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CLAIM #42612 · 3M Company (MMM) · 2025Q2 earnings call · Jul 18, 2025 · due Dec 31, 2025

we know that's going to drive growth in the back half.

William Brown · CEO

PENDING
graded after results covering Dec 31, 2025 are reported

In context

look, 83% just over that was a good result, not what we had expected. We expect more from that as we transition into July, we're a little north of 85%. We expect to be in the high 80s now by the end of the year. The team tells me they want to exit the year at 90%. I think that's a stretch goal. You may notice our inventories are running a little bit higher than last year. So part of it is we're making up for lower OTIF with higher inventory, so we've got to make sure that we both drive OTIF improvement in the back end, which we're really, really focused on -- at the same time, we bring down inventory. So that's what we're trying to do. The team is focused on it. We're making progress. I would say I wish it would be faster. I think Chris would expect it to be faster, but good progress. And we know that's going to drive growth in the back half. Operator: Our next question comes from the line of Andy Kapowitz with Citi Group. Please proceed with your question. Andrew Kaplowitz: I get a nice jump in margin afterwards seen with a few quarters of pressure in TPG. So -- could you talk about what, if anything changed? I know you talked about the metering of the investments that you're making for the company? Does it hit that segment a bit more than others or maybe you're getting closer to fully absorbing fastening costs or maybe just better mix? Any color would be helpful. William Brown: Thanks for the question, Andy. It's driven by volume and productivity. It's not so much of the investment. I think all the 3 segments, the margin expansion was very, very good. specifically in TEBG. There was -- volume was about 1 point higher than la

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SEC filings for MMM · Claim quote is verbatim from the 2025Q2 earnings call.