Almost $20 trillion in revenue—and a record-breaking $1.87 trillion in profits. Introducing the 2025 Fortune 500, the definitive list of the biggest companies in America.

Fortune 500

The 300 companies on this year’s list brought in over $12.6 trillion in revenue for the latest 12 months, with the median revenue figure at $22 billion.

America's Most Innovative Companies

The corporations on our annual list posted aggregate revenues of $41 trillion for the second year in a row.

Fortune Global 500

Industries included in the sector are diversified and specialty chemical manufacturers.

Fortune Sector Leaders: Chemicals

The Fortune 500, in its 70th year in 2024, ranks the biggest U.S. companies by revenue.

The 200 companies on this list are transforming industries from the inside out.

The 26th edition of the list shows how much esteem Big Tech giants command among other business leaders.

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World's Most Admired Companies

The 25th Fortune World’s Most Admired Companies list suggests that tech giants’ peers respect them as much as ever.

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The corporations on our annual list of the world’s largest companies delivered a record $41 trillion in aggregate revenues.

The 300 companies on this list are transforming industries from the inside out.

The Fortune 500, in its 69th year in 2023, ranks the biggest U.S. companies by revenue.

Just as it dominates our economy, Big Tech now dominates Fortune’s annual ranking of corporate reputation.

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Aggregate sales hit $37.8 trillion last year—an increase of 19%, the highest annual growth rate in the list’s history.

Fortune collaborated with the Diligent Institute to rank the most innovative boards of directors among S&P 500.

Modern Boards 2022 3M

The company founded as the Minnesota Mining and Manufacturing Company makes the list with an impressive and diverse group of directors. 3M’s board scored highly in gender equality, senior independent nonexecutive director representation, and board expertise. While recent results for the company have been impacted by supply-chain constraints and rising inflation, long-term prospects look good.  
 
Patricia A. Woertz, former chairman and CEO of Archer Daniels Midland, is one of six 3M board members (out of 13 total) to have held a CEO post. The others include Gregory R. Page (Cargill), Muhtar Kent (Coca-Cola), Herbert L. Henkel (Ingersoll-Rand), Michael L. Eskew (UPS), and David B. Dillon (Kroger). 3M CEO Michael Roman also serves as the board’s chairman. Dow CEO James R. Fitterling is the other currently active CEO on the board.  
 
Roman has <a href="https://fortune.com/2021/03/09/the-pandemic-was-an-awakening-for-3m-ceo-daily/">called the pandemic</a> an “awakening” for 3M. In the aftermath of George Floyd’s murder, Roman told Fortune in 2021, the Minneapolis-based company increased its focus on the well-being of employees and the economic health of the Twin Cities area. He said that business leaders can “use the same lessons and abilities you have built in business success and apply them more broadly to whatever is most important to your stakeholders—and that includes your employees.” 
 
The former CFOs of Microsoft and Accenture are 3M directors, as is Dambisa Moyo, former global economist at Goldman Sachs and director at Chevron and Condé Nast. 3M’s board also includes Susan Kereere, the head of global business solutions at Fiserv, and Thomas K. Brown, the former group vice president of global purchasing at Ford. These two offer the perspective of the company’s customers, an increasingly important voice to have on any corporate board.

Fortune Modern Board 25

This year’s Fortune 500 marks the 68th running of the list.

After a year in which humanity leaned more heavily than ever on tech giants, see which companies topped Fortune's ranking of corporate reputation.

WMAC 2021-24-3M

Total revenue for the world’s biggest companies fell 4.8% to $31.7 trillion this year—the first decline in half a decade.

