3M CO
For the period ended Jun 30, 2026. Filed Jul 21, 2026.
View on SEC.govAbout this filing
A company's report for each of its first three quarters. The financial statements are not audited. It shows how the business has moved since the last annual report, and what management says changed.
Jun 30, 2026 · Filed Jul 21, 2026
Extracted filing text, with the paragraph anchors used by the comparison.
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Item 2. Results of Operations
Results of Operations
Net Sales: Discussion of business segment results is provided in the Performance by Business Segment section. Information regarding sales by geographic area is included below.
| Americas | Asia Pacific | EMEA | Worldwide | |
|---|---|---|---|---|
| Net sales (millions) | $3,516 | $1,870 | $1,114 | $6,500 |
| % of worldwide sales | 54.1% | 28.8% | 17.1% | 100.0% |
| Components of net sales change: | ||||
| Organic sales(b) | 0.7 | 5.6 | 2.3 | 2.3 |
| Divestitures(c) | (0.4) | (0.3) | (1.8) | (0.6) |
| Translation | 0.7 | (0.4) | 2.7 | 0.7 |
| Total sales change | 1.0% | 4.9% | 3.2% | 2.4% |
| Americas | Asia Pacific | EMEA | Worldwide | |
| Net sales (millions) | $6,669 | $3,653 | $2,208 | $12,530 |
| % of worldwide sales | 53.2% | 29.2% | 17.6% | 100.0% |
| Components of net sales change: | ||||
| Organic sales(b) | (0.9)% | 3.8% | (0.4)% | 0.5% |
| Divestitures(c) | (0.3) | (0.2) | (0.9) | (0.4) |
| Translation | 0.9 | 0.7 | 6.2 | 1.8 |
| Total sales change | (0.3)% | 4.3% | 4.9% | 1.9% |
(c) Acquisition and divestiture sales change impacts are measured separately for the first twelve months post-transaction.
| Operating Expenses: | Three months ended June 30, | Six months ended June 30, | ||||
|---|---|---|---|---|---|---|
| (Percent of net sales) | 2026 | 2025 | Change | 2026 | 2025 | Change |
| Cost of sales | 58.7% | 57.5% | 1.2% | 59.0% | 57.9% | 1.1% |
| Selling, general and administrative expenses (SG&A) | 16.4 | 19.9 | (3.5) | 14.4 | 18.0 | (3.6) |
| Research, development and related expenses (R&D) | 4.6 | 4.5 | 0.1 | 4.9 | 4.7 | 0.2 |
| Loss on business divestitures | 5.2 | 0.1 | 5.1 | 2.7 | — | 2.7 |
| Operating income margin | 15.1% | 18.0% | (2.9)% | 19.0% | 19.4% | (0.4)% |
Cost of Sales measured as a percent of sales: Increases in the second quarter and first six months of 2026 were primarily due to cost dis-synergies following the exit of PFAS manufacturing and headwinds from rising oil prices and tariff impacts, partially offset by ongoing manufacturing productivity initiatives. 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 second quarter and first six months of 2026 were primarily driven by lower net costs from significant litigation. 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 2026 items is discussed in Note 3.
Other Expense (Income), Net: See Note 6 for a detailed breakout of this line item.
Interest expense (net of interest income): decreased YoY driven by a reduction in interest expense on debt and reduced imputed interest associated with obligations resulting from the PWS Settlement and the CAE Settlement (discussed in Note 15).
The non-service pension and postretirement net period cost decreased in the second quarter and first six months of 2026 YoY. See also Certain Expenses Impacting Multiple Line Items within Results of Operations subsection further below.
Solventum ownership - change in value resulted in a YoY tailwind of $310 million in the second quarter of 2026 and YoY headwind of $389 million in the first six months of 2026, as Solventum's share price increased during the second quarter of 2026 compared a decrease in 2025 and decreased during the first six months of 2026 compared to an increase in 2025.
| Provision for Income Taxes: | Three months endedJune 30, | Six months endedJune 30, | ||
|---|---|---|---|---|
| (Percent of pre-tax income) | 2026 | 2025 | 2026 | 2025 |
| Effective tax rate | 16.3% | 26.6% | 20.2% | 22.1% |
| Adjusted effective tax rate(a) | 19.3 | 20.8 | 18.5 | 20.9 |
The primary factors that decreased the Company's effective tax rate YoY for the three months ended June 30, 2026 were the tax impacts of 3M's retained ownership interest in Solventum and the tax impacts of net costs of significant litigation, partially offset by the loss on business divestiture.
The primary factors that decreased the Company's effective tax rate YoY for the six months ended June 30, 2026 were the increased tax benefits from stock-based compensation and the tax impacts of net costs of significant litigation, partially offset by the loss on business divestiture and the tax impacts of 3M's retained ownership interest in Solventum.
| Income from Unconsolidated Subsidiaries, Net of Taxes: | Three months endedJune 30, | Six months endedJune 30, | ||
|---|---|---|---|---|
| (Millions) | 2026 | 2025 | 2026 | 2025 |
| Income from unconsolidated subsidiaries, net of taxes | $1 | $47 | $3 | $49 |
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.
| Net Income Attributable to Noncontrolling Interest: | Three months endedJune 30, | Six months endedJune 30, | ||
|---|---|---|---|---|
| (Millions) | 2026 | 2025 | 2026 | 2025 |
| Net income attributable to noncontrolling interest | $5 | $2 | $11 | $8 |
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 impacts cost of sales, SG&A, and R&D. YoY stock compensation expense was relatively consistent.
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 12 for additional information.
Pre-tax stock compensation expense and defined benefit pension and postretirement expense for the periods presented were the following:
| Three months endedJune 30, | Six months endedJune 30, | |||
|---|---|---|---|---|
| Pre-tax amounts (millions) | 2026 | 2025 | 2026 | 2025 |
| Stock compensation expense | $41 | $44 | $121 | $129 |
| Defined benefit pension and postretirement benefit expense | ||||
| Service cost | $39 | $43 | $78 | $84 |
| Non-service cost (benefit) | (3) | 23 | (5) | 51 |
| Total defined pension and postretirement expense | $36 | $66 | $73 | $135 |
The text of this filing, as the company filed it with the SEC, without its images or exhibits. This is not investment advice.