3M Reports 12% EPS Growth in Q2
Multinational conglomerate 3M (NYSE:MMM) reported fiscal 205 second-quarter earnings on Friday, July 18, 2025, with adjusted EPS of $2.16, increasing 12% year over year, despite macroeconomic sluggishness and tariff headwinds. The quarter featured 1.5% organic sales growth, 290 basis points margin expansion year over year, $1.3 billion in adjusted free cash flow, and evidence of accelerating new product development, cost discipline, and commercial execution. Full-year EPS guidance was raised to $7.75-$8.00.
In the first half of 2025, 3M management reported 126 new product launches, resulting in five-year new product sales rising 9% in the first half and tracking toward over 15% growth for the full year, according to management. The expansion in R headcount by 150 since the start of 2025, combined with disciplined business-case screening, has fueled stronger proprietary offerings across multiple business segments.
The resurgence of new product momentum diversifies revenue streams and supports both pricing power and share gains, strengthening 3M's long-term competitive positioning across industrial and consumer end markets.
Source Fool.com
