3M Co.: Q2 FY2026 earnings call

What management said about Q2 FY2026, from the documents filed with the SEC on 21 July 2026: press release. Guidance figures: 4 raised, 5 kept. The quarter’s numbers.

Key takeaways

Adjusted sales grew 5.5% on organic growth: Adjusted sales were $6.5 billion, up 5.5%, with adjusted organic growth of 5.4%. GAAP sales rose 2.4% to $6.5 billion, with organic sales up 2.3%. Source
Adjusted EPS rose 11% to $2.40: Adjusted EPS was $2.40 against $2.16 a year earlier, an 11% increase. Special items excluded from adjusted EPS totaled $0.62 per share, against $0.82 a year earlier. Source
Safety and Industrial sales rose 8.2%: Safety and Industrial sales were $3.09 billion, up from $2.86 billion, with organic growth of 8.2%. Segment operating income was $859 million, up from $738 million. Source
Microsoft to deploy 3M EBO technology: Microsoft is the first announced hyperscale cloud provider to deploy 3M Expanded Beam Optics technology, and is a member of the EBO Multi-Source Agreement. Source
Adjusted operating margin 24.9%, up 40 bps: Adjusted operating income was $1.62 billion, at a 24.9% margin. The company reported an increase of 40 basis points year-on-year. Source
Litigation and PFAS exit costs $183 million: Net costs for significant litigation and PFAS exit reduced operating income by $183 million in the second quarter, against $347 million a year earlier. Source
Operating cash flow of $1.0 billion: The company reported second-quarter operating cash flow of $1.0 billion and adjusted free cash flow of $1.3 billion. Source
Transformation program as structural redesign: The company describes the transformation program as covering site closure, sale, moving and set-up, accelerated depreciation and program management. Source

“We delivered a strong second quarter, exceeding expectations with mid-single-digit sales growth, robust operating margins of about 25%, and double-digit EPS growth”
William Brown, 3M Chairman and CEO

Guidance

Area	Period	Figure	Against last quarter
Adjusted sales growth Source	2026 full year	>4.5% total; >3.5% organic	Raised from ~4% total; ~3% organic
Adjusted operating income margin expansion Source	2026 full year	70 bps to 80 bps	Kept
Adjusted EPS Source	2026 full year	$8.80 to $8.95	Raised from $8.50 to $8.70
Adjusted operating cash flow Source	2026 full year	$5.8 to $6.0 billion	Raised from $5.6 to $5.8 billion
Adjusted free cash flow Source	2026 full year	$4.7 to $4.9 billion	Raised from $4.6 to $4.8 billion
Adjusted free cash flow conversion Source	2026 full year	>100%	Kept
Purchases of property, plant and equipment Source	2026 full year	~$1.1 billion	Kept
Net income attributable to 3M Source	2026 full year	$4.6 to $4.7 billion	Kept
Adjusted effective tax rate Source	2026 full year	~20%	Kept

What changed from last quarter

Guidance raised: Adjusted EPS guidance was increased to $8.80 to $8.95 from $8.50 to $8.70. Source
Guidance raised: Adjusted total sales growth guidance was raised to above 4.5%, and organic growth to above 3.5%. Source
Guidance raised: Adjusted operating cash flow guidance was raised to $5.8 to $6.0 billion from $5.6 to $5.8 billion. Source
Guidance raised: Adjusted free cash flow guidance was raised to $4.7 to $4.9 billion from $4.6 to $4.8 billion. Source
Guidance kept: Adjusted operating income margin expansion guidance of 70 to 80 basis points was not changed. Source
New: The Madison Fire & Rescue acquisition closed on July 1, 2026, and is not yet in guidance. Source
New: The company recorded a loss on the divestiture of its Dyneon GmbH subsidiary in the second quarter. Source
New: 3M and Microsoft announced a strategic partnership on AI data center infrastructure and enterprise transformation. Source
New: 3M and Airbus signed a long-term agreement to supply advanced insulation technologies for the A220. Source
New: 3M entered a multi-year global partnership as material science partner to the Cadillac Formula 1 Team. Source
New: 3M launched Ask 3M, an AI digital assistant powered by AWS, for customer self-service technical support. Source
New: Business acquisition-related costs became a Corporate special item instead of a reportable segment cost. Source

Results and growth drivers

Adjusted sales grew 5.5% on organic growth: Adjusted sales were $6.5 billion, up 5.5%, with adjusted organic growth of 5.4%. GAAP sales rose 2.4% to $6.5 billion, with organic sales up 2.3%. Source
GAAP EPS rose on special-item swings: GAAP diluted EPS was $1.78 against $1.34. A $0.61 loss on business divestitures and a $0.60 benefit from the Solventum ownership value change were both excluded from adjusted EPS. Source
Adjusted EPS rose 11% to $2.40: Adjusted EPS was $2.40 against $2.16 a year earlier, an 11% increase. Special items excluded from adjusted EPS totaled $0.62 per share, against $0.82 a year earlier. Source
First-half adjusted sales up 4.7%: First-half GAAP net sales were $12.53 billion, up 1.9%. Adjusted sales rose 4.7% to $12.50 billion, with adjusted organic growth of 3.3%. Source

Segments and regions

Safety and Industrial sales rose 8.2%: Safety and Industrial sales were $3.09 billion, up from $2.86 billion, with organic growth of 8.2%. Segment operating income was $859 million, up from $738 million. Source
Transportation and Electronics sales rose 6.2%: Sales were $2.07 billion, up from $1.94 billion, with organic growth of 5.9%. Segment operating income was $503 million, compared with $479 million. Source
Consumer sales declined 1.8%: Consumer sales were $1.25 billion, down from $1.27 billion, with organic sales down 2.1%. Segment operating income was $252 million, compared with $268 million. Source
China and Latin America sales rose: China sales rose 13.9% with 9.2% organic growth. Latin America rose 11.1% with 5.4% organic growth. Translation added 5.2 and 6.0 points respectively. Source
United States and Canada sales flat: United States and Canada sales fell 0.5%, with no organic growth and a 0.5-point effect from divestitures. Source
Other Asia sales fell on translation: Other Asia sales fell 1.6% in total. Organic sales rose 2.9%, but translation reduced sales by 4.3%. Source

