3M Company
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Item 1. Business
3M Company was incorporated in 1929 under the laws of the State of Delaware to continue operations begun in 1902. The Company’s ticker symbol is MMM. As used herein, the term “3M” or “Company” includes 3M Company and its subsidiaries unless the context indicates otherwise. In this document, for any references to Note 1 through Note 20, refer to the Notes to Consolidated Financial Statements in Item 8.
Available Information: The Securities and Exchange Commission (SEC) maintains a website that contains reports, proxy and information statements, and other information regarding issuers, including the Company, that file electronically with the SEC. The public can obtain any documents that the Company files with the SEC at https://www.sec.gov. The Company files annual reports, quarterly reports, proxy statements and other documents with the SEC under the Securities Exchange Act of 1934 (Exchange Act).
3M also makes available free of charge through its website (https://investors.3M.com) the Company’s Annual Report on Form 10-K, Quarterly Reports on Form 10-Q, Current Reports on Form 8-K, and, if applicable, amendments to those reports filed or furnished pursuant to the Exchange Act as soon as reasonably practicable after the Company electronically files such material with, or furnishes it to, the SEC.
General: 3M is a diversified technology company with a global presence in the following businesses: Safety and Industrial; Transportation and Electronics; and Consumer. 3M is among the leading manufacturers of products for many of the markets it serves. Most 3M products involve expertise in product development, manufacturing and marketing, and are subject to competition from products manufactured and sold by other technologically oriented companies.
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Business Segments: 3M manages its continuing operations in three business segments. The reportable segments are Safety and Industrial, Transportation and Electronics, and Consumer. 3M’s business segments bring together common or related 3M technologies, enhancing the development of innovative products and services and providing for efficient sharing of business resources. Refer to segment descriptions summarized below (Financial information and other disclosures relating to 3M’s business segments and operations in major geographic areas are provided in the Notes to Consolidated Financial Statements):
| Business Segment | Safety and Industrial | Transportation and Electronics | Consumer | ||||||||||||||
Underlying divisions/businesses Refer to Note 3 for disaggregated revenue information | •Abrasives •Automotive Aftermarket •Electrical Markets •Industrial Adhesives and Tapes •Industrial Specialties Division •Personal Safety •Roofing Granules | •Advanced Materials •Automotive and Aerospace •Commercial Branding and Transportation •Display Materials and Systems •Electronics Materials Solutions | •Consumer Safety and Well-Being •Home and Auto Care •Home Improvement •Packaging and Expression | ||||||||||||||
| Representative revenue-generating activities, products or services | •Industrial abrasives and finishing for metalworking applications •Autobody repair solutions •Industrial specialty products such as personal hygiene products, masking, and packaging materials •Electrical products and materials for construction and maintenance, power distribution and electrical original equipment manufacturers (OEMs) •Structural adhesives and tapes •Respiratory, hearing, eye and fall protection solutions •Natural and color-coated mineral granules for shingles | •Advanced ceramic solutions •Attachment/bonding, films, sound and temperature management for vehicles •Premium large format graphic films for advertising and fleet signage •Reflective signage for highway, and vehicle safety •Light management films and electronics assembly solutions •Aerospace, industrial/commercial solutions •Chip packaging and interconnection solutions •Semiconductor production materials •Solutions for data centers | •Cleaning products for the home •Consumer air quality products •Picture hanging accessories •Retail abrasives, paint accessories and safety products •Stationery and office products •Automotive appearance products •Consumer bandages, tapes, braces and supports Some seasonality impacts this business segment, for example back-to-school and holiday | ||||||||||||||
| Example brands/offerings | •3M™ Cubitron™ Abrasives; Scotch-Brite™ Abrasives; Scotch® Vinyl Tapes, 3M™ Temflex™ Vinyl Tapes; 3M™ Scotchkote™ Coatings; 3M™ Dynatel™ Locators; 3M™ Scotchcast™ Resins •Collision repair; paint application and finishing products •Reclosable fasteners; tapes and label materials for durable goods; 3M™ Dual Lock™ Reclosable Fasteners •Electrical infrastructure products; medium voltage cable accessories and insulation tapes •3M™ VHB™ Tape; 3M™ Scotchlite™ Reflective Materials; Scotch™ Packaging and Filament Tapes •3M™ DBI-Sala™ Fall Protection; 3M™ Scott™ Self Contained Breathing Apparatus; 3M™ Peltor™ Protection & Communication; disposable and reusable respirators •Scotchgard™ Protector for shingles | •3M™ Nextel™ Ceramic fibers and textiles •Thinsulate™ Acoustic Insulation products and automotive components •3M™ Scotchlite™ graphic films, 3M™ Scotchcal™ and 3M™ Controltac™ Commercial graphics •3M™ Diamond Grade™ DG3 reflective sheeting for transportation safety •Electronic display enhancement films and optically clear adhesives •Electronic interconnect products | •Command™ adhesive hooks • | ||||||||||||||
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Financial statements
data from SEC XBRL filings. Values are as-reported; restatements supersede originals. Values reported in .
