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Item 7. Management’s Discussion and Analysis

2026-02-03 compared with 2025-02-05 · 378 added, 536 removed, 261 unchanged (78% of the section changed)

1 unchanged sentence

Management’s Discussion and Analysis of Financial Condition and Results of Operations (MD&A) is designed to provide a reader of 3M’s financial statements with a narrative from the perspective of management.

3M’s MD&A is presented in eight sections:

3M’s MD&A is presented in the following sections:

• Results of Operations

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• Financial Instruments

The term "N/M" used herein references "not meaningful" for certain percent changes.

Forward-looking statements in Item 7 may involve risks and uncertainties that could cause results to differ materially from those projected (refer to the section entitled Cautionary Note Concerning Factors That May Affect Future Results in Item 1 and the risk factors provided in Item 1A for discussion of these risks and uncertainties).

Additional information about results of operations and financial condition for 2024 and 2023 (including the detailed discussion of the prior year 2024 to 2023 year-over-year changes) can be found in Management’s Discussion and Analysis of Financial Condition and Results of Operations sections in 3M's Annual Report on Form 10-K for the year ended December 31, 2024.

3M is a diversified global manufacturer, technology innovator and marketer of a wide variety of products and services.

Certain changes are reflective in this document for all applicable periods presented.

These include:

• As discussed in Note 2, on April 1, 2024, 3M completed the previously announced separation of its Health Care business (the Separation) through a pro rata distribution of 80.1% of the outstanding shares of Solventum Corporation (Solventum) to 3M stockholders.

As a result of the Separation, Solventum became an independent public company and 3M no longer consolidates Solventum into 3M’s financial results.

In connection with the Separation, the historical net income of Solventum and applicable assets and liabilities included in the Separation are reported in 3M's consolidated financial statements as discontinued operations.

• 3M made certain changes to the composition of segment information reviewed by 3M's chief operating decision maker (CODM) effective in the second quarter of 2024 largely as a result of the separation of Solventum and changes within its business segments effective in the first quarter of 2024 as further described in Note 22.

To the extent these changes impacted 3M's disclosed disaggregated revenue information, data in Note 3 has also been updated.

Certain additional information about results of operations and financial condition for 2023 and 2022, not otherwise impacted by reflection of the above for applicable prior periods presented, can be found in Management’s Discussion and Analysis of Financial Condition and Results of Operations sections in 3M's Annual Report on Form 10-K for the year ended December 31, 2023.

As discussed in Note 1, certain changes are reflective in this document for all applicable periods presented.

As discussed in Note 2, on April 1, 2024, 3M completed the separation of its Health Care business (the Separation) through a pro rata distribution of 80.1% of the outstanding shares of Solventum Corporation (Solventum) to 3M stockholders.

As a result, Solventum became an independent public company, 3M no longer consolidated Solventum into 3M’s financial results and the historical net income of Solventum, and applicable assets and liabilities included in the Separation were reported in 3M's consolidated financial statements as discontinued operations.

3M manages its continuing operations in three operating business segments:

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and Consumer.

From a geographic perspective, any references to EMEA refer to Europe, Middle East and Africa on a combined basis.

References are made to organic sales change (which include both organic volume impacts and selling price impacts), which is defined as the change in net sales, absent the separate impacts on sales from foreign currency translation and acquisitions, net of divestitures.

Acquisition and divestiture sales change impacts, if any, are measured separately for the first twelve months post-transaction and, beginning April 2024, include the impact of commercial agreements associated with the separation of Solventum.

3M believes this information is useful to investors and management in understanding ongoing operations and in analysis of ongoing operating trends.

3M is impacted by certain special items such as costs for significant litigation and the sales and income associated with manufactured PFAS products.

See Certain amounts adjusted for special items - (non-GAAP measures) section below for additional discussion of these and other special items, including references therein to where further information is provided.

Additional information regarding certain items impacting pre-2024 periods that may also be relevant in 2024 can be found in the Overview section of Part II, Item 7 as well as in further sections of 3M’s 2023 Annual Report on Form 10-K.

Earnings (loss) from continuing operations per share attributable to 3M common shareholders – diluted:

The following table provides the increases (decreases) in diluted earnings (loss) from continuing operations per share.

Earnings (loss) from continuing operations per diluted share Year ended December 31,

Same period last year $ (15.17) $ 7.07

Net costs for significant litigation 21.00 3.20

Divestiture costs 0.02 0.01

Gain on business divestitures (0.05) (4.73)

Divestiture-related restructuring actions — 0.05

Russia exit charges (benefits)

Manufactured PFAS products 0.28 0.90

Total special items 21.21 (0.38)

Same period last year, excluding special items $ 6.04 $ 6.69

Increase/(decrease) due to:

Total organic growth/productivity and other 0.93 0.23

Restructuring and related charges 0.23 (0.59)

Foreign exchange impacts (0.13) (0.10)

Acquisitions/divestitures

Other expense (income), net 0.22 (0.07)

Income tax rate (0.04) (0.20)

Shares of common stock outstanding 0.03 0.14

Current period, excluding special items 7.30 6.04

Net costs for significant litigation (1.32) (21.00)

Divestiture costs (0.24) (0.02)

Gain on business divestitures — 0.05

Russia exit (charges) benefits — 0.04

Manufactured PFAS products (0.20) (0.28)

Pension risk transfer cost (1.11) —

Solventum ownership benefit from change in value

Total special items (0.04) (21.21)

Current period $ 7.26 $ (15.17)

The Company refers to various "adjusted" amounts or measures on an “adjusted" basis.

From a geographic perspective, EMEA refers to Europe, the Middle East, and Africa on a combined basis.

Unless otherwise noted, any sales change analysis compares 2025 with 2024, year-on-year (YoY).

Financial highlights for 2025 and 2024:

GAAP Adjusted (a)

Net sales (millions) $ 24,948 $ 24,279 $ 24,575 $ 23,630

Total sales change 1.5 % 2.7 % (0.1) % 1.3 %

Organic sales change (b)

0.9 % 2.1 % (0.2) % 1.2 %

(a) The Company refers to various "adjusted" amounts or measures on an “adjusted" basis.

These exclude special items.

These non-GAAP measures are further described and reconciled to the most directly comparable GAAP financial measures in the Certain amounts adjusted for special items - (non-GAAP measures) section below.

A discussion related to the components of year-on-year changes in earnings (loss) from continuing operations per diluted share follows:

Organic growth/productivity and other:

• In 2024, the following components impacted earnings (loss) from continuing operations per diluted share year-on-year:

◦ Year-on-year increase of $0.77 per share as a result of benefits from organic growth (including from new product launches), productivity, strong spending discipline and restructuring (including a $30 million cumulative translation adjustment restructuring benefit as certain entities were substantially liquidated in the fourth quarter of 2024) partially offset by growth investments

◦ Nonrecurring items including gain on property sales resulted in a net year-on-year increase of $0.08 per share

◦ Income from transition services agreements with Solventum (refer to Note 2 for additional discussion) resulted in a net year-on-year increase of $0.08 per share.

The year-on-year impact of non-Solventum related transition services agreements is included in acquisitions/divestitures as further described below.

• In 2023, the following components impacted earnings (loss) from continuing operations per diluted share year-on-year:

◦ Declines in disposable respirator demand year-on-year and the 2022 exit of operations in Russia negatively impacted earnings (loss) per share by $0.38.

◦ Remaining organic growth/productivity and other impacts resulted in a net year-on-year increase of $0.61 per share which was impacted by the following:

▪ Benefits from spending discipline, sourcing actions, restructuring, higher selling prices and ongoing productivity actions

▪ Lower sales volumes (particularly electronics/consumer retail);

investments in growth, productivity, and sustainability;

manufacturing/supply chain headwinds;

inflation impacts;

and Europe's geopolitical impacts

• In 2024 and 2023, lower defined benefit pension and postretirement service cost decreased expense year-on-year.

Restructuring and related charges:

• 3M recorded restructuring pre-tax charges of $187 million, $415 million, and $16 million in 2024, 2023, and 2022 respectively, related to the 2023 to 2025 structural reorganization actions and 2020 through 2022 operational/marketing capability actions (refer to Note 6 for additional discussion).

The 2024 pre-tax charge included a $30 million cumulative translation adjustment restructuring benefit as certain entities were substantially liquidated in the fourth quarter of 2024.

That benefit is reflected in organic growth/productivity and other as described above.

In addition, 3M recorded certain pre-tax adjustments, accelerated depreciation and other charges related to these actions of $44 million and $4 million in 2024 and 2023, respectively.

3M also recorded restructuring charges in 2023 and 2024 for PFAS exit actions and in 2022 for divestiture-related restructuring actions as further described in Note 6 which are part of the manufactured PFAS products and divestiture-related restructuring actions special items, respectively (see the Certain amounts adjusted for special items - (non-GAAP measures) section below).

Foreign exchange impacts:

• Foreign currency impacts (net of hedging) decreased operating income from continuing operations by approximately $101 million (or a decrease of pre-tax income by approximately $104 million) year-on-year for 2024.

Foreign currency impacts (net of hedging) increased operating loss from continuing operations by approximately $116 million (or a increase of pre-tax loss by approximately $111 million) year-on-year for 2023.

These estimates include:

(a) the effects of year-on-year changes in exchange rates on translating current period functional currency profits into U.S.

dollars and on current period non-functional currency denominated purchases or transfers of goods between 3M operations, and (b) year-on-year changes in transaction gains and losses, including derivative instruments designed to reduce foreign currency exchange rate risks.

(b) Organic sales change (which includes both organic volume and selling price impacts), is defined as the change in net sales, absent the impacts from foreign currency translation and acquisitions, net of divestitures.

3M believes this information is useful to investors and management in understanding ongoing operations and in analysis of ongoing operating trends.

Net sales change was driven by strength in safety and general industrial and supported by commercial excellence and new product introductions.

These were partially offset by known softness in auto aftermarket, roofing granules, commercial vehicles, and consumer, and the YoY impact of the manufactured PFAS products special item.

GAAP Adjusted (a)

Operating income margin 18.6 % 23.4 % 19.6 % 21.4 %

YoY change in operating income margin (1.0) ppts 2.0 ppts 63.0 ppts 2.8 ppts

GAAP operating margins were affected by the YoY impact of special items.

These primarily included an increase in net costs for significant litigation impacting operating income from the 2025 PFAS-related New Jersey Settlement and updates to site remediation obligations (discussed in Note 17), partially offset by increased insurance recoveries;

manufactured PFAS products impacts;

a 2025 charge associated with divestiture activity (discussed in Note 4);

and 2025 transformation costs.

Outside of special items, both GAAP and adjusted operating margins reflect benefits from growth, productivity, and lower restructuring costs (apart from the transformation costs special item), partially offset by growth investments and tariff impacts.

Additionally, margins YoY were impacted by cost dis-synergies (from the exit of PFAS manufacturing and 2024 spin of Solventum);

by transition service agreement reimbursement from Solventum, which began in the second quarter of 2024;

and by the lower extent of stock-based compensation grants (see the Certain Expenses Impacting Multiple Line Items within Results of Operation discussion below).

GAAP Adjusted (a)

Earning per diluted share (EPS) $ 6.00 $ 8.06 $ 7.26 $ 7.30

YoY change in EPS (17) % 10 % 148 % 21 %

GAAP EPS YoY was affected by the net impact of special items.

