3M(MMM) - 2025 Q1 - Quarterly Results

Financial Performance - 3M reported GAAP EPS of $2.04 for Q1 2025, a 61$1.88, up 10% year-on-year[4][5][6]. - Net sales for Q1 2025 were $6.0 billion, down 1.0$5.8 billion, reflecting a 0.8% increase year-on-year[5][7]. - Organic sales decreased by 0.3% year-on-year, but adjusted organic sales increased by 1.5% year-on-year[5][7]. - The GAAP operating income margin improved to 20.9%, up 180 basis points year-on-year, while the adjusted operating income margin rose to 23.5%, an increase of 220 basis points year-on-year[5][6]. - Operating income for the total company increased to $1,246 million compared to$1,149 million in the previous year, reflecting a positive trend in profitability[22]. - Adjusted net income for the same period was $1,358 million, with an adjusted EPS of$1.88, reflecting a 10% increase[35]. - Net income attributable to 3M for Q1 2025 was $1,116 million, compared to$928 million in Q1 2024, an increase of 20.2%[38]. Cash Flow and Investments - Operating cash flow was $(0.1) billion, with adjusted free cash flow of$0.5 billion[5][7]. - Net cash used in operating activities for the three months ended March 31, 2025, was $(79) million, compared to$767 million in the previous year[36]. - The company reported net cash provided by investing activities of $1,220 million for the same period[36]. - Adjusted free cash flow for Q1 2025 was$489 million, down from $833 million in Q1 2024, representing a decrease of 41.3$717 million, down from $1,188 million in Q1 2024, a decrease of 39.6$228 million, compared to $355 million in Q1 2024, a decrease of 35.8$1.7 billion to shareholders through dividends and share repurchases during the quarter[7]. Guidance and Future Outlook - The company updated its 2025 guidance, projecting adjusted EPS in the range of $7.60 to$7.90, with additional tariff sensitivity of $(0.20) to$(0.40) per share[8]. - The company expects adjusted earnings per share from continuing operations for 2025 to be in the range of $7.60 to$7.90[35]. - Future outlook includes continued emphasis on organic growth and potential market expansion strategies to counteract declines in certain segments[19]. Segment Performance - Total sales change for the Safety and Industrial segment was 0.5%, with organic sales growth of 2.5%, while Transportation and Electronics segment experienced a total sales decline of 5.4%[19]. - The Personal Safety division reported net sales of $850 million, slightly down from$857 million in the prior year, indicating stability in this segment[22]. - The Safety and Industrial segment reported GAAP net sales of $696 million, with an operating income margin of 25.5$1,990 million, down 5.4%, with an operating income margin of 17.7%[33]. - Total reportable business segments generated $5,859 million in sales, down from$5,976 million in the previous year, indicating a need for strategic adjustments[22]. Asset and Liability Management - Total assets as of March 31, 2025, were $39.951 billion, compared to$39.868 billion at the end of 2024[14]. - Current liabilities decreased to $9.451 billion from$11.256 billion at the end of 2024[14]. - 3M's cash and cash equivalents increased to $6.326 billion from$5.600 billion at the end of 2024[14][16]. Legal and Special Items - Corporate special items included net costs for significant litigation amounting to $(71) million, impacting overall operating income[22]. - The company incurred net costs for significant litigation of approximately$806 million in Q1 2025, up from $371 million in Q1 2024[39]. - Total adjustments for special items in Q1 2025 amounted to$796 million, compared to $421 million in Q1 2024, an increase of 89.3$343 million in Q1 2025[38].