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Item 2. Management’s Discussion and Analysis of Financial Condition and Results of Operations
Management’s Discussion and Analysis of Financial Condition and Results of Operations ("MD&A") is designed to provide a reader of 3M’s financial statements with a narrative from the perspective of management. The MD&A should be read in conjunction with 3M's consolidated financial statements and the accompanying notes to the consolidated financial statements. 3M’s MD&A is presented in the following sections:
•Overview
•Results of Operations
•Performance by Business Segment
•Financial Condition and Liquidity
•Forward-Looking Statements
Forward-looking statements in Part I, Item 2 may involve risks and uncertainties that could cause results to differ materially from those projected (refer to the section entitled "Forward-Looking Statements" in Part I, Item 2 and described in Part I, Item 1A, "Risk Factors" of the Company's Form 10-K for the year ended December 31, 2025 for discussion of these risks and uncertainties).
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Overview
3M is a diversified global manufacturer, technology innovator and marketer of a wide variety of products and services.
As discussed in Note 1, certain changes are reflective in this document for all applicable periods presented. Effective in the first, second, and third quarters of 2026, the Company made changes to the measure of segment operating performance and segment composition used by its CODM, impacting the disclosed measure of segment profit (business segment operating income). Further details are provided in Note 16.
3M manages its operations in three operating business segments: Safety and Industrial; Transportation and Electronics; and Consumer. From a geographic perspective, "EMEA" refers to Europe, the Middle East, and Africa on a combined basis.
Unless otherwise noted, all year-over-year ("YoY") comparisons in this MD&A refer to the third quarter and the first nine months of 2026 compared with the third quarter and first nine months of 2025.
Financial highlights for the third quarter and the first nine months of 2026:
| Three months ended September 30, 2026 | Nine months ended September 30, 2026 | |||||||||||||||||||||||||||||||
| GAAP | Adjusted(a) | GAAP | Adjusted(a) | |||||||||||||||||||||||||||||
| Net sales (millions) | $ | 6,584 | $ | 6,584 | $ | 19,114 | $ | 19,087 | ||||||||||||||||||||||||
| Total sales change | 1.0 | % | 4.2 | % | 1.6 | % | 4.5 | % | ||||||||||||||||||||||||
Organic sales change(b) | 0.2 | % | 3.3 | % | 0.4 | % | 3.3 | % | ||||||||||||||||||||||||
(a) The Company refers to various "adjusted" amounts or measures on an “adjusted" basis. These exclude special items. These non-GAAP measures are further described and reconciled to the most directly comparable GAAP financial measures in the Certain amounts adjusted for special items - (non-GAAP measures) section below.
(b) Organic sales change (which includes both organic volume and selling price impacts), is defined as the change in net sales, absent the impacts from foreign currency translation and acquisitions, net of divestitures. 3M believes this information is useful to investors and management in understanding ongoing operations and in analysis of ongoing operating trends.