“As a result of our strong first-half performance and continued momentum, we are increasing our full-year guidance and remain confident in our ability to create long-term value for shareholders.”
William Brown, 3M Chairman and CEO

Products, customers and partnerships

Microsoft to deploy 3M EBO technology: Microsoft is the first announced hyperscale cloud provider to deploy 3M Expanded Beam Optics technology, and is a member of the EBO Multi-Source Agreement. Source
Airbus insulation agreement for A220: The agreement covers advanced insulation for the A220, which the company says improves cabin comfort and supports aircraft performance and efficiency. Source
Cadillac Formula 1 materials partnership: The multi-year partnership covers advanced materials, manufacturing and testing to accelerate car development and streamline operations. Source
Ask 3M AI assistant launched: The AI digital assistant gives customers self-service help with material evaluation, product comparisons and application challenges. Source
Headsets used on Artemis II: The company said the crew of NASA's Artemis II Orion capsule used 3M PELTOR ComTac VI tactical headsets for communication. Source

Costs, margins and special items

Adjusted operating margin 24.9%, up 40 bps: Adjusted operating income was $1.62 billion, at a 24.9% margin. The company reported an increase of 40 basis points year-on-year. Source
GAAP margin down 290 bps: GAAP operating income was $984 million, down from $1,140 million. GAAP operating margin was 15.1%, compared with 18.0%, with the $336 million divestiture loss among the special items. Source
Litigation and PFAS exit costs $183 million: Net costs for significant litigation and PFAS exit reduced operating income by $183 million in the second quarter, against $347 million a year earlier. Source
Transformation costs of $100 million: Transformation costs were $100 million in the second quarter and $166 million in the first half. Both were recorded as Corporate special items. Source
Selling and administrative costs fell: Selling, general and administrative expenses were $1.06 billion, down from $1.27 billion. Cost of sales rose to $3.82 billion from $3.65 billion. Source
No manufactured PFAS charge this quarter: Manufactured PFAS products recorded no special item in the second quarter of 2026, against $17 million in the second quarter of 2025. The first-half 2026 amount was $126 million. Source

Cash flow and shareholder returns

Operating cash flow of $1.0 billion: The company reported second-quarter operating cash flow of $1.0 billion and adjusted free cash flow of $1.3 billion. Source
Adjusted cash conversion at 107%: Adjusted free cash flow conversion was 107% in the second quarter, against 110% a year earlier. For the first half it was 79%, against 81%. Source
$1.4 billion returned to shareholders: Dividends and share repurchases totaled $1.4 billion in the quarter. Source
Shares outstanding declined in first half: Shares outstanding were 515.7 million at June 30, 2026, against 530.3 million at December 31, 2025. Source
First-half operating cash flow of $1.56 billion: Net cash from operating activities was $1.56 billion for the first six months, compared with a use of $1.03 billion a year earlier. Source

Portfolio changes and acquisitions

Madison Fire & Rescue acquisition closed: The Madison Fire & Rescue acquisition closed on July 1, 2026. The company states that its guidance does not yet reflect the deal. Source
Dyneon divestiture recorded a loss: The company recorded a $336 million loss on the divestiture of its Dyneon GmbH subsidiary in the second quarter, or $0.61 per share. Source
Acquisition-related costs of $12 million: Business acquisition-related costs were $12 million in the second quarter, recorded as a Corporate special item. Source

Strategy and transformation

Transformation program as structural redesign: The company describes the transformation program as covering site closure, sale, moving and set-up, accelerated depreciation and program management. Source
Segment reporting changed in second quarter: From the second quarter of 2026, acquisition-related costs sit in Corporate rather than segment operating income. The company said there were no such material costs in prior periods. Source
First-quarter segment changes continued: The first-quarter 2026 change moved PFAS products activity and respirator mask and asbestos net costs from segments into Corporate. Prior periods were updated for all of these changes. Source

Coming up, as management said on 21 July 2026

Madison deal to enter guidance later: Guidance does not yet include Madison Fire & Rescue, which closed on July 1, 2026. Future guidance is not stated as including it. Source
Deals enter guidance only at closing: The company states that it does not include potentially divested or acquired businesses in guidance until a transaction closes, unless otherwise indicated. Source

Risks management discussed

Financial: Second-quarter pre-tax cash payments for litigation and PFAS exit were $858 million, compared with $2,509 million a year earlier. Source
Operational: Pre-tax cash payments for transformation costs were $41 million in the second quarter and $73 million in the first half. Source
Regulatory: PFAS exit costs include site disposition and treatment amounts outside significant litigation, which continue after first-quarter 2026. Source

Earlier plans management reported on

Not stated: In April management said it remained confident in achieving 2026 guidance. The July release raised several full-year figures.
Not stated: The April guidance for adjusted operating margin expansion of 70 to 80 basis points appears unchanged in the July release.

Other quarters

Summarised with AI from the documents the company filed with the SEC. Every point is checked against the filing before it is shown: management’s own words word for word, figures against the line or table row they come from. A point that fails the check is left out. Source opens the filing at that line.

