3M : Financial Statement Information Q1 2026

Published: 2026-04-21 06:34:33 ET MMM

Published on 04/21/2026 at 06:34 am EDT

(Millions, except per-share amounts) (Unaudited)

2026

2025

Net sales

6,030

5,954

Operating expenses

Cost of sales

3,574

3,478

Selling, general and administrative expenses

744

945

Research, development and related expenses

308

285

Loss on business divestitures

Total operating expenses

4,633

4,708

Operating income

1,397

1,246

Other expense (income), net

519

(139)

Income before income taxes

878

1,385

Provision for income taxes

221

265

Income of consolidated group

657

1,120

Income from unconsolidated subsidiaries, net of taxes

Net income including noncontrolling interest

659

1,122

Less: net income attributable to noncontrolling interest

Net income attributable to 3M

653

1,116

Earnings per share attributable to 3M common shareholders:

Weighted average 3M common shares outstanding - basic

529.1

543.8

Earnings per share - basic

1.23

2.05

Weighted average 3M common shares outstanding - diluted

532.8

547.7

Earnings per share - diluted

1.23

2.04

(Dollars in millions) (Unaudited)

‌March 31, 2026

December 31, 2025

Assets

Current assets

Cash and cash equivalents

3,729

5,235

Marketable securities

420

698

Accounts receivable - net

3,754

3,533

Inventories

3,690

3,661

Prepaids

407

391

Assets held for sale

Other current assets

2,344

2,823

Total current assets

14,393

16,387

Property, plant and equipment - net

6,960

7,101

Goodwill and intangible assets - net

7,462

7,522

Other assets

6,621

6,723

Total assets

35,436

37,733

Liabilities and equity

Current liabilities

Short-term borrowings and current portion of long-term debt

1,650

1,670

Accounts payable

2,786

2,702

Accrued payroll

420

718

Liabilities held for sale

Other current liabilities

4,120

4,450

Total current liabilities

9,032

9,595

Long-term debt

10,906

10,932

Other liabilities

12,187

12,459

Total liabilities

32,125

32,986

Total equity

3,311

4,747

Shares outstanding

March 31, 2026: 521,567,261

December 31, 2025: 530,279,131

Total liabilities and equity

35,436

37,733

(Dollars in millions) (Unaudited)

2026

2025

Net cash provided by (used in) operating activities

574

(79)

Cash flows from investing activities:

Purchases of property, plant and equipment

Purchases and proceeds from sale or maturities of marketable securities and

(225)

(236)

investments - net

281

1,441

Other investing activities

Net cash provided by (used in) investing activities

1,220

Cash flows from financing activities:

Change in debt - net

349

Purchases of treasury stock and dividends paid to shareholders

(2,411)

(1,670)

Proceeds from issuances of treasury stock pursuant to stock option and benefit plans

302

905

Other financing activities

(15)

(6)

Net cash provided by (used in) financing activities

(2,124)

(422)

Effect of exchange rate changes on cash and cash equivalents

(13)

Net increase (decrease) in cash and cash equivalents, including cash classified within

assets held for sale

(1,503)

726

Less: net increase (decrease) in cash classified within assets held for sale

Net increase (decrease) in cash and cash equivalents

(1,506)

726

Cash and cash equivalents at beginning of year

5,235

5,600

Cash and cash equivalents at end of period

$ 3,729

$ 6,326

(Unaudited)

By reportable business segment

Organic sales

Divestitures

Translation

Total sales change

Safety and Industrial

3.2 %

- %

3.6 %

6.8 %

Transportation and Electronics

(0.3)

2.4

1.8

Consumer

(1.3)

1.9

0.6

Total reportable business segments

1.2

(0.1)

2.9

4.0

Total Company

(1.4)

(0.1)

2.8

1.3

By geographic area

Americas

(2.6)%

(0.2)%

1.1 %

(1.7)%

China

4.4

4.2

8.6

Other Asia

0.3

(0.4)

(0.1)

Europe, Middle East and Africa

(3.2)

9.9

6.7

2Total 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.

