I am downgrading 3M from 'Buy' to 'Hold' due to ongoing PFAS litigation risks, tariffs, and potential recession impacts limiting upside. While Q2 results beat expectations and guidance was raised, free cash flow remains weak and settlement costs are unpredictable. Management is optimistic, focusing on product launches and margin improvement, but recent financials still show a struggling company.
While the top- and bottom-line numbers for 3M (MMM) give a sense of how the business performed in the quarter ended June 2025, it could be worth looking at how some of its key metrics compare to Wall Street estimates and year-ago values.
3M (MMM) has raised its full-year profit forecast, even after accounting for the impact of tariffs.
3M Co (NYSE:MMM) raised its full-year earnings forecast after posting stronger-than-expected second-quarter results, driven by margin expansion and modest organic sales growth. The diversified industrial giant reported adjusted earnings of $2.16 per share for the quarter ended June 30, beating analysts' average estimate of $2.01, according to LSEG data.
3M reports second-quarter earnings on Friday. Wall Street is looking for earnings per share of $2.01 from sales of $6.1 billion.
3M (NYSE: MMM) is set to release its earnings report on Friday, July 18, 2025, prior to the market opening. This announcement is an important occasion for traders, especially those utilizing event-driven strategies.
3M's Q2 results are poised for gains from industrial and aerospace strength, but consumer softness and foreign exchange headwinds are likely to weigh.
Looking beyond Wall Street's top-and-bottom-line estimate forecasts for 3M (MMM), delve into some of its key metrics to gain a deeper insight into the company's potential performance for the quarter ended June 2025.
MMM has soared 40.2% in a year, but high debt, soft retail demand and a stretched valuation temper near-term upside.
MMM sees momentum in Safety & Industrial as the 2025 outlook improves on strong demand across key end markets.
MMM is making strides in the aerospace, industrial adhesives and tapes, and electrical markets, which makes the stock worth a watch amid certain headwinds.
I maintain a hold rating on 3M, citing slightly high valuation and a technical chart with strong potential, amid recent outperformance versus the S&P 500. Q1 results were solid, with strong operating performance and raised dividend, but macro and litigation risks persist. Guidance for 2025 EPS remains positive, and the recent PFAS settlement adds clarity, though sellside sentiment has cooled.