As filed with the SEC

Open the filing on EDGAR

3M Reports Second-Quarter 2026 Results; Increases Full-Year Guidance

Q2 GAAP sales of $6.5 billion, up 2.4%; operating margin of 15.1%, down 290 bps; EPS of $1.78, up 33%, all YoY
Adjusted sales of $6.5 billion with organic growth of 5.4% YoY
Adjusted operating margin of 24.9%, up 40 bps YoY
Adjusted EPS of $2.40, up 11% YoY
Q2 operating cash flow of $1.0 billion with adjusted free cash flow of $1.3 billion
2026 adjusted EPS guidance increased from $8.50 - $8.70 to $8.80 - $8.95

ST. PAUL, Minn. - July 21, 2026 − 3M (NYSE: MMM) today reported second-quarter results.

“We delivered a strong second quarter, exceeding expectations with mid-single-digit sales growth, robust operating margins of about 25%, and double-digit EPS growth, reflecting the progress we’re making on our strategic priorities and building a higher-performing company,” said William Brown, 3M Chairman and CEO. “As a result of our strong first-half performance and continued momentum, we are increasing our full-year guidance and remain confident in our ability to create long-term value for shareholders. I want to thank the 3M team for their disciplined execution, dedication, and relentless focus on delivering innovative solutions for our customers.”

Second-quarter highlights:

	Q2 2026	Q2 2025
GAAP EPS	$1.78	$1.34
Special items:
Loss on business divestitures	0.61	-
(Increase) decrease in value of Solventum ownership	(0.60)	0.01
Net costs for significant litigation and PFAS exit	0.44	0.79
Transformation costs	0.15	-
Business acquisition-related costs	0.02	-
Manufactured PFAS products	-	0.02
Adjusted EPS	$2.40	$2.16
Memo:
GAAP operating income margin	15.1%	18.0%
Adjusted operating income margin	24.9%	24.5%

GAAP EPS of $1.78 and operating margin of 15.1%.
Adjusted EPS of $2.40, up 11% year-on-year.
Adjusted operating income margin of 24.9%, an increase of 40 basis points year-on-year.

	GAAP	Adjusted (non-GAAP)
Net sales (billions)	$6.5	$6.5
Sales change
Total sales	2.4%	5.5%
Components of sales change:
Organic sales	2.3	5.4
Acquisitions/divestitures	(0.6)	(0.7)
Translation	0.7	0.8
Adjusted sales excludes manufactured PFAS products.

Sales of $6.5 billion, up 2.4% year-on-year with organic sales up 2.3% year-on-year.
Adjusted sales of $6.5 billion, up 5.5% year-on-year with adjusted organic sales up 5.4% year-on-year.
3M returned $1.4 billion to shareholders via dividends and share repurchases.
Cash from operations of $1.0 billion.
Adjusted free cash flow of $1.3 billion.

Strategic and operational highlights

The following are recently announced highlights:

3M and Microsoft announced a strategic partnership to advance AI data center infrastructure and enterprise transformation. Microsoft becomes the first announced hyperscale cloud provider to deploy 3M Expanded Beam Optics (EBO) technology. Microsoft is a member of the EBO Multi-Source Agreement (MSA) which 3M helped establish to support standardization and broader industry adoption of EBO technology.
3M and Airbus signed a long-term agreement to deliver advanced insulation technologies for the A220, improving cabin comfort while supporting aircraft performance and efficiency.
3M has entered a multi‑year global partnership as the Cadillac Formula 1® Team’s Official Material Science Partner, leveraging advanced materials, manufacturing and testing to accelerate car development, enhance performance and streamline operations in one of the most demanding racing environments.
3M launched Ask 3M, an AI digital assistant powered by AWS that gives customers fast, self-service access to technical expertise, enabling more efficient evaluation of materials, product comparisons, and resolution of application challenges.
As a part of NASA’s Artemis II mission, the crew of the Orion capsule used 3M™ PELTOR™ ComTac™ VI Tactical Headsets for communication. These headsets are designed to enable communication in extreme environments and are one way 3M is supporting next-generation space exploration.

Updated full-year 2026 guidance

3M updated its full-year 2026 guidance given the company’s performance in the first half of the year.

Adjusted total sales growth of >4.5 percent, reflecting adjusted organic sales growthof >3.5 percent.
Adjusted operating income margin expansionof 70 bps to 80 bps.
Adjusted EPSin the range of $8.80 to $8.95.
Adjusted operating cash flowof $5.8 to $6.0 billion, contributing to >100 percent adjusted free cash flow conversion.

Guidance does not yet reflect the acquisition of Madison Fire & Rescue, which closed on July 1, 2026.

As further discussed at 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

Forward-looking statements

Certain statements in this document, as well as other filings we make with the United States Securities and Exchange Commission (“SEC”) and other written and oral information we release are considered "forward-looking statements" under the federal securities laws, including the Private Securities Litigation Reform Act of 1995, as amended ("PSLRA"). Forward-looking statements may appear throughout this document and are typically identified by the words "aim," "anticipate," "believe," "can," "continue," "could," "estimate," "evaluate," "expect," "forecast," "future," "goal," "guidance," "impact," "initial," "intend," "likely," "may," "outlook," "plan," "possible," "potential," "predict," "probable," "project," "seek," "should," "strategy," "target," "will," "would," and other words that are similar to, or have the opposite meanings, of those words.

All forward-looking statements are intended to enjoy the protection of the PSLRA’s safe harbor for forward-looking statements, as well as the protections provided by other securities laws. Forward-looking statements speak only as of the date they are made and the Company assumes no obligation to update or revise any forward-looking statements. Readers are cautioned not to place undue reliance on any of these forward-looking statements.

