3M Q1 2025 Earnings Top Estimates, But Company Says Trump Tariffs Could Shave $0.40 Per Share Off Its 2025 Earnings

While CEO William Brown did not directly express concerns about the macroeconomic environment being impacted by Trump’s tariffs, he called it dynamic, noting that the company is focused on “improving the fundamentals.”

Scotch tape and Post-it notes maker 3M Co.’s (MMM) first-quarter earnings and revenue surpassed Wall Street expectations, sending the stock soaring nearly 5.5% in Tuesday’s pre-market trading session.

3M reported earnings per share (EPS) of $1.88, surpassing Wall Street’s estimate of $1.77. This is the company’s fifth consecutive quarter of EPS beat.

The firm’s first-quarter (Q1) revenue stood at $6 billion, beating an expected $5.73 billion.

3M exited Q1 with adjusted free cash flow of $0.5 billion, but it burned $0.1 billion in cash from operations during the quarter.

Positive organic sales growth drove the company’s results during the quarter, according to CEO William Brown.

While he did not directly express concerns about the macroeconomic environment being impacted by Trump’s tariffs, he called it dynamic, noting that the company is focused on “improving the fundamentals.”

3M returned $1.7 billion to shareholders via dividends and share repurchases during the quarter. It has increased the full-year share repurchase target to $2 billion.

Among its business groups, Safety & Industrial performed the best, with a 2.5% year-on-year rise in sales to $2.75 billion. In comparison, Transportation & Electronics came in second with gains of 1.1% to $1.82 billion.

However, the company said its fiscal-year 2025 earnings could be adversely impacted due to Trump’s tariffs.

3M estimates that its 2025 EPS could be in the $7.60 to $7.90 range, in line with expectations, according to Stocktwits data. However, tariffs could shave off up to $0.40 during the year.

3M’s stock has declined 2.3% year-to-date.

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