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3M Company MMM reported first-quarter 2025 results, wherein revenues missed and earnings surpassed the Zacks Consensus Estimate.
It’s worth noting that in April 2024, the company completed the spin-off of its Healthcare business into a separate public company. (Find the latest EPS estimates and surprises on Zacks Earnings Calendar.)
Inside MMM’s Headlines
3M delivered adjusted earnings of $1.88 per share, which surpassed the Zacks Consensus Estimate of $1.77. The company reported earnings of $1.71 per share in the year-ago quarter.
The company reported net revenues of $5.95 billion in the quarter. The metric decreased 1% year over year. Organic sales decreased 0.3%. Foreign currency translation had a negative impact of 1.7% while acquisitions/divestitures boosted the top line by 1%.
MMM’s adjusted revenues of $5.78 billion missed the consensus estimate of $5.79 billion. On an adjusted basis, revenues increased 0.8% year over year.
Region-wise, organic sales in the Americas inched up 1.7% year over year while Asia Pacific organic sales decreased 0.7%. Organic sales from businesses in Europe, the Middle East and Africa decreased 5.1%.
3M’s Segmental Results
Revenues from Safety and Industrial totaled $2.70 billion, up 0.5% year over year. The Zacks Consensus Estimate for the segment’s revenues was pegged at $2.74 billion. Organic revenues increased 2.5% and foreign currency translation had a negative impact of 2%.
Revenues from Transportation & Electronics totaled $1.99 billion, reflecting a year-over-year decrease of 5.4%. The downside is attributable to a 4% decline in organic sales. The consensus estimate for the segment’s revenues was pegged at $1.83 billion. Foreign currency translation had a 1.4% negative impact on revenues.
Revenues from the Consumer segment decreased 1.4% year over year to $1.12 billion. The consensus estimate for the segment’s revenues was pegged at $1.15 billion. Organic sales increased 0.3%. Movements in foreign currencies had an adverse impact of 1.7%.
3M Company Price, Consensus and EPS Surprise
3M Company price-consensus-eps-surprise-chart | 3M Company Quote
MMM’s Margin Profile
3M’s cost of sales decreased 0.2% year over year to $3.48 billion. Selling, general and administrative expenses decreased 16.2% to $945 million. Research, development and related expenses increased 12.2% year over year to $285 million.
In the first quarter, 3M reported an operating income of $1.25 billion, up 8.4% from the year-ago period.
MMM’s adjusted operating income increased 11% year over year to $1.36 billion. The adjusted operating margin was 23.5% compared with 21.3% in the year-ago quarter. The adjusted tax rate was 20.9%, in line with the year-ago period.