Direct Answer
3M Company (MMM, NYSE) reported revenues from continuing operations of approximately $25.8 billion in FY2024, following the spinoff of its healthcare business as Solventum on April 1, 2024. Net income from continuing operations was approximately $3.2 billion and adjusted EPS was approximately $7.30. Free cash flow reached approximately $4.8 billion. The spinoff fundamentally restructured 3M: the company ended 2024 operating three segments (Safety and Industrial, Transportation and Electronics, Consumer) instead of the former four-segment structure that included healthcare. Separately, 3M reduced its quarterly dividend to $0.70 per share in 2024 (from $1.51 before the spinoff), ending a streak of 66 consecutive years of dividend increases and removing 3M from Dividend King and Dividend Aristocrat status.
Revenue by segment (FY2023 vs. FY2024)
| Segment | FY2023 (continuing ops, approx.) | FY2024 (continuing ops, approx.) |
|---|---|---|
| Safety and Industrial | ~$12.0B | ~$11.6B |
| Transportation and Electronics | ~$8.5B | ~$8.3B |
| Consumer | ~$6.0B | ~$5.9B |
| Health Care (separated as Solventum) | ~$8.7B | Q1 2024 only (then separated) |
| Total revenues (continuing ops) | ~$26.5B | ~$25.8B |
Year-over-year revenue comparisons for 3M require care because the Solventum spinoff on April 1, 2024 fundamentally changed the company's size and composition. The FY2023 figures above represent continuing operations (excluding healthcare) to allow a like-for-like comparison with FY2024. The Health Care segment contributed approximately $8.7 billion in revenues in the full year prior to the separation and is shown separately in this table to illustrate the scale of what was removed from 3M's reporting structure.
Safety and Industrial is 3M's largest segment, covering respirators, industrial tapes and adhesives, abrasives, electrical products, and Scotch tape for industrial and commercial applications. Transportation and Electronics serves automotive components, display films, optical products, and electronics materials. Consumer covers the consumer-facing portfolio including Post-it Notes, Scotch tape, Command strips, and Ace bandages sold through retail channels.
Key financial metrics (FY2023 vs. FY2024)
| Metric | FY2023 | FY2024 |
|---|---|---|
| Total revenues (continuing ops, approx.) | ~$26.5B | ~$25.8B |
| Net income (continuing ops, approx.) | n/a (impacted by settlements) | ~$3.2B |
| Adjusted EPS (approx.) | ~$8.35 | ~$7.30 |
| Free cash flow (approx.) | ~$3.9B | ~$4.8B |
| Quarterly dividend per share | $1.51 (before spinoff) | $0.70 (post-spinoff) |
| Annualized dividend per share | $6.04 (before spinoff) | $2.80 (post-spinoff) |
The FY2023 net income figure from continuing operations is difficult to present cleanly because 3M recorded significant charges in 2023 related to the Combat Arms Earplugs and PFAS legal settlements discussed below. These charges distort reported net income as a period-to-period comparison metric. Adjusted EPS, which 3M reports excluding certain items including legal charges, provides a cleaner view of underlying operational performance: approximately $8.35 in FY2023 compared with approximately $7.30 in FY2024.
Free cash flow improved from approximately $3.9 billion in FY2023 to approximately $4.8 billion in FY2024, reflecting the smaller post-spinoff business structure and the resolution of major cash outflows from legal obligations. The dividend reduction from $1.51 per quarter (before the spinoff) to $0.70 per quarter (after the spinoff) reflects the substantially reduced earnings base of the post-spinoff company, which no longer includes healthcare revenues.
Solventum spinoff (April 1, 2024)
On April 1, 2024, 3M completed the separation of its Health Care business into an independent publicly traded company called Solventum Corporation, trading on the NYSE under the ticker SOLV. Solventum encompassed 3M's medical, dental, health information systems, and purification and filtration businesses.
At the time of the spinoff, 3M distributed approximately 80.1% of Solventum shares to 3M shareholders and retained approximately 19.9%. The retained stake was intended to be monetized over time following the separation. 3M shareholders received one share of Solventum for every four shares of 3M they held as of the record date.
The rationale for the separation was to allow each business to pursue its own capital allocation priorities independently. The healthcare business required different investment cycles and had different growth characteristics than the industrial and consumer businesses. Separating them allowed each to be valued, managed, and capitalized as a standalone entity rather than as segments within a conglomerate.
The spinoff also meant that the approximately $8.7 billion in annual healthcare revenues 3M had been reporting was no longer part of the company's results after Q1 2024. This is the primary reason 3M's total revenues declined from the mid-30 billion dollar range (when healthcare was included) to approximately $25.8 billion in continuing operations for the full year FY2024.
Bill Brown was named CEO of 3M in May 2024, succeeding Mike Roman. Brown previously served as CEO of Science Applications International Corporation (SAIC). His appointment came after the Solventum spinoff was complete and as 3M focused on operational improvement and cost discipline within its three remaining segments.