<span data-sheets-value="{&quot;1&quot;:2,&quot;2&quot;:&quot;Conglomerate 3M weathered 2020 thanks to its diverse slate of businesses. While sales in many segments tumbled because of the pandemic, they rose in others. In the positive column were home improvement products (credit all those renovations during lockdown); personal safety items (production of N95 respirators tripled); and filters for biotech labs (as pharma companies pushed to create COVID-19 vaccines). But some of 3M’s other big businesses suffered, including industrial products and office supplies. That’s partly because corporate customers slowed their manufacturing and consumers switched to remote work and therefore didn’t need as many Post-it notes. The result: flat revenue of $32.2 billion in 2020 and profits of $5.38 billion, up nearly 18%.&quot;}" data-sheets-userformat="{&quot;2&quot;:12673,&quot;3&quot;:{&quot;1&quot;:0},&quot;10&quot;:2,&quot;11&quot;:4,&quot;15&quot;:&quot;Calibri&quot;,&quot;16&quot;:12}">Conglomerate 3M weathered 2020 thanks to its diverse slate of businesses. While sales in many segments tumbled because of the pandemic, they rose in others. In the positive column were home improvement products (credit all those renovations during lockdown); personal safety items (production of N95 respirators tripled); and filters for biotech labs (as pharma companies pushed to create COVID-19 vaccines). But some of 3M’s other big businesses suffered, including industrial products and office supplies. That’s partly because corporate customers slowed their manufacturing and consumers switched to remote work and therefore didn’t need as many Post-it notes. The result: flat revenue of $32.2 billion in 2020 and profits of $5.38 billion, up nearly 18%.

Companies on this year's list earned recognition based on surveys of 19.8 million employees worldwide.

GPTW-World's-Best-2021-3M

World’s 25 Best Workplaces

This year’s Fortune 500 marks the 67th running of the list.

F500-2021-96-3M

For an astounding 13th straight year, Apple claims the top spot in Fortune’s annual ranking of corporate reputation, based on a survey of almost 3,800 executives, directors, and analysts.

This year's Fortune Global 500 generated $33.3 trillion in revenues and $2.1 trillion in profits.

G500-2020-389-3M

Based in St. Paul, Minn, and with corporate operations in 70 countries, 3M makes a wide range of products covering areas from health care to office supplies. The company has been in spotlight throughout the coronavirus pandemic, ramping up its production of N95 respirator masks and partnering with MIT in an attempt to develop a rapid COVID-19 test.

This year's Fortune 500 marks the 66th running of the list.

The St. Paul, Minn.-based company, with corporate operations in 70 countries, makes a wide range of products covering areas from health care to office supplies.

Here are the World's Most Admired Companies for 2019 as ranked in their industries. See who made the list.

This year's Fortune Global 500 generated $27.7 trillion in revenues and $1.5 trillion in profits.

This year's Fortune 500 marks the 65th running of the list.

Here are the World's Most Admired Companies for 2018 as ranked in their industries. See who made the list.

This year's Fortune 500 marks the 64th running of the list.

Here are the World's Most Admired Companies for 2017 as ranked in their industries. See who made the list.

This year's Fortune 500 marks the 63rd running of the list.

Here are the World's Most Admired Companies for 2016 as ranked in their industries. See who made the list.

This year's Fortune Global 500 generated $27.6 trillion in revenues and $1.5 trillion in profits.

This year's Fortune 500 marks the 62nd running of the list.

Business insiders have spoken: Asked which companies they most admire, more than 4,100 executives, directors, and analysts chose these top 50 All-Stars.

The world's 500 largest companies generated $31.2 trillion in revenues and $1.7 trillion in profits in 2014. Together, this year's Fortune Global 500 employ 65 million people worldwide and are represented by 36 countries.

This year's Fortune 500 marks the 61st running of the list. Wal-Mart claims the top spot again. See who made the list.

Global business is back. After limping through a worldwide financial crisis and economic slowdown, the 500 largest companies ranked by revenues shattered all sorts of performance records in 2013: They racked up combined revenues of $31.1 trillion, up 2.5% from 2012, and profits soared 27% to nearly $2 trillion. China’s 95 companies (up from 89 last year) posted $5.8 trillion in revenues. The U.S. has four fewer companies on the list than last year but remains (for now) the country leader, with 128 corporations on the list—including No. 1 Wal-Mart Stores—reporting $8.6 trillion in revenues. 

Wal-Mart stayed on top as its sales crept closer to half-a-trillion dollars. Apple moved into the top five. And UnitedHealth Group continued its steady climb. 

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3M is a multinational conglomerate that manufactures industrial, safety, and consumer products. The company sells its merchandise through e-commerce and traditional wholesalers, retailers, and distributors. Founded in 1902 as the Minnesota Mining and Manufacturing Co., 3M is best known for its iconic Scotch tape and Post-it brands.

Q2 2025

Q1 2025

Q4 2024

3M (MMM): Company Profile, Stock Price, News, Rankings

legacy

Ladies and gentlemen, thank you for standing by. Welcome to the three ms First Quarter Earnings Conference Call. During the presentation, all participants will be in a listen only mode. Afterwards, we will conduct a question and answer session. As a reminder, this call is being recorded Tuesday, 04/22/2025.