(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 the first quarter of 2026, the measure of segment operating performance and segment composition used by the 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 align with these changes. The financial information presented herein reflects the impact of these changes for all periods presented. These include:

Abrasives

349

317

Automotive Aftermarket

304

290

Electrical Markets

356

325

Industrial Adhesives and Tapes

604

543

Industrial Specialties Division

286

288

Personal Safety

912

850

Roofing Granules

119

132

Total Safety and Industrial business segment

2,930

2,745

Advanced Materials

147

143

Automotive and Aerospace

484

475

Commercial Branding and Transportation

640

616

Electronics

577

582

Total Transportation and Electronics business segment

1,848

1,816

Consumer Safety and Well-Being

278

274

Home and Auto Care

328

299

Home Improvement

311

326

Packaging and Expression

214

225

Total Consumer business segment

1,131

1,124

Total reportable business segments

5,909

5,685

Corporate

121

269

Total company

6,030

5,954

(Unaudited)

Safety and Industrial

776

699

Transportation and Electronics

399

390

Consumer

217

219

Total reportable business segments

1,392

1,308

Corporate

Corporate-level (expense) income

Corporate special items:

Net (costs) benefit from significant litigation

170

(74)

(Loss) gain on business divestitures

(7)

Manufactured PFAS products

(126)

(38)

Transformation costs

(66)

Total Corporate

(62)

Total Company operating income

1,397

1,246

Other expense/(income), net

519

(139)

Income before income taxes

878

1,385

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 impacting operating income (loss),

manufactured PFAS products activity

(loss) gain on business divestitures,

transformation program restructuring and related charges.

(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 impacts 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:

Net sales (and sales change)

Operating income (loss) and operating income

(loss) margin (and expansion)

Income before taxes

Provision for income taxes and effective tax rate

Net income

EPS

Considered in evaluating and managing operations; useful in understanding underlying business performance, provides additional transparency to special items

Adjusted net cash provided by (used in) operating activities; adjusted purchases of property, plant and equipment (also referred to as adjusted capital expenditures); adjusted free cash flow and adjusted free cash flow conversion

Used as indicators of strength and ability to generate cash and as indicator of capital deployment; meaningful as measures of performance

The following provides additional information and applicable GAAP amounts reconciled to non-GAAP measures.

(dollars in millions, except per share amounts)

Net sales

Operating income

Operating income margin

Income before taxes

Provision for income taxes

Effective tax rate

Net income attributable to 3M

EPS

Total Company GAAP amounts

$ 5,954

$ 1,246

20.9 %

$ 1,385

$ 265

19.1 %

$ 1,116

$ 2.04

Corporate GAAP amounts

269

(62)

Adjustments for special items:

Net costs for significant litigation

224

(2)

226

0.41

Manufactured PFAS products

(174)

0.06

Solventum ownership - change in value

(343)

(0.63)

Total special items

(174)

112

(81)

(88)

(0.16)

Total Company adjusted amounts (non-GAAP measures)3

$ 5,780

$ 1,358

23.5 %

$ 1,304

$ 272

20.9 %

$ 1,028

$ 1.88

Corporate adjusted amounts (non-GAAP measures)3

$ 95

$ 50

Three months ended March 31, 2026

Operating

Provision

Operating

income

Income

for

Net income

EPS

Net

Sales

Operating

income

margin

before

income

Effective

attributable

percent

sales

change

income

margin

expansion

taxes

tax rate

to 3M

EPS

change

Total Company GAAP amounts

$ 6,030

1.3 %

$ 1,397

23.2 %

230 bps

$ 878

$ 221

25.2 %

$ 653

$ 1.23

(40) %

Corporate GAAP amounts

$ 121

$ 5

Net costs (benefit) from

significant litigation

Adjustments for special items:

Manufactured PFAS products (27) 126 126 31 95 0.18

Loss on business divestitures - 7 7 1 6 0.01

Transformation costs - 66 66 16 50 0.09

Solventum ownership - change in value

Adjusted amounts (non-GAAP measures)3

Total special items (27) 29 510 23 487 0.91

Corporate adjusted amounts (non-GAAP measures)3

3These items represent amounts adjusted for special items. See lead-in to non-GAAP measures discussion.

2026 adjusted earnings per share (non-GAAP measure)3,4

$8.50 to $8.70

2026 adjusted effective tax rate (non-GAAP measure)3,4 ~20%

2026 adjusted operating income margin expansion (non-GAAP measure)3,4 70 bps to 80 bps

43M 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; projected divestiture gains (losses); divestiture costs; divestiture-related restructuring; 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.

Information with respect to special items for certain historical periods is included in the section entitled "Description of special items".

