3M CO

Results of Operations

Net Sales: Percent change information compares the three and nine months ended September 30, 2025 and 2024, unless otherwise indicated. Discussion of business segment results is provided in the Performance by Business Segment section. Information regarding sales by geographic area is included below.

3 Acquisition and divestiture sales change impacts are measured separately for the first twelve months post-transaction and, beginning April 2024, include, within divestitures, the impact of commercial agreements associated with the separation of Solventum.

Additional information beyond what is included in the preceding tables is as follows:

Cost of Sales measured as a percent of sales: Increases in the third quarter and first nine months of 2025 were primarily due to foreign currency impacts; tariffs, and the exit of manufactured PFAS products partially, offset by ongoing procurement and logistics savings. Additionally, cost of sales YoY for the nine months ended September 30, 2025, was impacted by cost dis-synergies (from the ongoing exit of PFAS manufacturing and second quarter 2024 spin of Solventum). See also Certain Expenses Impacting Multiple Line Items within Results of Operations subsection further below.

SG&Ameasured as a percent of sales: Decreases in the third quarter and first nine months of 2025 were primarily impacted by benefits from insurance recoveries in the second and third quarter of 2025, along with lower YoY restructuring charges. These were partially offset by net costs for significant litigation impacting operating income from the second quarter 2025 PFAS-related New Jersey Settlement. Additionally, SG&A YoY for the three and nine months ended September 30, 2025, was impacted by the transition service agreement reimbursement, and cost dis-synergies (from the ongoing exit of PFAS manufacturing and second quarter 2024 spin of Solventum). See also Certain Expenses Impacting Multiple Line Items within Results of Operations subsection further below.

R&Dmeasured as a percent of sales:3M continues to invest in a range of R&D activities from application development, product and manufacturing support, product development and technology development aimed at disruptive innovations. See also Certain Expenses Impacting Multiple Line Items within Results of Operations subsection further below.

Loss on Business Divestitures measured as a percent of sales: Applicable information on 2025 items is discussed in Note 4, including a write-down for a business classified as held for sale in the third quarter.

Other Expense (Income), Net:

Interest expense (net of interest income): increased in the third quarter and decreased in the first nine months of 2025, compared to the same periods YoY.

•The increase in the third quarter was driven by lower interest income due to decreased cash, while both periods were impacted by reduced imputed interest associated with obligations resulting from significant litigation (discussed in Note 17), and debt maturities.

Non-service pension and postretirement net period cost (benefit): increased by approximately $13 million in the third quarter of 2025 and decreased $721 million in the first nine months of 2025, compared to the same periods YoY.

•This change was largely due to the $795 million pension settlement charge in the second quarter of 2024, which occurred as a result of transferring a portion of U.S. pension payment obligations and related plan assets to an insurance company (see Note 13). See also Certain Expenses Impacting Multiple Line Items within Results of Operations subsection further below.

Solventum ownership - change in value: decreased by approximately $675 million in the third quarter of 2025 and $1,452 million in the first nine months of 2025, compared to the same periods YoY.

The primary factors that increased the Company's effective tax rate for the three months ended September 30, 2025, when compared to 2024, were the tax impacts of: 3M's retained ownership interest in Solventum, Pillar Two Model Rules, and the loss on business divestiture, partially offset by net costs of significant litigation. The primary factors that increased the Company's effective tax rate for the nine months ended September 30, 2025, when compared to 2024, were the tax impact of: 3M's retained ownership interest in Solventum and Pillar Two Model Rules, partially offset by net costs of significant litigation.

Income from unconsolidated subsidiaries, net of taxes, is attributable to the Company’s accounting under the equity method for ownership interests in certain entities. In the second quarter of 2025, 3M sold its interest in one of these investments, resulting in a pre-tax gain of $47 million. Because this was an ownership disposition, the impact of taxes thereon was reflected separately in provision for income taxes.

Net income attributable to noncontrolling interest represents the elimination of the income or loss attributable to non-3M ownership interests in 3M consolidated entities. The primary noncontrolling interest relates to 3M India Limited, of which 3M’s effective ownership is 75 percent.

Certain Expenses Impacting Multiple Line Items within Results of Operations:

Stock compensation is discussed in Note 18 and impacts cost of sales, SG&A, and R&D. YoY stock compensation expense was impacted by the lower extent of the 2025 annual grant.

Pre-tax defined benefit pension and postretirement service cost expense impacts cost of sales, SG&A, and R&D while the non-service cost component of pension and postretirement benefits impacts the other expense (income), net line item. Refer to Note 13 for additional information.

On a continuing operations basis, pre-tax stock compensation expense and defined benefit pension and postretirement expense for the periods presented were the following:

In the second quarter of 2024, 3M recorded a non-cash pension settlement charge, part of non-service cost above, as a result of transferring a portion of its U.S. pension payment obligations and related plan assets to an insurance company (as discussed in Note 13).

The Company continues to make investments in the implementation of new business systems and solutions, including enterprise resource planning, with the amortization relating to these investments impacting cost of sales, SG&A, and R&D.