- 3M posted a modest top-line beat, but much stronger segment-level profits, helped by robust ongoing demand for respirators, but also some initial signs of industrial market demand recovery.
- A new restructuring effort offers some margin upside over the next few years, and 3M has the capacity to do some meaningful M&A.
- PFAS headline risk isn't going to disappear, but political realities may temper more aggressive action at the federal level.
- I believe 3M can generate 3% to 5% revenue and FCF growth over the next 10 years, supporting a mid-single-digit annual return potential that's pretty decent by today's industrial sector standards.
For further details see:
3M Leveraging The Early Recovery, With Further Room For Self-Improvement