Net sales change was driven by strength in industrial, safety, semiconductor and data center—supported by commercial excellence and innovation—and activity from the July 2026 acquisition of Madison Fire and Safety. This strength was partially offset by weakness in consumer electronics and auto, and the YoY impact of the manufactured PFAS products special item.
| Three months ended September 30, 2026 | Nine months ended September 30, 2026 | |||||||||||||||||||||||||||||||
| GAAP | Adjusted(a) | GAAP | Adjusted(a) | |||||||||||||||||||||||||||||
| Operating income margin | 23.7 | % | 26.2 | % | 20.6 | % | 25.2 | % | ||||||||||||||||||||||||
| YoY change in operating income margin | 1.5 | ppts | 1.1 | ppts | 0.2 | ppts | 0.5 | ppts | ||||||||||||||||||||||||
GAAP operating margins were affected by the YoY impact of special items. The primary drivers were higher year-to-date losses on business divestitures and transformation costs. These were partially offset by lower net costs for significant litigation and PFAS exit, which reflect increased insurance recoveries (discussed in Note 15).
Outside of special items, both GAAP and adjusted operating margins reflect benefits from growth and productivity, partially offset by tariff impacts, cost dis-synergies (following the exit of PFAS manufacturing and the 2024 spin of Solventum), and growth investments.
| Three months ended September 30, 2026 | Nine months ended September 30, 2026 | |||||||||||||||||||||||||||||||
| GAAP | Adjusted(a) | GAAP | Adjusted(a) | |||||||||||||||||||||||||||||
| Earning per diluted share (EPS) | $ | 2.63 | $ | 2.50 | $ | 5.63 | $ | 7.11 | ||||||||||||||||||||||||
| YoY change in EPS | 70 | % | 12 | % | 14 | % | 12 | % | ||||||||||||||||||||||||
GAAP EPS YoY was affected by the net impact of special items, including those impacting operating income discussed above, as well as by the impact of changes in the value of the Company's investment in Solventum (which was a YoY benefit in the third quarter and YoY headwind in the first nine months of 2026) along with amortization and business acquisition costs impacting noncontrolling interest.
Outside of special items, both GAAP and adjusted EPS reflect the operating margin drivers discussed above, while non-operating was primarily driven by a lower share count and tax timing.
3M completed its exit of PFAS manufacturing by the end of 2025. As discussed in Note 15, the Company continues to address PFAS manufactured prior to exit through treatment, remediation, and disposition of its assets and interests in manufacturing facilities, which may include dismantling, cleaning, and repurposing. Decisions or circumstances associated with the extent and type of remaining activity at particular locations and impacts on assets and potential obligations, among other factors, could result in additional expenses.
Additional information regarding certain items impacting pre-2026 periods that may also be relevant in 2026 can be found in the Overview section of Part II, Item 7 as well as in further sections of 3M’s 2025 Annual Report on Form 10-K.
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Results of Operations
Net Sales: Discussion of business segment results is provided in the Performance by Business Segment section. Information regarding sales by geographic area is included below.