In addition to special items relative to operating income discussed above, this primarily included the YOY impact of the change in value of Solventum ownership, a $0.8 billion pre-tax pension settlement charge in 2024 (as discussed in Note 13), and the YOY impact of imputed interest associated with obligations resulting from significant litigation.

Outside of special items, both GAAP and adjusted EPS reflect the impact of the other operating income items discussed above, as well as a 2025 gain on the sale of an investment (see the Income from Unconsolidated Subsidiaries, Net of Taxes discussion below) and the impact of lower share count.

These were partially offset by higher non-operating net interest expense and pension expense (both apart from special items).

3M completed its exit of PFAS manufacturing at the end of 2025 as discussed in Part I, Item 1A, “Risk Factors” of this document.

Decisions or circumstances associated with the extent and type of remaining activity at particular locations and impacts on assets and potential obligations, among other factors, could result in additional expenses.

Results of Operations

Percent change information compares 2025 and 2024, unless otherwise indicated.

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

Net sales (millions) $ 13,579 $ 7,095 $ 4,274 $ 24,948

% of worldwide sales 54.5 % 28.4 % 17.1 % 100.0 %

Components of net sales change:

Organic sales (b)

1.3 % 1.7 % (1.7) % 0.9 %

Divestitures (c)

0.3 — 0.2 0.2

Translation (0.3) (0.3) 3.9 0.4

Total sales change 1.3 % 1.4 % 2.4 % 1.5 %

Americas Asia Pacific EMEA

Net sales (millions) $ 13,405 $ 6,994 $ 4,176 $ 24,575

% of worldwide sales 54.5 % 28.5 % 17.0 % 100.0 %

Components of net sales change:

Organic sales (b)

0.1 % 1.2 % (3.1) % (0.2) %

Acquisitions (c)

Divestitures (c)

1.0 0.1 0.2 0.6

Translation (0.4) (2.3) 0.6 (0.7)

Total sales change 1.0 % (1.0) % (2.3) % (0.1) %

(c) Acquisition and divestiture sales change impacts are measured separately for the first twelve months post-transaction and, beginning April 2024, include, within divestitures, the impact of commercial agreements associated with the separation of Solventum.

Operating Expenses:

(Percent of net sales) 2025 2024 Change

Cost of sales 60.1 % 58.8 % 1.3 %

Selling, general and administrative expenses (SG&A) 16.0 17.2 (1.2)

Research, development and related expenses (R&D) 4.7 4.4 0.3

Loss on business divestitures

Operating income margin

18.6 % 19.6 % (1.0) %

Cost of Sales measured as a percent of sales:

Increases in 2025 were primarily due to foreign currency impacts;

the exit of manufactured PFAS products;

and net costs for significant litigation for updates to site remediation obligations partially, offset by ongoing procurement and logistics savings;

and quality cost improvement.

Additionally, cost of sales in 2025, was impacted by cost dis-synergies (from the exit of PFAS manufacturing and 2024 spin of Solventum).

Decreases in 2024 were primarily due to ongoing manufacturing productivity, procurement and logistics savings net of inflation, along with lower YoY restructuring charges compared to 2023.

See also Certain Expenses Impacting Multiple Line Items within Results of Operations subsection further below.

SG&A measured as a percent of sales:

Decreases in 2025 were primarily impacted by lower YoY restructuring charges, ongoing cost discipline and productivity, and benefits from insurance recoveries in 2025.

These were partially offset by net costs for significant litigation impacting operating income from the 2025 PFAS-related New Jersey Settlement.

Additionally, in 2025, SG&A was impacted by the transition service agreement reimbursement, and cost dis-synergies (from the exit of PFAS manufacturing and 2024 spin of Solventum).

Decreases in 2024 were primarily driven by lower YoY net costs for significant litigation and restructuring charges compared to 2023.

See also Certain Expenses Impacting Multiple Line Items within Results of Operations subsection further below.

R&D measured 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.

R&D spending also reflects the Company's continued focus on innovation through growth investments and new product introduction.

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 is discussed in Note 4, including a write-down for a business classified as held for sale in 2025.

Other Expense (Income), Net:

See Note 7 for a detailed breakout of this line item.

Interest expense (net of interest income) :

decreased in 2025 compared to the same period YoY and increased in 2024 compared to the same period YoY.

• The decrease in 2025 was impacted by reduced imputed interest associated with obligations resulting from significant litigation (discussed in Note 17) partially offset by lower interest income.

• The increase in 2024 was primarily driven by the addition of imputed interest associated with the obligations resulting from the PWS Settlement and the CAE Settlement in the second and third quarters of 2023, respectively (discussed in Note 17), partially offset by additional interest income.

The non-service pension and postretirement net cost :

decreased by approximately $0.7 billion in 2025 and increased by approximately $0.9 billion in 2024.

• These changes were largely due to the $0.8 billion pension settlement charge in 2024, which occurred as a result of transferring a portion of U.S.

pension payment obligations and related plan assets to an insurance company (see Note 13).

See also Certain Expenses Impacting Multiple Line Items within Results of Operations subsection further below.

Solventum ownership - change in value :

decreased by approximately $1.2 billion in 2025 and increased by approximately $1.6 billion in 2024.

Provision for Income Taxes:

(Percent of pre-tax income) 2025 2024

Effective tax rate 23.8 % 16.7 %

Adjusted effective tax rate (a)

The primary factors that increased the Company's 2025 effective tax rate when compared to 2024 were the tax impact of 3M's retained ownership interest in Solventum and net costs of significant litigation.

The primary factors impacting 2024 were the effective tax rate benefit on the change in value of 3M's retained ownership interest in Solventum, offset by the effective tax rate on the PWS Settlement and the CAE Settlement (discussed in Note 17).

Income from Unconsolidated Subsidiaries, Net of Taxes:

(Millions) 2025 2024

Income from unconsolidated subsidiaries, net of taxes $ 52 $ 9

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 2025, 3M sold its interest in one of these investments, resulting in a pre-tax gain of $47 million.

Because this was an ownership disposition, the impact of taxes thereon was reflected separately in provision for income taxes.

Net Income Attributable to Noncontrolling Interest:

(Millions) 2025 2024

Net income attributable to noncontrolling interest $ 12 $ 15

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 is discussed in Note 19 and impacts cost of sales, SG&A, and R&D.

YoY stock compensation expense was impacted by the lower extent of the 2025 annual grant.

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 13 for additional information.

On a continuing operations basis, pre-tax stock compensation expense and defined benefit pension and postretirement expense for the periods presented were the following:

Pre-tax amounts (millions) 2025 2024

Stock compensation expense $ 225 $ 268

Defined benefit pension and postretirement benefit expense

Service cost $ 168 $ 194

Non-service cost (benefit) 104 828

Total defined pension and postretirement expense $ 272 $ 1,022

In 2024, 3M recorded a non-cash pension settlement charge, part of non-service cost above, as a result of transferring a portion of its U.S.

pension payment obligations and related plan assets to an insurance company (as discussed in Note 13).

The Company continues to make investments in the implementation of new business systems and solutions, including enterprise resource planning, with the amortization relating to these investments impacting cost of sales, SG&A, and R&D.

Managing currency risks:

3M utilizes a number of tools to manage the impact of changes in foreign currency exchange rates including natural hedges such as pricing, productivity, hard currency, hard currency-indexed billings, and localizing source of supply.

3M also uses certain derivative instruments (with a tenor up to ten years) and non-derivative instruments to mitigate currency risk.

As described in Note 15, these include instruments designated as cash flow hedges, net investment hedges or not designated in formal hedge relationships.

3M’s hedging approach is designed to mitigate a portion of foreign currency risk and reduce volatility, ultimately allowing time for 3M’s businesses to respond to changes in the marketplace.

Raw materials:

Refer to the section entitled Raw materials in Item 1 for discussion of 3M's sources and availability of raw materials in 2025.

Pension and postretirement defined benefit plans:

On a worldwide basis, 3M’s pension and postretirement plans were 98 percent funded at year-end 2025.

The primary U.S.

qualified pension plan, which is approximately 62 percent of the worldwide pension obligation, was 94 percent funded and the international pension plans were 124 percent funded.

non-qualified pension plan is not funded due to tax considerations and other factors.

3M strategically invests in both growth assets and fixed income matching assets to manage its funded status.

For the primary U.S.

qualified pension plan, the expected long-term rate of return for 2026 is 8.0 percent.

pension plans' year-end 2025 discount rate was 5.41%, a decrease from the year-end 2024 discount rate of 5.64%.

The decrease in U.S.

discount rates resulted in an increased valuation of the projected benefit obligation (PBO).

Additional detail and discussion of international plan asset returns and discount rates is provided in Note 13 (Pension and Postretirement Benefit Plans).

In 2026, the Company expects to contribute an amount in the range of $100 million to $150 million of cash to its U.S.

and international retirement plans.

Refer to “Critical Accounting Estimates” within MD&A and Note 13 (Pension and Postretirement Benefit Plans) for additional information concerning 3M’s pension and post-retirement plans.

Performance by Business Segment

Disclosures relating to 3M’s business segments are provided in Note 20.

3M manages its continuing operations in three business segments.

The reportable segments are Safety and Industrial;

Transportation and Electronics;

and Consumer.

Safety and Industrial Business (45.6% of consolidated sales):

Sales (millions) $ 11,384 $ 10,961

Sales change analysis:

Organic sales (b)

Translation 0.7 (0.7)

Total sales change 3.9 % — %

Business segment operating income (millions)

$ 2,836 $ 2,491

Percent change 13.9 % 7.2 %

Percent of sales 24.9 % 22.7 %

Year 2025 results:

Sales in Safety and Industrial were up 3.9 percent in U.S.

Organic sales increased in electrical markets, industrial adhesives and tapes, personal safety, abrasives and industrial specialties, driven by demand in key underlying markets and commercial excellence;

challenges in roofing granules and automotive aftermarket resulted in decreased sales.

Business segment operating income margins increased year-on-year primarily driven by benefits from growth, productivity and lower restructuring costs.

These benefits were partially offset by continued growth investments in the business and cost dis-synergies due to the exit of PFAS manufacturing and 2024 spin of Solventum.

Adjusting for special item costs for significant litigation (non-GAAP measure) related to respirator mask/asbestos, business segment operating income margins increased YoY from 23.1 percent to 25.4 percent.

Refer to the Certain amounts adjusted for special items - (non-GAAP measures) section below for additional details.

Year 2024 results:

Sales in Safety and Industrial were flat in U.S.

Organic sales increased in roofing granules, industrial adhesives and tapes and in electrical markets due to strong demand for bonding solutions and residential roof replacements, were flat in automotive aftermarket and personal safety, and decreased in industrial specialties and abrasives as industrial end-market demand remained mixed and cautious, including weaker EMEA industrial and manufacturing conditions.

Business segment operating income margins increased year-on-year primarily driven by benefits from growth, productivity and spending discipline partially offset by translation, growth investments and dis-synergies due to the spin of Solventum.

Refer to the Certain amounts adjusted for special items - (non-GAAP measures) section below for additional details.

