3M Accelerates Pace of Innovation with Strong Q1 Earnings
3M, the multinational conglomerate, has reported strong first-quarter earnings, with adjusted earnings per share increasing by 10% compared to the same period last year. The company's Chairman and Chief Executive Officer, Bill Brown, attributed this success to the resilience and persistence of its employees, as well as the urgency and operating rhythm exhibited by the team.
During a recent conference call, Brown highlighted the importance of focusing on what can be controlled in the current dynamic macro environment. 3M has identified three priorities: driving sustained top-line organic growth, improving operational performance across the enterprise, and effectively deploying capital. Central to achieving this top-line growth is increasing the cadence of new product launches.
In Q1, 3M launched an impressive 62 new products, a 60% increase year-over-year on top of a 32% increase in 2024. The company achieved more than 70% on-time launch attainment from 56% a year ago. This is part of its broader plan to launch 215 new products this year and 1,000 over the next three years.
One notable example of these new products is Scotch Blue Pro Shark painter's tape with EdgeLock technology for sharper lines and less paint bleed-through. The company has also made progress on its commercial excellence objectives, including standardized operating rhythms, improved target setting, and tighter pricing governance. This has led to a significant increase in structured sales manager and sales rep reviews, as well as joint business plans with major customers.
Another key area of focus is cross-selling, with 3M now having more than $40 million of opportunity across 23 product payers. The company aims to reach a goal of $100 million and 50 payer by 2027. Additionally, 3M has begun deploying a predictive analytics tool to flag at-risk accounts and proactively address the primary drivers of customer attrition.
The results demonstrate the performance culture taking hold at 3M, with the team demonstrating urgency and operating rhythm in a dynamic macro environment. The company's focus on what it can control and its deliberate execution of key priorities will likely contribute to sustained success in the coming quarters.