I would now like to turn the call over to Chinmay Trivedi, Senior Vice President of Investor Relations and Financial Planning and Analysis at three ms.

Thank you. Good morning, everyone, and welcome to our first quarter earnings conference call. With me today are Bill Brown, three ms's Chairman and Chief Executive Officer and Anurag Maheshwari, our Chief Financial Officer. Bill and Anurag will make some formal comments, then we will take your questions. Please note that today's earnings release and slide presentation accompanying this call are posted on the homepage of our Investor Relations website @3ms.com.

Please turn to Slide two and take a moment to read the forward looking statements. During today's conference call, we'll be making certain predictive statements that reflect our current views about three ms's future performance and financial results. These statements are based on certain assumptions and expectations of future events that are subject to risks and uncertainties. Item 1A of our most recent Form 10 ks lists some of these most important risk factors that could cause actual results to differ from our predictions. Please note, throughout today's presentation, we'll be making references to certain non GAAP financial measures.

Reconciliations of the non GAAP measures can be found in the attachments to today's press release. With that, please turn to Slide three, and I will hand the call off to Bill. Bill?

Thank you, Chinmay, and good morning, everyone. We had a strong start to the year with first quarter adjusted earnings per share of $1.88 up 10% versus last year and above expectations. Organic sales growth was 1.5% with all business groups posting positive growth. Operating margins increased two twenty basis points year over year through productivity and cost controls, while we continued to invest in growth initiatives. And free cash flow was solid at about $500,000,000 as we benefited from strong earnings, working capital improvements and disciplined capital expenditures.

These results were achieved during a dynamic macro environment and demonstrate the performance culture that's starting to take hold at three ms. The urgency and operating rhythm the team exhibited along with around the clock interactions with customers and suppliers drove a strong finish to the quarter and I'm really proud of the resilience and persistence of all three Emers. We're exercising a new commercial excellence muscle with a much tighter alignment across the supply chain And we're institutionalizing the March up tempo to execute at that pace in every month of the quarter and every week of the month. In this environment, it's critical for us to focus on what we control and remain deliberate in executing on the three priorities we discussed at our recent Investor Day. Driving sustained top line organic growth, improving operational performance across the enterprise and effectively deploying capital.

Central to top line growth is increasing the cadence of new product launches. In Q1, we launched 62 new products, up about 60% year on year on top of a 32% increase in 2024 and we achieved more than 70% on time launch attainment, up from 56% a year ago. Our new product pipeline health continues to improve and we're on track to launch two fifteen new products this year and 1,000 over the next three years. We've bottomed out and turned the corner on five year new product sales with Q1 up 3% and tracking well toward the target of growing sales from products launched in the past five years by more than 15% by year end. The pace of innovation is accelerating at three ms and our teams are operating with greater urgency and focus than ever before.

A few notable new products introduced in Q1 include ScotchBlue Pro Sharp painters tape with EdgeLock technology for sharper lines and less paint bleed through. A low sparkle optical film with enhanced brightness for the mainstream notebook market and a new solid state drive connector for the data center market. We're making progress on our commercial excellence objectives with standardized operating rhythms, improved target setting and performance measurement and tighter pricing governance. We tripled the number of structured sales manager and sales rep reviews in the first quarter and completed more than 100 joint business plans with our largest customers to align on growth opportunities and capture plans. One area of particular focus is cross selling.

We now have more than $40,000,000 of opportunities in our pipeline across 23 product pairs, tracking well against the $100,000,000 and 50 pair goal through 2027 that Chris described at Investor Day. And finally, we're laser focused on customer retention and reducing churn and we've begun deployment of a predictive analytics tool to flag at risk accounts to proactively address the primary drivers of customer attrition. These initiatives are foundational to building a more commercially driven customer focused company. As a result of these targeted actions, we saw solid order momentum in the quarter across all of our business groups. Our average daily order rate is up over 2% for the quarter, accelerating in March and driving company wide backlog up low teens since the beginning of the year.

