3M (MMM.US) reported better-than-expected performance in Q4. The financial guidance for 2025 is optimistic.

Industrial giant 3M Company (MMM.US) announced its fourth-quarter and full-year performance for 2024 on Tuesday, and also released financial guidance for 2025. The financial report shows that 3M's Q4 earnings per share were $1.33, an increase of 17% from the same period last year. Adjusted earnings per share were $1.68, higher than the FactSet forecast of $1.66. Sales increased by 0.1% to $6.01 billion, higher than FactSet's forecast of $5.783 billion. Adjusted sales were $5.8 billion, an increase of 2.2% year-on-year, and adjusted organic sales increased by 2.1%. For the full year, 3M's GAAP earnings per share for 2024 were $7.26, with an operating profit margin of 19.6%. Adjusted earnings per share were $7.30, a 21% increase year-on-year. Total sales for the year were $24.6 billion, a decrease of 0.1% year-on-year, and organic sales decreased by 0.2%. Adjusted sales were $23.6 billion, an increase of 1.3% year-on-year, and adjusted organic sales increased by 1.2%. Looking ahead to 2025, 3M expects adjusted earnings per share to be between $7.60 and $7.90, while FactSet's expectation is $7.78. The company forecasts sales growth of 0.5% to 1.5%, while FactSet's consensus is a 2.3% decrease in sales. By region, 3M expects sales in the United States and EMEA (Europe, Middle East, and Africa) to slightly increase, and sales in the Chinese market to grow at a moderate single-digit rate, although slower than in 2024. 3M is also closely monitoring market dynamics. For example, there has been a slight decrease in demand for automotive manufacturing, while demand for consumer electronics products has seen low to moderate single-digit growth. Additionally, consumer discretionary spending remains weak. By business segment, the Safety and Industrial sector saw sales increase by 2.4% to $2.703 billion in the fourth quarter, exceeding FactSet's forecast of $2.652 billion. Transportation and Electronics sales increased by 2% to $1.792 billion, slightly below FactSet's forecast of $1.794 billion. Consumer sector sales grew by 1.2% to $1.229 billion. It is worth noting that 2024 was a pivotal year for 3M Company's transformation. The company resolved issues with "forever chemicals" in drinking water and Combat Arms earplugs through legal settlements, and spun off its healthcare business into Solventum Corp. In addition, new CEO William Brown took over from the six-year tenure of Mike Roman, driving the company's transition from a geographical business segment structure to a global business segment structure, and focusing on supply chain activities. Brown is focused on research and development to promote new product development, and continues to invest in high-growth markets such as electric vehicles, data centers, and semiconductors. The number of new product releases increased by 32% for the year, exceeding the company's expectations. Brown also adjusted 3M's remote work policy, requiring supervisor-level employees and above to work in the office on Tuesdays through Thursdays, defined as "collaboration days." As of the time of writing, 3M's stock price has risen by over 4% in pre-market trading. In the past 12 months, 3M's stock price has increased by 56.5%, while the S&P 500 index has risen by 23.9%.