What does 3M do and what are its main business segments?

What were the key takeaways from 3M's earnings call?

What guidance did 3M's management provide for the next earnings period?

Did 3M beat or miss consensus estimates last quarter?

What factors drove the changes in 3M's revenue and profit?

What is the market's earnings forecast for 3M next quarter?

What were the key takeaways from 3M’s earnings call?

What is 3M's latest dividend and current dividend yield?

- **Revenue Beat**: Q3 organic sales +3.2%, full-year guidance raised to >2% growth, driven by new products (19% Q3 growth) and Commercial eXcellence.
- **Margin Expansion**: Operating margin 24.7% (170bps YOY), targeting 180-200bps expansion. Free cash flow conversion 111% Q3, >100% for 2025.
- **Operational Excellence**: OTIF 91.6% (best in 20+ years), OEE 63% (300bps YTD), COQ 5.7% (down 150bps YTD).
- **Strategic Moves**: Sold low-margin business (1% of revenue), with 2026 focus on high-growth markets. New product pipeline >1,000 ideas, 250+ launches YTD vs. 215 target.
- **Regional Strength**: China up high single digits, Europe returning to growth, U.S. up 3.7% Q3. Consumer business resilient with 4Q in a row of growth.

**【Management Opening Remarks】**
- Chinmay Trivedi welcomed participants and outlined the call structure, emphasizing forward-looking statements and non-GAAP financial measures. The presentation highlighted Q3 performance and strategic initiatives.

**【CEO Commentary】**
- **Revenue Growth**: Organic sales rose 3.2% Q3, driven by Commercial eXcellence and new product launches (70 in Q3, 196 YTD). Full-year organic growth guidance updated to >2%.
- **Operational Excellence**: OTIF improved to 91.6% (vs. 89.6% Q2), OEE at 63% (up 300bps YTD), and COQ reduced to 5.7% (down 150bps YTD).
- **New Product Impact**: Sales from products launched in the last 5 years grew 30% Q3, 16% YTD, with examples like ScotchBlue PROSharp Painter's Tape and Filtrete expansion.
- **Portfolio Shaping**: Sold precision grinding business (1% of revenue) to focus on high-growth markets, with no EPS dilution.

**【CFO Financial Commentary】**
- **Financial Results**: Q3 EPS $2.19 (10% growth), free cash flow $1.3B (111% conversion). Full-year EPS guidance raised to $7.95-$8.05.
- **Margin Expansion**: Adjusted operating margin 24.7% (up 170bps), targeting 180-200bps expansion for the year.
- **Guidance Updates**: 2025 organic growth >2%, 2026 framework includes growth above macro, margin expansion, and >100% free cash flow conversion.

**【Q&A Highlights】**
- **New Product Momentum**: 80% of launches are incremental line extensions, with 1,000+ ideas in pipeline. Q3 new product sales up 19%, tracking for high teens YTD.
- **Restructuring**: Long-term initiative to redesign manufacturing and distribution, with $14M Q3 investment. No big-bang approach; updates expected in 2026.
- **Regional Growth**: China up high single digits Q3, Europe returning to growth, U.S. up 3.7% Q3 vs. 1% H1. Consumer business resilient with 0.3% Q3 growth.
- **Legal Update**: Personal injury claims rising to ~14,000, with bellwether trial delayed to allow more filings.


MMM

MMM fundamentals

You can ask Aime