3M Q2 Revenue Growth Across All Business Segments

3M reported Q2 revenue growth Y/Y and Q/Q across all business segments.

3M Company (NYSE: MMM) reported strong second-quarter 2025 results, with revenue growth year-over-year (YoY) and quarter-over-quarter (QoQ) across all business segments. The company's stock surged Friday following the announcement.

The company posted GAAP sales of $6.3 billion, up 1.4% YoY, and adjusted sales of $6.2 billion, reflecting 1.5% organic growth and beating the consensus estimate of $6.09 billion [1].

This marked 3M's third consecutive quarter of growth, with 13 of 16 divisions posting gains. The electronics and industrials segments led the growth, with China up mid-single digits and Europe, Middle East, and Africa (EMEA) remaining flat.

The adjusted operating margin expanded 290 basis points to 24.5%, driven by growth, productivity gains, and lower restructuring costs. These were partially offset by investments, tariffs, and foreign exchange impacts.

Adjusted earnings per share (EPS) rose 12% YoY to $2.16, topping the Street estimate of $2.01.

By segment, Safety & Industrial posted 3.6% adjusted sales growth to $2.86 billion, with adjusted operating margin expanding to 25.8% from 22.6%. Transportation & Electronics' revenue grew 1.9% to $1.94 billion, and its adjusted operating margin rose to 24.6% from 22.3%. The Consumer segment saw modest 0.6% growth to $1.27 billion, with adjusted operating margin improving to 21.1% from 17.4% a year ago.

3M returned $1.3 billion to shareholders during the quarter and reported adjusted free cash flow of $1.3 billion, despite a $1.0 billion cash outflow from operations due to $2.2 billion in litigation-related payments.

The company raised its full-year outlook, expecting 2025 Adjusted EPS of $7.75-$8.0, adjusted sales organic growth of ~2%, and operating cash flow of $5.1–$5.5 billion with 100% free cash flow conversion [1].

William Brown, 3M Chairman and CEO, commented, "Our 3M eXcellence operating model is the foundation for delivering on each of our strategic priorities, and it drives the operating rigor and rhythm of our performance culture. With execution improving and solid results in the first half, we have confidence in our increased full-year EPS guidance, which now embeds the expected impact of tariffs."

At the last check on Friday, MMM shares were trading higher by 3.06% at $163.90 premarket [1].

References:
[1] https://www.aol.com/post-maker-3m-defies-tariff-150355030.html