What's behind 3M's expense volatility in 2024?

3M's R&D expenses for 2024 were $1.09 billion, which is a significant expense for the company. The volatility in 3M's expenses in 2024 can be attributed to several factors:

1. **Project Terminations and Reimbursements**: Abivax, a biotechnology company, experienced an increase in tax credits due to net reimbursements of conditional advances made to Bpifrance related to the RNP-VIR and CARENA projects. Following the termination of these projects, subsidies increased by a non-cash amount of EUR 4.1 million, which was recognized after the termination. This situation is similar to that of 3M, where the company's R&D expenses may fluctuate due to the termination or completion of specific projects.
2. **Strategic Focus on Growth Markets**: 3M has been strategically focused on high-growth markets, such as the automotive and aerospace sectors, which has justified an upgrade to a "Buy" rating. This focus on growth markets likely led to increased R&D expenses as the company invested in new products and technologies to capitalize on these markets.

In conclusion, 3M's R&D expenses volatility in 2024 can be attributed to a combination of project terminations and reimbursements, as well as strategic investments in high-growth markets.