Post-it maker 3M Company (NYSE:MMM) stock fell Tuesday after the industrial giant reported fourth-quarter 2025 earnings.
The company reported fourth-quarter 2025 adjusted sales of $6.023 billion, which came slightly above the consensus estimate of $6.012 billion.
Adjusted sales increased 3.7% year-on-year (Y/Y), with adjusted organic sales up 2.2% Y/Y.
The adjusted operating margin expanded 140 basis points to 21.1% in the quarter.
Adjusted earnings per share rose 9% Y/Y to $1.83, topping the Street estimate of $1.80.
3M returned around $900 million to shareholders during the quarter and reported adjusted free cash flow of $1.3 billion.
Segment Performance
By segment, Safety & Industrial posted 6.0% adjusted sales growth to $2.87 billion, with adjusted operating margin expanding to 24.1% from 21.0% a year ago quarter.
Transportation & Electronics’ revenue grew 3.3% Y/Y to $1.85 billion, and its adjusted operating margin expanded to 20.3% from 19.4% a year ago quarter.
The Consumer segment saw Y/Y growth decline to 1.2% to $1.21 billion, with adjusted operating margin contracting to 17.9% from 19.0% a year ago.
2026 Outlook
3M sees 2026 adjusted EPS outlook of $8.50-$8.70 (versus consensus of $8.61) and adjusted sales outlook of about $25.250 billion, versus street view of $25.040 billion.
3M now expects adjusted sales organic growth of around 3% and adjusted operating profit margin of 24.1% to 24.2%
The company expects adjusted operating cash flow of $5.6 billion to $5.8 billion, resulting in >100% adjusted free cash flow conversion.
Management Commentary
William Brown, 3M Chairman and CEO, said, “Our accelerated pace of innovation and commercial execution positions us to outperform the macro environment again in 2026. Our continued operating rigor supports further margin expansion and earnings growth, putting us on a clear path to meet or exceed the 2027 financial commitments we outlined at our Investor Day last year.”
MMM Price Action: 3M shares were down 4.65% at $160.00 during premarket trading on Tuesday, according to Benzinga Pro data.
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