MMM's Q1 Earnings Surpass Estimates, Revenues Decrease Y/Y

Core Viewpoint - 3M Company reported mixed results for the first quarter of 2025, with revenues missing expectations while earnings exceeded estimates [1][2]. Financial Performance - Adjusted earnings were $1.88 per share, surpassing the Zacks Consensus Estimate of$1.77, compared to $1.71 per share in the same quarter last year [1][2]. - Net revenues for the quarter were$5.95 billion, a decrease of 1% year over year, with organic sales down 0.3% [2]. - Adjusted revenues of $5.78 billion missed the consensus estimate of$5.79 billion, but increased 0.8% year over year on an adjusted basis [2]. Regional Sales Performance - Organic sales in the Americas increased by 1.7% year over year, while Asia Pacific saw a decrease of 0.7%, and Europe, the Middle East, and Africa experienced a decline of 5.1% [3]. Segment Results - Safety and Industrial segment revenues totaled $2.70 billion, up 0.5$2.74 billion [4]. - Transportation & Electronics segment revenues were $1.99 billion, reflecting a year-over-year decrease of 5.4$1.12 billion, missing the consensus estimate of $1.15 billion [6]. Margin and Cost Analysis - Cost of sales decreased by 0.2$3.48 billion, while selling, general, and administrative expenses fell by 16.2% to $945 million [7]. - Research and development expenses increased by 12.2$285 million [7]. - Operating income was reported at $1.25 billion, an increase of 8.4$1.36 billion [8]. Balance Sheet and Cash Flow - Cash and cash equivalents at the end of the quarter were $6.3 billion, up from$5.6 billion at the end of December 2024 [9]. - Long-term debt increased to $12.3 billion from$11.1 billion at the end of December 2024 [9]. - Adjusted free cash flow was $489 million, with a conversion rate of 48$7.60-$7.90 per share, with a midpoint of$7.75, reflecting an increase from $7.30 per share reported in 2024 [11]. - Adjusted organic revenues are anticipated to grow by 2-3% [11].