| Three months ended September 30, 2026 | |||||||||||||||||||||||||||||||||||||||
| Americas | Asia Pacific | EMEA | Worldwide | ||||||||||||||||||||||||||||||||||||
| Net sales (millions) | $ | 3,787 | $ | 1,715 | $ | 1,082 | $ | 6,584 | |||||||||||||||||||||||||||||||
| % of worldwide sales | 57.5 | % | 26.0 | % | 16.5 | % | 100.0 | % | |||||||||||||||||||||||||||||||
| Components of net sales change: | |||||||||||||||||||||||||||||||||||||||
Organic sales(b) | 4.4 | % | (6.2) | % | (2.8) | % | 0.2 | % | |||||||||||||||||||||||||||||||
Acquisitions(c) | 1.2 | 0.4 | 3.5 | 1.4 | |||||||||||||||||||||||||||||||||||
Divestitures(c) | (0.3) | (0.3) | (1.4) | (0.5) | |||||||||||||||||||||||||||||||||||
| Translation | 0.4 | (0.4) | (1.0) | (0.1) | |||||||||||||||||||||||||||||||||||
| Total sales change | 5.7 | % | (6.5) | % | (1.7) | % | 1.0 | % | |||||||||||||||||||||||||||||||
| Nine months ended September 30, 2026 | |||||||||||||||||||||||||||||||||||||||
| Americas | Asia Pacific | EMEA | Worldwide | ||||||||||||||||||||||||||||||||||||
| Net sales (millions) | $ | 10,456 | $ | 5,368 | $ | 3,290 | $ | 19,114 | |||||||||||||||||||||||||||||||
| % of worldwide sales | 54.7 | % | 28.1 | % | 17.2 | % | 100.0 | % | |||||||||||||||||||||||||||||||
| Components of net sales change: | |||||||||||||||||||||||||||||||||||||||
Organic sales(b) | 0.9 | % | 0.4 | % | (1.2) | % | 0.4 | % | |||||||||||||||||||||||||||||||
Acquisitions(c) | 0.4 | 0.1 | 1.2 | 0.5 | |||||||||||||||||||||||||||||||||||
Divestitures(c) | (0.3) | (0.2) | (1.1) | (0.4) | |||||||||||||||||||||||||||||||||||
| Translation | 0.8 | 0.3 | 3.7 | 1.1 | |||||||||||||||||||||||||||||||||||
| Total sales change | 1.8 | % | 0.6 | % | 2.6 | % | 1.6 | % | |||||||||||||||||||||||||||||||
(c) Acquisition and divestiture sales change impacts are measured separately for the first twelve months post-transaction.
Operating Expenses: | Three months ended September 30, | Nine months ended September 30, | |||||||||||||||||||||||||||||||||||||||||||
| (Percent of net sales) | 2026 | 2025 | Change | 2026 | 2025 | Change | |||||||||||||||||||||||||||||||||||||||
| Cost of sales | 57.7 | % | 58.2 | % | (0.5) | % | 58.6 | % | 58.0 | % | 0.6 | % | |||||||||||||||||||||||||||||||||
| Selling, general and administrative expenses (SG&A) | 14.0 | 12.5 | 1.5 | 14.2 | 16.1 | (1.9) | |||||||||||||||||||||||||||||||||||||||
| Research, development and related expenses (R&D) | 4.6 | 4.6 | — | 4.8 | 4.6 | 0.2 | |||||||||||||||||||||||||||||||||||||||
| Loss on business divestitures | — | 2.5 | (2.5) | 1.8 | 0.9 | 0.9 | |||||||||||||||||||||||||||||||||||||||
Operating income margin | 23.7 | % | 22.2 | % | 1.5 | % | 20.6 | % | 20.4 | % | 0.2 | % | |||||||||||||||||||||||||||||||||
Cost of Sales measured as a percent of sales: Decreases in the third quarter of 2026 were primarily due to procurement savings, manufacturing and logistics productivity initiatives, and pricing actions offsetting oil price headwinds, partially offset by PFAS exit-related costs and material inflation. Increases in the first nine months of 2026 were primarily due to PFAS exit-related costs, tariff impacts, and material inflation, partially offset by procurement savings, manufacturing productivity initiatives, and pricing actions. See also Certain Expenses Impacting Multiple Line Items within Results of Operations subsection further below.
SG&A measured as a percent of sales: Increases in the third quarter were primarily driven by transformation costs, and decreases in the first nine months of 2026 were primarily driven by lower net costs from significant litigation. See also Certain Expenses Impacting Multiple Line Items within Results of Operations subsection further below.
R&D measured as a percent of sales: 3M continues to invest in a range of R&D activities from application development, product and manufacturing support, product development and technology development aimed at disruptive innovations. See also Certain Expenses Impacting Multiple Line Items within Results of Operations subsection further below.
Loss on Business Divestitures measured as a percent of sales: Applicable information on 2026 items is discussed in Note 3.
Other Expense (Income), Net: See Note 6 for a detailed breakout of this line item.
