3M's Safety & Industrial Revenues Accelerate: More Upside to Come?

3M Company’s MMM Safety and Industrial segment continues to play an important role in its overall growth. In the second quarter of 2025, the segment’s organic revenues grew for the fifth consecutive quarter, increasing 2.6% year over year. It contributed approximately 45% of MMM’s total revenues during the quarter.

This growth was driven by solid momentum in personal safety, roofing granules, industrial adhesives and tapes, abrasives and electrical markets. Another key contributor to this upward trend was stable demand for electrical infrastructure products like medium voltage cable accessories and insulation tapes.

3M also witnessed increased traction in industrial and electronics bonding solutions, supported by new product innovation and commercial excellence. The company’s commercial excellence initiative, first launched in the US and now expanding across Europe and Asia, played an important role in improving its business performance. It enhanced sales team efficiency, increased sales and improved customer retention level by focusing on customer needs.

However, ongoing weakness in the automotive aftermarket and soft demand across certain industrial end markets remain concerning. Also, macroeconomic uncertainties including inflationary pressures and unfavorable trade policies could weigh on the segment’s near-term performance. Despite these risks, increased demand for personal safety, electrical infrastructure and bonding solutions positions 3M’s Safety and Industrial segment to deliver consistent growth in the coming quarters.

Segmental Snapshot of MMM’s Peers

Among 3M’s major peers, Honeywell International Inc. HON is witnessing solid momentum in its Building Automation segment, driven by ongoing strength in both the building solutions and building products businesses. In the second quarter of 2025, Honeywell’s segment’s revenues increased 16% year over year. It contributed approximately 18% of Honeywell’s total revenues during the quarter.

Its another peer, ITT Inc.’s ITT Connect and Control Technologies segment is benefiting from growth in component and connector sales within the defense and industrial markets. Also, the acquisition of kSARIA augurs well for ITT’s segment. Revenues from ITT’s unit surged 31.3% year over year on a reported basis in the second quarter of 2025.

The Zacks Rundown for MMM

Shares of 3M have gained 15.9% in the past year compared with the industry’s growth of 0.6%.

From a valuation standpoint, 3M is trading at a forward price-to-earnings ratio of 17.67X, above the industry’s average of 16.20X. MMM carries a Value Score of D.

The Zacks Consensus Estimate for MMM’s earnings has increased over the past 60 days.

MMM stock currently carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

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This article originally published on Zacks Investment Research (zacks.com).

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