3M Company MMM reported first-quarter 2025 results, wherein revenues missed and earnings surpassed the Zacks Consensus Estimate.
It’s worth noting that in April 2024, the company completed the spin-off of its Healthcare business into a separate public company. (Find the latest EPS estimates and surprises on Zacks Earnings Calendar.)
Inside MMM’s Headlines
3M delivered adjusted earnings of $1.88 per share, which surpassed the Zacks Consensus Estimate of $1.77. The company reported earnings of $1.71 per share in the year-ago quarter.
The company reported net revenues of $5.95 billion in the quarter. The metric decreased 1% year over year. Organic sales decreased 0.3%. Foreign currency translation had a negative impact of 1.7% while acquisitions/divestitures boosted the top line by 1%.
MMM’s adjusted revenues of $5.78 billion missed the consensus estimate of $5.79 billion. On an adjusted basis, revenues increased 0.8% year over year.
Region-wise, organic sales in the Americas inched up 1.7% year over year while Asia Pacific organic sales decreased 0.7%. Organic sales from businesses in Europe, the Middle East and Africa decreased 5.1%.
3M’s Segmental Results
Revenues from Safety and Industrial totaled $2.70 billion, up 0.5% year over year. The Zacks Consensus Estimate for the segment’s revenues was pegged at $2.74 billion. Organic revenues increased 2.5% and foreign currency translation had a negative impact of 2%.
Revenues from Transportation & Electronics totaled $1.99 billion, reflecting a year-over-year decrease of 5.4%. The downside is attributable to a 4% decline in organic sales. The consensus estimate for the segment’s revenues was pegged at $1.83 billion. Foreign currency translation had a 1.4% negative impact on revenues.
Revenues from the Consumer segment decreased 1.4% year over year to $1.12 billion. The consensus estimate for the segment’s revenues was pegged at $1.15 billion. Organic sales increased 0.3%. Movements in foreign currencies had an adverse impact of 1.7%.
3M Company Price, Consensus and EPS Surprise
3M Company price-consensus-eps-surprise-chart | 3M Company Quote
MMM’s Margin Profile
3M’s cost of sales decreased 0.2% year over year to $3.48 billion. Selling, general and administrative expenses decreased 16.2% to $945 million. Research, development and related expenses increased 12.2% year over year to $285 million.
In the first quarter, 3M reported an operating income of $1.25 billion, up 8.4% from the year-ago period.
MMM’s adjusted operating income increased 11% year over year to $1.36 billion. The adjusted operating margin was 23.5% compared with 21.3% in the year-ago quarter. The adjusted tax rate was 20.9%, in line with the year-ago period.
3M’s Balance Sheet and Cash Flow
Exiting the first quarter, 3M had cash and cash equivalents of $6.3 billion compared with $5.6 billion at the end of December 2024. Long-term debt was $12.3 billion at the end of the quarter compared with $11.1 billion at the end of December 2024.
3M used net cash of $79 million in operating activities against $767 million cash generated in the year-ago quarter. Capital used for purchasing property, plant and equipment decreased 37.1% to $236 million.
Adjusted free cash flow at the end of the quarter was $489 million. Adjusted free cash flow conversion was 48% at the end of the same period.
In the first three months of 2025, 3M rewarded its shareholders with $396 million in dividend payments.
MMM’s 2025 Guidance
For 2025, MMM expects adjusted earnings to be in the range of $7.60-$7.90 per share. The midpoint of the guided range is $7.75, which reflects an increase from earnings of $7.30 per share reported in 2024.
Adjusted organic revenues are expected to grow 2-3%.
3M’s Zacks Rank
The company currently carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Performance of Other Companies
AZZ Inc. AZZ came out with quarterly earnings of $0.98 per share, beating the Zacks Consensus Estimate of $0.95. This compares with earnings of $0.93 per share a year ago.
AZZ reported revenues of $351.88 million, missing the consensus estimate by 3.77%. This compares with year-ago revenues of $366.5 million.
Valmont Industries VMI reported revenues of $969.31 million in the first quarter of 2025, declining 0.9% on a year-over-year basis. EPS of $4.32 for the same period compares with $4.32 a year ago.
The reported revenues compare with the Zacks Consensus Estimate of $975.6 million. The company delivered an EPS surprise of 1.89%, with the consensus estimate being $4.24.
Pentair plc PNR came out with quarterly earnings of $1.11 per share in the first quarter of 2025, beating the Zacks Consensus Estimate of $1.01. This compares with earnings of $0.94 per share a year ago.
Pentair posted revenues of $1.01 billion for the quarter, surpassing the consensus estimate by 2.68%. This compares with year-ago revenues of $1.02 billion.
5 Stocks Set to Double
Each was handpicked by a Zacks expert as the #1 favorite stock to gain +100% or more in 2024. While not all picks can be winners, previous recommendations have soared +143.0%, +175.9%, +498.3% and +673.0%.
Most of the stocks in this report are flying under Wall Street radar, which provides a great opportunity to get in on the ground floor.
Today, See These 5 Potential Home Runs >>3M Company (MMM) : Free Stock Analysis Report
Valmont Industries, Inc. (VMI) : Free Stock Analysis Report
AZZ Inc. (AZZ) : Free Stock Analysis Report
Pentair plc (PNR) : Free Stock Analysis Report
This article originally published on Zacks Investment Research (zacks.com).
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
