3M Co (NYSE:MMM) reported better-than-expected earnings for the first quarter of 2025 on Tuesday, driven by organic growth and margin expansion, but warned that new tariffs could shave as much as $0.40 off its full-year profit.
The industrial conglomerate, known for products ranging from adhesives to safety equipment, said adjusted earnings per share rose 10% year-over-year to $1.88, while total revenue came in at $6 billion, down 1% from the same period last year.
Organic sales grew 1.5%, and adjusted operating margin improved to 23.5%.
Despite the solid quarter, the company flagged growing risks tied to global trade tensions, saying that proposed tariffs could reduce 2025 earnings by $0.20 to $0.40 per share. 3M added that price increases would only partially offset the potential hit.
3M maintained its full-year adjusted earnings guidance of $7.60 to $7.90 per share, with the tariff-related risks factored into the outlook.
“We had strong results in the first quarter with positive organic sales growth, margins ahead of expectations and double-digit EPS growth,” CEO William Brown said in a statement. “In this dynamic environment, we remain focused on improving fundamentals, building a new performance culture, and advancing our strategic priorities while leveraging our global network and US footprint.”
The company continues to face challenges beyond trade policy, including ongoing litigation related to PFAS chemicals, macroeconomic uncertainty, foreign exchange pressures, and costs tied to restructuring and spin-off activities.
Still, 3M said it remains committed to improving performance and investing in both global and domestic operations.
Shares of 3M were up 7% in premarket trading.