Transportation and Electronics Business (33.2% of consolidated sales):

Sales (millions) $ 8,272 $ 8,380

Sales change analysis:

Organic sales (b)

(1.5) % (1.0) %

Acquisitions (c)

Divestitures (c)

Translation 0.3 (1.0)

Total sales change (1.3) % (1.4) %

Business segment operating income (millions) $ 1,436 $ 1,578

Percent change (9.0) % 20.2 %

Percent of sales 17.4 % 18.8 %

Year 2025 results:

Sales in Transportation and Electronics were down 1.3 percent in U.S.

Organic sales increased in commercial branding and transportation and decreased in advanced materials, electronics, and automotive and aerospace, driven by commercial excellence, while growth was negatively impacted by headwinds related to PFAS manufactured products (impacting electronics and advanced materials), the automotive OEM business, and commercial vehicles.

Divestitures:

• Impact relates to the lost sales year-on-year from a divestiture discussed in Note 4.

Business segment operating income margins decreased YoY due to challenging comparison against last year's strong share gains from spec-in wins and new product introductions in automotive and consumer electronics, continued growth investments in the business, and cost dis-synergies due to the exit of PFAS manufacturing and 2024 spin of Solventum, partially offset by benefits from growth, productivity and lower restructuring costs.

PFAS manufacturing losses increased YoY as manufacturing concluded in 2025.

PFAS manufacturing results were also negatively impacted by updates to depreciable lives and salvage values of remaining treatment-related assets based on site disposition activities.

Adjusted for special item PFAS manufacturing products (non-GAAP measure), sales of $7,603 million were up 2.3 percent YoY in U.S.

dollars, or up 2.0 percent organically;

while business segment operating income margins decreased YoY from 23.2 percent to 22.7 percent.

Refer to the Certain amounts adjusted for special items - (non-GAAP measures) section below for additional details.

Year 2024 results:

Sales in Transportation and Electronics were down 1.4 percent in U.S.

Organic sales increased in electronics driven by new product launches and spec-wins that supported share gains, were flat in commercial branding and transportation, and decreased in advanced materials due to headwinds in PFAS manufactured products (which also negatively impacted electronics) and in automotive and aerospace from lower automotive OEM build rates.

Acquisitions/divestitures:

• Acquisition and divestiture impacts are primarily measured separately for the first 12 months post-transaction, except as noted below.

Divestiture impact generally includes lost income from divested businesses.

Further relevant information includes:

◦ Divestiture impact also includes the effect of new commercial agreements associated with the April 2024 separation of Solventum (discussed in Note 2).

Divestiture impact further includes the year-on-year impact of transition services agreements over the duration of those agreements, other than those with Solventum (the impact of which are included in organic growth/productivity and other as described above).

◦ In 2023, 3M completed the sale of its dental local anesthetic business and in 2022 completed the split-off of the Food Safety business (discussed in Note 4).

◦ Deconsolidation/reconsolidation of Aearo entities - in the third quarter of 2022, 3M deconsolidated the Aearo Entities and, in the second quarter of 2023, reconsolidated those entities.

• Divestiture and acquisition impacts relate to lost/gained Transportation and Electronics sales year-on-year from the Aearo Entities.

In the third quarter of 2022, 3M deconsolidated the Aearo Entities and, in the second quarter of 2023, reconsolidated those entities.

For each of the 12-months post-deconsolidation and post-reconsolidation, impacts are each reflected separately as divestiture and acquisition, respectively.

Other expense (income), net:

• Interest expense (net of interest income) included in other expense (income), net as presented above decreased year-on-year for both 2024 and 2023.

• Lower income related to non-service cost components of pension and postretirement expense increased expense year-on-year for both 2024 and 2023.

Income tax rate :

• Certain items above reflect specific income tax rates associated therewith.

Overall, the effective tax rates for 2024, 2023, and 2022 were 16.7 percent on a pre-tax income, 25.4 percent on pre-tax loss and 4.5 percent on pre-tax income, respectively.

The primary factors that impacted 2024 were the effective tax rate benefit on the change in value of 3M's retained ownership interest in Solventum offset by the effective tax rate on the PWS Settlement and the CAE Settlement (as discussed in Note 19), including 3M’s related decision in the fourth quarter of 2024 to defer certain deductions and accelerate income for tax purposes.

The primary factors that impacted the 2023 rate were the charges related to the PWS Settlement and the CAE Settlement (as discussed in Note 19).The 2022 rate was impacted by the tax efficient structure associated with the 2022 gain on split-off of the Food Safety business (see Note 4).

• On an adjusted basis (as discussed below ) , the effective tax rates for 2024, 2023, and 2022 were 19.6 percent, 19.2 percent, and 16.6 percent, respectively.

Shares of common stock outstanding:

• Shares outstanding impacted earnings (loss) from continuing operations per share year-on-year.

Business segment operating income margins increased year-on-year driven by benefits from non-PFAS manufacturing growth and productivity, spending discipline, and restructuring partially offset by dis-synergies due to the spin of Solventum.

Margins were also impacted by decreased PFAS manufacturing.

Adjusting for special item PFAS manufactured products (non-GAAP measure), sales of $7,435 million were up 3.1 percent YoY in U.S.

dollars, or up 3.4 percent organically;

while business segment operating income margins increased YoY from 21.0 percent to 23.2 percent.

Refer to the Certain amounts adjusted for special items - (non-GAAP measures) section below for additional details.

Consumer Business (19.7% of consolidated sales):

Sales (millions) $ 4,920 $ 4,931

Sales change analysis:

Organic sales (b)

(0.3) % (1.2) %

Translation 0.1 (0.7)

Total sales change (0.2) % (1.9) %

Business segment operating income (millions) $ 996 $ 932

Percent change 6.9 % 3.1 %

Percent of sales 20.2 % 18.9 %

Year 2025 results:

Sales in Consumer were down 0.2 percent in U.S.

Organic sales increased in consumer safety and well-being and home and auto care, driven by new product launches, service improvements, and increased advertising and merchandising investment;

while soft consumer discretionary spending contributed to flat sales in home improvement and decreased sales in packaging and expression.

Business segment operating income margins increased YoY driven by benefits from growth, productivity, and lower restructuring costs partially offset by continued growth investments in the business and cost dis-synergies due to the exit of PFAS manufacturing and 2024 spin of Solventum.

Year 2024 results:

Sales in Consumer were down 1.9 percent in U.S.

Organic sales increased in home improvement, and decreased in home and auto care, packaging and expression and consumer safety and well-being, driven by softness in consumer discretionary spending along with product portfolio and geographic prioritization.

Business segment operating income margins increased year-on-year driven by benefits from productivity actions, portfolio initiatives, and spending discipline partially offset by organic decline and dis-synergies due to the spin of Solventum.

Corporate and Other:

Outside of 3M's reportable segments, 3M has Corporate and Other which is not a reportable business segment as it does not meet the segment reporting criteria.

Because Corporate and Other includes a variety of miscellaneous items, it is subject to fluctuation on a quarterly and annual basis.

Corporate and Other is further described in Note 20.

Refer to the Certain amounts adjusted for special items - (non-GAAP measures) section below and Note 20 for details on the components of corporate special items and their impact.

Corporate-level income, net, increased YoY in 2025, primarily due to the extent of transition arrangement income from divested businesses (and associated costs) largely related to Solventum's April 2024 Separation as well as the extent of non-discontinued operations-eligible former Solventum-allocated costs included in Corporate and Other prior to the Separation.

Corporate-level expense, net, decreased YoY in 2024, primarily due to the extent of non-discontinued operations-eligible former Solventum-allocated costs included in Corporate and Other prior to Solventum's April 2024 Separation.

Performance by Geographic Area

While 3M manages its businesses globally and believes its business segment results are the most relevant measure of performance, the Company also utilizes geographic area data as a secondary performance measure.

Export sales are generally reported within the geographic area where the final sales to 3M customers are made.

A portion of the products or components sold by 3M’s operations to its customers are exported by these customers to different geographic areas.

As customers move their operations from one geographic area to another, 3M’s results will follow.

Thus, net sales in a particular geographic area are not indicative of end-user consumption in that geographic area.

Financial information related to 3M operations in various geographic areas is provided in Note 3 and Note 20.

Refer to the Overview section for a summary of net sales by geographic area and business segment.

Geographic Area Supplemental Information

Employees as of December 31, Capital spending

Property, plant and equipment -net - as of December 31,

(Millions, except employees)

2025 2024 2025 2024 2025 2024

Americas 35,500 36,000 $ 663 $ 829 $ 5,123 $ 5,284

Asia Pacific 13,500 13,500 114 128 1,010 1,053

Europe, Middle East and Africa 11,500 12,000 133 147 968 1,051

Total Company

60,500 61,500 $ 910 $ 1,104 $ 7,101 $ 7,388

Employment decreased in 2025 when compared to 2024.

The above table, as applicable, includes the impact of acquisitions, net of divestitures, and other actions.

Capital Spending/Property, Plant and Equipment - Net:

Amounts relative to these items in the above table relate to 3M's continuing operations and do not include amounts associated with discontinued operations (refer to Note 2 for the amount attributed to discontinued operations).YoY changes in capital spending primarily reflect the timing of project execution and the scale of underlying initiatives.

Capital spending is also discussed later in MD&A in the section entitled Cash Flows from Investing Activities .

Certain amounts adjusted for special items - (non-GAAP measures)

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Special items for the periods presented include the items described in the section entitled “Description of special items”.

Because 3M provides certain information with respect to business segments, it is noteworthy that special items impacting operating income (loss) are reflected in Corporate and Unallocated, except as described with respect to net costs for significant litigation and manufactured PFAS products items in the “Description of special items” section.

Because 3M provides certain information with respect to business segments, it is noteworthy that special items impacting operating income (loss) are reflected in Corporate and Other, except as described with respect to net costs for significant litigation and manufactured PFAS products items in the “Description of special items” section.

The reconciliations below, therefore, also include impacted segments as applicable.

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• Operating income (loss), segment operating income (loss) and operating income (loss) margin

• Income (loss) from continuing operations before taxes

• Income from continuing operations before taxes

• Provision for income taxes and effective tax rate

• Net income (loss) from continuing operations

• Earnings (loss) per share from continuing operations

• Net income from continuing operations

• EPS from continuing operations

Special items for the periods presented include:

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• These relate to 3M's respirator mask/asbestos (which include Aearo and non-Aearo items), PFAS-related other environmental, and Combat Arms Earplugs matters (as discussed in Note 17).

Net costs include the impacts of changes in accrued liabilities (including interest imputation on applicable settlement obligations), external legal fees, and insurance recoveries, along with the associated tax impacts.

Net costs include the impacts of changes in accrued liabilities (including interest imputation on applicable settlement obligations), legal costs, and insurance recoveries, along with the associated tax impacts.

Associated tax impacts of significant litigation include impacts on Foreign Derived Intangible Income (FDII), Global Intangible Low Taxed Income (GILTI), foreign tax credits, and tax costs of repatriation.

3M does not consider the elements of the net costs associated with these matters to be normal, operating expenses related to the Company’s ongoing operations, revenue generating activities, business strategy, industry, and regulatory environment.

Net costs related to respirator mask/asbestos are reflected as special items in the Safety and Industrial business segment while those impacting operating income (loss) associated with PFAS-related other environmental and Combat Arms Earplugs matters are reflected as corporate special items in Corporate and Unallocated.

