3M Reports Third-Quarter 2026 Results; Raises Full-Year EPS Guidance
Q3 operating cash flow of $0.5 billion with adjusted free cash flow of $1.2 billion
ST. PAUL, Minn. – Oct. 20, 2026 − 3M (NYSE: MMM) today reported third-quarter results.
“We delivered another quarter of strong results, including solid sales growth, continued margin expansion, double-digit EPS growth, and robust free cash flow,” said William Brown, 3M Chairman and CEO. “Improving productivity through structural transformation and a stronger pipeline of differentiated technologies reinforce our confidence in the full-year outlook and long-term growth and margin potential. I want to thank the 3M team for their focus on customers and disciplined execution, which continues to strengthen our performance and create shareholder value.”
Q3 2026 Q3 2025 ──────────────────────────────────────────────────────────────────────────── GAAP EPS $ 2.63 $ 1.55 Special items: Loss on business divestitures — 0.30 (Increase) decrease in value of -0.60 0.13 Solventum ownership Net costs for significant litigation and 0.19 0.19 PFAS exit Transformation costs 0.08 0.02 Amortization and business 0.20 0.04 acquisition-related costs Adjusted EPS $ 2.50 $ 2.23 Memo: GAAP operating income margin 23.7 % 22.2 % Adjusted operating income margin 26.2 % 25.1 %
• Adjusted (non-GAAP) reporting updated to treat amortization of intangible assets as a special item for all periods presented; no material year-on-year impact on new basis.
GAAP Adjusted (non-GAAP) Net sales (billions) $6.6 $6.6 Sales change Total sales 1.0% 4.2% Components of sales change: Organic sales 0.2 3.3 Acquisitions/divestitures 0.9 0.9 Translation -0.1 — Adjusted sales excludes manufactured PFAS products.
• Sales of $6.6 billion, up 1.0% year-on-year with organic sales up 0.2% year- on-year.
• Adjusted sales of $6.6 billion, up 4.2% year-on-year with adjusted organic sales up 3.3% year-on-year.
1 New basis: Updated non-GAAP reporting treats intangible asset amortization as a special item for all periods presented. The change increases base Q3 adjusted operating income margin by approximately 40 bps and adjusted EPS by approximately $0.04. Year-on-year comparisons are not materially impacted as all periods are reflected on the same basis. 1
• 3M entered into an expanded strategic commercial relationship with Amazon to deploy and scale 3M’s optical connectivity and other Data Center related products. 3M issued a warrant to Amazon to purchase up to 3.2 million shares of 3M common stock based upon the achievement of $6 billion in cumulative sales of optical connectivity and other Data Center related products over the next seven years, and other event-based milestones.
• 3M is collaborating with Genius Electronic Optical Co., Ltd. (GSEO), an optical technology company, to advance technology development and manufacturing for 3M's Expanded Beam Optics (EBO) solutions. In support of these efforts, 3M is investing to acquire ~4.7% of GSEO's common shares. The collaboration brings together 3M's EBO technology leadership, optical interconnect expertise, materials science, manufacturing scale and customer relationships with GSEO's precision optics manufacturing capabilities and production scale.
• 3M introduced Cooling Film technology for fleet and rail applications, expanding its portfolio of thermal management solutions for transportation customers. Applied to vehicle roofs, the highly reflective performance film uses thermal management technology to reduce heat buildup and help keep interiors noticeably cooler.
• 3M showcased how its materials science expertise supports innovation in golf equipment through its collaboration with PING. By pairing PING’s expertise in club design and custom manufacturing with 3M’s broad portfolio of materials science solutions, the two companies can collaborate on engineering solutions that turn complex technical challenges into repeatable, high-quality results on the course.
• 3M and BOE established a joint innovation laboratory to accelerate next- generation display technology development. The joint research and development platform brings together BOE’s display innovation and end-use application expertise with 3M’s materials science capabilities to accelerate higher- performance solutions across LCD, OLED and MLED applications, including improvements in light efficiency, foldable displays and ultra-narrow bezel processes.
• 3M continued to expand its work with U.S. and international government customers, with third-quarter awards supporting defense, health care, and emergency response needs. Awards included PELTOR™ communication and hearing protection solutions for various U.S. military services and Scott SCBAs for the U.S. Navy, respirator and SCBA products for the National Institutes of Health, and respirators for international customers, reflecting 3M’s growing work with government partners around the world.
3M provided an update to the full-year 2026 guidance provided on July 21, 2026, incorporating the company’s performance year-to-date, the acquisition of Madison Fire & Rescue, and a change in non-GAAP treatment of amortization.
• Adjusted total sales growth 2 of >4.5 percent, reflecting adjusted organic sales growth 2 of >3.5 percent.
• Adjusted operating cash flow 2 of ~$5.9 billion with adjusted free cash flow of ~$4.8 billion.
2 As further discussed at 5 within the "Supplemental Financial Information Non- GAAP Measures" sections, 3M cannot, without unreasonable effort, forecast certain items required to develop meaningful comparable GAAP financial measures and, therefore, does not provide them on a forward-looking basis reflecting these items.
Certain statements in this document, as well as other filings we make with the United States Securities and Exchange Commission (“SEC”) and other written and oral information we release are considered "forward-looking statements" under the federal securities laws, including the Private Securities Litigation Reform Act of 1995, as amended ("PSLRA"). Forward-looking statements may appear throughout this document and are typically identified by the words "aim," "anticipate," "believe," "can," "continue," "could," "estimate," "evaluate," "expect," "forecast," "future," "goal," "guidance," "impact," "initial," "intend," "likely," "may," "outlook," "plan," "possible," "potential," "predict," "probable," "project," "seek," "should," "strategy," "target," "will," "would," and other words that are similar to, or have the opposite meanings of, those words.
All forward-looking statements are intended to enjoy the protection of the PSLRA’s safe harbor for forward-looking statements, as well as the protections provided by other securities laws. Forward-looking statements speak only as of the date they are made and the Company assumes no obligation to update or revise any forward-looking statements. Readers are cautioned not to place undue reliance on any of these forward-looking statements.
Although the Company believes it has a reasonable basis for the forward-looking statements it makes, those statements are based on certain assumptions and expectations of future events and trends that are subject to risks and uncertainties. Changes in those assumptions, expectations, or other factors could produce materially different results. The most important risks, uncertainties, and other factors that could cause the Company's actual results to differ from the Company's forward-looking statements include: (1) worldwide economic, political, regulatory, international trade, geopolitical, tariffs, and retaliatory countermeasures, capital markets, and other external conditions, (2) foreign currency exchange rates and fluctuations in those rates, (3) liabilities and contingencies related to PFAS, including liabilities related to claims, lawsuits, and government regulatory proceedings concerning various PFAS-related products and chemistries, as well as risks related to the Company's exit of PFAS manufacturing and work to discontinue use of PFAS across its product portfolio, (4) risks related to the PWS Settlement to resolve claims by public water suppliers in the United States regarding PFAS, as well as risks related to ongoing PFAS-related settlements and claims, (5) legal proceedings, including significant developments that could occur in the legal and regulatory proceedings described in the Company's reports on Form 10-K, 10-Q, and 8-K, as well as compliance risks related to legal or regulatory requirements, government contract requirements, policies and practices, or other matters that require or encourage the Company or its customers, suppliers, vendors, or channel partners to conduct business in a certain way, (6) competitive conditions and customer preferences, (7) the timing and market acceptance of new product and service offerings, (8) the availability and cost of purchased components, compounds, raw materials and energy due to shortages, increased demand and wages, tariffs, supply chain interruptions, or natural or other disasters, (9) unanticipated problems or delays when implementing new business systems and solutions, including with the phased implementation of a global enterprise resource planning system, or security breaches and other disruptions to the Company's information or operational technology infrastructure, (10) use of artificial intelligence technologies, (11) the impact of acquisitions, strategic alliances, divestitures, and other strategic events resulting from portfolio management actions and other evolving business strategies, (12) operational execution, including the extent to which the Company can realize the benefits of planned productivity improvements, as well as the impact of organizational restructuring activities, (13) financial market risks that may affect the Company's funding obligations under defined benefit pension and postretirement plans, (14) the Company’s credit ratings and its cost of funding, (15) tax-related external conditions, including changes in tax rates, laws, or regulations, (16) matters relating to the Company's Aearo Entities, Combat Arms Earplugs Settlement, and related products, and (17) matters relating to the spin-off of Solventum, the Company's former Health Care business, into an independent public company.
