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3M (MMM) delivered a solid beat-and-raise performance for 3Q25, reflecting continued operational improvement and strong execution across its diversified portfolio. Organic sales growth accelerated to 2.6% from 1.5% last quarter, marking a second straight quarter of sequential improvement. Management highlighted robust product innovation, with 70 new launches in Q3 and 196 year-to-date, driving a 30% increase in 5-year new product sales.

• MMM also raised its FY25 EPS guidance to $7.95–$8.05 (from $7.75–$8.00) and lifted its organic sales outlook to above 2%.
• Safety & Industrial led again with 4.1% organic growth, driven by strength in electrical markets, adhesives, tapes, and personal safety.
• Transportation & Energy grew 3.6%, as aerospace, defense, and advanced materials offset ongoing auto softness.
• Consumer segment posted modest +0.3% growth, supported by demand for Filtrete filters, Scotch tape, and Meguiar’s products.
• Operating margin expanded 170 bps to 24.7%, reflecting productivity gains and lower restructuring costs.
• The company now expects approximately 250 product launches in 2025, up from 215, and anticipates a similar macro backdrop in FY26, with its eXcellence initiative driving growth and productivity gains offsetting tariffs and stranded costs.

Briefing.com Analyst Insight:

MMM’s third-quarter results reinforced its steady turnaround, supported by innovation momentum and strong cost control. The combination of accelerating organic growth and margin expansion shows management’s initiatives are gaining traction. While auto remains a weak spot, broad-based strength across other markets highlights improving fundamentals. The raised outlook and expanded product launch cadence add confidence heading into 2026. Still, given macro and tariff risks, growth expectations should remain measured. Overall, this was one of MMM’s most encouraging quarters in recent years, pointing to a durable recovery in progress. The company’s ability to sustain innovation-driven growth while maintaining margin discipline will be the key differentiator in extending its rebound through next year.