In addition, during the voluntary chapter 11 bankruptcy period (which began in July 2022 and ended in June 2023), costs associated with the Aearo portion of respirator mask/asbestos matters were reflected in corporate special items in Corporate and Unallocated.

Prior to the bankruptcy, costs associated with Combat Arms Earplugs matters were reflected as part of special items in the Safety and Industrial business segment.

Gain/loss on business divestitures:

• In 2023, 3M recorded a gain related to the sale of its dental local anesthetic business partially offset by a loss associated with a previously contingent indemnification obligation from a 2020 divestiture.

In 2022, 3M recorded a gain related to the split-off and combination of its Food Safety business with Neogen Corporation.

Refer to Note 4 for further details.

• In 2025, 3M reflected a net write-down for a business classified as held for sale and completed a divestiture for immaterial proceeds slightly below the business's book value.

In 2023, 3M recorded a gain related to the sale of its dental local anesthetic business partially offset by a loss associated with a contingent indemnification obligation from an earlier divestiture.

See Note 4 for additional information.

Divestiture costs:

• These include certain limited costs that were not eligible to be included within discontinued operations related to separating and divesting substantially an entire business segment of 3M following public announcement of its intended divestiture.

• These include limited costs that were not eligible to be included within discontinued operations related to separating and divesting substantially an entire business segment of 3M following public announcement of its intended divestiture.

As a result of completion of the April 2024 separation of Solventum, this includes the tax cost of updating 3M’s previous indefinite reinvestment plans on past unrepatriated earnings through the period of the Separation’s close and to tax positions retained by 3M.

Divestiture-related restructuring actions:

• In 2022, following the split-off of the Food Safety business, management approved and committed to undertake certain restructuring actions addressing corporate functional costs across 3M in relation to the magnitude of amounts previously allocated to the divested businesses.

Refer to Note 6 for further details.

Manufactured PFAS products:

• These amounts relate to sales and estimates of income (loss) regarding manufactured PFAS products that 3M plans to exit by the end of 2025 included within the Transportation and Electronics business segment.

Along with other costs in arriving at this associated income, these amounts include estimates of costs of sales of $890 million, $1,267 million, and $970 million for 2024, 2023, and 2022 respectively.

• These amounts relate to sales and estimates of income (loss) regarding manufactured PFAS products that 3M exited by the end of 2025, included within the Transportation and Electronics business segment.

Estimated income does not contemplate impacts on non-operating items such as net interest income/expense and the non-service cost components portion of defined benefit plan net periodic benefit costs.

Russia exit charges/benefits:

• In the second quarter of 2023, 3M recorded a gain on final disposal of net assets in Russia.

Previously, in the third quarter of 2022, 3M recorded a charge primarily related to impairment of these assets in connection with management's committed exit and disposal plan.

Russia exit benefits:

• In 2023, 3M recorded a gain on final disposal of net assets in Russia.

Pension risk transfer charge:

• In 2024, primarily in the second quarter, 3M recorded a non-cash pension settlement charge reflected in other expense (income), net as a result of transferring a portion of its U.S.

• In 2024, 3M recorded a non-cash pension settlement charge reflected in other expense (income), net as a result of transferring a portion of its U.S.

pension payment obligations and related plan assets to an insurance company (as discussed in Note 13).

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• This amount relates to the change in value of 3M's retained ownership interest in Solventum common stock reflected in other expense (income), net.

Year ended December 31, 2022

(Dollars in millions, except per share amounts) Net sales Operating income (loss) Operating income (loss) margin Income (loss) from continuing operations before taxes Provision (benefit) for income taxes Effective tax rate Net income (loss) from continuing operations attributable to 3M Earnings (loss) from continuing operations per diluted share

Transformation costs:

• These represent net costs associated with 3M's transformation program, intended as a structural redesign of longer-term manufacturing, distribution, and business process services and locations.

Accordingly, 3M does not consider the nature or effect of this program to be normal, operating expenses related to the Company’s ongoing operations, revenue generating activities, and day-to-day business strategy.

Net costs include restructuring and other related items such as site closure, sale, moving and set-up, accelerated depreciation, and program management.

Amounts from continuing operations

(Dollars in millions, except per share amounts) Net sales Operating income (loss) Operating income (loss) margin Income (loss) before taxes Provision (benefit) for income taxes Effective tax rate Net income (loss) attributable to 3M Earnings (loss) per diluted share

Safety and Industrial

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Net costs for significant litigation 84

Total special items 1,414

Adjusted amounts (non-GAAP measures) $ 2,408 22.0 %

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Manufactured PFAS products (1,289) 205

Total special items (1,351) 631

Adjusted amounts (non-GAAP measures) $ 7,212 $ 1,517 21.0 %

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Net costs for significant litigation — 14,869 15,245 3,615 11,630 21.00

Manufactured PFAS products (1,351) 631 631 121 510 0.90

Gain on business divestitures — (36) (36) (11) (25) (0.05)

Russia exit charges (benefits) — 101 101 (2) 103 0.19

Divestiture-related restructuring actions — 41 41 9 32 0.05

Divestiture costs — 13 13 4 9 0.02

Manufactured PFAS products (1,289) 205 205 50 155 0.28

Russia exit benefits — (18) (18) 3 (21) (0.04)

Total special items (1,289) 15,033 15,409 3,661 11,748 21.21

Adjusted amounts (non-GAAP measures) $ 23,321 $ 4,344 18.6 % $ 4,138 $ 794 19.2 % $ 3,346 $ 6.04

Year ended December 31, 2023

(Dollars in millions, except per share amounts) Net sales Sales change Operating income (loss) Operating income (loss) margin Income (loss) from continuing operations before taxes Provision (benefit) for income taxes Effective tax rate Net income (loss) from continuing operations attributable to 3M Earnings (loss) from continuing operations per diluted share Earnings (loss) from continuing operations per diluted share percent change

Amounts from continuing operations

(Dollars in millions, except per share amounts) Net sales Operating income

Operating income margin

Income before taxes

Provision for income taxes

Effective tax rate Net income attributable to 3M

Safety and Industrial

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Net costs for significant litigation 36

Total special items 84

Adjusted amounts (non-GAAP measures) $ 2,527 23.1 %

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Manufactured PFAS products (945) 144

Total special items (1,289) 205

Adjusted amounts (non-GAAP measures) $ 7,435 $ 1,722 23.2 %

Total Company

GAAP amounts $ 24,610 (5.9) % $ (10,689) (43.4) % $ (11,271) $ (2,867) 25.4 % $ (8,402) $ (15.17) N/M

GAAP amounts $ 24,575 $ 4,822 19.6 % $ 4,819 $ 804 16.7 % $ 4,009 $ 7.26

Adjustments for special items:

Net costs for significant litigation — 81 800 68 732 1.32

— 14,869 15,245 3,615 11,630 21.00

Manufactured PFAS products (1,289) 205 205 50 155 0.28

Gain on business divestitures — (36) (36) (11) (25) (0.05)

Russia exit charges (benefits) — (18) (18) 3 (21) (0.04)

Divestiture costs — 20 20 (111) 131 0.24

Manufactured PFAS products (945) 144 144 34 110 0.20

Pension risk transfer charge

— — 808 191 617 1.11

Solventum ownership - change in value

— — (1,564) — (1,564) (2.83)

Total special items (945) 245 208 182 26 0.04

Adjusted amounts (non-GAAP measures) $ 23,630 $ 5,067 21.4 % $ 5,027 $ 986 19.6 % $ 4,035 $ 7.30

1 For the per share amount, this includes adjusting-out the impact of this item causing weighted average shares outstanding to be the same for both basic and diluted loss per share in periods of resulting net losses.

Year ended December 31, 2024

Amounts from continuing operations

(Dollars in millions, except per share amounts) Net sales Sales change Operating income

Operating income margin

Income before taxes

Provision for income taxes

Effective tax rate Net income attributable to 3M

EPS percent change

Safety and Industrial

2 unchanged sentences

Net costs for significant litigation 58

Total special items 36

Adjusted amounts (non-GAAP measures) $ 2,894 25.4 %

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Manufactured PFAS products (669) 292

Total special items (945) 144

Adjusted amounts (non-GAAP measures) $ 7,603 2.3 % $ 1,728 22.7 %

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Net costs for significant litigation — 541 1,061 9 1,052 1.95

Loss on business divestitures

— 162 162 3 159 0.29

Manufactured PFAS products (669) 292 292 36 256 0.47

Divestiture costs — 20 20 (111) 131 0.24

Solventum ownership - change in value — — (402) 23 (425) (0.78)

Pension risk transfer charge — — 808 191 617 1.11

Transformation costs — 69 69 (1) 70 0.13

Total special items (669) 1,064 1,182 70 1,112 2.06

Adjusted amounts (non-GAAP measures) $ 24,279 2.7 % $ 5,693 23.4 % $ 5,395 $ 1,073 19.9 % $ 4,362 $ 8.06 10 %

Year ended December 31, 2023

Sales Change Organic sales Acquisitions Divestitures Translation Total sales change

Organic sales Acquisitions Divestitures Translation Total sales change

Total Company (0.2) % 0.2 % 0.6 % (0.7) % (0.1) %

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Adjusted Transportation and Electronics (non-GAAP measures) 3.4 % 0.7 % — % (1.0) % 3.1 %

Year ended December 31, 2024

Sales Change Organic sales Acquisitions Divestitures Translation Total sales change

Organic sales Acquisitions Divestitures Translation Total sales change

Total Company 0.9 % — % 0.2 % 0.4 % 1.5 %

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Adjusted Transportation and Electronics (non-GAAP measures) 2.0 % — % (0.2) % 0.5 % 2.3 %

Sales and operating income (loss) by business segment:

The following tables contain sales and operating income (loss) results by business segment for the years ended December 31, 2024, 2023 and 2022.

Refer to the section entitled Performance by Business Segment later in MD&A for additional discussion concerning 2024 versus 2023 results for 3M's reportable business segments, as well as discussion of Corporate and Unallocated and Other.

Corporate and Unallocated and Other are not reportable business segments as they do not meet the segment reporting criteria.

Refer to Note 22 for additional information on business segments.