Those risks, uncertainties, and other factors are further described in Part I, Item 1A, "Risk Factors" of the Company's Form 10-K for the year ended December 31, 2025. For additional information concerning factors that may cause actual results to differ materially from the Company's forward-looking statements, see the Company's reports on Form 10-K, 10-Q, and 8-K filed with the SEC from time to time. 3
September 30, 2026 December 31, 2025 ────────────────────────────────────────────────────────────────────────────── Assets Current assets Cash and cash equivalents $ 4,835 $ 5,235 Marketable securities 310 698 Accounts receivable – net 4,116 3,533 Inventories 4,081 3,661 Prepaids 482 391 Assets held for sale — 46 Other current assets 2,890 2,823 Total current assets 16,714 16,387 Property, plant and 6,969 7,101 equipment – net Goodwill and intangible 9,396 7,522 assets – net Other assets 6,447 6,723 Total assets $ 39,526 $ 37,733 Liabilities, redeemable noncontrolling interest and equity Current liabilities Short-term borrowings and current $ 2,439 $ 1,670 portion of long-term debt Accounts payable 3,040 2,702 Accrued payroll 619 718 Liabilities held for sale — 55 Other current liabilities 5,770 4,450 Total current liabilities 11,868 9,595 Long-term debt 12,558 10,932 Other liabilities 9,960 12,459 Total liabilities 34,386 32,986 Redeemable noncontrolling 971 — interest Total equity 4,169 4,747 Shares outstanding September 30, 2026:516,729,574 December 31, 2025: 530,279,131 Total liabilities, redeemable $ 39,526 $ 37,733 noncontrolling interest and equity
Nine months ended September 30, 2026 2025 ────────────────────────────────────────────────────────────────────────────── Net cash provided by (used in) operating $ 2,046 $ 723 activities Cash flows from investing activities: Purchases of property, plant and -704 -662 equipment Acquisitions, net of cash acquired -1,910 — Purchases and proceeds from sale or maturities of marketable 390 2,346 securities and investments – net Proceeds from (payments for) sale of -326 5 businesses, net of cash sold Other investing activities 38 66 Net cash provided by (used in) investing -2,512 1,755 activities Cash flows from financing activities: Change in debt – net 2,525 -705 Purchases of treasury stock and -4,441 -3,874 dividends paid to shareholders Proceeds from issuances of treasury 702 1,219 stock pursuant to stock option and benefit plans Proceeds from investment by 1,277 — noncontrolling interest Other financing activities -38 -39 Net cash provided by (used in) financing 25 -3,399 activities Effect of exchange rate changes on cash -5 36 and cash equivalents Net increase (decrease) in cash and cash equivalents, including cash -446 -885 classified within assets held for sale Less: net increase (decrease) in cash -46 44 classified within assets held for sale Net increase (decrease) in cash and cash -400 -929 equivalents Cash and cash equivalents at beginning 5,235 5,600 of year Cash and cash equivalents at end of $ 4,835 $ 4,671 period
3 Total sales change is calculated based on reported sales results. The components of sales change include organic local-currency sales, acquisitions, divestitures, and translation. Organic local-currency sales include both organic volume impacts (which excludes acquisition and divestiture impacts) and selling price changes. Acquisition and divestiture impacts are measured separately for the first 12 months post-transaction. 7
(Unaudited) 3M discloses business segment operating income as its measure of segment profit, which is reconciled to both total 3M operating income and income before taxes. This measure excludes certain expenses and income not allocated to business segments (as described below in “Corporate”).
Effective in 2026, the measure of segment operating performance and segment composition used by 3M’s chief operating decision maker (CODM) changed. As a result, 3M’s disclosed measure of segment profit and other segment-related amounts were updated to reflect these changes for all periods presented. The changes include the following items now reflected within Corporate:
Effective third quarter 2026 - acquired intangible asset amortization: This is now reflected as a Corporate special item rather than within reportable business segment operating income.
activity and net costs for respirator mask/asbestos litigation special items: These special items were moved into Corporate from the Transportation and Electronics segment and Safety and Industrial segment, respectively.
These costs are now reflected as a Corporate special item rather than within reportable business segment operating income. There were no such material costs in prior periods presented.
Outside of 3M's reportable segments, 3M has Corporate, which is not a reportable business segment as it does not meet the segment reporting criteria. Because Corporate includes a variety of miscellaneous items, it is subject to fluctuation on a quarterly and annual basis.
◦ certain enterprise and governance activities resulting in unallocated corporate costs and other activity or costs that 3M may choose not to allocate directly to its business segments,
◦ commercial activity with Solventum following its April 2024 spin-off from 3M, as well as certain operations of 3M’s former health care business segment that were retained by 3M, and
◦ transition arrangement agreements (e.g., fees charged by 3M, net of underlying costs) related to divested businesses, including those related to Solventum.
◦ net costs for significant litigation and PFAS exit impacting operating income (loss),
◦ acquired intangible asset amortization and business acquisition-related costs,
(Unaudited) In addition to reporting financial results in accordance with U.S. GAAP, 3M also provides certain non-GAAP measures. These measures are not in accordance with, nor are they a substitute for GAAP measures, and may not be comparable to similarly titled measures used by other companies.
Certain measures adjust for the impact of special items. Special items for the periods presented include the items described in the section entitled “Description of special items”. Because 3M provides certain information with respect to business segments, it is noteworthy that special items impacting operating income (loss) are reflected in Corporate.
This document contains measures for which 3M provides the reported GAAP measure and a non-GAAP measure adjusted for special items. The document also contains additional measures which are not defined under U.S. GAAP. These measures and reasons 3M believes they are useful to investors (and, as applicable, used by 3M) include:
GAAP amounts for which a measure Reasons 3M believes the measure is adjusted for special items is also useful: provided: Considered in evaluating and managing operations; useful in •Net sales (and sales change) understanding underlying business performance, provides additional transparency to special items •Operating income (loss) and operating income (loss) margin (and expansion) •Income before taxes •Provision for income taxes and effective tax rate •Net income •EPS
Additional non-GAAP measures: •Adjusted net cash provided by (used in) operating activities; adjusted Used as indicators of strength and purchases ability to generate cash and as of property, plant and equipment indicator of capital deployment; (also meaningful as measures of referred to as adjusted capital performance expenditures) and adjusted free cash flow
The following provides additional information and applicable GAAP amounts reconciled to non-GAAP measures. 10
4 These items represent amounts adjusted for special items. See lead-in to non- GAAP measures discussion. 11
(Unaudited) In the third quarter of 2026, 3M changed its non-GAAP reporting to include amortization of acquired intangible assets as a special item. The following reconciliations present additional prior periods retrospectively reflecting this change.
2026 forecast 2026 adjusted operating income margin ~24.6% expansion (non-GAAP measure)4,5 2026 adjusted earnings per share $9.10 to $9.15 (non-GAAP measure)4,5 2026 adjusted effective tax rate ~20% (non-GAAP measure)4,5
5 3M provides these forward-looking non-GAAP measures, but cannot, without unreasonable effort, forecast certain items to present or provide a reconciliation to corresponding forecasted GAAP measures. These include special items such as net costs for significant litigation and PFAS exit; business acquisition-related costs; projected divestiture gains (losses); changes in value of Solventum ownership; transformation costs; and net sales and estimates of income and associated activity of exited manufactured PFAS products all of which are subject to limitations in predictability of timing, ultimate outcome and numerous conditions outside of 3M’s control. 3M believes these limitations would result in a range of projected values so broad as to not be meaningful to investors. For these reasons, 3M believes that the probable significance of such information is low. Additionally, for similar reasons, 3M does not include the impact of potentially-divested or acquired businesses on expected operations in forecasted guidance it provides until close of a transaction, unless otherwise indicated. Information with respect to special items for certain historical periods is included in the section entitled “Description of special items”. 15
2026 forec… Sales Organ… Total chan… sales Acquis… Dives… Transl… sales change Total >3.5% — % — % ~1% >4.5% Comp…
Adjusted net cash provided by (used in) operating activities; adjusted purchases of property, plant and equipment (also referred to as adjusted capital expenditures) and adjusted free cash flow (non-GAAP measures):
Adjusted free cash flow (non-GA… Three Nine measure) months months (dollars ended ended in September September million… 2026 30, 2025 2026 30, 2025 ────────────────────────────────────────────────────────────────────────────── Net cash provided by (used $ 486 $ 1,756 $ 2,046 $ 723 in) operati… activit… Adjustm… for special items: Net costs/(… for signifi… litigat… 894 -200 1,577 2,803 and PFAS exit after-t… payment impacts Divesti… costs after-t… — 26 — 85 payment impacts TCJA transit… — — — 211 tax payment Business acquisi… 23 — 23 — costs Transfo… actions after-t… 50 — 93 — payment impacts Manufac… PFAS products — -60 51 -92 after-t… payment impacts Total adjustm… for 967 -234 1,744 3,007 special items Adjusted net cash provided by (used in) $ 1,453 $ 1,522 $ 3,790 $ 3,730 operati… activit… (non-GA… measure… Purchas… of propert… plant -256 -218 -704 -662 and equipme… (PPE) Manufac… PFAS products impact - — 6 — 15 removing related purchas… of PPE Adjusted purchas… of PPE $ -256 $ -212 $ -704 $ -647 (non-GA… measure… Adjusted free cash $ 1,197 $ 1,310 $ 3,086 $ 3,083 flow (non-GA… measure…
Adjusted free cash flow (non-GAAP measure) (dollars Year ended in millions) December 31, 2025 2024 ────────────────────────────────────────────────────────────────────────────── Net cash provided by (used in) operating $ 2,306 $ 1,819 activities Adjustments for special items: Net costs/(recoveries) for significant 2,817 3,831 litigation after-tax payment impacts Divestiture costs and divestiture-related 102 374 restructuring after-tax payment impacts TCJA transition tax 211 193 payment Transformation actions after-tax 11 — payment impacts Manufactured PFAS products after-tax -183 -229 payment impacts Total adjustments 2,958 4,169 for special items Adjusted net cash provided by (used in) $ 5,264 $ 5,988 operating activities (non-GAAP measure)6 Purchases of property, plant and -910 -1,181 equipment (PPE) Manufactured PFAS products impact - 20 70 removing related purchases of PPE Adjusted purchases of PPE (non-GAAP $ -890 $ -1,111 measure)6 Adjusted free cash flow (non-GAAP $ 4,374 $ 4,877 measure)6
6 3M defines adjusted net cash provided by (used in) operating activities as net cash provided by operating activities, adjusted for special items. 3M defines adjusted purchases of property, plant and equipment (also referred to as adjusted capital expenditures) as purchases of property, plant and equipment (PPE) adjusted for the estimated impact of such purchases associated with manufactured PFAS products activity. 3M defines adjusted free cash flow as adjusted net cash provided by (used in) operating activities less adjusted purchases of PPE. Cash payments/receipts associated with special items in the determination of adjusted net cash provided by (used in) operating activities are reflected net of applicable tax. The cash tax impact is determined by the amount, timing, and applicable tax rates for the actual cash tax payments, which may differ from the timing of the related pre-tax cash payments or underlying transactions.
(Dollars in billions) 2026 forecast Net cash provided by (used in) operating ~$5.9 activities Adjustments for special items5 — Adjusted net cash provided by (used in) operating ~$5.9 activities (non-GAAP measure)5,6 Purchase of property, plant and equipment (PPE) ~$1.1 Adjusted free cash flow (non-GAAP measure)5,6 ~$4.8
In addition to reporting financial results in accordance with U.S. GAAP, the Company also provides various non-GAAP measures that incorporate adjustments for the impacts of special items. Special items incorporated in the preparation of these non-GAAP measures for the periods presented include the items described below:
• Net costs for significant litigation relate to 3M's respirator mask/asbestos (which include Aearo and non-Aearo items), PFAS-related other environmental, Combat Arms Earplugs, and certain divested business matters. Net costs include the impacts of changes in accrued liabilities (including interest imputation on applicable settlement obligations), legal costs, and insurance recoveries, along with the associated tax impacts. Associated tax impacts of significant litigation include impacts on Foreign-Derived Deduction Eligible Income ("FDDEI"), Net Controlled Foreign Corporation Tested Income ("NCTI"), foreign tax credits, and tax costs of repatriation. PFAS exit costs include amounts outside of significant litigation related to impacted site disposition and treatment post-first quarter 2026 completion of substantive PFAS product sales. 3M does not consider the elements of the net costs associated with these matters to be normal, operating expenses related to the Company’s ongoing operations, revenue generating activities, business strategy, industry, and regulatory environment. In the third quarter of 2026 and 2025, 3M reflected net pre-tax cash (receipts)/payments of $1 billion and $(32) million, respectively, related to net costs for significant litigation and PFAS exit. In the first nine months of 2026 and 2025, 3M reflected net pre-tax cash (receipts)/payments of $2.0 billion and $3.3 billion, respectively, related to net costs for significant litigation and PFAS exit.
• These include acquired intangible asset amortization and business acquisition- related costs that further include:
◦ Adjustments to redeemable noncontrolling interest and change in value of venture derivative.
◦ In the third quarter and first nine months of 2026, 3M reflected net pre-tax cash (receipts)/payments of $23 million related to business acquisition costs.
• In the third quarter of 2025, 3M classified a business as held for sale. In the first half of 2026, 3M reflected an adjustment to carrying it at its selling price less cost to sell. In the second quarter of 2026, 3M recorded a loss on the divestiture of its Dyneon GmbH subsidiary. In June 2025, 3M completed a divestiture for immaterial proceeds slightly below the business’ book value.
• Divestiture costs include limited costs that were not eligible to be included within discontinued operations related to separating and divesting substantially an entire business segment of 3M following public announcement of its intended divestiture. As a result of completion of the April 2024 separation of Solventum, this includes the tax cost of updating 3M’s previous indefinite reinvestment plans on past unrepatriated earnings through the period of the Separation’s close and to tax positions retained by 3M. 3M’s statement of cash flows includes the results of both continuing and discontinued operations. Therefore, in the context of amounts used in the determination of non-GAAP measures associated with cash flow and adjusted free cash flow, this special item further includes the broader extent of such costs included within discontinued operations, including interest expense on debt issued by Solventum for the period outstanding prior to the April 1, 2024 completion of the separation of Solventum from 3M and net tax costs of entity structuring associated with the separation of Solventum.
• These amounts relate to sales and income (loss) and associated activity regarding manufactured PFAS products that 3M exited by the end of 2025. Income does not contemplate impacts on non-operating items such as net interest income/expense and the non-service cost components portion of defined benefit plan net periodic benefit costs. Relative to the impact of the activity of manufactured PFAS products on cash provided by (used in) operating activities, amounts are based on estimates of associated income, depreciation, certain changes in working capital and accruals, and timing of associated payments.
• In 2024, 3M recorded a non-cash pension settlement charge reflected in other expense (income), net as a result of transferring a portion of its U.S. pension payment obligations and related plan assets to an insurance company. 19
(Unaudited) Enactment/measurement period adjustments related to the Tax Cuts and Jobs Act (TCJA):
• In the second quarter of 2025, 3M made payments of $211 million related to the transition tax expense incurred as a result of the 2017 enactment of the TCJA.
• This amount relates to the change in value of 3M's retained ownership interest in Solventum common stock reflected in other expense (income), net.
• These represent net costs associated with 3M's transformation program, intended as a structural redesign of longer-term manufacturing, distribution, and business process services and locations. Accordingly, 3M does not consider the nature or effect of this program to be normal, operating expenses related to the Company’s ongoing operations, revenue generating activities, and day-to-day business strategy. Net costs include restructuring and other related items such as site closure, sale, moving and set-up, accelerated depreciation, and program management. In the third quarter and first nine months of 2026, 3M made pre-tax cash payments of $64 million and $137 million, respectively, associated with transformation costs. 20
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Full text with the tables
Exhibit 99.1
3M Reports Third-Quarter 2026 Results; Raises Full-Year EPS Guidance
•
Q3 GAAP sales of $6.6 billion, up 1.0%; operating margin of 23.7%, up 150 bps;
EPS of $2.63, up 70%, all YoY
◦
Adjusted sales of $6.6 billion with organic growth of 3.3% YoY
◦
Adjusted operating margin of 26.2% on new basis
1
, up 110 bps YoY
◦
Adjusted EPS of $2.50 on new basis
1
, up 12% YoY
•
Q3 operating cash flow of $0.5 billion with adjusted free cash flow of $1.2
billion
•
2026 adjusted EPS guidance raised to $9.10 to $9.15, incorporating new basis
1
ST. PAUL, Minn. – Oct. 20, 2026 − 3M (NYSE: MMM) today reported third-quarter
results.