Forward-looking statements notice

Although the Company believes it has a reasonable basis for the forward-looking statements it makes, those statements are based on certain assumptions and expectations of future events and trends that are subject to risks and uncertainties. Changes in those assumptions, expectations, or other factors could produce materially different results. The most important risks, uncertainties, and other factors that could cause the Company's actual results to differ from the Company's forward-looking statements include:(1) worldwide economic, political, regulatory, international trade, geopolitical, tariffs, and retaliatory countermeasures, capital markets, and other external conditions, (2) foreign currency exchange rates and fluctuations in those rates, (3) liabilities and contingencies related to 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 exit of PFAS manufacturing and work to discontinue use of PFAS across its product portfolio, (4) risks related to the PWS Settlement to resolve claims by public water suppliers in the United States regarding PFAS, as well as risks related to ongoing PFAS-related settlements and claims, (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, as well as compliance risks related to legal or regulatory requirements, government contract requirements, policies and practices, or other matters that require or encourage the Company or its customers, suppliers, vendors, or channel partners to conduct business in a certain way, (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, tariffs, supply chain interruptions, or natural or other disasters, (9) unanticipated problems or delays when implementing new business systems and solutions, including 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) use of artificial intelligence technologies, (11) the impact of acquisitions, strategic alliances, divestitures, and other strategic events resulting from portfolio management actions and other evolving business strategies, (12) 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, (13) financial market risks that may affect the Company's funding obligations under defined benefit pension and postretirement plans, (14) the Company’s credit ratings and its cost of funding, (15) tax-related external conditions, including changes in tax rates, laws, or regulations, (16) matters relating to the Company's Aearo Entities, Combat Arms Earplugs Settlement, and related products, and (17) matters relating to the spin-off of Solventum, the Company's former Health Care business, into an independent public company.

Those risks, uncertainties, and other factors are further described in Part I, Item 1A, "Risk Factors" of the Company's Form 10-K for the year ended December 31, 2025. For additional information concerning factors that may cause actual results to differ materially from the Company's forward-looking statements, see the Company's reports on Form 10-K, 10-Q, and 8-K filed with the SEC from time to time.

CONSOLIDATED STATEMENT OF INCOME

(Millions, except per-share amounts)

	Three months ended June 30,		Six months ended June 30,
	2026	2025	2026	2025
Net sales	$6,500	$6,344	$12,530	$12,298
Operating expenses
Cost of sales	3,817	3,646	7,391	7,124
Selling, general and administrative expenses	1,061	1,267	1,805	2,212
Research, development and related expenses	302	288	610	573
Loss on business divestitures	336	3	343	3
Total operating expenses	5,516	5,204	10,149	9,912
Operating income	984	1,140	2,381	2,386
Other expense (income), net	(136)	217	383	78
Income before income taxes	1,120	923	1,998	2,308
Provision for income taxes	183	245	404	510
Income of consolidated group	937	678	1,594	1,798
Income from unconsolidated subsidiaries, net of taxes	1	47	3	49
Net income including noncontrolling interest	938	725	1,597	1,847
Less: net income attributable to noncontrolling interest	5	2	11	8
Net income attributable to 3M	$933	$723	$1,586	$1,839
Earnings per share attributable to 3M common shareholders:
Weighted average 3M common shares outstanding - basic	519.7	537.4	524.4	540.6
Earnings per share - basic	$1.79	$1.35	$3.02	$3.40
Weighted average 3M common shares outstanding - diluted	522.4	540.6	527.6	544.2
Earnings per share - diluted	$1.78	$1.34	$3.01	$3.38

CONDENSED CONSOLIDATED BALANCE SHEET

(Dollars in millions)

	June 30, 2026	December 31, 2025
Assets
Current assets
Cash and cash equivalents	$2,955	$5,235
Marketable securities	375	698
Accounts receivable - net	3,927	3,533
Inventories	3,770	3,661
Prepaids	492	391
Assets held for sale	-	46
Other current assets	2,593	2,823
Total current assets	14,112	16,387
Property, plant and equipment - net	6,877	7,101
Goodwill and intangible assets - net	7,427	7,522
Other assets	6,508	6,723
Total assets	$34,924	$37,733
Liabilities and equity
Current liabilities
Short-term borrowings and current portion of long-term debt	$1,647	$1,670
Accounts payable	3,108	2,702
Accrued payroll	522	718
Liabilities held for sale	-	55
Other current liabilities	6,102	4,450
Total current liabilities	11,379	9,595
Long-term debt	10,904	10,932
Other liabilities	9,636	12,459
Total liabilities	31,919	32,986
Total equity	3,005	4,747
Shares outstanding
June 30, 2026: 515,722,417
December 31, 2025: 530,279,131
Total liabilities and equity	$34,924	$37,733

CONDENSED CONSOLIDATED STATEMENT OF CASH FLOWS

(Dollars in millions)

	Six months ended June 30,
	2026	2025
Net cash provided by (used in) operating activities	$1,560	$(1,033)
Cash flows from investing activities:
Purchases of property, plant and equipment	(448)	(444)
Purchases and proceeds from sale or maturities of marketable securities and investments - net	328	1,711
Proceeds from (payments for) sale of businesses, net of cash sold	(326)	5
Other investing activities	23	18
Net cash provided by (used in) investing activities	(423)	1,290
Cash flows from financing activities:
Change in debt - net	-	(151)
Purchases of treasury stock and dividends paid to shareholders	(3,806)	(3,013)
Proceeds from issuances of treasury stock pursuant to stock option and benefit plans	364	988
Other financing activities	(16)	(15)
Net cash provided by (used in) financing activities	(3,458)	(2,191)
Effect of exchange rate changes on cash and cash equivalents	(5)	46
Net increase (decrease) in cash and cash equivalents, including cash classified within assets held for sale	(2,326)	(1,888)
Less: net increase (decrease) in cash classified within assets held for sale	(46)	-
Net increase (decrease) in cash and cash equivalents	(2,280)	(1,888)
Cash and cash equivalents at beginning of year	5,235	5,600
Cash and cash equivalents at end of period	$2,955	$3,712