And we continue to execute well on our key operational performance metrics, including leveraging our new three ms Excellence operating model. On time in full or OTIF increased 3.5 percentage points versus last year and about one point sequentially to 89%, the best quarter we've had in the past five years. Consumer and Transportation Electronics performed again above 90% and Safety and Industrial was up two points to about 82% is on a steep climb to achieve 90% by year end. Our metric for equipment utilization or OEE was up four percentage points sequentially to 58% and is now deployed on 191 key assets across our 38 largest factories, a 10x increase over this time last year and covering about 50% of production volume. Having a robust baseline on underutilized capacity will help us adjust our sourcing strategy more readily to the changing trade landscape.

And finally, safety performance continue to trend in the right direction with our incident rate down 25% in the quarter following a similar improvement last year as we continue on our journey to an injury free workplace. During the first quarter, we refinanced $1,100,000,000 in debt, returned $1,700,000,000 to shareholders and raised our dividend by 4%. In Q1, the Board approved the share repurchase authorization of $7,500,000,000 and we now expect repurchases to be about $2,000,000,000 up from our prior expectation of $1,500,000,000 We continue to advance our portfolio shaping efforts with one small divestiture recently signed and others progressing more slowly in view of trade policy uncertainty. Our guidance for the year remains $7.6 to $7.9 adjusted earnings per share before the impact of tariffs and offsetting cost, sourcing and price actions. We are not flowing through the upside in our Q1 results to our full year outlook given the uncertain macro environment with recent data reflecting some softening in GDP, IPI and global auto build.

a headwind this year, but we thought it would be prudent to hold the impact outside of our full year guidance while we digest the new policies and fully develop and qualify mitigation plans. With the significant footprint we have in The U. S. And the flexibility of our global network, we're identifying a number of ideas to adjust product sourcing and logistics flows to mitigate at least a part of the impact, some of which are no regret moves regardless of where trade policies eventually settle. Overall, we have a solid game plan.

We're executing well against our strategic priorities and we're focused on long term value creation for shareholders. And with that, I'll hand it over to Anurag to talk through the details. Anurag?

Thank you, Bill. Turning to Slide four, we had a strong start to the year performing ahead of expectations on margins, earnings and cash. On sales, we delivered a second consecutive quarter of positive organic growth across all three business groups performing at the high end of the 1% to 1.5% range we provided in March. We saw strength in several of our key end markets and divisions, including electrical markets and industrial adhesives and tapes in SIBG, aerospace in TEBG and consumer safety and well-being in CVG. And we continue to see softer trends in auto, abrasives and packaging and expression.

Geographically, all regions grew year on year with the exception of Europe. China was up mid single digits with strength in the industrial business and electronic bonding solutions, driven by share gains with key accounts and increased orders ahead of tariff actions. The U. S. Was up low single digits despite the challenging macro backdrop with continued high demand for cable accessories and strength in aerospace, partially offset by weakness in auto.

And Europe was down low single digits due to the continued weak environment, including a high single digit decline in auto bills. On orders, we saw good momentum through the quarter and our daily order rate grew by over 2% resulting in a robust ending backlog that provides close to 25% of coverage as we enter the second quarter. Adjusted operating margins were 23.5%, up two twenty basis points year on year. The operating income growth of $150,000,000 at constant currency was driven by benefits from growth, lower restructuring cost, productivity and TSA cost reimbursement, which was partially offset by our continued growth investments, timing of equity based comp and stranded cost. SIBG and CBG margin rates were up year on year, while TEBG was down as expected due to a challenging prior year comparison and inclusion of incremental stranded costs from the exit of PFAS manufacturing.

The strong operational performance contributed $0.23 to earnings, which was partially offset by $06 of non operational headwinds, including FX, resulting in adjusted EPS up $0.17 or 10% versus last year to $1.88 Relative to our initial expectation of flat earnings growth in Q1, this $0.17 outperformance was driven by $0.10 of G and A efficiency while maintaining our growth investments and $07 of timing benefits related to spin and cost containment actions in the current quarter. We expect this $07 of timing items to be earnings neutral for the first half of the year. Free cash flow of approximately $500,000,000 came in stronger than expected on the back of better earnings and disciplined CapEx spending. And we continue to have a balanced capital deployment including returning $400,000,000 to shareholders via dividends and $1,300,000,000 in gross share buybacks, partially offset by higher than expected stock option exercise. I will provide a quick overview of our growth performance for each business group on Slide five.