“We delivered another quarter of strong results, including solid sales growth,
continued margin expansion, double-digit EPS growth, and robust free cash flow,”
said William Brown, 3M Chairman and CEO. “Improving productivity through
structural transformation and a stronger pipeline of differentiated technologies
reinforce our confidence in the full-year outlook and long-term growth and
margin potential. I want to thank the 3M team for their focus on customers and
disciplined execution, which continues to strengthen our performance and create
shareholder value.”
Third-quarter highlights:
Q3 2026 Q3 2025
────────────────────────────────────────────────────────────────────────────
GAAP EPS $ 2.63 $ 1.55
Special items:
Loss on business divestitures — 0.30
(Increase) decrease in value of -0.60 0.13
Solventum ownership
Net costs for significant litigation and 0.19 0.19
PFAS exit
Transformation costs 0.08 0.02
Amortization and business 0.20 0.04
acquisition-related costs
Adjusted EPS $ 2.50 $ 2.23
Memo:
GAAP operating income margin 23.7 % 22.2 %
Adjusted operating income margin 26.2 % 25.1 %
• Adjusted (non-GAAP) reporting updated to treat amortization of intangible
assets as a special item for all periods presented; no material year-on-year
impact on new basis.
• GAAP EPS of $2.63 and operating margin of 23.7%.
• Adjusted EPS of $2.50, up 12% year-on-year.
• Adjusted operating income margin of 26.2%, up 110 basis points year-on-year.
GAAP Adjusted (non-GAAP)
Net sales (billions) $6.6 $6.6
Sales change
Total sales 1.0% 4.2%
Components of sales change:
Organic sales 0.2 3.3
Acquisitions/divestitures 0.9 0.9
Translation -0.1 —
Adjusted sales excludes manufactured
PFAS products.
• Sales of $6.6 billion, up 1.0% year-on-year with organic sales up 0.2% year-
on-year.
• Adjusted sales of $6.6 billion, up 4.2% year-on-year with adjusted organic
sales up 3.3% year-on-year.
• 3M returned $0.6 billion to shareholders via dividends and share repurchases.
• Cash from operations of $0.5 billion.
• Adjusted free cash flow of $1.2 billion.
1 New basis: Updated non-GAAP reporting treats intangible asset amortization as
a special item for all periods presented. The change increases base Q3 adjusted
operating income margin by approximately 40 bps and adjusted EPS by
approximately $0.04. Year-on-year comparisons are not materially impacted as all
periods are reflected on the same basis.
1
Strategic and operational highlights
The following are recently announced highlights:
• 3M entered into an expanded strategic commercial relationship with Amazon to
deploy and scale 3M’s optical connectivity and other Data Center related
products. 3M issued a warrant to Amazon to purchase up to 3.2 million shares of
3M common stock based upon the achievement of $6 billion in cumulative sales of
optical connectivity and other Data Center related products over the next seven
years, and other event-based milestones.
• 3M is collaborating with Genius Electronic Optical Co., Ltd. (GSEO), an
optical technology company, to advance technology development and manufacturing
for 3M's Expanded Beam Optics (EBO) solutions. In support of these efforts, 3M
is investing to acquire ~4.7% of GSEO's common shares. The collaboration brings
together 3M's EBO technology leadership, optical interconnect expertise,
materials science, manufacturing scale and customer relationships with GSEO's
precision optics manufacturing capabilities and production scale.
• 3M introduced Cooling Film technology for fleet and rail applications,
expanding its portfolio of thermal management solutions for transportation
customers. Applied to vehicle roofs, the highly reflective performance film uses
thermal management technology to reduce heat buildup and help keep interiors
noticeably cooler.
• 3M showcased how its materials science expertise supports innovation in golf
equipment through its collaboration with PING. By pairing PING’s expertise in
club design and custom manufacturing with 3M’s broad portfolio of materials
science solutions, the two companies can collaborate on engineering solutions
that turn complex technical challenges into repeatable, high-quality results on
the course.
• 3M and BOE established a joint innovation laboratory to accelerate next-
generation display technology development. The joint research and development
platform brings together BOE’s display innovation and end-use application
expertise with 3M’s materials science capabilities to accelerate higher-
performance solutions across LCD, OLED and MLED applications, including
improvements in light efficiency, foldable displays and ultra-narrow bezel
processes.
• 3M continued to expand its work with U.S. and international government
customers, with third-quarter awards supporting defense, health care, and
emergency response needs. Awards included PELTOR™ communication and hearing
protection solutions for various U.S. military services and Scott SCBAs for the
U.S. Navy, respirator and SCBA products for the National Institutes of Health,
and respirators for international customers, reflecting 3M’s growing work with
government partners around the world.
Updated full-year 2026 guidance
3M provided an update to the full-year 2026 guidance provided on July 21, 2026,
incorporating the company’s performance year-to-date, the acquisition of Madison
Fire & Rescue, and a change in non-GAAP treatment of amortization.
• Adjusted total sales growth 2 of >4.5 percent, reflecting adjusted organic
sales growth 2 of >3.5 percent.
• Adjusted EPS 2 of $9.10 to $9.15.
• Adjusted operating cash flow 2 of ~$5.9 billion with adjusted free cash flow
of ~$4.8 billion.
2 As further discussed at 5 within the "Supplemental Financial Information Non-
GAAP Measures" sections, 3M cannot, without unreasonable effort, forecast
certain items required to develop meaningful comparable GAAP financial measures
and, therefore, does not provide them on a forward-looking basis reflecting
these items.
Conference call
3M will conduct an investor teleconference at 9 a.m. ET (8 a.m. CT) today.
Investors can access this conference via the following:
• Live webcast at https://investors.3M.com
• Webcast replay at https://investors.3m.com/financials/quarterly-earnings
2
Forward-looking statements
Certain statements in this document, as well as other filings we make with the
United States Securities and Exchange Commission (“SEC”) and other written and
oral information we release are considered "forward-looking statements" under
the federal securities laws, including the Private Securities Litigation Reform
Act of 1995, as amended ("PSLRA"). Forward-looking statements may appear
throughout this document and are typically identified by the words "aim,"
"anticipate," "believe," "can," "continue," "could," "estimate," "evaluate,"
"expect," "forecast," "future," "goal," "guidance," "impact," "initial,"
"intend," "likely," "may," "outlook," "plan," "possible," "potential,"
"predict," "probable," "project," "seek," "should," "strategy," "target,"
"will," "would," and other words that are similar to, or have the opposite
meanings of, those words.
All forward-looking statements are intended to enjoy the protection of the
PSLRA’s safe harbor for forward-looking statements, as well as the protections
provided by other securities laws. Forward-looking statements speak only as of
the date they are made and the Company assumes no obligation to update or revise
any forward-looking statements. Readers are cautioned not to place undue
reliance on any of these forward-looking statements.
Although the Company believes it has a reasonable basis for the forward-looking
statements it makes, those statements are based on certain assumptions and
expectations of future events and trends that are subject to risks and
uncertainties. Changes in those assumptions, expectations, or other factors
could produce materially different results. The most important risks,
uncertainties, and other factors that could cause the Company's actual results
to differ from the Company's forward-looking statements include: (1) worldwide
economic, political, regulatory, international trade, geopolitical, tariffs, and
retaliatory countermeasures, capital markets, and other external conditions, (2)
foreign currency exchange rates and fluctuations in those rates, (3) liabilities
and contingencies related to PFAS, including liabilities related to claims,
lawsuits, and government regulatory proceedings concerning various PFAS-related
products and chemistries, as well as risks related to the Company's exit of PFAS
manufacturing and work to discontinue use of PFAS across its product portfolio,
(4) risks related to the PWS Settlement to resolve claims by public water
suppliers in the United States regarding PFAS, as well as risks related to
ongoing PFAS-related settlements and claims, (5) legal proceedings, including
significant developments that could occur in the legal and regulatory
proceedings described in the Company's reports on Form 10-K, 10-Q, and 8-K, as
well as compliance risks related to legal or regulatory requirements, government
contract requirements, policies and practices, or other matters that require or
encourage the Company or its customers, suppliers, vendors, or channel partners
to conduct business in a certain way, (6) competitive conditions and customer
preferences, (7) the timing and market acceptance of new product and service
offerings, (8) the availability and cost of purchased components, compounds, raw
materials and energy due to shortages, increased demand and wages, tariffs,
supply chain interruptions, or natural or other disasters, (9) unanticipated
problems or delays when implementing new business systems and solutions,
including with the phased implementation of a global enterprise resource
planning system, or security breaches and other disruptions to the Company's
information or operational technology infrastructure, (10) use of artificial
intelligence technologies, (11) the impact of acquisitions, strategic alliances,
divestitures, and other strategic events resulting from portfolio management
actions and other evolving business strategies, (12) operational execution,
including the extent to which the Company can realize the benefits of planned
productivity improvements, as well as the impact of organizational restructuring
activities, (13) financial market risks that may affect the Company's funding
obligations under defined benefit pension and postretirement plans, (14) the
Company’s credit ratings and its cost of funding, (15) tax-related external
conditions, including changes in tax rates, laws, or regulations, (16) matters
relating to the Company's Aearo Entities, Combat Arms Earplugs Settlement, and
related products, and (17) matters relating to the spin-off of Solventum, the
Company's former Health Care business, into an independent public company.
