3M's Turnaround Accelerates as Operations Exceed Targets
3M's CEO William Brown has announced that the company's operational turnaround is ahead of schedule, exceeding targets set for 2025. Under Brown's leadership, 3M has seen significant improvements in several key areas, including organic growth, margins, and delivery performance. The company's on-time delivery rate has risen from around 80% to over 90%, while the number of product launches has increased from 125 three years ago to an expected 350 this year.
New products now account for approximately 11% of sales, but are expected to reach 20% by 2027. The company's expanded beam optical technology, adopted as a standard by Microsoft, could serve a market valued at nearly $2 billion. Brown also stated that 3M is tracking above a 25% operating margin by 2027.
However, despite the operational progress, 3M still faces legal uncertainty related to PFAS litigation. A Montana federal judge recently allowed a nationwide class action involving firefighter turnout gear to proceed, while a separate lawsuit filed by the Australian government remains in the courts. The company's existing $10.5 billion to $12.5 billion settlement covers claims released by participating public water systems, but other PFAS-related litigation remains outstanding.