Safety and Industrial organic sales grew 2.5% in the first quarter. This growth was broad based with five out of seven divisions posting positive growth. We saw particularly strong demand for cable accessories driven by construction of data centers and renewable energy projects. We also saw strength in industrial and electronics bonding solutions driven by continued share gains in structural adhesives from improved service and our focus on pipeline management driving higher closed won. We also saw good momentum in personal safety as they continue to win key government contracts in The U.

S. And Europe. Auto aftermarket was down low single digits on the back of a market where collision repair claim rates are down high single digits year to date. Transportation and Electronics adjusted sales were up 1.1% organically in the first quarter. Aerospace delivered another quarter of double digit growth from commercial aircraft and defense related business with our strong value proposition in portfolios like films and bonding and joining, and Advanced Materials grew high single digits driven by key project wins.

The Electronics business grew low single digits, softer than expected, driven by lower device demand. Our auto OEM business was down mid single digits, reflecting continued weakness in auto builds, particularly in Europe and The U. S, which were each down high single digits year on year. Finally, the consumer business was up 0.3% organically in Q1. Growth investments and new product innovation drove strength for Filterite filters, respiratory products, pain protection and Maguire's Auto Care partially offset by soft consumer spending principally in Command and Packaging expression.

I will now share an update on our 25 outlook trends on Slide six. Starting with the macro environment, we see a softer outlook than the start of the year. Market forecasts have been lowered, reflecting weaker consumer spending and lower demand in industries such as auto and electronics. The blended GDP IPI 2025 growth was estimated to be 2.1% and has since come down to 1.8% for the year. We continue to believe we can grow above macro due to progress on all our commercial excellence initiatives and focus on new product introductions.

However, to the softer market, we are trending to the lower end of a 2% to 3% range. On operating margins, due to the Q1 performance, we see upside to the midpoint of our margin and earnings guidance range. In terms of non operational drivers, FX has been more favorable than expected. However, it is offset by share option exercise and a higher net interest. We expect the operational cadence of sales and EPS to be split equally between the first and second half, in line with historical performance.

On cash, we continue to expect approximately 100% adjusted free cash flow conversion. Additionally, to offset higher than expected share option exercise, we are increasing our gross share repurchases in $25,000,000,000 to $2,000,000,000 versus the $1,500,000,000 discussed previously. As Bill pointed out, we have Board authorization for $7,500,000,000 of repurchases and we are prepared to be opportunistic in response to market conditions. As you know, we are dealing with tariffs and I will provide a quantification of the tariff sensitivity on Slide seven. Looking from left to right on the slide, our January guidance was for earnings of $7.6 to $7.9 As I earlier mentioned, given the Q1 strength, we are trending about $0.10 better operationally, while our non operational is balanced between FX and below the line items.

Our intention is to continue to drive our results, but we are early in the year and given the current environment, we are taking a $10 contingency and maintaining our 7.6 to $7.9 EPS guidance. On the right, I have provided a tariff sensitivity. I wanted to quantify the impact as we see it right now and outline our mitigation plan. As we have mentioned before, we import $1,600,000,000 into The U. S.

And export $4,100,000,000 from The U. S. China is approximately 10% of the imports and slightly more on exports for a total trade flow of approximately $600,000,000 between The US and China. These flows at the current tariff rates of 125% imports into China from U. S.

And 145% from China into U. S. Will equate to approximately $675,000,000 of potential annualized tariff impact after anticipated exemptions. In addition, tariffs on products not qualified under USMCA along with aluminum steel and other reciprocal actions had approximately $175,000,000 impact for a total annualized impact of approximately $850,000,000 before any mitigation actions. Given that most of the tariffs were enacted recently and we typically carry ninety days of inventory, we expect only half of this impact this year, which is approximately $400,000,000 or approximately $0.60 of EPS before any offsets.

The team has responded quickly and is working on a number of mitigation plans, including cost and productivity initiatives, optimizing production and logistics, including leveraging our U. S. Footprint and selective price increases where feasible. And we believe we can partially offset the headwind for an estimated 2025 net impact of 02/00 to $0.40 We will keep you updated as the situation evolves. In the meantime, we are controlling what we can and focus on growth acceleration, strong margin expansion and delivering strong shareholder returns in 2025.

I want to take a moment to thank the three ms team for remaining resilient through this environment. With that, let's open the call for questions.

We will go first to Jeff Sprague at Vertical Research Partners.

Thank you. Good morning, everyone. Thanks for all that color. Maybe we could start, again, maybe a little bit on the macro side. Interesting commentary about the March exit rate, but obviously kind of post Liberation Day, all eyes are on what happened in April.