Those risks, uncertainties, and other factors are further described in Part I,
Item 1A, "Risk Factors" of the Company's Form 10-K for the year ended December
31, 2025. For additional information concerning factors that may cause actual
results to differ materially from the Company's forward-looking statements, see
the Company's reports on Form 10-K, 10-Q, and 8-K filed with the SEC from time
to time.
3
3M Company and Subsidiaries
CONSOLIDATED STATEMENT OF INCOME
(Millions, except per-share amounts)
(Unaudited)
Three Nine
months months
ended ended
September Septemb…
2026 30, 2025 2026 30, 2025
──────────────────────────────────────────────────────────────────────────────
Net $ 6,584 $ 6,517 $ 19,114 $ 18,815
sales
Operati…
expenses
Cost of 3,801 3,792 11,192 10,916
sales
Selling,
general
and 921 820 2,726 3,032
adminis…
expenses
Researc…
develop…
and 304 297 914 870
related
expenses
Loss on
business — 161 343 164
divesti…
Total
operati… 5,026 5,070 15,175 14,982
expenses
Operati… 1,558 1,447 3,939 3,833
income
Other
expense -112 300 271 378
(income…
net
Income
before 1,670 1,147 3,668 3,455
income
taxes
Provisi…
for 261 308 665 818
income
taxes
Income
of 1,409 839 3,003 2,637
consoli…
group
Income
from
unconso… 1 2 4 51
subsidi…
net of
taxes
Net
income
includi… 1,410 841 3,007 2,688
noncont…
interes…
(NCIs)
Net
income
(loss)
attribu…
to NCIs 37 7 48 15
and
adjustm…
to
redeema…
NCI
Net
income
attribu… $ 1,373 $ 834 $ 2,959 $ 2,673
to 3M
common
shareho…
Earnings
per
share
attribu…
to 3M
common
shareho…
Weighted
average
3M
common 518.8 534.1 522.5 538.4
shares
outstan…
— basic
Earnings
per $ 2.65 $ 1.56 $ 5.66 $ 4.97
share —
basic
Weighted
average
3M
common 522.6 538.1 525.9 542.1
shares
outstan…
—
diluted
Earnings
per $ 2.63 $ 1.55 $ 5.63 $ 4.93
share —
diluted
4
3M Company and Subsidiaries
CONDENSED CONSOLIDATED BALANCE SHEET
(Dollars in millions)
(Unaudited)
September 30, 2026 December 31, 2025
──────────────────────────────────────────────────────────────────────────────
Assets
Current assets
Cash and cash equivalents $ 4,835 $ 5,235
Marketable securities 310 698
Accounts receivable – net 4,116 3,533
Inventories 4,081 3,661
Prepaids 482 391
Assets held for sale — 46
Other current assets 2,890 2,823
Total current assets 16,714 16,387
Property, plant and 6,969 7,101
equipment – net
Goodwill and intangible 9,396 7,522
assets – net
Other assets 6,447 6,723
Total assets $ 39,526 $ 37,733
Liabilities, redeemable
noncontrolling
interest and equity
Current liabilities
Short-term borrowings and
current $ 2,439 $ 1,670
portion of long-term debt
Accounts payable 3,040 2,702
Accrued payroll 619 718
Liabilities held for sale — 55
Other current liabilities 5,770 4,450
Total current liabilities 11,868 9,595
Long-term debt 12,558 10,932
Other liabilities 9,960 12,459
Total liabilities 34,386 32,986
Redeemable noncontrolling 971 —
interest
Total equity 4,169 4,747
Shares outstanding
September 30,
2026:516,729,574
December 31, 2025:
530,279,131
Total liabilities,
redeemable $ 39,526 $ 37,733
noncontrolling interest and
equity
5
3M Company and Subsidiaries
CONDENSED CONSOLIDATED STATEMENT OF CASH FLOWS
(Dollars in millions)
(Unaudited)
Nine months ended
September 30, 2026 2025
──────────────────────────────────────────────────────────────────────────────
Net cash provided by (used in)
operating $ 2,046 $ 723
activities
Cash flows from investing
activities:
Purchases of property, plant and -704 -662
equipment
Acquisitions, net of cash acquired -1,910 —
Purchases and proceeds from sale
or
maturities of marketable 390 2,346
securities and
investments – net
Proceeds from (payments for) sale
of -326 5
businesses, net of cash sold
Other investing activities 38 66
Net cash provided by (used in)
investing -2,512 1,755
activities
Cash flows from financing
activities:
Change in debt – net 2,525 -705
Purchases of treasury stock and -4,441 -3,874
dividends paid to shareholders
Proceeds from issuances of
treasury 702 1,219
stock pursuant to stock option and
benefit plans
Proceeds from investment by 1,277 —
noncontrolling interest
Other financing activities -38 -39
Net cash provided by (used in)
financing 25 -3,399
activities
Effect of exchange rate changes on
cash -5 36
and cash equivalents
Net increase (decrease) in cash
and cash
equivalents, including cash -446 -885
classified
within assets held for sale
Less: net increase (decrease) in
cash -46 44
classified within assets held for
sale
Net increase (decrease) in cash
and cash -400 -929
equivalents
Cash and cash equivalents at
beginning 5,235 5,600
of year
Cash and cash equivalents at end
of $ 4,835 $ 4,671
period
6
3M Company and Subsidiaries
SALES CHANGE ANALYSIS
3
(Unaudited)
Th…
mo…
en…
Se…
30,
20…
──────────────────────────────────────────────────────────────────────────────
By To…
r… Or… Ac… Di… Tr… sa…
b… sa… ch…
s…
S…
a… 7.0 % 3.1 % -1… % 0.2 % 9… %
I…
T…
a… 0.5 — — -0… 0…
E…
C… -0… — — -0… -…
T…
r… 3.4 1.4 -0… — 4…
b…
s…
T… 0.2 1.4 -0… -0… 1…
C…
By
g…
a…
U…
S… 3.9 % 1.4 % -0… % -0… % 4… %
a…
C…
L… 7.2 — -0… 4.0 1…
A…
C… -1… — -0… 3.9 -…
O… -2… 0.7 -0… -3… -…
A…
E…
M…
E… -2… 3.5 -1… -1… -…
a…
A…
Ni…
mo…
en…
Se…
30,
20…
By To…
r… Or… Ac… Di… Tr… sa…
b… sa… ch…
s…
S…
a… 6.1 % 1.0 % -0… % 1.7 % 8… %
I…
T…
a… 2.1 — -0… 0.9 2…
E…
C… -1… — — 0.6 -…
T…
r… 3.3 0.5 -0… 1.2 4…
b…
s…
T… 0.4 0.5 -0… 1.1 1…
C…
By
g…
a…
U…
S… 0.6 % 0.5 % -0… % 0.1 % 0… %
a…
C…
L… 3.0 — -0… 5.3 8…
A…
C… 0.7 0.1 -0… 4.4 4…
O… 0.1 0.2 -0… -2… -…
A…
E…
M…
E… -1… 1.2 -1… 3.7 2…
a…
A…
3 Total sales change is calculated based on reported sales results. The
components of sales change include organic local-currency sales, acquisitions,
divestitures, and translation. Organic local-currency sales include both organic
volume impacts (which excludes acquisition and divestiture impacts) and selling
price changes. Acquisition and divestiture impacts are measured separately for
the first 12 months post-transaction.
7
3M Company and Subsidiaries
BUSINESS SEGMENTS
(Unaudited)
3M discloses business segment operating income as its measure of segment profit,
which is reconciled to both total 3M operating income and income before taxes.
This measure excludes certain expenses and income not allocated to business
segments (as described below in “Corporate”).
