3M CEO Sees Turnaround Ahead of Plan as PFAS Cases Advance

3M CEO Bill Brown said the company is ahead of its 2027 targets, as improving sales and margins compete with fresh legal challenges over PFAS. The company reported 5.4% adjusted organic sales growth in the second quarter.

Speaking at a Morgan Stanley conference on September 15, Brown pointed to better execution, stronger product innovation and more consistent growth. He said on-time, in-full delivery has risen from the low 80% range to around 90%.

3M’s adjusted operating margin reached 24.9% in the second quarter, up 0.4 percentage point from a year earlier. The company also raised its 2026 adjusted earnings forecast to $8.80-$8.95 per share, from $8.50-$8.70.

Data-center products are one growth opportunity. Microsoft has selected 3M’s expanded-beam optics for its Azure data centers, and Brown said five other large cloud providers are evaluating the technology.

The legal risks remain unresolved. On September 15, a federal judge in Connecticut allowed claims by firefighter unions and individual firefighters over PFAS in protective gear to proceed against 3M and other companies. The ruling lets the case move forward; it does not decide whether the allegations are true.

Australia has also filed a separate case against 3M and its local subsidiary, seeking more than A$2 billion for costs tied to PFAS contamination at 28 defense bases. The government alleges the companies withheld or misrepresented information about firefighting foam; those claims remain to be tested in court.

Investors now have to weigh operating gains against litigation that can bring new costs and uncertainty. 3M’s latest quarterly results included $0.44 per share in net costs for significant litigation and its PFAS exit, while management’s raised earnings forecast offers a near-term measure of whether the turnaround is holding.