2024 2023 2022

(Dollars in millions) Net Sales % of Total Operating Income (Loss) Net Sales % of Total Operating Income (Loss) Net Sales % of Total Operating Income (Loss)

Safety and Industrial $ 10,961 44.6 % $ 2,491 $ 10,956 44.5 % $ 2,324 $ 11,604 44.4 % $ 1,135

Transportation and Electronics 8,380 34.1 1,578 8,501 34.5 1,312 8,902 34.0 973

Consumer 4,931 20.1 932 5,026 20.4 904 5,292 20.2 978

Total reportable business segments

24,272 98.8 5,001 24,483 99.4 4,540 25,798 98.6 3,086

Corporate and Unallocated 271 1.1 (173) 90 0.4 (15,284) 82 0.3 1,213

Other 32 0.1 (6) 37 0.2 55 281 1.1 70

Total Company $ 24,575 100.0 % $ 4,822 $ 24,610 100.0 % $ (10,689) $ 26,161 100.0 % $ 4,369

Operating Income (Loss) Change by Business Segment Safety and Industrial Transportation and Electronics Consumer Total Company

2024 vs 2023 % Change

7.2% 20.2% 3.1% N/M

2023 vs 2022 % Change

104.7% 34.9% (7.6)% N/M

Year ended December 31, 2023

By Business Segment Organic sales Acquisitions Divestitures Translation Total sales change

Safety and Industrial (5.1) % — % — % (0.5) % (5.6) %

Transportation and Electronics (3.5) 0.7 (0.7) (1.0) (4.5)

Consumer (4.7) — (0.1) (0.2) (5.0)

Total Company (4.3) 0.3 (1.2) (0.7) (5.9)

Year ended December 31, 2024

By Business Segment Organic sales Acquisitions Divestitures Translation Total sales change

Safety and Industrial 0.7 % — % — % (0.7) % — %

Transportation and Electronics (1.0) 0.6 — (1.0) (1.4)

Consumer (1.2) — — (0.7) (1.9)

Total Company (0.2) 0.2 0.6 (0.7) (0.1)

Refer to the Certain amounts adjusted for special items - (non-GAAP measures) section for additional details on the impact of special items on sales (and sales change) and operating income (loss) by business segment.

Sales by geographic area:

Percent change information compares the years ended December 31, 2024 and 2023, unless otherwise indicated.

Additional discussion of business segment results is provided in the Performance by Business Segment section.

Year ended December 31, 2024

Americas Asia Pacific Europe, Middle East & Africa Worldwide

Net sales (millions) $ 13,405 $ 6,994 $ 4,176 $ 24,575

% of worldwide sales 54.5 % 28.5 % 17.0 % 100.0 %

Components of net sales change:

Organic sales 0.1 1.2 (3.1) (0.2)

Acquisitions 0.3 — — 0.2

Divestitures 1.0 0.1 0.2 0.6

Translation (0.4) (2.3) 0.6 (0.7)

Total sales change 1.0 % (1.0) % (2.3) % (0.1) %

Year ended December 31, 2023

Americas Asia Pacific Europe, Middle East & Africa Worldwide

Net sales (millions) $ 13,268 $ 7,068 $ 4,274 $ 24,610

% of worldwide sales 53.9 % 28.7 % 17.4 % 100.0 %

Components of net sales change:

Organic sales (0.2) (12.4) (1.3) (4.3)

0.5 — 0.1 0.3

Divestitures (1.3) (1.0) (1.3) (1.2)

Translation — (3.0) 1.6 (0.7)

Total sales change (1.0) % (16.4) % (0.9) % (5.9) %

Additional information beyond what is included in the preceding tables is as follows:

• For 2024, in the Americas geographic area, U.S.

total sales increased 2 percent which included flat organic sales.

In the Asia Pacific geographic area, China/Hong Kong total sales increased 8 percent which included increased organic sales of 8 percent.

• For 2023, in the Americas geographic area, U.S.

total sales were flat which included flat organic sales.

In the Asia Pacific geographic area, China/Hong Kong total sales decreased 17 percent which included decreased organic sales of 13 percent.

As discussed in the risk factors provided in Item 1A, the Company’s results are impacted by the effects of, and changes in, worldwide economic, political, regulatory, international trade, geopolitical, and other external conditions.

Managing currency risks:

3M also uses certain derivative instruments (with a tenor up to five years) and non-derivative instruments to mitigate currency risk.

As described in Note 17, these include instruments designated as cash flow hedges, net investment hedges or not designated in formal hedge relationships.

3M’s hedging approach is designed to mitigate a portion of foreign currency risk and reduce volatility, ultimately allowing time for 3M’s businesses to respond to changes in the marketplace.

Financial condition:

Refer to the section entitled Financial Condition and Liquidity later in MD&A for a discussion of items impacting cash flows.

In February 2025, 3M’s Board of Directors replaced the Company’s November 2018 repurchase program with a new repurchase program.

This new program authorizes the repurchase of up to $7.5 billion of 3M’s outstanding common stock, with no pre-established end date.

In 2024, the Company purchased $1,801 million of its own stock, compared to $33 million of stock purchases in 2023.

In February 2024, 3M’s Board of Directors declared a first-quarter 2024 dividend of $1.51 per share.

In May 2024, 3M's Board of Directors declared a second-quarter 2024 dividend of $0.70 per share resetting 3M's dividend post-Solventum spin.

In August and November 2024, 3M's Board of Directors declared a third-quarter and fourth-quarter 2024 dividend respectively of $0.70 per share.

In February 2025, 3M's Board of Directors declared a first-quarter 2025 dividend of $0.73 per share, an increase of 4 percent.

Raw materials:

Refer to the section entitled Raw materials in Item 1 for discussion of 3M's sources and availability of raw materials in 2024.

Pension and postretirement defined benefit pla ns:

On a worldwide basis, 3M’s pension and postretirement plans were 95 percent funded at year-end 2024.

The primary U.S.

qualified pension plan, which is approximately 63 percent of the worldwide pension obligation, was 94 percent funded and the international pension plans were 122 percent funded.

non-qualified pension plan is not funded due to tax considerations and other factors.

Asset returns in 2024 for the primary U.S.

qualified pension plan were 2.3 percent , as 3M strategically invests in both growth assets and fixed income matching assets to manage its funded status.

For the primary U.S.

qualified pension plan, the expected long-term rate of return on an annualized basis for 2025 is 8.00 percent .

The primary U.S.

qualified pension plan year-end 2024 discount rate was 5.65% , an increase of 67 basis points from the year-end 2023 discount rate of 4.98% .

The increase in U.S.

discount rates resulted in a decreased valuation of the projected benefit obligation (PBO).

The primary U.S.

qualified pension plan’s funded status remained at 94% as of December 31, 2024.

Additional detail and discussion of international plan asset returns and discount rates is provided in Note 15 (Pension and Postretirement Benefit Plans).

In 2025, the Company expects to contribute an amount in the range of $100 million to $200 million of cash to its U.S.

and international retirement plans.

Refer to “Critical Accounting Estimates” within MD&A and Note 15 (Pension and Postretirement Benefit Plans) for additional information concerning 3M’s pension and post-retirement plans.

Results of Operations

Refer to the preceding Overview section and the Performance by Business Segment section later in MD&A for additional discussion of sales change.

Operating Expenses:

(Percent of net sales) 2024 2023 2022 2024 vs 2023 Change

2023 vs 2022 Change

Cost of sales 58.8 % 60.9 % 60.6 % (2.1) % 0.3 %

Selling, general and administrative expenses (SG&A) 17.2 77.9 27.7 (60.7) 50.2

Research, development and related expenses (R&D) 4.4 4.7 4.4 (0.3) 0.3

Gain on business divestitures — (0.1) (10.4) 0.1 10.3

Goodwill impairment expense — — 1.0 — (1.0)

Operating income (loss) margin 19.6 % (43.4) % 16.7 % 63.0 % (60.1) %

Cost of Sales:

Cost of sales, measured as a percent of sales, decreased in 2024 when compared to 2023 and increased in 2023 when compared to 2022.

Decreases in 2024 were primarily due to ongoing manufacturing productivity, procurement and logistics savings net of inflation, along with lower year-on-year restructuring charges.

Increases in 2023 were primarily due to investments in growth, productivity and sustainability;

restructuring charges, and carryover impact of higher energy cost inflation partially offset by lower year-on-year net costs for significant litigation to address certain PFAS-related matters at 3M's Zwijndrecht, Belgium site, higher selling prices, spending discipline, sourcing actions and restructuring benefits.

See also Certain Expenses Impacting Multiple Line Items within Results of Operations subsection further below.

Selling, General and Administrative Expenses:

SG&A, measured as a percent of sales, decreased in 2024 when compared to 2023 and increased in 2023 when compared to 2022.

Decreases in 2024 were primarily impacted by a $10.3 billion pre-tax charge related to the PWS Settlement and the $4.2 billion pre-tax charge related to the CAE Settlement in the second and third quarters of 2023 respectively (both discussed in Note 19).

SG&A in 2024 was also impacted by lower year-on-year restructuring charges.

SG&A in 2023 was also impacted by restructuring charges (see Note 6), and continued investment in key growth initiatives.

These impacts were partially offset by 2022 net costs for significant litigation to address Combat Arms Earplugs litigation matters (for which a pre-tax charge of approximately $1.2 billion was reflected in 2022, discussed in Note 19), certain impairment costs related to exiting PFAS manufacturing, costs related to exiting Russia, divestiture-related restructuring charges (see Note 6), restructuring benefits and ongoing general 3M cost management.

See also Certain Expenses Impacting Multiple Line Items within Results of Operations subsection further below.

Research, Development and Related Expenses:

R&D, measured as a percent of sales, decreased in 2024 when compared to 2023 and increased in 2023 when compared to 2022.

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.

R&D was also impacted by restructuring charges.

See also Certain Expenses Impacting Multiple Line Items within Results of Operations subsection further below.

Gain on Business Divestitures:

In 2023, 3M recorded a pre-tax gain of $36 million related to the sale of assets associated with its dental local anesthetic business net of a previous contingent indemnification obligation from a 2020 divestiture.

In 2022, 3M recorded a pre-tax gain of $2.7 billion related to the split-off and combination of its Food Safety business with Neogen Corporation.

Refer to Note 4 for further details.

Goodwill Impairment Expense:

As a result of 3M's commitment to exit per- and polyfluoroalkyl substance (PFAS) manufacturing, 3M recorded a goodwill impairment charge related to the Advanced Materials reporting unit (within the Transportation and Electronics business) in 2022.

Other Expense (Income), Net:

See Note 7 for a detailed breakout of this line item.

Interest expense (net of interest income) increased year-on-year for both 2024 and 2023 primarily driven by the addition of imputed interest associated with the obligations resulting from the PWS Settlement and the CAE Settlement in the second and third quarters of 2023, respectively (discussed in Note 19), partially offset by additional interest income.

The non-service pension and postretirement net benefit decreased $0.9 billion and $0.1 billion in 2024 and 2023, respectively.

The lower year-on-year benefit in 2024 was largely due to the $0.8 billion 2024 pension settlement charge as a result of transferring a portion of U.S.

pension payment obligations and related plan assets to an insurance company.

The lower year-on-year benefit in 2023 was primarily due to higher interest costs due to higher discount rates as of the year-end 2022, partially offset by a reduction in actuarial loss amortization, which was driven by the higher discount rates (see Note 15).

See also Certain Expenses Impacting Multiple Line Items within Results of Operations subsection further below.

Solventum ownership - change in value resulted in a year-on-year benefit of $1.6 billion in 2024 following Solventum's separation from 3M in April 2024 (discussed in Note 2).

Provision (benefit) for Income Taxes:

(Percent of pre-tax income/loss) 2024 2023 2022

Effective tax rate 16.7 % 25.4 % 4.5 %

Factors that impacted the tax rates between years are further discussed in the Overview section above and in Note 11.

Income from Unconsolidated Subsidiaries, Net of Taxes:

(Millions) 2024 2023 2022

Income (loss) from unconsolidated subsidiaries, net of taxes $ 9 $ 18 $ 11

Income (loss) from unconsolidated subsidiaries, net of taxes, is attributable to the Company’s accounting under the equity method for ownership interests in certain entities.