Effective in 2026, the measure of segment operating performance and segment
composition used by 3M’s chief operating decision maker (CODM) changed. As a
result, 3M’s disclosed measure of segment profit and other segment-related
amounts were updated to reflect these changes for all periods presented. The
changes include the following items now reflected within Corporate:
•
Effective third quarter 2026 - acquired intangible asset amortization: This is
now reflected as a Corporate special item rather than within reportable business
segment operating income.
•
Effective earlier in 2026:
◦
Manufactured PFAS products
activity and net costs for respirator mask/asbestos litigation special items:
These special items were moved into Corporate from the Transportation and
Electronics segment and Safety and Industrial segment, respectively.
◦
Business acquisition-related costs:
These costs are now reflected as a Corporate special item rather than within
reportable business segment operating income. There were no such material costs
in prior periods presented.
Three Nine
months months
Net ended ended
sales September Septemb…
(millio… 2026 30, 2025 2026 30, 2025
──────────────────────────────────────────────────────────────────────────────
Abrasiv… $ 326 $ 344 $ 1,017 $ 999
Automot… 309 293 896 874
Afterma…
Electri… 423 373 1,170 1,047
Markets
Industr…
Adhesiv… 633 587 1,879 1,698
and
Tapes
Industr…
Special… 312 297 924 879
Division
Personal 848 787 2,501 2,285
Safety
Fire
Safety 206 108 430 342
and
Rescue
Roofing 125 128 386 395
Granules
Total
Safety
and 3,182 2,917 9,203 8,519
Industr…
business
segment
Advanced 175 149 484 440
Materia…
Automot…
and 490 484 1,459 1,433
Aerospa…
Commerc…
Branding 718 691 2,095 1,996
and
Transpo…
Electro… 616 668 1,875 1,883
Total
Transpo…
and 1,999 1,992 5,913 5,752
Electro…
business
segment
Consumer
Safety 307 294 874 848
and
Well-Be…
Home and
Auto 307 304 953 909
Care
Home 414 417 1,087 1,117
Improve…
Packagi…
and 279 297 771 832
Express…
Total
Consumer 1,307 1,312 3,685 3,706
business
segment
Total
reporta… 6,488 6,221 18,801 17,977
business
segments
Corpora… 96 296 313 838
Total $ 6,584 $ 6,517 $ 19,114 $ 18,815
Company
8
3M Company and Subsidiaries
BUSINESS SEGMENTS - (CONTINUED)
(Unaudited)
Three Nine
months months
Operati… ended ended
income September September
(millio… 2026 30, 2025 2026 30, 2025
──────────────────────────────────────────────────────────────────────────────
Safety
and $ 960 $ 792 $ 2,642 $ 2,279
Industr…
Transpo…
and 468 484 1,371 1,354
Electro…
Consumer 300 292 770 780
Total
reporta… 1,728 1,568 4,783 4,413
business
segments
Corpora…
Corpora…
(expens… -2 17 33 89
income
Corpora…
special
items:
Net
costs
for
signifi… -46 65 -59 -356
litigat…
and
PFAS
exit
Amortiz…
and
business -64 -26 -125 -78
acquisi…
costs
(Loss)
gain on — -161 -343 -164
business
divesti…
Manufac…
PFAS — -2 -126 -57
products
Transfo… -58 -14 -224 -14
costs
Total -170 -121 -844 -580
Corpora…
Total
Company 1,558 1,447 3,939 3,833
operati…
income
Other
expense… -112 300 271 378
net
Income
before $ 1,670 $ 1,147 $ 3,668 $ 3,455
income
taxes
Corporate
Outside of 3M's reportable segments, 3M has Corporate, which is not a reportable
business segment as it does not meet the segment reporting criteria. Because
Corporate includes a variety of miscellaneous items, it is subject to
fluctuation on a quarterly and annual basis.
Corporate operating income (loss) includes:
• Corporate-level (expense) income includes:
◦ certain enterprise and governance activities resulting in unallocated
corporate costs and other activity or costs that 3M may choose not to allocate
directly to its business segments,
◦ commercial activity with Solventum following its April 2024 spin-off from 3M,
as well as certain operations of 3M’s former health care business segment that
were retained by 3M, and
◦ transition arrangement agreements (e.g., fees charged by 3M, net of underlying
costs) related to divested businesses, including those related to Solventum.
• Corporate special items include, for the periods presented:
◦ net costs for significant litigation and PFAS exit impacting operating income
(loss),
◦ acquired intangible asset amortization and business acquisition-related costs,
◦ manufactured PFAS products activity,
◦ (loss) gain on business divestitures, and
◦ transformation program restructuring and related charges.
9
3M Company and Subsidiaries
SUPPLEMENTAL FINANCIAL INFORMATION
NON-GAAP MEASURES
(Unaudited)
In addition to reporting financial results in accordance with U.S. GAAP, 3M also
provides certain non-GAAP measures. These measures are not in accordance with,
nor are they a substitute for GAAP measures, and may not be comparable to
similarly titled measures used by other companies.
Certain measures adjust for the impact of special items. Special items for the
periods presented include the items described in the section entitled
“Description of special items”. Because 3M provides certain information with
respect to business segments, it is noteworthy that special items impacting
operating income (loss) are reflected in Corporate.
This document contains measures for which 3M provides the reported GAAP measure
and a non-GAAP measure adjusted for special items. The document also contains
additional measures which are not defined under U.S. GAAP. These measures and
reasons 3M believes they are useful to investors (and, as applicable, used by
3M) include:
GAAP amounts for which a measure Reasons 3M believes the measure is
adjusted for special items is also useful:
provided:
Considered in evaluating and
managing operations; useful in
•Net sales (and sales change) understanding underlying business
performance, provides additional
transparency to special items
•Operating income (loss) and
operating
income (loss) margin (and expansion)
•Income before taxes
•Provision for income taxes and
effective tax rate
•Net income
•EPS
Additional non-GAAP measures:
•Adjusted net cash provided by (used
in)
operating activities; adjusted Used as indicators of strength and
purchases ability to generate cash and as
of property, plant and equipment indicator of capital deployment;
(also meaningful as measures of
referred to as adjusted capital performance
expenditures) and adjusted free cash
flow
The following provides additional information and applicable GAAP amounts
reconciled to non-GAAP measures.
10
3M Company and Subsidiaries
SUPPLEMENTAL FINANCIAL INFORMATION
NON-GAAP MEASURES – (CONTINUED)
(Unaudited)
Certain amounts adjusted for special items (non-GAAP measures):
──────────────────────────────────────────────────────────────────────────────
$
$
──────────────────────────────────────────────────────────────────────────────
4 These items represent amounts adjusted for special items. See lead-in to non-
GAAP measures discussion.
11
3M Company and Subsidiaries
SUPPLEMENTAL FINANCIAL INFORMATION
NON-GAAP MEASURES – (CONTINUED)
(Unaudited)
…
…
…
…
…
…
──────────────────────────────────────────────────────────────────────────────
…
… …
… … … … … … …
… … … … … … … …
… … … … …
…
…
$ … $ … 2… % $ 3… $ 8… 2… % $ 2… $ 4…
$ … $ …
— … 7… -1 7… 1…
— … 78 17 61 0…
— … 1… 3 1… 0…
… … 57 14 43 0…
— — -… 23 -… -…
— … 14 3 11 0…
… … 8… 59 7… 1…
$ … $ … 2… % $ 4… $ 8… 2… % $ 3… $ 6…
$ … $ …
──────────────────────────────────────────────────────────────────────────────
…
…
12
3M Company and Subsidiaries
SUPPLEMENTAL FINANCIAL INFORMATION
NON-GAAP MEASURES – (CONTINUED)
(Unaudited)
In the third quarter of 2026, 3M changed its non-GAAP reporting to include
amortization of acquired intangible assets as a special item. The following
reconciliations present additional prior periods retrospectively reflecting this
change.