I assume that's encompassed in how you've guided here this morning, but maybe give us some color if you could on how things progressed as you moved out of the quarter into Q2 and whether that March activity you saw maybe felt or looked like some pre buy sort of actions by your customers?

Good morning, Jeff. It's Bill. I mean, first on the pre buy, we saw maybe $10,000,000 move from Q2 into Q1 primarily in China. So it was fairly minimal from our assessment on that part of the question. On just the trends, as we mentioned in the prepared comments, our Q1 order rates were up a little more than 2%.

We ended backlog at the March up low teens. As Anurag mentioned, we have about 25% of our revenue in Q2 covered. As we turn the corner into April, we are seeing continue, again it's early, only half of the month, but we are seeing continued momentum in our industrial business in SIBG. Order rates pretty similar to where they were in March, which is a bit higher than they were for the overall quarter. So they had ended March pretty good and it continued into April.

A little bit softer on TEBG, again, it's a little bit early in the quarter, but maybe a little bit softer. Consumer, it typically starts a little bit weak. It's the start of a quarter, the retailers closed the books at the April. So it's typically a slower month for us. But generally speaking, in line with March, just a tad softer in the other two businesses.

Great. And then just back to the tariffs, I appreciate that kind of build up to what the gross impact was. That's some great color. Just when we think about Bill, the levers you're going to pull here on the mitigation side, maybe just a little bit more color there, how much might be price, the ability for the market to actually take price? And I wonder if you could just elaborate a little bit more on some of the moves you are making and some of the things you kind of characterize as no regrets sort of moves.

Yes. So yes, there several things. I would put it in maybe three buckets. One is, and we referenced this at kind of high level in the call here. The first is around sourcing and logistics actions.

As you know, have got 110 factories, 88 distribution centers. And in my comments, I talked about being a 58% utilization. So I guess the positive side of that is we have a lot of flexibility to move those assets up and down and move things across our network. So within sourcing logistics, we can change our source of supply fairly quickly. And we are looking at those kinds of things.

Are adjusting our trade flows, logistics flows, leveraging more bonded facilities, free trade zones, a little bit more point to point shipments on our logistics that we might have done before in terms of hub and spoke. We are optimizing where value add occurs across our network. So where we might have been shipping a finished goods, we may now ship a semi finished goods and do finishing in a different market, different country. And we are looking at alternative production sites with different countries of origin to try to optimize the network and minimize the tariff impact on our business. So there is a bunch of things from a sourcing perspective that we are looking at.

There are certain things we can do relatively quickly within the first couple of months. Some of the things actually are in flight today or have been enacted. There is others that won't take investment, but just take a little bit of time to qualify something. There is others that might take a little bit of investment, a little bit more time. That is likely to be more a 26 help for us if we go forward with that.

But several things we can do, some of which are being actioned today. The second big block is around discretionary cost actions we can take and there is a number of things that we are doing like we did in Q1, but still protecting the growth investments we are trying to make in the business. And then the third is selected surgical price actions that could be in the form of surcharges depending upon the customer, could be list price changes that might come in effect. They are going to be a bit more limited. But when I put those three pieces together, we talk about our $0.20 to $0.4 offsetting mitigating actions.

At the high end of that range, it's probably about fifty-fifty between cost sourcing and pricing. At the low end, it assumes some of the pricing doesn't stick. But we are continuing to work on that. Those are all the things I think we are doing if you will from a defensive perspective, but I would remind you there is some offensive opportunities here as well. We have got a very, very large U.

S. Footprint. We can bring more things into The U. S. There are certain products that we compete against that come in from other regions around the world and perhaps there is an offensive opportunity to take some share here and we are looking very carefully at that as well, Jeff.

Thank you. We go next now to Scott Davis of Melius Research.

I guess another way to kind of follow on to Jeff's question, I think there'll be lots of questions related is just, do you feel like you're more or less exposed than your kind of average competitor to the tariff risk and perhaps that informs the ability to maybe get price or if everybody is in the same boat and similarly exposed and maybe it's a little bit easier to get price versus the alternative. But do you have any feel for that generally? I know it's I know you sell a lot of SKUs in a lot of different markets and a lot of different competitors, but is there a general way you think about that?