Net Income (Loss) Attributable to Noncontrolling Interest:

(Millions) 2024 2023 2022

Net income (loss) attributable to noncontrolling interest $ 15 $ 16 $ 14

Net income (loss) 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 expense is discussed in Note 21 and impacts cost of sales, SG&A, and R&D.

As noted therein, higher stock-based compensation expense is recognized in the quarter in which 3M’s annual stock option and restricted stock unit grant is made because of accounting rules for grants to employees that are retiree-eligible.

Typically, the annual grant is made in the first quarter.

However, due to the spin-off of Solventum (see Note 2), the 2024 annual grant was made in May, after the April 1, 2024 separation.

Pre-tax defined benefit pension and postretirement service cost expense for continuing operations impacts cost of sales, SG&A, and R&D while the non-service cost component of pension and postretirement benefits for continuing operations impacts the other expense (income), net line item.

As discussed in Note 15, in 2024 for continuing operations, the Company recognized pre-tax defined benefit pension and postretirement benefit service cost expense of $194 million and non-service pension and postretirement net benefit costs (including settlements, curtailments, special termination benefits and other) of $828 million for a total pre-tax continuing operations defined benefit pension and postretirement expense of $1,022 million.

These 2024 amounts include the impacts of remeasurements of pension and postretirement pension plans during the year and $0.8 billion pension settlement charge associated the pension risk transfer special item (all discussed in Note 15).

For 2023 on a comparable continuing operations basis, the Company recognized pre-tax defined benefit pension and postretirement service cost expense of $222 million and a benefit of $109 million related to non-service pension and postretirement net benefit costs (including settlements, curtailments, special termination benefits and other) for a total pre-tax continuing operations defined benefit pension and postretirement expense of $113 million.

The Company continues to make investments in the implementation of new business systems and solutions, including enterprise resource planning, with these investments impacting cost of sales, SG&A, and R&D.

Performance by Business Segment

The section entitled Business Segments in Item 1 provides an overview of 3M’s business segments.

In addition, disclosures relating to 3M’s business segments are provided in Note 22.

As discussed in Note 22, 3M made changes to the composition of segment information reviewed by 3M's chief operating decision maker (CODM) effective in the second quarter of 2024 largely as a result of the separation of Solventum and changes within its business segments effective in the first quarter of 2024.

Information provided herein reflects the impact of these changes for all applicable periods presented.

3M manages its continuing operations in three business segments.

The reportable segments are Safety and Industrial;

Transportation and Electronics;

and Consumer.

Safety and Industrial Business (44.6% of consolidated sales):

Sales (millions) $ 10,961 $ 10,956

Sales change analysis:

Organic sales 0.7 % (5.1) %

Translation (0.7) (0.5)

Total sales change — % (5.6) %

Business segment operating income (millions)

$ 2,491 $ 2,324

Percent change 7.2 % 104.7 %

Percent of sales 22.7 % 21.2 %

Adjusted business segment operating income (millions) (non-GAAP measure) $ 2,527 $ 2,408

Percent change 4.9 % (5.5) %

Percent of sales 23.1 % 22.0 %

The preceding table also displays business segment operating income (loss) information adjusted for special items.

For Safety and Industrial these adjustments include net costs related to respirator mask/asbestos (Aearo-related and non-Aearo related).

During the voluntary Aearo chapter 11 bankruptcy period (which began in July 2022 and ended in June 2023), net costs related to Aearo-respirator mask/asbestos matters were reflected as corporate special items in Corporate and Unallocated while those associated with non-Aearo respirator mask/asbestos matters continued to be reflected as special items in the Safety and Industrial business segment.

Prior to the bankruptcy, costs associated with Combat Arms Earplugs matters were reflected in the Safety and Industrial business segment (rather than reflected in Corporate and Unallocated—see Note 22 for additional information).

Refer to the Certain amounts adjusted for special items - (non-GAAP measures) section for additional details.

Year 2024 results:

Sales in Safety and Industrial were flat in U.S.

On an organic sales basis:

• Sales increased in roofing granules, industrial adhesives and tapes and in electrical markets, were flat in automotive aftermarket and personal safety, and decreased in industrial specialties and abrasives.

• Industrial end market demand was mixed as end user and channel remain cautious, including weaker EMEA industrial and manufacturing environment.

Growth primarily driven by strength in bonding solutions for electronic devices, cable accessories, auto body repair and roofing granules driven by replacement demand for residential roofs.

Adjusting for special item costs for significant litigation (non-GAAP measure), business segment operating income margins increased year-on-year as displayed above.

Year 2023 results:

Sales in Safety and Industrial were down 5.6 percent in U.S.

On an organic sales basis:

• Sales increased in roofing granules and automotive aftermarket;

decreased in personal safety, industrial specialties, industrial adhesives and tapes, abrasives and electrical markets.

• Growth was held back by the disposable respirator sales decline within personal safety along with the exit of Russia (which, together, negatively impacted year-on-year organic growth by 5.2 percentage points);

declines within industrial adhesives and tapes due to consumer electronics softness, industrial specialties was down as consumers pulled back on discretionary spending impacting e-commerce shipments (slowing down in packaging and shipping activity).

Business segment operating income margins increased year-on-year primarily due to lower special item costs for significant litigation.

2022 was impacted by a pre-tax charge of approximately $1.2 billion related to steps toward resolving Combat Arms Earplugs litigation.

Margins were also impacted by aggressive spending discipline, benefits from restructuring, pricing and productivity actions offset by the lower sales volume, higher restructuring costs, inflation impacts, investments in the business and China-related challenges.

Adjusting for special item costs for significant litigation (non-GAAP measure), business segment operating income margins were consistent year-on-year.

Transportation and Electronics Business (34.1% of consolidated sales):

Sales (millions) $ 8,380 $ 8,501

Sales change analysis:

Organic sales (1.0) % (3.5) %

Acquisitions 0.6 0.7

Divestitures — (0.7)

Translation (1.0) (1.0)

Total sales change (1.4) % (4.5) %

Business segment operating income (millions) $ 1,578 $ 1,312

Percent change 20.2 % 34.9 %

Percent of sales 18.8 % 15.4 %

Adjusted sales (millions) (non-GAAP measure) $ 7,435 $ 7,212

Sales change analysis:

Organic sales 3.4 % (3.5) %

Acquisitions 0.7 0.9

Divestitures — (0.9)

Translation (1.0) (1.0)

Total sales change 3.1 % (4.5) %

Adjusted business segment operating income (millions) (non-GAAP measure) $ 1,722 $ 1,517

Percent change 13.6 % (5.4) %

Percent of sales 23.2 % 21.0 %

The preceding table also displays business segment sales (and sales change) and operating income (loss) information adjusted for special items.

For Transportation and Electronics these adjustments include the sales and estimates of income regarding PFAS manufactured products that 3M plans to exit by the end of 2025.

Refer to the Certain amounts adjusted for special items - (non-GAAP measures) section for additional details.

Year 2024 results:

Sales in Transportation and Electronics were down 1.4 percent in U.S.

Adjusting for special item PFAS manufactured products (non-GAAP measure), sales were up 3.1 percent in U.S.

On an organic sales basis:

• Sales increased in electronics, were flat in commercial branding and transportation, and decreased in advanced materials, and in automotive and aerospace.

• Growth was negatively impacted by headwinds related to PFAS manufactured products and automotive OEM build rates, partially offset by new product launches and spec-wins that drove share gain.

Acquisitions/divestitures:

• Divestiture and acquisition impacts relate to lost/gained Transportation and Electronics sales year-on-year from the Aearo Entities.

In the third quarter of 2022, 3M deconsolidated the Aearo Entities and, in the second quarter of 2023, reconsolidated those entities.

For each of the 12-months post-deconsolidation and post-reconsolidation, impacts are each reflected separately as divestiture and acquisition, respectively.

Margins were also impacted by decreasing PFAS manufacturing.

Adjusting for special item PFAS manufactured products (non-GAAP measure), business segment operating income margins increased year-on-year as displayed above.

Year 2023 results:

Sales in Transportation and Electronics were down 4.5 percent in U.S.

Adjusting for special item PFAS manufactured products (non-GAAP measure), sales were down 4.5 percent in U.S.

On an organic sales basis:

• Sales increased in automotive and aerospace, were flat in commercial branding and transportation and decreased in electronics and advanced materials.

• Growth continued to be held back by consumer electronics end-market weakness.

Acquisitions/divestitures:

• Divestiture and acquisition impacts relate to lost/gained Transportation and Electronics sales year-on-year from the Aearo Entities.

In the third quarter of 2022, 3M deconsolidated the Aearo Entities and, in the second quarter of 2023, reconsolidated those entities.

For each of the 12-months post-deconsolidation and post-reconsolidation, impacts are each reflected separately as divestiture and acquisition, respectively.

Business segment operating income margins increased year-on-year due to lower operating losses on PFAS manufactured products.

In 2022, PFAS manufacturing products results included an $0.8 billion asset impairment charge.

Margins were also impacted by lower sales volumes, inflation impacts, investments in the business, higher restructuring costs, manufacturing and supply chain headwinds and China-related challenges partially offset by benefits from aggressive spending discipline, pricing and productivity actions.

Adjusting for special item PFAS manufacturing exit costs (non-GAAP measure), business segment operating income margins decreased year-on-year.

Consumer Business (20.1% of consolidated sales):

Sales (millions) $ 4,931 $ 5,026

Sales change analysis:

Organic sales (1.2) % (4.7) %

Divestitures — (0.1)

Translation (0.7) (0.2)

Total sales change (1.9) % (5.0) %

Business segment operating income (millions) $ 932 $ 904

Percent change 3.1 % (7.6) %

Percent of sales 18.9 % 18.0 %

Year 2024 results:

Sales in Consumer were down 1.9 percent in U.S.

On an organic sales basis:

• Sales increased in home improvement, and decreased in home and auto care, packaging and expression and consumer safety and well-being.

• Growth was negatively impacted by softness in consumer discretionary spending along with product portfolio and geographic prioritization.

Year 2023 results:

Sales in Consumer were down 5.0 percent in U.S.

On an organic sales basis:

• Sales decreased in consumer safety and well-being, packaging and expression, home improvement and in home and auto care.

• Growth was negatively impacted as consumers have shifted their spending patterns to more non-discretionary items.

Business segment operating income margins decreased year-on-year from lower sales volumes, inflation impacts, investments, manufacturing and supply chain headwinds, and higher restructuring costs partially offset by benefits from aggressive spending discipline, pricing, productivity actions and restructuring.

Corporate and Unallocated and Other:

Outside of 3M's reportable operating segments, 3M has Corporate and Unallocated and Other which are not reportable business segments as they do not meet the segment reporting criteria.

Because Corporate and Unallocated and Other include a variety of miscellaneous items, they are subject to fluctuation on a quarterly and annual basis.

Corporate and Unallocated and Other are presented separately in the preceding business segments table and in Note 22.

• Corporate and Unallocated operating income (loss) includes “corporate special items” and “other corporate expense-net”.

◦ Corporate special items include net costs for significant litigation impacting operating income (loss) associated with PFAS-related other environmental and Combat Arms Earplugs matters.

Prior to the bankruptcy, costs associated with Combat Arms Earplugs matters were not included in the Corporate net costs for significant litigation special item, instead being reflected in the Safety and Industrial business segment.