──────────────────────────────────────────────────────────────────────────────
$
$
──────────────────────────────────────────────────────────────────────────────
$
$
──────────────────────────────────────────────────────────────────────────────
$
$
13
3M Company and Subsidiaries
SUPPLEMENTAL FINANCIAL INFORMATION
NON-GAAP MEASURES – (CONTINUED)
(Unaudited)
──────────────────────────────────────────────────────────────────────────────
$
$
──────────────────────────────────────────────────────────────────────────────
$
$
──────────────────────────────────────────────────────────────────────────────
$
$
14
3M Company and Subsidiaries
SUPPLEMENTAL FINANCIAL INFORMATION
NON-GAAP MEASURES – (CONTINUED)
(Unaudited)
──────────────────────────────────────────────────────────────────────────────
$
$
2026 forecast
2026 adjusted operating income margin ~24.6%
expansion (non-GAAP measure)4,5
2026 adjusted earnings per share $9.10 to $9.15
(non-GAAP measure)4,5
2026 adjusted effective tax rate ~20%
(non-GAAP measure)4,5
5 3M provides these forward-looking non-GAAP measures, but cannot, without
unreasonable effort, forecast certain items to present or provide a
reconciliation to corresponding forecasted GAAP measures. These include special
items such as net costs for significant litigation and PFAS exit; business
acquisition-related costs; projected divestiture gains (losses); changes in
value of Solventum ownership; transformation costs; and net sales and estimates
of income and associated activity of exited manufactured PFAS products all of
which are subject to limitations in predictability of timing, ultimate outcome
and numerous conditions outside of 3M’s control. 3M believes these limitations
would result in a range of projected values so broad as to not be meaningful to
investors. For these reasons, 3M believes that the probable significance of such
information is low. Additionally, for similar reasons, 3M does not include the
impact of potentially-divested or acquired businesses on expected operations in
forecasted guidance it provides until close of a transaction, unless otherwise
indicated. Information with respect to special items for certain historical
periods is included in the section entitled “Description of special items”.
15
3M Company and Subsidiaries
SUPPLEMENTAL FINANCIAL INFORMATION
NON-GAAP MEASURES – (CONTINUED)
(Unaudited)
Th…
mo…
en…
Se…
30,
20…
──────────────────────────────────────────────────────────────────────────────
S… Or… To…
c… sa… Ac… Di… Tr… sa…
ch…
T… 0.2 % 1.4 % -0… % -0… % 1… %
C…
R…
m…
P…
p… 3.1 — — 0.1 3…
s…
i…
i…
A…
t…
C… 3.3 % 1.4 % -0… % — % 4… %
(…
m…
By
g…
a…
U…
S… 3.9 % 1.4 % -0… % -0… % 4… %
a…
C…
R…
m…
P…
p… 2.9 — — — 2…
s…
i…
i…
A…
U…
S…
a… 6.8 % 1.4 % -0… % -0… % 7… %
C…
(…
m…
L… 7.2 % — % -0… % 4.0 % 1… %
A…
R…
m…
P…
p… 0.5 — — — 0…
s…
i…
i…
A…
L…
A… 7.7 % — % -0… % 4.0 % 1… %
(…
m…
C… -1… % — % -0… % 3.9 % -… %
R…
m…
P…
p… 3.4 0.1 -0… 0.1 3…
s…
i…
i…
A…
C… -7… % 0.1 % -0… % 4.0 % -… %
(…
m…
O… -2… % 0.7 % -0… % -3… % -… %
A…
R…
m…
P…
p… 4.2 0.1 — -0… 4…
s…
i…
i…
A…
O…
A… 1.3 % 0.8 % -0… % -3… % -… %
(…
m…
E…
M…
E… -2… % 3.5 % -1… % -1… % -… %
&
A…
R…
m…
P…
p… 3.8 0.1 -0… — 3…
s…
i…
i…
A…
E…
M…
E… 1.0 % 3.6 % -1… % -1… % 2… %
&
A…
(…
m…
By
p…
c…
U… 4.0 % 1.2 % -0… % — % 4… %
S…
R…
m…
P…
p… 3.0 0.3 -0… — 3…
s…
i…
i…
A…
U…
S… 7.0 % 1.5 % -0… % — % 8… %
(…
m…
16
3M Company and Subsidiaries
SUPPLEMENTAL FINANCIAL INFORMATION
NON-GAAP MEASURES – (CONTINUED)
(Unaudited)
Ni…
mo…
en…
Se…
30,
20…
──────────────────────────────────────────────────────────────────────────────
S… Or… T…
c… sa… Ac… Di… Tr… s…
c…
T… 0.4 % 0.5 % -0… % 1.1 % 1.6 %
C…
R…
m…
P…
p… 2.9 — — — 2.9
s…
i…
i…
A…
t…
C… 3.3 % 0.5 % -0… % 1.1 % 4.5 %
(…
m…
By
g…
a…
U…
S… 0.6 % 0.5 % -0… % 0.1 % 0.9 %
a…
C…
R…
m…
P…
p… 2.8 — — -0… 2.7
s…
i…
i…
A…
U…
S…
a… 3.4 % 0.5 % -0… % — % 3.6 %
C…
(…
m…
L… 3.0 % — % -0… % 5.3 % 8.1 %
A…
R…
m…
P…
p… 0.5 — — — 0.5
s…
i…
i…
A…
L…
A… 3.5 % — % -0… % 5.3 % 8.6 %
(…
m…
C… 0.7 % 0.1 % -0… % 4.4 % 4.8 %
R…
m…
P…
p… 2.0 -0… — 0.1 2.0
s…
i…
i…
A…
C… 2.7 % — % -0… % 4.5 % 6.8 %
(…
m…
O… 0.1 % 0.2 % -0… % -2… % -2… %
A…
R…
m…
P…
p… 4.8 — — -0… 4.7
s…
i…
i…
A…
O…
A… 4.9 % 0.2 % -0… % -2… % 2.2 %
(…
m…
E…
M…
E… -1… % 1.2 % -1… % 3.7 % 2.6 %
&
A…
R…
m…
P…
p… 3.3 0.1 -0… 0.1 3.4
s…
i…
i…
A…
E…
M…
E… 2.1 % 1.3 % -1… % 3.8 % 6.0 %
&
A…
(…
m…
By
p…
c…
U… 0.4 % 0.4 % -0… % — % 0.5 %
S…
R…
m…
P…
p… 2.9 0.1 — — 3.0
s…
i…
i…
A…
U…
S… 3.3 % 0.5 % -0… % — % 3.5 %
(…
m…
2026
forec…
Sales Organ… Total
chan… sales Acquis… Dives… Transl… sales
change
Total >3.5% — % — % ~1% >4.5%
Comp…
Adjusted net cash provided by (used in) operating activities; adjusted purchases
of property, plant and equipment (also referred to as adjusted capital
expenditures) and adjusted free cash flow (non-GAAP measures):
Major
GAAP
cash
flow Three Nine
catego… months months
(dolla… ended ended
in September Septemb…
millio… 2026 30, 2025 2026 30, 2025
──────────────────────────────────────────────────────────────────────────────
Net
cash
provid…
by $ 486 $ 1,756 $ 2,046 $ 723
(used
in)
operat…
activi…
Net
cash
provid…
by -2,089 465 -2,512 1,755
(used
in)
invest…
activi…
Net
cash
provid…
by 3,483 -1,208 25 -3,399
(used
in)
financ…
activi…
17
3M Company and Subsidiaries
SUPPLEMENTAL FINANCIAL INFORMATION
NON-GAAP MEASURES – (CONTINUED)
(Unaudited)
Adjusted
free
cash
flow
(non-GA… Three Nine
measure) months months
(dollars ended ended
in September September
million… 2026 30, 2025 2026 30, 2025
──────────────────────────────────────────────────────────────────────────────
Net cash
provided
by (used $ 486 $ 1,756 $ 2,046 $ 723
in)
operati…
activit…
Adjustm…
for
special
items:
Net
costs/(…
for
signifi…
litigat… 894 -200 1,577 2,803
and PFAS
exit
after-t…
payment
impacts
Divesti…
costs
after-t… — 26 — 85
payment
impacts
TCJA
transit… — — — 211
tax
payment
Business
acquisi… 23 — 23 —
costs
Transfo…
actions
after-t… 50 — 93 —
payment
impacts
Manufac…
PFAS
products — -60 51 -92
after-t…
payment
impacts
Total
adjustm…
for 967 -234 1,744 3,007
special
items
Adjusted
net cash
provided
by (used
in) $ 1,453 $ 1,522 $ 3,790 $ 3,730
operati…
activit…
(non-GA…
measure…
Purchas…
of
propert…
plant -256 -218 -704 -662
and
equipme…
(PPE)
Manufac…
PFAS
products
impact - — 6 — 15
removing
related
purchas…
of PPE
Adjusted
purchas…
of PPE $ -256 $ -212 $ -704 $ -647
(non-GA…
measure…
Adjusted
free
cash $ 1,197 $ 1,310 $ 3,086 $ 3,083
flow
(non-GA…
measure…
Adjusted free cash
flow (non-GAAP
measure) (dollars Year ended
in millions) December 31, 2025 2024
──────────────────────────────────────────────────────────────────────────────
Net cash provided by
(used in) operating $ 2,306 $ 1,819
activities
Adjustments for
special items:
Net
costs/(recoveries)
for significant 2,817 3,831
litigation after-tax
payment impacts
Divestiture costs
and
divestiture-related 102 374
restructuring
after-tax payment
impacts
TCJA transition tax 211 193
payment
Transformation
actions after-tax 11 —
payment
impacts
Manufactured PFAS
products after-tax -183 -229
payment impacts
Total adjustments 2,958 4,169
for special items
Adjusted net cash
provided by (used
in) $ 5,264 $ 5,988
operating activities
(non-GAAP measure)6
Purchases of
property, plant and -910 -1,181
equipment (PPE)
Manufactured PFAS
products impact - 20 70
removing related
purchases of PPE
Adjusted purchases
of PPE (non-GAAP $ -890 $ -1,111
measure)6
Adjusted free cash
flow (non-GAAP $ 4,374 $ 4,877
measure)6
6 3M defines adjusted net cash provided by (used in) operating activities as net
cash provided by operating activities, adjusted for special items. 3M defines
adjusted purchases of property, plant and equipment (also referred to as
adjusted capital expenditures) as purchases of property, plant and equipment
(PPE) adjusted for the estimated impact of such purchases associated with
manufactured PFAS products activity. 3M defines adjusted free cash flow as
adjusted net cash provided by (used in) operating activities less adjusted
purchases of PPE. Cash payments/receipts associated with special items in the
determination of adjusted net cash provided by (used in) operating activities
are reflected net of applicable tax. The cash tax impact is determined by the
amount, timing, and applicable tax rates for the actual cash tax payments, which
may differ from the timing of the related pre-tax cash payments or underlying
transactions.
