CLAIM #42681 · 3M Company (MMM) · 2025Q4 earnings call · Jan 20, 2026 · due Dec 31, 2026
“Last year, we did $185 million. We are going to do an incremental $225 million this year. The stranded cost goes up from $100 million last year to $150 million this year.”
Anurag Maheshwari · CFO
How to check this claim
Look at: Stranded costs, fiscal year 2026 (as disclosed by management, dollar amount)
It came true if: Full-year 2026 stranded costs reported at approximately $150 million (within $135-165 million range)
Where: Management commentary on earnings calls / investor presentations (FY2026 results, Q4 2026 call)
In context
“lion increase between volume and productivity in '26. And the productivity is going up on three real buckets around there. First is on supply chain. We expect half of that to come out of the supply chain, which is continued cost of poor quality, bringing it down, procurement, you know, managing a four-wall spend in the factory and logistics. There is about a $150 million of indirect expenses. We did a good job in '25. We will continue to do that in '26. And another $150 million in G&A efficiency as we look at our processes of optimization and so on. So overall, I would say that the incrementals between volume, between productivity, and the volume growth is going to be higher. What is offset in '26 is the half a billion dollars, which is being offset in '26. One is a pickup in investments. Last year, we did $185 million. We are going to do an incremental $225 million this year. The stranded cost goes up from $100 million last year to $150 million this year. So I would say those are probably the two biggest buckets, which would obviously, we have half a year of tariff as well, which is under $140 million. So you put these three together, that is half a billion dollars of it. Obviously, as we go into '27, a couple of them will not recur, but the incrementals overall are pretty good for 2026. Now on your first quarter, it is a very specific question that you are asking me. What I would say is that as I spoke about volume and productivity, I said about $875 million, $900 million for the year. The first quarter is almost 25% of that. Right? So if you kind of run the numbers through and, you know, there will be a little bit of FX favorability in the first quarter given where we were last year. We run all of that through, it will be high single-dig”
Verify independently
SEC filings for MMM ↗ · Claim quote is verbatim from the 2025Q4 earnings call.