SALES CHANGE ANALYSIS

	Three months ended June 30, 2026
By reportable business segment	Organic sales	Divestitures	Translation	Total sales change
Safety and Industrial	8.2%	(1.3)%	1.3%	8.2%
Transportation and Electronics	5.9	(0.2)	0.5	6.2
Consumer	(2.1)	-	0.3	(1.8)
Total reportable business segments	5.3	(0.7)	0.9	5.5
Total Company	2.3	(0.6)	0.7	2.4
By geographic area
United States and Canada	- %	(0.5)%	- %	(0.5)%
Latin America	5.4	(0.3)	6.0	11.1
China	9.2	(0.5)	5.2	13.9
Other Asia	2.9	(0.2)	(4.3)	(1.6)
Europe, Middle East and Africa	2.3	(1.8)	2.7	3.2
	Six months ended June 30, 2026
By reportable business segment	Organic sales	Divestitures	Translation	Total sales change
Safety and Industrial	5.7%	(0.7)%	2.5%	7.5%
Transportation and Electronics	2.9	(0.3)	1.5	4.1
Consumer	(1.7)	-	1.0	(0.7)
Total reportable business segments	3.3	(0.4)	1.8	4.7
Total Company	0.5	(0.4)	1.8	1.9
By geographic area
United States and Canada	(1.1)%	(0.3)%	0.1%	(1.3)%
Latin America	0.8	(0.2)	5.9	6.5
China	6.9	(0.2)	4.6	11.3
Other Asia	1.6	(0.1)	(2.3)	(0.8)
Europe, Middle East and Africa	(0.4)	(0.9)	6.2	4.9

Total 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.

BUSINESS SEGMENTS

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 and second quarters of 2026, the measure of segment operating performance and segment composition used by 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 reflect these changes for all periods presented. The changes include the following items now reflected within Corporate:

Effective first quarter 2026 - manufactured PFAS products activity and net costs for respirator mask/asbestos litigation special items: These special items were moved into Corporate from the Transportation and Electronics segment and Safety and Industrial segment, respectively.
Effective second quarter 2026 - business acquisition-related costs: These costs are now reflected as a Corporate special item rather than within reportable business segment operating income. There were no such material costs in prior periods presented.

	Three months ended June 30,				Six months ended June 30,
Net sales (millions)		2026		2025		2026		2025
Abrasives	$342		$338		$691		$655
Automotive Aftermarket	283		291		587		581
Electrical Markets	391		349		747		674
Industrial Adhesives and Tapes	642		568		1,246		1,111
Industrial Specialties Division	326		294		612		582
Personal Safety	965		882		1,877		1,732
Roofing Granules	142		135		261		267
Total Safety and Industrial business segment	3,091		2,857		6,021		5,602
Advanced Materials	162		148		309		291
Automotive and Aerospace	485		474		969		949
Commercial Branding and Transportation	737		689		1,377		1,305
Electronics	682		633		1,259		1,215
Total Transportation and Electronics business segment	2,066		1,944		3,914		3,760
Consumer Safety and Well-Being	289		280		567		554
Home and Auto Care	318		306		646		605
Home Improvement	362		374		673		700
Packaging and Expression	278		310		492		535
Total Consumer business segment	1,247		1,270		2,378		2,394
Total reportable business segments	6,404		6,071		12,313		11,756
Corporate	96		273		217		542
Total Company	$6,500		$6,344		$12,530		$12,298

BUSINESS SEGMENTS - (CONTINUED)

	Three months ended June 30,				Six months ended June 30,
Operating income (millions)		2026		2025		2026		2025
Safety and Industrial	$859		$738		$1,635		$1,437
Transportation and Electronics	503		479		902		869
Consumer	252		268		469		487
Total reportable business segments	1,614		1,485		3,006		2,793
Corporate
Corporate-level (expense) income	1		22		35		72
Corporate special items:
Net costs for significant litigation and PFAS exit	(183)		(347)		(13)		(421)
Business acquisition-related costs	(12)		-		(12)		-
(Loss) gain on business divestitures	(336)		(3)		(343)		(3)
Manufactured PFAS products	-		(17)		(126)		(55)
Transformation costs	(100)		-		(166)		-
Total Corporate	(630)		(345)		(625)		(407)
Total Company operating income	984		1,140		2,381		2,386
Other expense/(income), net	(136)		217		383		78
Income before income taxes	$1,120		$923		$1,998		$2,308

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 and PFAS exit impacting operating income (loss),
business acquisition-related costs,
manufactured PFAS products activity,
(loss) gain on business divestitures, and
transformation program restructuring and related charges.

SUPPLEMENTAL FINANCIAL INFORMATION

NON-GAAP MEASURES

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 impact 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:

GAAP amounts for which a measure adjusted for special items is also provided:

Reasons 3M believes the measure is useful:

Net sales (and sales change)

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

Operating income (loss) and operating income (loss) margin (and expansion)
Income before taxes
Provision for income taxes and effective tax rate
Net income
EPS

Additional non-GAAP measures:

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.

