3M Reports Fourth-Quarter and Full-Year 2024 Results; Initiates Full-Year 2025 Financial Guidance

• Q4 sales of $6.0 billion, up 0.1% YoY; adjusted sales of $5.8 billion with organic growth up 2.1% YoY
• Q4 GAAP EPS from continuing operations of $1.33, up 17% YoY; adjusted EPS from continuing operations of $1.68, down 2% YoY
• Full-year sales of $24.6 billion, down 0.1% YoY; adjusted sales of $23.6 billion with organic growth of 1.2% YoY
• Full-year GAAP EPS from continuing operations of $7.26; adjusted EPS from continuing operations of $7.30, up 21% YoY
• Full-year operating cash flow of $1.8 billion with adjusted free cash flow of $4.9 billion

ST. PAUL, Minn., Jan. 21, 2025 /PRNewswire/ -- 3M (NYSE: MMM) today reported fourth-quarter and full-year 2024 results and provided its 2025 financial guidance.

"Our fourth quarter capped a year of strong results as we returned to positive organic revenue growth in the full year," said William Brown, 3M Chief Executive Officer. "I would like to thank the 3M team for their strong operational execution which helped us deliver double-digit earnings growth and robust free cash flow while returning $3.8 billion to shareholders. We are carrying this momentum forward and are confident in our ability to deliver our 2025 guidance."

Fourth-Quarter Highlights:

• GAAP EPS of $1.33 and operating margin of 18.1%.
• Adjusted EPS of $1.68, down 2% year-on-year.
• Adjusted operating income margin of 19.7%, a decrease of 0.2 percentage points year-on-year.

• Sales of $6.0 billion, up 0.1% year-on-year with organic sales flat year-on-year.
• Adjusted sales of $5.8 billion, up 2.2% year-on-year with adjusted organic sales up 2.1% year-on-year.
• 3M returned $1.1 billion to shareholders via dividends and share repurchases.
• Cash from operations of $1.8 billion.
• Adjusted free cash flow of $1.3 billion.

Full-Year Highlights:

• GAAP EPS of $7.26 and operating margin of 19.6%.
• Adjusted EPS of $7.30, up 21% year-on-year.

• Sales of $24.6 billion, down 0.1 percent year-on-year with organic sales decline of 0.2 percent year-on-year.
• Adjusted sales of $23.6 billion, up 1.3 percent year-on-year with adjusted organic sales increase of 1.2 percent year-on-year.
• 3M returned $3.8 billion to shareholders via dividends and share repurchases.
• Cash from operations of $1.8 billion, including $3.8 billion net after tax payments for costs of significant litigation, primarily Public Water Systems and Combat Arms Earplugs.
• Adjusted free cash flow of $4.9 billion.

This document includes reference to certain non-GAAP measures. See the "Supplemental Financial Information Non-GAAP Measures" section for applicable information.

Full-Year 2025 Guidance

3M provided the following full-year 2025 expectations.

• Adjusted total sales growth³ in the range of 0.5 to 1.5 percent, reflecting adjusted organic sales³ growth of 2 to 3 percent.
• Adjusted EPS³ in the range of $7.60 to $7.90.
• Adjusted operating cash flow³ of $5.2 to $5.3 billion, contributing to approximately 100 percent adjusted free cash flow conversion³.

³As further discussed at ⁶ 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 

Consolidated Financial Statements and Supplemental Financial Information Non-GAAP Measures

View the Financial Statement Information on 3M's website: https://investors.3m.com/financials/quarterly-earnings

Forward-Looking Statements

This news release contains forward-looking statements. You can identify these statements by the use of words such as "plan," "expect," "aim," "believe," "project," "target," "anticipate," "intend," "estimate," "will," "should," "could," "would," "forecast" and other words and terms of similar meaning. Forward-looking statements are based on certain assumptions and expectations of future events and trends that are subject to risks and uncertainties. Actual future results and trends may differ materially from historical results or those reflected in any such forward-looking statements depending on a variety of factors. Among the factors that could cause actual results to differ materially are the following: (1) worldwide economic, political, regulatory, international trade, geopolitical, capital markets and other external conditions and other factors beyond the Company's control, including inflation, recession, military conflicts, and natural and other disasters or climate change affecting the operations of the Company or its customers and suppliers; (2) foreign currency exchange rates and fluctuations in those rates; (3) liabilities and the outcome of contingencies related to certain fluorochemicals; known as "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 plans to exit PFAS manufacturing and work to discontinue use of PFAS across its product portfolio; (4) risks related to the class-action settlement to resolve claims by public water suppliers in the United States regarding PFAS; (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 (the "Reports"); (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, supply chain interruptions, or natural or other disasters; (9) unanticipated problems or delays 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) the impact of acquisitions, strategic alliances, divestitures, and other strategic events resulting from portfolio management actions and other evolving business strategies; (11) 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; (12) financial market risks that may affect the Company's funding obligations under defined benefit pension and postretirement plans; (13) the Company's credit ratings and its cost of capital; (14) tax-related external conditions, including changes in tax rates, laws or regulations; (15) matters relating to the spin-off of the Company's Health Care business, including the risk that the expected benefits will not be realized; the risk that the costs or dis-synergies will exceed the anticipated amounts; potential impacts on the Company's relationships with its customers, suppliers, employees, regulators and other counterparties; the ability to realize the desired tax treatment; the risk that any consents or approvals required will not be obtained; risks under the agreements and obligations entered into in connection with the spin-off, and (16) matters relating to Combat Arms Earplugs ("CAE"), including those related to, the August 2023 settlement that is intended to resolve, to the fullest extent possible, all litigation and alleged claims involving the CAE sold or manufactured by the Company's subsidiary Aearo Technologies and certain of its affiliates and/or the Company. A further description of these factors is located in the Reports under "Cautionary Note Concerning Factors That May Affect Future Results" and "Risk Factors" in Part I, Items 1 and 1A (Annual Report) and in Part I, Item 2 and Part II, Item 1A (Quarterly Reports). Changes in such assumptions or factors could produce significantly different results. The Company assumes no obligation to update any forward-looking statements discussed herein as a result of new information or future events or developments.

About 3M

3M (NYSE: MMM) believes science helps create a brighter world for everyone. By unlocking the power of people, ideas and science to reimagine what's possible, our global team uniquely addresses the opportunities and challenges of our customers, communities, and planet. Learn how we're working to improve lives and make what's next 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 Contacts:
Diane Farrow, 612-202-2449
or
Eric Herron, 651-233-0043
Media Contact:
Sean Lynch, slynch2@mmm.com

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