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3M (MMM) delivered a strong beat-and-raise 2Q25 performance, showcasing resilience in a challenging macro environment. While organic sales growth was modest at 1.5%, all three of 3M’s segments -- Safety & Industrial, Transportation & Electronics, and Consumer -- posted positive growth for the third consecutive quarter, supported by 126 new product launches in the first half of 2025. The company raised its FY25 EPS guidance to $7.75-$8.00 from $7.60-$7.90, reflecting robust productivity gains and disciplined cost management, even as it cautiously meters investment increases in response to softening demand. Notably, this updated forecast incorporates the impact of tariffs.

• The Safety & Industrial segment led with 2.6% organic sales growth, a slight improvement over last quarter’s 2.5%. Strong demand in industrial adhesives and tapes, electrical markets, and abrasives drove the segment’s performance, capitalizing on steady industrial activity. However, ongoing weakness in the auto aftermarket space, where consumer and business spending remain restrained, partially offset these gains, highlighting the uneven recovery in certain end markets.
• The Transportation & Electronics segment recorded modest organic sales growth of 1.0%, constrained by declining vehicle builds in the U.S. and Europe, where OEM production continues to face headwinds from supply chain disruptions and labor shortages. Despite these challenges, the segment saw pockets of strength in commercial graphics (e.g., vehicle wraps and signage solutions), aerospace (e.g., adhesives and composites for aircraft manufacturing), and electronics (e.g., thermal management materials and display films), which benefited from targeted demand in niche applications.
• The Consumer segment maintained steady organic sales growth of 3%, consistent with the prior quarter, as sluggish consumer discretionary spending continues to weigh on performance. Pockets of strength emerged in home improvement, particularly in products like ScotchBlue painter’s tape and Command adhesive products, which saw resilient demand from DIY and professional users. However, broader consumer caution, driven by inflationary pressures and economic uncertainty, limited upside potential in this segment.

3M’s Q2 results demonstrate strong execution in a challenging environment, with productivity gains, cost discipline, and new product introductions effectively countering macro-related headwinds. The company’s ability to deliver consistent segment growth and raise guidance underscores its operational resilience and strategic focus on high-margin innovation.