MMM US

🌎The company is showing some progress. In the third quarter of 2025, revenue grew 3.5%, the fastest pace in four years, and operating margin increased 1.7 percentage points to 24.7%.

Sales of products launched in the past five years grew 30% in the quarter.

The appointment of new CEO William Brown and his emphasis on operational efficiency, including improving supply to 91.6% (a 20-year high), have been positively received by the market.
Solventum's strategy to spin off its medical business allows the company to focus on its core competencies.

Annual revenue growth is expected to be ONLY around 2-3%, significantly below the broader US market growth rate of around 10%.

Net margin declined to 13.7% from 15.9% last year.

3M's P/E is approximately 26x, significantly above the industrial sector average of 12.9x. This suggests that significant expectations for future growth are already priced into the current price. Any disappointment could lead to a sharp price correction.

The share price rise was largely driven by positive expectations surrounding the appointment of a new CEO and was largely unsupported by financial performance.

We are in the fifth wave.

The current share valuation is high given the current business performance.