SUPPLEMENTAL FINANCIAL INFORMATION

NON-GAAP MEASURES - (CONTINUED)

Certain amounts adjusted for special items (non-GAAP measures):

(Dollars in millions, except per share amounts)		Three months ended June 30, 2025
	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		$6,344		$1,140		18.0%		$923		$245		26.6%		$723		$1.34
Corporate GAAP amounts		$273		$(345)
Adjustments for special items:
Net costs for significant litigation and PFAS exit		-		347				471		46				425		0.79
Loss on business divestitures		-		3				3		1				2		-
Manufactured PFAS products		(186)		17				17		4				13		0.02
Solventum ownership - change in value		-		-				7		-				7		0.01
Total special items		(186)		367				498		51				447		0.82
Total Company adjusted amounts (non-GAAP measures)		$6,158		$1,507		24.5%		$1,421		$296		20.8%		$1,170		$2.16
Corporate adjusted amounts (non-GAAP measures)		$87		$22

(Dollars in millions, except per share amounts)	Three months ended June 30, 2026
	Operating income		Operating income margin		Operating income margin expansion		Income before taxes		Provision for income taxes		Effective tax rate		Net income attributable to 3M		EPS		EPS percent change
Total Company GAAP amounts		$984		15.1%		(290) bps		$1,120		$183		16.3%		$933		$1.78		33%
Corporate GAAP amounts		$(630)
Adjustments for special items:
Net costs for significant litigation and PFAS exit		183						296		64				232		0.44
Business acquisition-related costs		12						12		-				12		0.02
Loss on business divestitures		336						336		20				316		0.61
Solventum ownership - change in value		-						(303)		11				(314)		(0.60)
Transformation costs		100						100		24				76		0.15
Total special items		631						441		119				322		0.62
Total Company adjusted amounts (non-GAAP measures)		$1,615		24.9%		40 bps		$1,561		$302		19.3%		$1,255		$2.40		11%
Corporate adjusted amounts (non-GAAP measures)		$1

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

SUPPLEMENTAL FINANCIAL INFORMATION

NON-GAAP MEASURES - (CONTINUED)

	Six months ended June 30, 2025
(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	$12,298	$2,386	19.4%	$2,308	$510	22.1%	$1,839	$3.38
Corporate GAAP amounts	$542	$(407)
Adjustments for special items:
Net costs for significant litigation and PFAS exit	-	421		695	44		651	1.20
Loss on business divestitures	-	3		3	1		2	-
Manufactured PFAS products	(360)	55		55	13		42	0.08
Solventum ownership - change in value	-	-		(336)	-		(336)	(0.62)
Total special items	(360)	479		417	58		359	0.66
Total Company adjusted amounts (non-GAAP measures)	$11,938	$2,865	24.0%	$2,725	$568	20.9%	$2,198	$4.04
Corporate adjusted amounts (non-GAAP measures)	$182	$72

	Six months ended June 30, 2026
(Dollars in millions, except per share amounts)	Net sales	Sales change	Operating income	Operating income margin	Operating income margin expansion	Income before taxes	Provision for income taxes	Effective tax rate	Net income attributable to 3M	EPS	EPS percent change
Total Company GAAP amounts	$12,530	1.9%	$2,381	19.0%	(40)bps	$1,998	$404	20.2%	$1,586	$3.01	(11)%
Corporate GAAP amounts	$217		$(625)
Adjustments for special items:
Net costs for significant litigation and PFAS exit	-		13			251	39		212	0.40
Business acquisition-related costs	-		12			12	-		12	0.02
Loss on business divestitures	-		343			343	21		322	0.61
Manufactured PFAS products	(27)		126			126	31		95	0.18
Solventum ownership - change in value	-		-			53	11		42	0.08
Transformation costs	-		166			166	40		126	0.24
Total special items	(27)		660			951	142		809	1.53
Total Company adjusted amounts (non-GAAP measures)	$12,503	4.7%	$3,041	24.3%	30bps	$2,949	$546	18.5%	$2,395	$4.54	12%
Corporate adjusted amounts (non-GAAP measures)	$190		$35

SUPPLEMENTAL FINANCIAL INFORMATION

NON-GAAP MEASURES - (CONTINUED)

	Amounts from continuing operations
	Twelve months ended December 31, 2023			Twelve months ended June 30, 2026
(Dollars in millions, except per share amounts)	Net sales	Operating income (loss)	Operating income (loss) margin	Net sales	Operating income	Operating income margin
Total Company GAAP amounts	$24,610	$(10,689)	(43.4)%	$25,180	$4,624	18.4%
Adjustments for special items:
Net costs for significant litigation and PFAS exit	-	14,869		-	133
(Gain)/loss on business divestitures	-	(36)		-	502
Business acquisition-related costs	-	-		-	12
Divestiture costs	-	13		-	-
Manufactured PFAS products	(1,289)	205		(336)	363
Russia exit benefits	-	(18)		-	-
Transformation costs	-	-		-	235
Total special items	(1,289)	15,033		(336)	1,245
Total Company adjusted amounts (non-GAAP measures)	$23,321	$4,344	18.6%	$24,844	$5,869	23.6%

	2026 forecast
2026 adjusted operating income margin expansion (non-GAAP measure)		70 bps to 80 bps
2026 adjusted earnings per share (non-GAAP measure)	$8.80 to $8.95
2026 adjusted effective tax rate (non-GAAP measure)	~20%

3M 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 and PFAS exit; business acquisition-related costs; projected divestiture gains (losses); 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, unless otherwise indicated. Information with respect to special items for certain historical periods is included in the section entitled “Description of special items”.

