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Dec 31, 2025
3M Q4 2025 Earnings Report
3M reported strong Q4 2025 performance, with revenue growth, improved margins, and solid free cash flow generation.
Key Takeaways
3M delivered a solid Q4 2025, with adjusted EPS up 9%, strong operational performance, and growth in key segments like Safety and Industrial. The company maintained high free cash flow conversion and expanded margins despite headwinds in consumer and automotive markets.
Q4 GAAP sales reached $6.1 billion, marking a 2.1% increase year-over-year, while adjusted sales were $6.0 billion with 2.2% organic growth.
GAAP EPS for Q4 was $1.07, a 20% decrease year-over-year, but adjusted EPS rose by 9% to $1.83.
The company achieved an adjusted operating margin of 21.1% in Q4, an increase of 140 basis points compared to the previous year.
3M generated $1.6 billion in operating cash flow and $1.3 billion in adjusted free cash flow during the fourth quarter.
Revenue by Segment
Forward Guidance
3M anticipates continued earnings and margin growth in 2026, driven by innovation, operational efficiency, and strong cash conversion.
Positive Outlook
- Organic sales growth expected to be ~3%
- Adjusted EPS guidance of $8.50 to $8.70
- Free cash flow conversion expected to remain >100%
- Operating margin expansion of 70–80 bps forecasted
- Strong focus on productivity and innovation to drive performance
Challenges Ahead
- No guidance provided on GAAP EPS due to volatility in special items
- Macroeconomic uncertainty could pressure certain segments
- Stranded costs related to PFAS and Solventum remain a drag
- Tariff and investment headwinds may offset some margin gains
Revenue & Expenses
Visualization of income flow from segment revenue to net income
Historical Earnings Impact
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Avg. Return Before/After Earnings
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