Major legal settlements
3M entered into two landmark legal settlements in 2023, totaling approximately $16.3 billion combined. Both were significant factors in 3M's financial position and its decision to restructure the company.
Combat Arms Earplugs: $6.0 billion settlement (2023)
3M agreed to pay approximately $6.0 billion to resolve hundreds of thousands of lawsuits filed by U.S. military veterans who alleged that dual-ended Combat Arms Earplugs (version 2), manufactured by 3M's Aearo Technologies subsidiary, were defective and caused hearing loss and tinnitus. These earplugs were widely distributed to U.S. service members from approximately 2003 to 2015.
The settlement, structured through a court-supervised trust, was announced in August 2023. It resolved the largest mass tort litigation in U.S. history by number of plaintiffs at the time. 3M maintained that the product met military specifications and disputed the design-defect allegations, but agreed to settle to avoid continued litigation uncertainty.
PFAS water utilities: $10.3 billion settlement (2023)
In June 2023, 3M announced a settlement of approximately $10.3 billion with public water systems across the United States over contamination from per- and polyfluoroalkyl substances (PFAS), commonly known as forever chemicals. PFAS are a broad class of synthetic chemicals that do not break down naturally in the environment or in the human body. They were used in a wide range of 3M products including Scotchgard fabric protector and aqueous film-forming foam (AFFF) used in firefighting.
The settlement is payable over 13 years, running from approximately 2024 through 2036. Public water systems used the settlement funds to install PFAS water treatment equipment to meet tightening federal drinking water standards.
Together the two settlements represent approximately $16.3 billion in obligations, contributing to 3M's urgency to restructure, spin off the healthcare business, and reduce its dividend.
Dividend history and Dividend King status
3M had raised its annual dividend for 66 consecutive years as of early 2024, making it one of the longest-running members of the Dividend Kings list (companies with 50 or more consecutive years of annual dividend increases). The company also held Dividend Aristocrat status (25 or more consecutive years of increases as a member of the S&P 500).
Following the Solventum spinoff, 3M reduced its quarterly dividend from $1.51 per share to $0.70 per share, effective with the dividend payable after the April 2024 separation. The annualized dividend moved from $6.04 per share to $2.80 per share. Because 3M reduced rather than increased its dividend, the consecutive-increase streak ended at 66 years. 3M is no longer classified as a Dividend King or Dividend Aristocrat.
The reduction was not a sign of financial distress in the sense of an emergency cut, but rather a deliberate reset calibrated to the earnings capacity of the post-spinoff company, which is meaningfully smaller than the pre-spinoff 3M. The $0.70 per quarter dividend represents approximately 40% of 3M's pre-spinoff quarterly dividend and is intended to be sustainable and growable from the smaller earnings base going forward.
Frequently Asked Questions
What are 3M's revenues after the Solventum spinoff?
3M's revenues from continuing operations were approximately $25.8 billion in FY2024, following the spinoff of its healthcare business as Solventum on April 1, 2024. This figure covers three segments: Safety and Industrial (approximately $11.6 billion), Transportation and Electronics (approximately $8.3 billion), and Consumer (approximately $5.9 billion). Prior-year comparisons are complex because FY2023 included healthcare revenues for the full year under the old four-segment structure.
Did 3M cut its dividend in 2024?
Yes. 3M reduced its quarterly dividend to $0.70 per share following the Solventum healthcare spinoff in April 2024, down from $1.51 per share before the separation. The reduction reflected the smaller revenue and earnings base of the post-spinoff 3M. This ended 3M's streak of 66 consecutive years of dividend increases, removing it from Dividend King and Dividend Aristocrat status.
What are 3M's major legal settlements?
3M reached two major legal settlements in 2023. First, a $6.0 billion settlement to resolve claims that its Combat Arms Earplugs caused hearing damage to U.S. military veterans. Second, a $10.3 billion settlement with U.S. public water utilities over PFAS (per- and polyfluoroalkyl substances, commonly called forever chemicals) contamination, payable over 13 years. Together these settlements totaled approximately $16.3 billion and were a significant factor in 3M's restructuring and spinoff decisions.
What are 3M's three business segments after the Solventum spinoff?
After the April 2024 Solventum spinoff, 3M operates three segments: Safety and Industrial (approximately $11.6 billion in FY2024 revenues, covering respirators, industrial tapes, abrasives, electrical products, and Scotch tape for industrial use), Transportation and Electronics (approximately $8.3 billion, covering automotive components, display films, and optical products), and Consumer (approximately $5.9 billion, covering Post-it Notes, Scotch tape, Command strips, and Ace bandages for consumer markets). Healthcare was separated into Solventum, in which 3M retained approximately 19.9% at the time of the spinoff.