3M CO

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.

(c) Acquisition and divestiture sales change impacts are measured separately for the first twelve months post-transaction.

Cost of Sales measured as a percent of sales: Decreases in the third quarter of 2026 were primarily due to procurement savings, manufacturing and logistics productivity initiatives, and pricing actions offsetting oil price headwinds, partially offset by PFAS exit-related costs and material inflation. Increases in the first nine months of 2026 were primarily due to PFAS exit-related costs, tariff impacts, and material inflation, partially offset by procurement savings, manufacturing productivity initiatives, and pricing actions. See also Certain Expenses Impacting Multiple Line Items within Results of Operations subsection further below.

SG&Ameasured as a percent of sales: Increases in the third quarter were primarily driven by transformation costs, and decreases in the first nine 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, primarily as a result of 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 third quarter and first nine 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 $375 million in the third quarter of 2026 and YoY headwind of $14 million in the first nine months of 2026, as Solventum's share price increased during the third quarter of 2026 compared to a decrease in 2025 and increased a bit less during the first nine months of 2026 compared to 2025.

The primary factors that decreased the Company's effective tax rate YoY for the three months ended September 30, 2026 were the tax impacts of 3M's retained ownership interest in Solventum and the tax impacts of net costs of significant litigation.

The primary factors that decreased the Company's effective tax rate YoY for the nine months ended September 30, 2026 were the increased tax benefits from stock-based compensation and the tax impacts of net costs of significant litigation.

Income from Unconsolidated Subsidiaries, Net of Taxes:

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 (loss) attributable to NCIs and adjustment to redeemable NCI:

This represents the elimination of income or loss attributable to non-3M ownership interests in 3M consolidated entities, as well as adjustments to carry the redeemable noncontrolling interest at the greater of its carrying amount or estimated redemption value. The primary noncontrolling interests relate to 3M India Limited, of which 3M's effective ownership is 75 percent, and 3M's non-wholly owned venture related to the Fire Safety and Rescue division business (also referred to as 3M Sentorum) as described in Note 3.

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: