3M reported a solid start to 2025, with first-quarter results showcasing resilient performance amid a challenging macroeconomic and regulatory backdrop. Adjusted sales rose 0.8% year-over-year to $5.8 billion, driven by 1.5% organic growth, even as GAAP sales dipped 1.0% to $6.0 billion due to the planned exit from PFAS manufacturing. Notably, the company delivered robust margin expansion, with the adjusted operating margin climbing 220 basis points to 23.5%. Earnings were a highlight, as GAAP EPS surged 61% to $2.04, while adjusted EPS increased 10% to $1.88, reflecting improved productivity and tight cost controls.

Segment results were mixed. The Safety and Industrial unit led the way with organic sales growth of 2.5% and a $39 million increase in operating income, supported by strong operational execution. In contrast, Transportation and Electronics faced a 4.0% decline in organic sales and a $129 million drop in operating income, hurt by softer demand in electronics and automotive end markets. Consumer saw stable profitability, with a modest 0.3% organic sales uptick, while Corporate and Other posted a narrowed loss, boosted by adjustments related to the Solventum spin-off.

Geographically, growth was strongest in the Americas, where organic sales rose 1.6%, while Asia Pacific and EMEA posted declines of 0.7% and 5.1%, respectively, highlighting regional disparities in demand.

Despite a negative operating cash flow of $0.1 billion, 3M generated $0.5 billion in adjusted free cash flow and returned $1.7 billion to shareholders through dividends and buybacks, reinforcing its commitment to capital allocation discipline. Special items related to PFAS and litigation were excluded from adjusted results, aligning with 3M’s strategic plan to exit PFAS manufacturing by the end of 2025.

CEO William Brown cited “strong results with margins ahead of expectations and double-digit EPS growth,” attributing success to ongoing efforts in performance culture, restructuring, and strategic execution. The company continues to focus on inventory reduction, sales execution, and new product introductions, with a double-digit increase in NPIs expected in 2025.

Looking ahead, 3M reaffirmed full-year guidance with adjusted EPS between $7.60 and $7.90, 2% to 3% organic sales growth, and margin expansion of 130 to 190 basis points. While macro uncertainty and legal risks remain—particularly around PFAS and tariffs—the company anticipates sequential improvement into Q2 and remains focused on delivering strong cash generation and operational excellence throughout the year.