3M's Safety & Industrial Unit's Strength Holds Firm: More Upside Ahead?

3M Company MMM is benefiting from strength in the Safety and Industrial segment, which has become an important growth pillar for its overall performance. In the third quarter of 2025, the segment’s organic revenues increased 4.1% year over year, marking the sixth consecutive quarter of growth. The segment contributed approximately 44.8% of total revenues during the period.

The segment’s performance was driven by strong demand across personal safety, industrial specialties, industrial adhesives and tapes, abrasives and electrical markets. Steady demand for infrastructure products, including medium-voltage cable accessories and insulation tapes, also bodes well.

MMM’s Electrical Markets grew in low-teens digits during the third quarter, driven by robust data center construction activity and improved service execution. Personal safety and abrasives market achieved mid-single-digit growth, benefiting from ongoing product innovation. The industrial adhesives and tapes business also reported mid-single-digit growth, aided by new product launches and increased demand for bonding solutions in electronics, automotive and appliance end markets.

Despite these positives, softness in the automotive aftermarket and roofing granules businesses remains a near-term headwind. However, the Safety and Industrial segment is well-positioned for steady near-term growth, supported by sustained demand for personal safety, electrical infrastructure and advanced bonding solutions.

Segmental Snapshot of MMM’s Peers

Among 3M’s major peers, Carlisle Companies Incorporated’s CSL Carlisle Construction Materials segment is benefiting from robust demand for re-roofing products. Revenues from Carlisle’s unit increased 0.3% year over year in the third quarter of 2025. It contributed approximately 74.3% of Carlisle’s total revenues during the quarter.

MMM’s another peer, 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 third quarter of 2025, Honeywell’s segment’s revenues increased 8% year over year. It contributed approximately 28.8% of Honeywell’s total revenues during the quarter.

The Zacks Rundown for MMM

Shares of 3M have gained 24.9% in the past year against the industry’s decline of 1%.

From a valuation standpoint, 3M is trading at a forward price-to-earnings ratio of 18.77X, above the industry’s average of 14.01X. MMM carries a Value Score of D.

The Zacks Consensus Estimate for MMM’s 2025 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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