SUPPLEMENTAL FINANCIAL INFORMATION

NON-GAAP MEASURES - (CONTINUED)

	Three months ended June 30, 2026
Sales change	Organic sales	Divestitures	Translation	Total sales change
Total Company	2.3%	(0.6)%	0.7%	2.4%
Remove manufactured PFAS products special item impact	3.1	(0.1)	0.1	3.1
Adjusted total Company (non-GAAP measures)	5.4%	(0.7)%	0.8%	5.5%
By geographic area
United States and Canada	- %	(0.5)%	- %	(0.5)%
Remove manufactured PFAS products special item impact	2.4	-	-	2.4
Adjusted United States and Canada (non-GAAP measures)	2.4%	(0.5)%	- %	1.9%
Latin America	5.4%	(0.3)%	6.0%	11.1%
Remove manufactured PFAS products special item impact	0.5	-	-	0.5
Adjusted Latin America (non-GAAP measures)	5.9%	(0.3)%	6.0%	11.6%
China	9.2%	(0.5)%	5.2%	13.9%
Remove manufactured PFAS products special item impact	2.5	-	-	2.5
Adjusted China (non-GAAP measures)	11.7%	(0.5)%	5.2%	16.4%
Other Asia	2.9%	(0.2)%	(4.3)%	(1.6)%
Remove manufactured PFAS products special item impact	6.2	-	(0.3)	5.9
Adjusted Other Asia (non-GAAP measures)	9.1%	(0.2)%	(4.6)%	4.3%
Europe, Middle East & Africa	2.3%	(1.8)%	2.7%	3.2%
Remove manufactured PFAS products special item impact	3.6	(0.1)	0.1	3.6
Adjusted Europe, Middle East & Africa (non-GAAP measures)	5.9%	(1.9)%	2.8%	6.8%
By particular country
United States	(0.1)%	(0.4)%	- %	(0.5)%
Remove manufactured PFAS products special item impact	2.6	-	-	2.6
Adjusted United States (non-GAAP measures)	2.5%	(0.4)%	- %	2.1%

SUPPLEMENTAL FINANCIAL INFORMATION

NON-GAAP MEASURES - (CONTINUED)

	Six months ended June 30, 2026
Sales change	Organic sales	Divestitures	Translation	Total sales change
Total Company	0.5%	(0.4)%	1.8%	1.9%
Remove manufactured PFAS products special item impact	2.8	-	-	2.8
Adjusted total Company (non-GAAP measures)	3.3%	(0.4)%	1.8%	4.7%
By geographic area
United States and Canada	(1.1)%	(0.3)%	0.1%	(1.3)%
Remove manufactured PFAS products special item impact	2.7	-	-	2.7
Adjusted United States and Canada (non-GAAP measures)	1.6%	(0.3)%	0.1%	1.4%
Latin America	0.8%	(0.2)%	5.9%	6.5%
Remove manufactured PFAS products special item impact	0.5	-	-	0.5
Adjusted Latin America (non-GAAP measures)	1.3%	(0.2)%	5.9%	7.0%
China	6.9%	(0.2)%	4.6%	11.3%
Remove manufactured PFAS products special item impact	1.0	(0.1)	0.2	1.1
Adjusted China (non-GAAP measures)	7.9%	(0.3)%	4.8%	12.4%
Other Asia	1.6%	(0.1)%	(2.3)%	(0.8)%
Remove manufactured PFAS products special item impact	5.2	-	(0.2)	5.0
Adjusted Other Asia (non-GAAP measures)	6.8%	(0.1)%	(2.5)%	4.2%
Europe, Middle East & Africa	(0.4)%	(0.9)%	6.2%	4.9%
Remove manufactured PFAS products special item impact	3.0	(0.1)	0.3	3.2
Adjusted Europe, Middle East & Africa (non-GAAP measures)	2.6%	(1.0)%	6.5%	8.1%
By particular country
United States	(1.6)%	(0.3)%	- %	(1.9)%
Remove manufactured PFAS products special item impact	2.9	-	-	2.9
Adjusted United States (non-GAAP measures)	1.3%	(0.3)%	- %	1.0%

SUPPLEMENTAL FINANCIAL INFORMATION

NON-GAAP MEASURES - (CONTINUED)

	Twelve months ended December 31, 2023
Sales change	Organic sales	Acquisitions	Divestitures	Translation	Total sales change
Total Company	(4.3)%	0.3%	(1.2)%	(0.7)%	(5.9)%
Remove manufactured PFAS products special item impact	(0.1)	-	(0.1)	0.1	(0.1)
Adjusted total Company (non-GAAP measures)	(4.4)%	0.3%	(1.3)%	(0.6)%	(6.0)%
	Twelve months ended June 30, 2024
Sales change	Organic sales	Acquisitions	Divestitures	Translation	Total sales change
Total Company	(2.1)%	0.4%	(0.1)%	(0.2)%	(2.0)%
Remove manufactured PFAS products special item impact	0.9	-	-	-	0.9
Adjusted total Company (non-GAAP measures)	(1.2)%	0.4%	(0.1)%	(0.2)%	(1.1)%
	Twelve months ended December 31, 2024
Sales change	Organic sales	Acquisitions	Divestitures	Translation	Total sales change
Total Company	(0.2)%	0.2%	0.6%	(0.7)%	(0.1)%
Remove manufactured PFAS products special item impact	1.4	-	0.1	(0.1)	1.4
Adjusted total Company (non-GAAP measures)	1.2%	0.2%	0.7%	(0.8)%	1.3%
	Twelve months ended June 30, 2025
Sales change	Organic sales	Acquisitions	Divestitures	Translation	Total sales change
Total Company	0.1%	- %	0.7%	(0.6)%	0.2%
Remove manufactured PFAS products special item impact	1.4	-	-	0.1	1.5
Adjusted total Company (non-GAAP measures)	1.5%	- %	0.7%	(0.5)%	1.7%
	Twelve months ended December 31, 2025
Sales change	Organic sales	Acquisitions	Divestitures	Translation	Total sales change
Total Company	0.9%	- %	0.2%	0.4%	1.5%
Remove manufactured PFAS products special item impact	1.2	-	-	-	1.2
Adjusted total Company (non-GAAP measures)	2.1%	- %	0.2%	0.4%	2.7%
	Twelve months ended June 30, 2026
Sales change	Organic sales	Acquisitions	Divestitures	Translation	Total sales change
Total Company	1.1%	- %	(0.2)%	1.4%	2.3%
Remove manufactured PFAS products special item impact	1.9	-	-	0.1	2.0
Adjusted total Company (non-GAAP measures)	3.0%	- %	(0.2)%	1.5%	4.3%

