3M Company (MMM) Q4 2025 Earnings Call

Investor webinar replay

Replay transcript excerpt

In today's conference call, we'll be making certain predictive statements that reflect our current views about 3M'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-Q lists some of the 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. Good morning, everyone. We delivered solid results in Q4, including organic growth of 2.2 percent, operating margin of 21.1 percent, earnings per share of $1.83, and free cash flow conversion of over 130 percent. These results kept a strong year with organic sales growth exceeding 2%, outperforming the macro environment and accelerating from 1.2% organic growth in 2024 and negative growth in 2023. This growth was underpinned by the strong commercial excellence foundation we've established and our focus on reinvigorating innovation. We delivered significant margin expansion with full year adjusted operating margin of 23.4% up 200 basis points year on year at the high end of our guidance range and on top of over 200 basis points expansion in 2024. Adjusted EPS grew double digits to $8.06 and free cash flow conversion was slightly above 100% for the year. Our 2025 financial results reflect the progress we're making and we're tracking ahead of the medium-term commitments we made at the investor day last year. 2025 was an important year fo...