3M boosts annual profit forecast driven by resilient industrial unit

3M raised its full-year adjusted profit per share forecast to **$8.80 to $8.95**, compared with its earlier forecast of **$8.50 to $8.70**. July 21 (Reuters) - 3M MMM.N raised its full-year profit forecast on Tuesday, driven by strength in its safety & industrial business, as well as price hikes, which are expected to "fully offset" a hit to its profit from oil-led inflation. The industrial giant's shares jumped nearly 10% in early trading. The company said it expects price actions implemented during the quarter to cover oil-led inflation impact of **$150 million to $175 million** counted in the profit forecast. 3M previously estimated a **$125 million** hit from higher oil prices amid escalating U.S.-Iran tensions and resulting disruptions to energy supplies through the Strait of Hormuz. The company's cost cuts, price hikes and the introduction of new products and customer service initiatives under CEO William Brown have helped the company cushion margins from weak demand against the backdrop of prolonged inflation. Maplewood, Minnesota-based 3M's quarterly adjusted profit came in at **$2.40 per share**, compared with analysts' estimate of **$2.25**, according to LSEG-compiled data. Second-quarter revenue rose **2.4%** to **$6.50 billion** from a year ago. Analysts on average had expected **$6.41 billion**. 3M's shares had risen **23.2%** since January 2025 up to the stock's last close, versus a **21.3%** gain for the Dow Jones Industrial Average .DJI. Its largest segment by sales, the safety and industrial segment, saw an over **8%** rise in quarterly sales from a year ago, helped by strong demand across electrical markets, adhesives, abrasives and industrial specialties, as roofing granules returned to growth. The transportation and electronics segment's ongoing weakness in autos was offset by strength in data centers and the semiconductor business, resulting in nearly **6%** segment sales growth. Last week, Microsoft became the first hyperscaler to adopt 3M's Expanded Beam Optics (EBO) technology for AI data centers. On a post-earnings call on Tuesday, 3M CEO Bill Brown said EBO revenue could increase four to five times from its current annual level of **$40 million to $50 million**.

3M boosts annual profit forecast driven by resilient industrial unit

Quarterly profit and revenue beat estimates

Industrial and electronics strength supported results

3M raises full-year profit outlook

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