Interest expense (net of interest income): decreased YoY, primarily as a result of reduced imputed interest associated with obligations resulting from the PWS Settlement and the CAE Settlement (discussed in Note 15).
The non-service pension and postretirement net period cost decreased in the third quarter and first nine months of 2026 YoY. See also Certain Expenses Impacting Multiple Line Items within Results of Operations subsection further below.
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Solventum ownership - change in value resulted in a YoY tailwind of $375 million in the third quarter of 2026 and YoY headwind of $14 million in the first nine months of 2026, as Solventum's share price increased during the third quarter of 2026 compared to a decrease in 2025 and increased a bit less during the first nine months of 2026 compared to 2025.
Provision for Income Taxes: | Three months ended September 30, | Nine months ended September 30, | ||||||||||||||||||||||||||
| (Percent of pre-tax income) | 2026 | 2025 | 2026 | 2025 | ||||||||||||||||||||||||
| Effective tax rate | 15.7 | % | 26.8 | % | 18.1 | % | 23.7 | % | ||||||||||||||||||||
Adjusted effective tax rate(a) | 21.1 | 19.9 | 19.5 | 20.6 | ||||||||||||||||||||||||
The primary factors that decreased the Company's effective tax rate YoY for the three months ended September 30, 2026 were the tax impacts of 3M's retained ownership interest in Solventum and the tax impacts of net costs of significant litigation.
The primary factors that decreased the Company's effective tax rate YoY for the nine months ended September 30, 2026 were the increased tax benefits from stock-based compensation and the tax impacts of net costs of significant litigation.
Income from Unconsolidated Subsidiaries, Net of Taxes:
Income from unconsolidated subsidiaries, net of taxes, is attributable to the Company’s accounting under the equity method for ownership interests in certain entities. In the second quarter of 2025, 3M sold its interest in one of these investments.
Net income (loss) attributable to NCIs and adjustment to redeemable NCI:
This represents the elimination of income or loss attributable to non-3M ownership interests in 3M consolidated entities, as well as adjustments to carry the redeemable noncontrolling interest at the greater of its carrying amount or estimated redemption value. The primary noncontrolling interests relate to 3M India Limited, of which 3M's effective ownership is 75 percent, and 3M's non-wholly owned venture related to the Fire Safety and Rescue division business (also referred to as 3M Sentorum) as described in Note 3.
Certain Expenses Impacting Multiple Line Items within Results of Operations:
Stock compensation impacts cost of sales, SG&A, and R&D. YoY stock compensation expense was relatively consistent.
Pre-tax defined benefit pension and postretirement service cost expense impacts cost of sales, SG&A, and R&D while the non-service cost component of pension and postretirement benefits impacts the other expense (income), net line item. Refer to Note 12 for additional information.
Pre-tax stock compensation expense and defined benefit pension and postretirement expense for the periods presented were the following:
| Three months ended September 30, | Nine months ended September 30, | |||||||||||||||||||||||
| Pre-tax amounts (millions) | 2026 | 2025 | 2026 | 2025 | ||||||||||||||||||||
| Stock compensation expense | $ | 46 | $ | 53 | $ | 167 | $ | 182 | ||||||||||||||||
Defined benefit pension and postretirement benefit expense | ||||||||||||||||||||||||
| Service cost | $ | 38 | $ | 43 | $ | 116 | $ | 127 | ||||||||||||||||
| Non-service cost (benefit) | (2) | 20 | (7) | 71 | ||||||||||||||||||||
| Total defined pension and postretirement expense | $ | 36 | $ | 63 | $ | 109 | $ | 198 | ||||||||||||||||
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Performance by Business Segment
Disclosures relating to 3M’s business segments are provided in Note 16. 3M manages its operations in three business segments. The reportable segments are Safety and Industrial; Transportation and Electronics; and Consumer.