(Dollars in billions) 2026 forecast
Net cash provided by (used in) operating ~$5.9
activities
Adjustments for special items5 —
Adjusted net cash provided by (used in) operating ~$5.9
activities (non-GAAP measure)5,6
Purchase of property, plant and equipment (PPE) ~$1.1
Adjusted free cash flow (non-GAAP measure)5,6 ~$4.8
18
3M Company and Subsidiaries
SUPPLEMENTAL FINANCIAL INFORMATION
NON-GAAP MEASURES – (CONTINUED)
(Unaudited)
Description of special items:
In addition to reporting financial results in accordance with U.S. GAAP, the
Company also provides various non-GAAP measures that incorporate adjustments for
the impacts of special items. Special items incorporated in the preparation of
these non-GAAP measures for the periods presented include the items described
below:
Net costs for significant litigation and PFAS exit:
• Net costs for significant litigation relate to 3M's respirator mask/asbestos
(which include Aearo and non-Aearo items), PFAS-related other environmental,
Combat Arms Earplugs, and certain divested business matters. Net costs include
the impacts of changes in accrued liabilities (including interest imputation on
applicable settlement obligations), legal costs, and insurance recoveries, along
with the associated tax impacts. Associated tax impacts of significant
litigation include impacts on Foreign-Derived Deduction Eligible Income
("FDDEI"), Net Controlled Foreign Corporation Tested Income ("NCTI"), foreign
tax credits, and tax costs of repatriation. PFAS exit costs include amounts
outside of significant litigation related to impacted site disposition and
treatment post-first quarter 2026 completion of substantive PFAS product sales.
3M does not consider the elements of the net costs associated with these matters
to be normal, operating expenses related to the Company’s ongoing operations,
revenue generating activities, business strategy, industry, and regulatory
environment. In the third quarter of 2026 and 2025, 3M reflected net pre-tax
cash (receipts)/payments of $1 billion and $(32) million, respectively, related
to net costs for significant litigation and PFAS exit. In the first nine months
of 2026 and 2025, 3M reflected net pre-tax cash (receipts)/payments of $2.0
billion and $3.3 billion, respectively, related to net costs for significant
litigation and PFAS exit.
Amortization and business acquisition-related costs
• These include acquired intangible asset amortization and business acquisition-
related costs that further include:
◦ Transaction, integration, and inventory fair value step-up costs
◦ Adjustments to redeemable noncontrolling interest and change in value of
venture derivative.
◦ In the third quarter and first nine months of 2026, 3M reflected net pre-tax
cash (receipts)/payments of $23 million related to business acquisition costs.
Gain/loss on business divestitures:
• In the third quarter of 2025, 3M classified a business as held for sale. In
the first half of 2026, 3M reflected an adjustment to carrying it at its selling
price less cost to sell. In the second quarter of 2026, 3M recorded a loss on
the divestiture of its Dyneon GmbH subsidiary. In June 2025, 3M completed a
divestiture for immaterial proceeds slightly below the business’ book value.
Divestiture costs and divestiture-related restructuring actions:
• Divestiture costs include limited costs that were not eligible to be included
within discontinued operations related to separating and divesting substantially
an entire business segment of 3M following public announcement of its intended
divestiture. As a result of completion of the April 2024 separation of
Solventum, this includes the tax cost of updating 3M’s previous indefinite
reinvestment plans on past unrepatriated earnings through the period of the
Separation’s close and to tax positions retained by 3M. 3M’s statement of cash
flows includes the results of both continuing and discontinued operations.
Therefore, in the context of amounts used in the determination of non-GAAP
measures associated with cash flow and adjusted free cash flow, this special
item further includes the broader extent of such costs included within
discontinued operations, including interest expense on debt issued by Solventum
for the period outstanding prior to the April 1, 2024 completion of the
separation of Solventum from 3M and net tax costs of entity structuring
associated with the separation of Solventum.
Manufactured PFAS products:
• These amounts relate to sales and income (loss) and associated activity
regarding manufactured PFAS products that 3M exited by the end of 2025. Income
does not contemplate impacts on non-operating items such as net interest
income/expense and the non-service cost components portion of defined benefit
plan net periodic benefit costs. Relative to the impact of the activity of
manufactured PFAS products on cash provided by (used in) operating activities,
amounts are based on estimates of associated income, depreciation, certain
changes in working capital and accruals, and timing of associated payments.
Pension risk transfer charge:
• In 2024, 3M recorded a non-cash pension settlement charge reflected in other
expense (income), net as a result of transferring a portion of its U.S. pension
payment obligations and related plan assets to an insurance company.
19
3M Company and Subsidiaries
SUPPLEMENTAL FINANCIAL INFORMATION
NON-GAAP MEASURES – (CONTINUED)
(Unaudited)
Enactment/measurement period adjustments related to the Tax Cuts and Jobs Act
(TCJA):
• In the second quarter of 2025, 3M made payments of $211 million related to the
transition tax expense incurred as a result of the 2017 enactment of the TCJA.
Solventum ownership - change in value:
• This amount relates to the change in value of 3M's retained ownership interest
in Solventum common stock reflected in other expense (income), net.
Transformation costs:
• These represent net costs associated with 3M's transformation program,
intended as a structural redesign of longer-term manufacturing, distribution,
and business process services and locations. Accordingly, 3M does not consider
the nature or effect of this program to be normal, operating expenses related to
the Company’s ongoing operations, revenue generating activities, and day-to-day
business strategy. Net costs include restructuring and other related items such
as site closure, sale, moving and set-up, accelerated depreciation, and program
management. In the third quarter and first nine months of 2026, 3M made pre-tax
cash payments of $64 million and $137 million, respectively, associated with
transformation costs.
20
About 3M
3M (NYSE: MMM) is focused on transforming industries around the world by
applying science and creating innovative, customer-focused solutions. Our multi-
disciplinary team is working to solve tough customer problems by leveraging
diverse technology platforms, differentiated capabilities, global footprint, and
operational excellence. Discover how 3M is shaping the future at 3M.com/news.
Please note that the company announces material financial, business and
operational information using the 3M investor relations website, SEC filings,
press releases, public conference calls and webcasts. The company also uses the
3M News Center and social media to communicate with our customers and the public
about the company, products and services and other matters. It is possible that
the information 3M posts on the News Center and social media could be deemed to
be material information. Therefore, the company encourages investors, the media
and others interested in 3M to review the information posted on 3M’s News Center
and the social media channels such as @3M or @3MNews.
Contacts
3M
Investor Contact:
Diane Farrow, 612-202-2449
Media Contact:
3MNews@mmm.com
21