3M: Minor Portfolio Tweaks At Not A Very Opportune Time

The Value InvestorInvesting Group LeaderFollow5ShareSavePlay(8min)CommentsSummary3M has executed a small, complex M&A deal with Bain, acquiring Madison Fire & Rescue and forming a joint venture involving Scott Safety.Recent results show modest growth: 2025 sales are up 2% to $24.9B, with adjusted EPS rising to $8.06 and guidance for $8.50–$8.70 in 2026.Legal overhang persists, with ongoing litigation costs of ~$0.5B annually, distorting adjusted earnings and raising effective valuation multiples.Shares have doubled from 2023 lows, but re-rating and lackluster long-term performance diminish 3M's current investment appeal.Looking for a helping hand in the market? Members of Value In Corporate Events get exclusive ideas and guidance to navigate any climate. Learn More » josefkubes/iStock Editorial via Getty Images Shares of 3M Company (MMM) hit the news wires this week after the company found itself active in M&A again. The latest deal is small and complicated, with little financial information provided, yet given the sizeThis article was written byThe Value Investor27.71K FollowersFollowThe Value Investor has a Master of Science with specialization in financial markets and a decade of experience tracking companies via catalytic company events. As the leader of the investing group Value In Corporate Events they provide members with opportunities to capitalize on IPOs, mergers & acquisitions, earnings reports and changes in corporate capital allocation. Coverage includes 10 major events a month with an eye towards finding the best opportunities. Learn more.Analyst’s Disclosure: I/we have no stock, option or similar derivative position in any of the companies mentioned, and no plans to initiate any such positions within the next 72 hours. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article. Seeking Alpha's Disclosure: Past performance is no guarantee of future results. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. Any views or opinions expressed above may not reflect those of Seeking Alpha as a whole. Seeking Alpha is not a licensed securities dealer, broker or US investment adviser or investment bank. Our analysts are third party authors that include both professional investors and individual investors who may not be licensed or certified by any institute or regulatory body.