Corporate special items for the periods presented also include divestiture costs, gain on business divestitures, divestiture-related restructuring actions and Russia exit charges/benefits.

Divestiture costs include costs that were not eligible to be part of discontinued operations related to separating and divesting substantially an entire business segment of 3M following public announcement of its intended divestiture.

▪ Refer to the Certain amounts adjusted for special items - (non-GAAP measures) section for additional details on the impact of special items for additional information on the components of corporate special items.

Corporate special item net costs decreased year-over-year in 2024, primarily due to lower net costs for significant litigation associated with Corporate and Unallocated.

Corporate special item net costs increased year-over-year in 2023, primarily due to increased net costs for significant litigation as a result of pre-tax charges of $10.3 billion and $4.2 billion in the second and third quarters of 2023 related to the PWS Settlement and the CAE Settlement, respectively (both discussed in Note 19), and lower gains on business divestitures.

◦ Other corporate expense-net includes certain enterprise and governance activities resulting in unallocated corporate costs and other activity and net costs that 3M may choose not to allocate directly to its business segments.

Other corporate expense-net also includes costs previously allocated to Solventum prior to the Separation that were not eligible to be part of discontinued operations, commercial activity with Solventum post-Separation, and certain operations of the former Health Care business segment retained by 3M.

▪ Other corporate operating expenses, net, decreased year-over-year in 2024 primarily due to the extent of non-discontinued operations-eligible former Solventum-allocated costs included in Corporate and Unallocated prior to Solventum's April 2024 Separation.

Other corporate operating expenses, net, increased year-over-year in 2023 primarily due to higher restructuring charges (see Note 6).

◦ This category principally reflects activity associated with:

▪ Operations of businesses of the former Health Care segment divested prior to the Separation and therefore not reflected as discontinued operations within 3M's financial statements, along with limited-duration supply agreements with those previous divestitures.

▪ Transition arrangement agreements (e.g.

fees charged by 3M, net of underlying costs) related to divested businesses, including those related to the Separation, as well as other applicable divestitures.

◦ Operating income categorized as "Other" decreased year-over-year in 2024 primarily due to the extent of transition arrangement income from divested businesses (and associated costs) largely related to Solventum, which separated in April 2024.

Operating income categorized as "Other" decreased year-over-year in 2023 as a result of divestiture of the Food Safety Division and dental local anesthetic businesses (both formerly part of the "Other" category) and the extent of transition arrangement income from divested businesses other than Solventum.

Performance by Geographic Area

Export sales are generally reported within the geographic area where the final sales to 3M customers are made.

A portion of the products or components sold by 3M’s operations to its customers are exported by these customers to different geographic areas.

As customers move their operations from one geographic area to another, 3M’s results will follow.

Thus, net sales in a particular geographic area are not indicative of end-user consumption in that geographic area.

Financial information related to 3M operations in various geographic areas is provided in Note 3 and Note 22.

Refer to the Overview section for a summary of net sales by geographic area and business segment.

Geographic Area Supplemental Information

Employees as of December 31, Capital Spending - Continuing Operations

for years ended December 31, Property, Plant and Equipment -net - Continuing Operations as of December 31,

(Millions, except Employees) 2024 2023 2024 2023 2022 2024 2023

Americas 36,000 50,000 $ 829 $ 1,077 $ 1,155 $ 5,284 $ 5,370

Asia Pacific 13,500 17,000 128 169 164 1,053 1,176

Europe, Middle East and Africa 12,000 18,000 147 142 158 1,051 1,144

Total Company 61,500 85,000 $ 1,104 $ 1,388 $ 1,477 $ 7,388 $ 7,690

Employment decreased in 2024 when compared to 2023.

The above table includes the impact of acquisitions, net of divestitures, and other actions.

Further, the 2023 employment amount includes the former Solventum health care business, the Separation of which was not completed until April 2024 and which at that time comprised approximately 17,000 employees.

Capital Spending/Property, Plant and Equipment - Net:

Investments in property, plant and equipment enable growth across many diverse markets, helping to meet product demand and increasing manufacturing efficiency.

3M is increasing its investment in manufacturing and sourcing capability in order to more closely align its product capability with its sales in major geographic areas in order to best serve its customers throughout the world with proprietary, automated, efficient, safe and sustainable processes.

Capital spending is discussed in more detail later in MD&A in the section entitled Cash Flows from Investing Activities .

Critical Accounting Estimates

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As stated in Note 1, the preparation of financial statements in conformity with U.S.

generally accepted accounting principles requires management to make certain estimates and assumptions.

generally accepted accounting principles ("U.S.

GAAP") requires management to make certain estimates and assumptions.

Such estimates and assumptions are subject to inherent uncertainties which may result in actual amounts differing from these estimates.

The Company considers the items below to be critical accounting estimates.

Critical accounting estimates are those estimates made in accordance with generally accepted accounting principles that involve a significant level of estimation uncertainty and have had or are reasonably likely to have a material impact on the financial condition or results of operations of the Company.

Critical accounting estimates are those estimates made in accordance with U.S.

GAAP that involve a significant level of estimation uncertainty and have had or are reasonably likely to have a material impact on the financial condition or results of operations of the Company.

Senior management has discussed the development, selection and disclosure of its critical accounting estimates with the Audit Committee of 3M’s Board of Directors.

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Using this methodology, the Company determined discount rates for its plans as follow:

Weighted Average U.S.

Weighted average

Pension International Pension Postretirement Benefits

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For the primary U.S.

qualified pension plan, the expected long-term rate of return on an annualized basis for 2025 is 8.00%, an increase from the weighted average of 7.63% in 2024.

qualified pension plan, the expected long-term rate of return for 2026 is 8.0 percent, no change from the 8.0% in 2025.

Return on assets assumptions for international pension and other post-retirement benefit plans are calculated on a plan-by-plan basis using plan asset allocations and expected long-term rate of return assumptions.

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Changes in asset allocation and market performance over time, among other factors, cause these estimates to be subject to uncertainty.

In 2024 for continuing operations, the Company recognized pre-tax defined benefit pension and postretirement benefit service cost expense of $194 million and non-service pension and postretirement net benefit costs (including settlements, curtailments, special termination benefits and other) of $828 million for a total pre-tax continuing operations defined benefit pension and postretirement expense of $1,022 million, up from $113 million in 2023.

The 2024 amounts include the impacts of remeasurements of pension and postretirement pension plans during the year and $0.8 billion pension settlement charge associated the pension risk transfer special item (all discussed in Note 15).

In 2025, the Company recognized pre-tax defined benefit pension and postretirement benefit service cost expense of $168 million and non-service pension and postretirement net benefit costs (including settlements, curtailments, special termination benefits and other) of $104 million for a total pre-tax continuing operations defined benefit pension and postretirement expense of $272 million, down from $1,022 million in 2024.

The 2024 amounts include $0.8 billion pension settlement charge associated the pension risk transfer special item (discussed in Note 13).

Assessments of Goodwill:

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Impairment testing for goodwill is done at a reporting unit level, with all goodwill assigned to a reporting unit.

Reporting units are one level below the business segment level, but are required to be combined when reporting units within the same segment have similar economic characteristics.

Reporting units are one level below the operating segment level, but are required to be combined when reporting units within the same segment have similar economic characteristics.

At 3M, reporting units correspond to a division.

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Commercial Branding and Transportation, Display Materials and Systems, Electronics Materials Solutions, Industrial Adhesives and Tapes, and Personal Safety.

3M is a highly integrated enterprise, where businesses share technology and leverage common fundamental strengths and capabilities, thus many of 3M’s businesses could not easily be sold on a stand-alone basis.

3M’s focus on research and development has resulted in a portion of 3M’s value being comprised of internally developed businesses.

3M will continue to monitor its reporting units and asset groups in 2025 for any triggering events or other indicators of impairment.

Uncertainty in Income Tax Positions:

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For those international earnings considered to be reinvested indefinitely, the Company currently has no plans or intentions to repatriate these funds for U.S.

See Note 11 for further information on earnings considered to be reinvested indefinitely.

As of December 31, 2024, 3M owned 19.9% of Solventum Corporation common stock which ownership interest's fair value was $2.3 billion.

As previously disclosed, 3M intends to divest its ownership in Solventum within five years from its April 2024 spin-off.

3M maintains a strong liquidity profile.

The Company’s primary short-term liquidity needs are met through cash on hand and U.S.

The Company’s primary short-term liquidity needs can be met through cash on hand and U.S.

commercial paper issuances.

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3M’s commercial paper program permits the Company to have a maximum of $5 billion outstanding with a maximum maturity of 397 days from date of issuance.

The Company had no commercial paper outstanding at December 31, 2024, compared to $1.8 billion commercial paper outstanding as of December 31, 2023.

The Company had no commercial paper outstanding as of December 31, 2025 and 2024.

The strength of 3M’s credit profile and significant ongoing cash flows provide 3M proven access to capital markets.

Additionally, the Company’s debt maturity profile is staggered to help ensure refinancing needs in any given year are reasonable in proportion to the total portfolio , including scheduled maturities in the next 12 months as referenced in Note 14.

As of the date of this report, 3M has a credit rating of A3, stable outlook from Moody's Investors Service, a credit rating of BBB+, negative outlook from S&P Global Ratings, and a credit rating of A-, stable outlook from Fitch.

The Company’s total debt associated with continuing operations at December 31, 2024 decreased when compared to December 31, 2023 as a result of $2.9 billion in debt maturities, consisting of $1.1 billion of medium-term notes and $1.8 billion repayment of commercial paper borrowings.

Amounts borrowed by Solventum during the first quarter of 2024 were a liability associated with discontinued operations and, as transferred obligations, became the sole responsibility of Solventum after the April 1, 2024 Separation, as discussed in Note 14.

Additionally, the Company’s debt maturity profile is staggered to help ensure refinancing needs in any given year are reasonable in proportion to the total portfolio.

As of the date of this report, 3M had the following credit ratings:

Credit rating agency Long-term rating

Moody's Investors Service A3 Stable

S&P Global Ratings BBB+ Stable

Fitch Ratings A- Stable

The Company’s total debt at December 31, 2025, decreased when compared to December 31, 2024, due to debt maturities with an aggregate principal amount of $1.8 billion, partially offset by the issuance of $1.1 billion in aggregate principal amount of debt, and a $0.2 billion impact from foreign currency remeasurement.

For discussion of repayments of and proceeds from debt refer to the following Cash Flows from Financing Activities section.

Effective February 8, 2023, the Company renewed its “well-known seasoned issuer” (WKSI) shelf registration statement, which registers an indeterminate amount of debt or equity securities for future issuance and sale.

3M also has a medium-term notes program (Series F) program, originally established in 2016, up to an aggregate principal amount of $18 billion.

As of December 31, 2024, the total amount of debt issued under the (Series F) program is approximately $17.6 billion (utilizing the foreign exchange rates applicable at the time of issuance for the euro denominated debt).

The Company has not issued any debt under the (Series F) program since February 2019 and does not intend to issue any additional debt under this program in the future.

Information with respect to long-term debt issuances and maturities for the periods presented is included in Note 12.

3M has a principal amount of long-term debt of $1.5 billion which will mature in 2026.

