3M (MMM) Financials

3M (NYSE: MMM) has demonstrated notable financial trends over the past several years through its quarterly income statements, balance sheets, and cash flow statements.

Financial Performance & Income

• Revenue has generally remained solid and stable in recent years, with quarterly operating revenues around $6.0 to $6.3 billion in 2025 Q1 and Q2, showing growth from prior quarters in 2024.
• Gross profit maintains a robust margin with Q2 2025 gross profit at approximately $2.7 billion, reflecting good cost management relative to revenue.
• Net income shows improvement in 2025 with Q2 net income of $725 million, up from $503 million in Q4 2024, signaling resurgence in profitability.
• Earnings per share (diluted) for 3M improved from $1.32 in Q4 2024 to $1.34 in Q2 2025, showing modest growth in shareholder returns.
• Operating expenses, including R&D and SG&A, have been high but relatively stable, indicating consistent investment in growth and operations.

Cash Flow & Liquidity

• 3M's net cash from operating activities has turned negative in Q2 2025 (-$954 million), a significant drop compared to positive cash flow in prior quarters, driven largely by changes in operating assets and liabilities.
• Capital expenditures remain substantial with continued investments in property, plant, and equipment (~$208 million in Q2 2025), supporting long-term operational capacity.
• The company shows large net cash outflows from financing activities in Q2 2025 (-$1.77 billion), including substantial share repurchases ($953 million) and debt repayments ($509 million).
• Despite cash outflows, 3M maintains a healthy cash and equivalents balance of approximately $3.7 billion at Q2 2025, backing liquidity.

Balance Sheet & Capital Structure

• Total assets remain steady around $37.9 billion in Q2 2025, a decrease from prior years reflecting some asset reductions or rebalancing.
• Long-term debt is high at $12.5 billion as of Q2 2025, suggesting ongoing leverage and interest expense consideration for investors.
• Total liabilities ($33.6 billion) significantly outweigh shareholders’ equity ($4.3 billion), resulting in a higher leverage ratio that may increase financial risk.
• Retained earnings have grown over time, indicating the company’s ability to accumulate profit despite challenges in some quarters.
• Accumulated other comprehensive losses and treasury stock holdings reflect some headwinds in equity structure.

Summary

3M’s recent financials suggest strengthening operating results and profitability after some volatile periods in prior years, with revenue and earnings picking up in 2025. However, cash flow from operations declining sharply in Q2 2025 and continued significant leverage pose potential risks. The company continues capital investments and shareholder returns through dividends and buybacks, reflecting confidence but also cash demands.

Investors should watch 3M’s future operating cash flow trends and balance sheet management closely, as these will be critical to sustaining growth and financial health amid a demanding macroeconomic environment.