No, it's a good question, Scott. Look, we compete against different competitor, different companies across all of our business groups and across all of our divisions within business groups. So it's going to be fairly mixed. Obviously we do export $4,000,000,000 as Anurag mentioned, a piece of that goes into China. That's mainly for the electronics chain, but it's also for some domestic consumption as well.

I would not say it is any better or worse than where our competitors happen to be, but there are certain things that we can do with the flexibility of our network that we can take advantage of cost and sourcing actions and then move strategically on what we try to do on pricing. We do see some of our competitors, some things have moved on the consumer side outside of The U. S, primarily China sourced. We walked away from some of that business, some of that might be private label today and there might be some opportunities to pull back on this. But to push pricing is going to be different in every business that we are in.

We have to make an assessment of the competitive nature of the business, how differentiated our product happens to be. And we are working very, very closely with all of our partners. This is a we, not us versus them, but we are working together on what do we do to mitigate the impact that is hitting all of the companies. So a bit of a mixed bag, Scott, but I think in general I think we are probably a little bit better positioned than a lot of our competitors.

Okay. And then as a natural follow-up, I mean, three ms is a global company, but it's a very American brand, at least that's the perception. Have you seen any kind of anti American behaviors, purchasing behaviors from your customers and biases to perhaps go in a different direction in certain areas or is that just something that we read about in the papers, it's not a real thing yet?

Well, Scott, we haven't seen it yet. I mean, it's still early days, but we've not seen that. I'm not sure we were necessarily anticipating that. We do have very strong brands, very global brands. Know, as you mentioned, a very strong position in The U.

S. We've got 50 factories here and a big chunk of our supply base and we do a lot of R and D here, but we've not seen so far any sort of any risk coming on us because of us being a U. S.-based manufacturer, U. S.-based brands.

Okay, helpful. Best of luck this year guys.

Thank you. We go next now to Julian Mitchell of Barclays.

Hi, good morning. Maybe I just wanted to follow-up on the organic sales outlook first off. So I think you mentioned early on that maybe you're looking at around sort of 2% organic growth for the year in the current guide. Just wondered sort of when we're thinking about the balance of the year, are you assuming kind of steady organic growth around that sort of 1.52% range each quarter through the rest of the year? Or do you think we see sort of a dip this quarter and then some improvement in the back half?

Any color on that and by the sort of segments would be interesting.

Okay. Thanks, Julian. Anurag here. So just to start off with, what we said is we are trending towards the lower end of the range right now. But if you look at it through the course of the year, I think it's going to be pretty stable.

So let me first probably just talk about the first half and then we can talk about sequentially. So as I said in my prepared comments, we expect the operating cadence to be split equally between the first and second half. So on the sales side, this would actually imply that Q2 would be at or slightly better than Q1. And we move into the second half, we should see a little bit of take. So I think it's pretty balanced between the two.

As Bill mentioned, on the industrial side, we are seeing good growth momentum. We saw that in Q1 and that should continue through the rest of the year. On the electronics, there are couple of pockets of weaknesses around the macro side on electronics and auto. We saw that in the first quarter. So that could be a little bit lower than what we thought at the beginning of the year.

And consumer is Q1 was kind of 0.3% of flattish growth, but we expect that to pick up through the course of the year. So to answer your question, not seeing a dip in the second quarter, on the back of the backlog coverage, we have the autos and industrial side, we should kind of see this momentum continue through the course of the year.

That's very helpful. Thank you. And then just my second question around the tariff impact. So I think it's sort of in the in year framework, it's sort of €0.60 gross headwind, $0.03 0 net headwind potentially at the midpoint of that framework you gave. Any more details you could give us if it is around that middle of the middle type number?

How do we think about the phasing of that €0.30 net headwind through the year? And also any color you could give on the impact by segment? Is it sort of better or worse in every in any division?

Yes. Joon, again, listen, as we said, the tariffs started in February with non USMCA aluminum steel, but the ones with the biggest impact started in April, particularly between U. S. And China. And as I mentioned, we typically carry about ninety days of inventory.

So we will see this impact mainly in the second half of the year. For the second quarter, we may see a couple of pennies here and there, a small impact, but that's within the guidance range of seven sixty to seven ninety. You'll see this impact in the second half of the year. Now regarding the businesses and the segments, we'll probably give more color as we kind of go around here. What the team is more importantly, if you take a step back, is working on actions very quickly across the buckets that Bill mentioned and what we can control.

So obviously on the cost side, you will see us control a little bit faster, price will come in and then the offensive strategy, will see more of the benefit come through towards the end of the year or next year. So you will see us mitigating this impact more as we go along through the course of the year into next year.

We'll go next now to Amit Mehrotra at UBS.

Thanks. Good morning. Anurag, just following up on the cadence maybe with respect to EPS as opposed to organic sales. In the last couple years, we've 10%

so sequential uplift in EPS. There's a lot of moving parts in terms of stock comp. I know there was a timing in terms of 1Q, 2Q stock comp. There's obviously timing of other costs and then tariffs, but I guess tariffs are more second half given the inventory. Could you just help us think about the cadence in light of all those moving parts as we think about EPS moving from 1Q into 2Q and the rest of the year?

Sure. Yes, absolutely, Amit. Mean, I already touched upon the sales, I'll go more on the earnings side. So first, let me do the year over year between for Q2 and then I'll come to the sequential because as you correctly said, there are lot of moving pieces there. So the EPS growth year over year should be about $0.15 to $0.20 on the operational side because of the benefits from volume, restructuring costs, productivity, the lower equity comp that you referenced to.

But as I mentioned in my prepared comments, there were some Q1 timing events, that will be partially offset. Increase in investments, but you see a big step up in Q2 relative to last year because we only started making investments in the second half of last year and the PFAS stranded costs. But operationally, you should see it be up $0.15 to $0.20 EPS. But on the non op side, we have a total headwind of about $0.10 and large part of that is driven by net interest as the cash balance last year in second quarter was over $10,000,000,000 and now we are returning back to more normal cash levels. So we will have some impact in non op pension as well, but all of that will be offset by lower share count.

But if you take the net interest pension offset by the lower share count, it's about a zero one zero dollars headwind year over year. So you put that together, we should grow EPS by about $05 to $0.10 year over year. Now sequentially, you are correct, seasonally revenue should be up about $300,000,000 which will come with good flow through. But as I said, there is some offsets around the timing of Q1 items. There is some step up in investments.

So what you will see is about $05 to $0.10 again operationally, it should be good and $05 benefit from a little bit below the line. So sequentially also we should see about $0.10 to $0.15 benefit on the EPS. So overall, if you put all of that together for the first half, our EPS will grow about $0.22 to $0.27 which is actually pretty much 50% of the growth of what we expect for the full year and second half should kind of mirror that too.

Okay, very helpful. Thank you. And then I guess maybe one for Bill in terms of you obviously have a lot of efficiency actions that the company is pursuing. I wonder if what's happening now gives you an opportunity to accelerate some of those actions. If you can just talk about the opportunity that you see there, that would be helpful.

So it is a good question, Amit. I mean, look, this is it is a challenging situation that we happen to be in. The environment is moving But the team has responded very, very well. The actions that I have talked about, I talked about it in very large buckets, but the reality is this has to be done down at an SKU by SKU level based on a customer flow, a factory to a region.

It's a very discrete analysis and it's really helping us get into the bowels if you will of how we actually run the business. So it's pointing out some good opportunity to do some things differently and better. We have been focused on driving operational performance, operational excellence across the whole enterprise including on our operation. I went through some of the metrics that we are focused on here. There is an environment that we are in.

We are trying to figure out a way to offset some of the tariff effects, but a lot of the things that we are doing are just running our game plan. It's driving on time and full up. Talked about that pretty extensively here driving OEE or operational equipment effectiveness, improving that, driving productivity, driving cost per quality down. There is all of these various initiatives. It just puts a lot more focus and attention on.

So is there more we can do? There might be simply because we are getting deeper into a deeper understanding of the trade flows and what's happening, but I think we have got a good game plan. It's executing well. You saw it in the margin improvement in Q1. It's also pointing out good opportunities to tighten down on G and A.

So look, we are trying to make the best of the situation we are in and drive performance.

Very good. Thank you very much. Appreciate

We go next now to Steven Tusa of JPMorgan.

So you guys had previously said I think negative $0.20 on Forex. What specifically are you now assuming

Hey, good morning, Steve. Anurag here. So expecting $0.15 now, a $05

headwind, from a $0.20 headwind to a $0.5 headwind.

3M Q1 2025 Earnings Call Transcript | Fortune

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3M (MMM) Q1 2025 Earnings Call Transcript

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