‌Three months ended

March 31, 2026

Sales change2

Organic sales

Divestitures

Translation

Total sales change

Total company

(1.4)%

(0.1)%

2.8 %

1.3 %

Remove manufactured PFAS products special item impact

2.6

Adjusted total company (non-GAAP measures)3

1.2 %

(0.1)%

2.8 %

3.9 %

By geographic area

Americas

(2.6)%

(0.2)%

1.1 %

(1.7)%

Remove manufactured PFAS products special item impact

2.7

Adjusted Americas (non-GAAP measures)3

0.1 %

(0.2)%

1.1 %

1.0 %

China

4.4 %

- %

4.2 %

8.6 %

Remove manufactured PFAS products special item impact

(0.4)

Adjusted China (non-GAAP measures)3

4.0 %

- %

4.2 %

8.2 %

Other Asia

0.3 %

- %

(0.4)%

(0.1)%

Remove manufactured PFAS products special item impact

4.3

Adjusted Other Asia (non-GAAP measures)3

4.6 %

- %

(0.4)%

4.2 %

Europe, Middle East & Africa

(3.2)%

- %

9.9 %

6.7 %

Remove manufactured PFAS products special item impact

2.5

0.2

2.7

Adjusted Europe, Middle East & Africa (non-GAAP measures)3

(0.7)%

- %

10.1 %

9.4 %

By particular country

United States

(3.2)%

(0.1)%

- %

(3.3)%

Remove manufactured PFAS products special item impact

3.2

(0.1)

3.1

Adjusted United States (non-GAAP measures)3

- %

(0.2)%

- %

(0.2)%

Total Company4 ~3% - % - % ~1% ~4%

Major GAAP cash flow categories (dollars in millions)

2026

2025

Net cash provided by (used in) operating activities

574

(79)

Net cash provided by (used in) investing activities

1,220

Net cash provided by (used in) financing activities

(2,124)

(422)

Net cash provided by (used in) operating activities

574

(79)

Adjustments for special items:

Net costs/(recoveries) for significant litigation after-tax payment impacts

109

787

Divestiture costs after-tax payment impacts

Transformation actions after-tax payment impacts

Manufactured PFAS products after-tax payment impacts

(7)

Total adjustments for special items

192

796

Adjusted net cash provided by (used in) operating activities (non-GAAP measure)5

766

717

Purchases of property, plant and equipment (PPE)

(225)

(236)

Manufactured PFAS products impact - removing related purchases of PPE

Adjusted purchases of PPE (non-GAAP measure)5

(225)

(228)

Adjusted free cash flow (non-GAAP measure)5

541

489

Adjusted net income attributable to 3M

1,140

1,028

Adjusted free cash flow conversion (non-GAAP measure)5

47 %

48 %

53M 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. 3M defines adjusted free cash flow conversion as adjusted free cash flow divided by net income attributable to 3M, adjusted for special items (used for adjusted free cash flow conversion calculation).

‌(Dollars in billions)

2026 forecast

Net cash provided by (used in) operating activities

$5.6 to $5.8

Adjustments for special items4

Adjusted net cash provided by (used in) operating activities (non-GAAP measure)4,5

$5.6 to $5.8

Purchase of property, plant and equipment (PPE)

~1.1

Adjusted free cash flow (non-GAAP measure)4,5

$4.6 to $4.8

Net income attributable to 3M

$4.6 to $4.7

Adjustments for special items4

Adjusted net income attributable to 3M (non-GAAP measure)3,4

$4.6 to $4.7

Adjusted free cash flow conversion (non-GAAP measure)4,5

>100%

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:

These relate to 3M's respirator mask/asbestos (which include Aearo and non-Aearo items), PFAS-related other environmental, and Combat Arms Earplugs 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 Intangible Income ("FDII"), Net Controlled Foreign Corporation Tested Income ("NCTI"), foreign tax credits, and tax costs of repatriation. 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 first quarter of 2026 and 2025, 3M reflected net pre-tax cash (receipts)/payments of $102 million and $806 million, respectively, related to net costs for significant litigation.

Gain/loss on business divestitures:

In the third quarter of 2025, 3M classified a business as held for sale. In the first quarter of 2026, 3M reflected an adjustment to carrying it at its selling price less cost to sell.

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/amortization, certain changes in working capital and accruals, and timing of associated payments.

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 first quarter of 2026, 3M made pretax cash payments of $32 million associated with transformation costs.

Disclaimer

3M Company published this content on April 21, 2026, and is solely responsible for the information contained herein. Distributed via Public Technologies (PUBT), unedited and unaltered, on April 21, 2026 at 10:33 UTC.