SUPPLEMENTAL FINANCIAL INFORMATION

NON-GAAP MEASURES - (CONTINUED)

2026 forecast

Sales change

Organic sales

Acquisitions

Divestitures

Translation

Total sales change

Total Company

>3.5%

~1%

>4.5%

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 (non-GAAP measures):

	Three months ended June 30,				Six months ended June 30,
Major GAAP cash flow categories (dollars in millions)		2026		2025		2026		2025
Net cash provided by (used in) operating activities	$986		$(954)		$1,560		$(1,033)
Net cash provided by (used in) investing activities	(483)		70		(423)		1,290
Net cash provided by (used in) financing activities	(1,334)		(1,769)		(3,458)		(2,191)

	Three months ended June 30,				Six months ended June 30,
Adjusted free cash flow (non-GAAP measure) (dollars in millions)		2026		2025		2026		2025
Net cash provided by (used in) operating activities	$986		$(954)		$1,560		$(1,033)
Adjustments for special items:
Net costs/(recoveries) for significant litigation and PFAS exit after-tax payment impacts	574		2,216		683		3,003
Divestiture costs after-tax payment impacts	-		43		-		59
TCJA transition tax payment	-		211		-		211
Transformation actions after-tax payment impacts	11		-		43		-
Manufactured PFAS products after-tax payment impacts	-		(25)		51		(32)
Total adjustments for special items	585		2,445		777		3,241
Adjusted net cash provided by (used in) operating activities (non-GAAP measure)	$1,571		$1,491		$2,337		$2,208
Purchases of property, plant and equipment (PPE)	(223)		(208)		(448)		(444)
Manufactured PFAS products impact - removing related purchases of PPE	-		1		-		9
Adjusted purchases of PPE (non-GAAP measure)	$(223)		$(207)		$(448)		$(435)
Adjusted free cash flow (non-GAAP measure)	$1,348		$1,284		$1,889		$1,773
Adjusted net income attributable to 3M	$1,255		$1,170		$2,395		$2,198
Adjusted free cash flow conversion (non-GAAP measure)	107%		110%		79%		81%

3M 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).

SUPPLEMENTAL FINANCIAL INFORMATION

NON-GAAP MEASURES - (CONTINUED)

(Dollars in billions)	2026 forecast
Net cash provided by (used in) operating activities	$5.8 to $6.0
Adjustments for special items	-
Adjusted net cash provided by (used in) operating activities (non-GAAP measure)	$5.8 to $6.0
Purchase of property, plant and equipment (PPE)	~$1.1
Adjusted free cash flow (non-GAAP measure)	$4.7 to $4.9
Net income attributable to 3M	$4.6 to $4.7
Adjustments for special items	-
Adjusted net income attributable to 3M (non-GAAP measure)	$4.6 to $4.7
Adjusted free cash flow conversion (non-GAAP measure)	>100%

SUPPLEMENTAL FINANCIAL INFORMATION

NON-GAAP MEASURES - (CONTINUED)

Description of special items:

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 and PFAS exit:

Net costs for significant litigation 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 Deduction Eligible Income ("FDDEI"), Net Controlled Foreign Corporation Tested Income ("NCTI"), foreign tax credits, and tax costs of repatriation. PFAS exit costs include amounts outside of significant litigation related to impacted site disposition and treatment post-first quarter 2026 completion of substantive PFAS product sales. 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 second quarter of 2026 and 2025, 3M reflected net pre-tax cash (receipts)/payments of $858 million and $2,509 million, respectively, related to net costs for significant litigation and PFAS exit. In the first six months of 2026 and 2025, 3M reflected net pre-tax cash (receipts)/payments of $960 million and $3,315 million, respectively, related to net costs for significant litigation and PFAS exit.

Business acquisition-related costs:

These include transaction and integration costs as applicable in the respective periods.

Gain/loss on business divestitures:

In the third quarter of 2025, 3M classified a business as held for sale. In the first half of 2026, 3M reflected an adjustment to carrying it at its selling price less cost to sell. In the second quarter of 2026, 3M recorded a loss on the divestiture of its Dyneon GmbH subsidiary. In June 2025, 3M completed a divestiture for immaterial proceeds slightly below the business’ book value. In 2023, 3M recorded a gain related to the sale of its dental local anesthetic business partially offset by a loss associated with a contingent indemnification obligation from an earlier divestiture.

Divestiture costs:

These include limited costs that were not eligible to be included within discontinued operations related to separating and divesting substantially an entire business segment of 3M following public announcement of its intended divestiture.

Russia exit benefits

In 2023, 3M recorded a gain on final disposal of net assets in Russia.

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

Enactment/measurement period adjustments related to the Tax Cuts and Jobs Act (TCJA):

In the second quarter of 2025, 3M made payments of $211 million related to the transition tax expense incurred as a result of the 2017 enactment of the TCJA.

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 second quarter and first six months of 2026, 3M made pre-tax cash payments of $41 million and $73 million, respectively, associated with transformation costs.

About 3M

3M (NYSE: MMM) is focused on transforming industries around the world by applying science and creating innovative, customer-focused solutions. Our multi-disciplinary team is working to solve tough customer problems by leveraging diverse technology platforms, differentiated capabilities, global footprint, and operational excellence. Discover how 3M is shaping the future 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.

Investor Contact:

Diane Farrow, 612-202-2449

Media Contact:

3MNews@mmm.com