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Key Highlights:
Return to Growth: 3M showed a return to positive organic revenue growth in the full year, as highlighted by CEO William Brown: "Our fourth quarter capped a year of strong results as we returned to positive organic revenue growth in the full year." This indicates a positive trend after some previous headwinds.
Full-year adjusted sales saw 1.3% growth and adjusted organic sales saw 1.2% growth YoY
Q4 adjusted sales saw 2.2% growth and adjusted organic sales saw 2.1% growth YoY
Strong Earnings Performance: 3M demonstrated strong earnings growth, particularly on an adjusted basis:
Full-year adjusted EPS from continuing operations was $7.30, up 21% year-on-year.
Q4 GAAP EPS from continuing operations of $1.33, up 17% YoY
"I would like to thank the 3M team for their strong operational execution which helped us deliver double-digit earnings growth and robust free cash flow while returning $3.8 billion to shareholders," said William Brown
Cash Flow & Shareholder Returns: 3M generated robust free cash flow and returned significant capital to shareholders:
Full-year adjusted free cash flow was $4.9 billion
$3.8 billion returned to shareholders via dividends and share repurchases in full-year 2024.
$1.1 billion returned to shareholders via dividends and share repurchases in Q4 2024
Impact of Litigation and Special Items: 3M's financials continue to be impacted by significant litigation costs related to PFAS and combat earplugs:
There are "net costs for significant litigation" included as a special item impacting GAAP earnings. This includes the costs related to the Public Water Systems and Combat Arms Earplugs.
The full-year report notes a $3.8 billion net after tax payment for significant litigation.
Portfolio Adjustments: 3M's portfolio adjustments also impacted sales figures, with a "headwind" from product portfolio initiatives and exiting certain small countries.
The adjusted organic sales increases includes a 70 basis point headwind in Q4 and a 110 basis point headwind in full year.
2025 Guidance: 3M provided full-year 2025 guidance, projecting continued growth:
Adjusted total sales growth in the range of 0.5 to 1.5 percent.
Adjusted organic sales growth of 2 to 3 percent.
Adjusted EPS in the range of $7.60 to $7.90.
Adjusted operating cash flow of $5.2 to $5.3 billion, contributing to approximately 100 percent adjusted free cash flow conversion