The Company's financial condition and liquidity enable it to address these obligations by refinancing, redemption or some combination thereof.

3M has a $4.25 billion five-year revolving credit facility that expires in May 2028.

The revolving credit agreement includes a provision under which 3M may request an increase of up to $1.0 billion (at lender’s discretion), bringing the total facility up to $5.25 billion.

The revolving credit agreement includes a provision under which 3M may request an increase of up to $1.0 billion (at lenders' discretion), bringing the total facility up to $5.25 billion.

The credit facility was undrawn at December 31, 2025.

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Cash, cash equivalents and marketable securities:

At December 31, 2024, 3M had $7.7 billion of cash, cash equivalents and marketable securities, of which approximately $3.5 billion was held by the Company’s foreign subsidiaries and approximately $4.2 billion was held in the United States.

These balances are invested in bank instruments and other high quality securities.

At December 31, 2023, 3M had $5.8 billion of cash, cash equivalents and marketable securities, of which approximately $3.1 billion was held by the Company’s foreign subsidiaries and $2.7 billion was held by the United States.

The increase from December 31, 2023 was driven by $8.4 billion in proceeds from debt (primarily related to Solventum's issuance of debt prior to the Separation as discussed in Note 14) partially offset by approximately $4.6 billion in payments associated with PFAS-related other environmental liabilities and the CAE legal settlement (both discussed in Note 19 - note also the "Material Cash Requirements from Known Contractual and Other Obligations" section further below) and debt maturities.

Net Debt (non-GAAP measure):

Net debt is not defined under U.S.

GAAP and may not be computed the same as similarly titled measures used by other companies.

The Company defines net debt as total debt less the total of cash, cash equivalents and current and long-term marketable securities all on a continuing operations basis.

3M believes net debt is meaningful to investors as 3M considers net debt and its components to be important indicators of liquidity and financial position.

The table below provides net debt as of December 31, 2024 and December 31, 2023.

(Millions) December 31, 2024 December 31, 2023 Change

Total debt $ 13,044 $ 16,035 $ (2,991)

Cash, cash equivalents and marketable securities 7,744 5,805 1,939

Net debt (non-GAAP measure) $ 5,300 $ 10,230 $ (4,930)

Refer to the preceding Total Debt and Cash, Cash Equivalents and Marketable Securities sections for additional details.

Cash, cash equivalents and marketable securities are invested in bank instruments and other high quality securities.

The table below provides the breakout of the balance between the Company's foreign subsidiaries and the United States as of December 31, 2025 and December 31, 2024.

(Billions) December 31, 2025 December 31, 2024

Foreign subsidiaries $ 3.5 $ 3.5

United States 2.4 4.2

Total cash, cash equivalents and marketable securities $ 5.9 $ 7.7

The decrease from December 31, 2024, was impacted by $3.4 billion in payments associated with PFAS-related environmental liabilities and the CAE legal settlement (as discussed in Note 17), $3.3 billion in purchases of treasury stock, $1.8 billion in debt maturities, and $1.6 billion in dividend payments.

The uses of cash were partially offset by proceeds of $1.6 billion from issuances of treasury shares pursuant to option/benefit plans, $1.1 billion from debt issuance proceeds, and $0.6 billion from the sale of a portion of 3M's interest in Solventum.

Current equity investments:

Current equity investments consist of 3M's ownership interest in Solventum Corporation.

As of December 31, 2025, 3M owned approximately 15% of Solventum's common stock, with a fair value of $2.0 billion.

In August 2025, 3M sold a portion of its holdings, for proceeds of $0.6 billion, and classified its remaining interest as current equity investments (part of other current assets).

As previously disclosed, 3M expects to sell its ownership in Solventum within five years of its 2024 spin-off.

Sales of 3M's retained stake are subject to regulatory and other restrictions.

Balance Sheet:

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Working capital is not defined under U.S.

generally accepted accounting principles and may not be computed the same as similarly titled measures used by other companies.

GAAP and may not be computed the same as similarly titled measures used by other companies.

The Company defines working capital as current assets minus current liabilities.

3M believes working capital is meaningful to investors as a measure of operational efficiency and short-term financial health.

Working capital increased $3.5 billion compared with December 31, 2023 primarily driven by lower balances of current liabilities principally of discontinued operations, short-term borrowings and current portions of long-term debt, and current liabilities relating to the PWS settlement (discussed in Note 19).

Working capital increased from December 31, 2024, primarily due to lower balances of current liabilities related to PFAS-related environmental liabilities and the CAE legal settlement, short-term borrowings and current portions of long-term debt and higher current assets driven by the 2025 classification of 3M's remaining interest in Solventum within current equity investments (as discussed above) and increases in accounts receivable.

This increase was partially offset by declines in cash, cash equivalents, and marketable securities.

Discussions of cash flows from operating, investing and financing activities are provided in the sections that follow.

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Cash flows from operating activities can fluctuate significantly from period to period, as working capital movements, tax timing differences and other items such as litigation payments can significantly impact cash flows.

In 2024, cash flows provided by operating activities decreased $4.9 billion compared to the same period last year, primarily driven by approximately $4.6 billion in payments associated with PFAS-related other environmental liabilities and the CAE legal settlement (both discussed in Note 19).

The 2023 pre-tax charges of $10.5 billion related to the PWS Settlement and of $4.3 billion (inclusive of imputed interest) related to the CAE Settlement largely impacted the net income component within the Consolidated Statements of Cash Flows, with offsets in the other-net and deferred tax elements.

In 2025, cash flows provided by operating activities increased by $0.5 billion compared to the same period last year, primarily driven by lower payments associated with PFAS-related environmental liabilities and the CAE legal settlement.

Cash Flows from Investing Activities:

Investments in property, plant and equipment (PP&E) enable growth across many diverse markets, helping to meet product demand and increasing manufacturing efficiency.

Investments in PP&E enable growth across many diverse markets, helping to meet product demand and increasing manufacturing efficiency.

3M invested $0.9 billion on PP&E in 2025.

The Company expects 2026 capital spending to be approximately $1.1 billion as 3M continues to invest in growth, productivity and sustainability.

3M invests in renewal and maintenance programs, which pertain to cost reduction, cycle time, maintaining and renewing current capacity, eliminating pollution, and compliance.

Costs related to maintenance, ordinary repairs, and certain other items are expensed.

3M also invests in growth, which adds to capacity, driven by new products, both through expansion of current facilities and new facilities.

Finally, 3M also invests in other initiatives, such as information technology (IT), laboratory facilities, and a continued focus on investments in sustainability.

Purchases of marketable securities and investments and proceeds from maturities and sale of marketable securities and investments are primarily attributable to certificates of deposit/time deposits, commercial paper, and other securities, which are classified as available-for-sale.

Proceeds also include those from sale of portions of 3M's remaining interest in Solventum Corporation.

Refer to Note 11 for more details about 3M’s diversified marketable securities portfolio.

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2025 Debt Activity:

Debt cash flow activity includes proceeds from Solventum's issuance of $8.4 billion in aggregate principal amount of debt in the first quarter of 2024 partially offset by $2.9 billion in debt maturities, consisting of $1.1 billion of medium-term notes and $1.8 billion repayment of commercial paper borrowings.

Debt cash flow activity includes $1.8 billion aggregate principal amount of debt maturities partially offset by proceeds from issuance of $1.1 billion in aggregate principal amount of debt in 2025.

Gross commercial paper issuances and repayments, in addition to repayments of the fixed-rate notes, are largely reflected in “Proceeds from debt (maturities greater than 90 days)” and "Repayment of debt (maturities greater than 90 days)".

The Company had no commercial paper outstanding at December 31, 2024, compared to $1.8 billion commercial paper outstanding as of December 31, 2023.

3M’s primary short-term liquidity needs are met through cash on hand and U.S.

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2024 Debt Activity:

Debt cash flow activity included maturities of $1.8 billion of fixed-rate notes offset by net issuances of commercial paper of $1.8 billion (issuance and subsequent repayments/reissuances).

The gross commercial paper issuances and repayments, in addition to repayments of the fixed-rate notes, are largely reflected in “Proceeds from debt (maturities greater than 90 days)” and "Repayment of debt (maturities greater than 90 days)".

Debt cash flow activity includes proceeds from Solventum's issuance of $8.4 billion in aggregate principal amount of debt in the first quarter of 2024 partially offset by $2.9 billion in debt maturities, consisting of $1.1 billion of fixed- and floating-rate notes and $1.8 billion repayment of commercial paper borrowings.

Repurchases of Common Stock:

In February 2025, 3M’s Board of Directors replaced the Company’s 2018 repurchase program with a new repurchase program.

This new program authorizes the repurchase of up to $7.5 billion of 3M’s outstanding common stock, with no pre-established end date.

Repurchases of common stock are made to support the Company’s stock-based employee compensation plans and for other corporate purposes.

In 2024, the Company purchased $1.8 billion of its own stock.

In 2025, the Company purchased $3.3 billion of its own stock, compared to $1.8 billion of stock purchases in 2024.

As of December 31, 2025, approximately $4.6 billion remained available under the authorization.

For more information, refer to the table titled “Issuer Purchases of Equity Securities” in Part II, Item 5.

The Company does not utilize derivative instruments linked to the Company’s stock.

The Company also had $1.6 billion in proceeds from issuance of treasury stock pursuant to stock option and benefit plans in 2025.

Dividends Paid to Shareholders:

3M has paid dividends since 1916.

Cash dividends declared and paid totaled $1.51 per share for the first quarter of 2024;

$0.70 per share for each of the second, third, and fourth quarters of 2024;

and $1.50 per share for each quarter in 2023.

3M has paid dividend continuously since 1916.

Cash dividends declared and paid totaled $0.73 per share for each quarter of 2025;

$1.51 per share for the first quarter of 2024;

and $0.70 per share for each of the second, third and fourth quarters of 2024.

In February 2026, 3M's Board of Directors declared a first-quarter 2026 dividend of $0.78 per share, an increase of 7 percent.

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Material Cash Requirements from Known Contractual and Other Obligations:

3M’s material cash requirements from known contractual and other obligations primarily relate to following, for which information on both a short-term and long-term basis is provided in the indicated notes to the consolidated financial statements:

3M’s material cash requirements from known contractual and other obligations primarily relate to the following, for which information on both a short-term and long-term basis is provided in the indicated notes to the consolidated financial statements:

• Tax obligations—Refer to Note 9.

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In addition to other matters discussed therein, Note 17 references that the Company expects to pay up to $12.5 billion in the aggregate from 2023 through 2036 pursuant to the terms of the PWS Settlement and expects to pay up to $6.0 billion in the aggregate from 2023 to 2029 pursuant to the terms of the CAE Settlement.

Through December 31, 2024, 3M has paid an aggregate amount of $5.0 billion relating to these settlements.

Note 8 provides further information regarding amounts due under these settlements.

Through December 31, 2025, 3M has paid $8.2 billion in aggregate relating to these settlements.

See the settlement agreements that are included in the exhibit list to this filing for additional information.

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Compared sentence by sentence after normalising whitespace, quotation marks, case and digits, so re-formatting and restated figures do not read as changed language. Wording changes appear as one removal and one addition. The current filing and the prior one are authoritative.

What changed 10-K

Item 7. Management’s Discussion and Analysis