Safety and Industrial Business: | Three months ended September 30, | Nine months ended September 30, | ||||||||||||||||||||||||||
| 2026 | 2025 | 2026 | 2025 | |||||||||||||||||||||||||
| Sales (millions) | $ | 3,182 | $ | 2,917 | $ | 9,203 | $ | 8,519 | ||||||||||||||||||||
| Sales change analysis: | ||||||||||||||||||||||||||||
Organic sales(b) | 7.0 | % | 6.1 | % | ||||||||||||||||||||||||
| Acquisitions | 3.1 | 1.0 | ||||||||||||||||||||||||||
| Divestitures | (1.2) | (0.8) | ||||||||||||||||||||||||||
| Translation | 0.2 | 1.7 | ||||||||||||||||||||||||||
| Total sales change | 9.1 | % | 8.0 | % | ||||||||||||||||||||||||
Business segment operating income (millions) | $ | 960 | $ | 792 | $ | 2,642 | $ | 2,279 | ||||||||||||||||||||
| Percent change | 21.2 | % | 15.9 | % | ||||||||||||||||||||||||
| Percent of sales | 30.1 | % | 27.1 % | 28.7 | % | 26.8 % | ||||||||||||||||||||||
Third quarter 2026 results: Sales in Safety and Industrial were up 9.1 percent in U.S. dollars.
Organic sales increased in electrical markets, fire safety, industrial adhesives and tapes, personal safety, automotive aftermarket, abrasives and industrial specialties, and decreased in roofing granules. Progress on commercial excellence and innovation drove strong growth.
Business segment operating income margins increased YoY, driven by benefits from growth and net productivity. These benefits were partially offset by continued growth investments and cost dis-synergies following the exit of PFAS manufacturing.
First nine months 2026 results: Sales in Safety and Industrial were up 8.0 percent in U.S. dollars.
Organic sales increased in electrical markets, industrial adhesives and tapes, abrasives, personal safety, industrial specialties, and automotive aftermarket driven by progress on commercial excellence and innovation; market weakness in roofing granules and fire safety resulted in decreased sales.
Business segment operating income margins increased YoY primarily driven by benefits from growth and productivity. These benefits were partially offset by tariffs, continued growth investments, and cost dis-synergies following the exit of PFAS manufacturing.
Transportation and Electronics Business: | Three months ended September 30, | Nine months ended September 30, | ||||||||||||||||||||||||||
| 2026 | 2025 | 2026 | 2025 | |||||||||||||||||||||||||
| Sales (millions) | $ | 1,999 | $ | 1,992 | $ | 5,913 | $ | 5,752 | ||||||||||||||||||||
| Sales change analysis: | ||||||||||||||||||||||||||||
Next expected filings
- ~2027-02-02 10-K expected by 2027-02-27 (in 90 days)
- ~2027-04-20 10-Q expected by 2027-05-08 (in 167 days)
- ~2027-07-20 10-Q expected by 2027-08-07 (in 258 days)
- ~2027-10-19 10-Q expected by 2027-11-06 (in 349 days)
Predicted from historical filing cadence; not an SEC commitment.
Recent SEC filings
- 2026-10-20 8-K Earnings Release; Financial Statements and Exhibits
- 2026-10-20 10-Q Quarterly Report
- 2026-09-10 8-K Other Events; Financial Statements and Exhibits
- 2026-09-04 424B2 Prospectus Supplement
- 2026-08-19 8-K Material Agreement Entered; Material Agreement Terminated; Material Financial Obligation
- 2026-07-21 8-K Earnings Release; Financial Statements and Exhibits
- 2026-07-21 10-Q Quarterly Report
- 2026-06-08 8-K Officer/Director Change; Financial Statements and Exhibits
- 2026-05-06 8-K Material Agreement Entered; Material Financial Obligation
- 2026-04-21 8-K Earnings Release; Financial Statements and Exhibits
- 2026-04-21 10-Q Quarterly Report
- 2026-02-05 8-K Officer/Director Change
- 2026-02-03 10-K Annual Report
- 2026-01-20 8-K Earnings Release; Financial Statements and Exhibits
- 2025-10-21 10-Q Quarterly Report