- 3M (MMM, Financial) reported a 61% increase in GAAP EPS for Q1 2025 to $2.04, with adjusted EPS rising 10% to $1.88.
- GAAP sales saw a 1.0% year-over-year decline to $6.0 billion, while adjusted sales grew 0.8% to $5.8 billion with 1.5% organic growth.
- 3M returned $1.7 billion to shareholders via dividends and share repurchases in Q1 2025.
3M (MMM) has announced its financial results for the first quarter of 2025, reflecting a mixed performance. The company's GAAP sales fell by 1.0% year-over-year, reaching $6.0 billion. Despite the decline in GAAP sales, adjusted sales showed a modest increase of 0.8%, totaling $5.8 billion, with an organic growth rate of 1.5%.
The company reported a significant improvement in profitability. The GAAP operating margin climbed 180 basis points to 20.9%, while the adjusted operating margin increased by 220 basis points to 23.5%. Such improvements underline 3M's enhanced operational efficiency and cost management despite revenue challenges.
In terms of earnings, 3M delivered a GAAP EPS of $2.04, marking a substantial 61% jump from the previous year, while the adjusted EPS rose by 10% to $1.88. The increase was partly attributed to a $0.63 per share gain linked to a rise in Solventum's ownership value.
Cash flow analysis presents a nuanced picture. The operating cash flow was negative at $(0.1) billion; however, the adjusted free cash flow was positive, amounting to $0.5 billion. The company remains committed to shareholder returns, distributing $1.7 billion through dividends and share repurchases within the quarter.
Looking ahead, 3M has updated its 2025 guidance, projecting an adjusted EPS range of $7.60 to $7.90. The company noted potential tariff impacts, adjusting EPS expectations by $(0.20) to $(0.40) per share, indicating concerns over ongoing global trade uncertainty and its influence on financial outcomes.
