220 million.

The current FactSet consensus estimate is for 3M to earn $7.74 a share in 2025.

3M Chief Executive Bill Brown told analysts that tariffs present a headwind, but for now it's still processing how new trade policies will develop.

"With the significant footprint we have in the U.S. and the flexibility of our global network, we're identifying a number of ideas to adjust product sourcing and logistics flows to mitigate at least a part of the impact, some of which are no-regret moves regardless of where trade policies eventually settle," Brown said. "Overall, we have a solid game plan."

3M's stock was up 7.9% in midday trading. The stock is now up more than 5% so far in 2025, while the S&P 500 SPX is down 7.9% for the year.

The St. Paul, Minn.-based adhesives and materials company said its first-quarter net income rose to $1.12 billion, or $2.04 a share, from $928 million, or $1.27 a share, in the year-ago quarter.

The company's adjusted first-quarter profit of $1.88 per share beat the analyst estimate of $1.77 per share.

Revenue rose 1% to $6 billion, ahead of the analyst estimate of $5.76 billion.

3M's stock had rallied 5.5% in premarket trading on Tuesday, to lead the Dow Jones Industrial Average's DJIA gainers ahead of the open.

The stock was on track to turn positive for the year, after falling 2.3% year to date through Monday. Meanwhile, the Dow has shed 10.3% this year.

-Steve Gelsi

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April 22, 2025 12:39 ET (16:39 GMT)

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