3M Targets Higher Margins and $10 Billion Shareholder Return

Strategic Shift Under New CEO

3M has announced plans to return at least $10 billion in cash to shareholders while aiming for an operating margin of approximately 25% by 2027. This move comes as the company undergoes restructuring under its new CEO, Bill Brown, who took over in May.

Focus on Innovation and Cost Efficiency

Brown has prioritized the development of new products, shifting the company’s focus away from legal liabilities and supply-chain cost reductions. As part of its restructuring, 3M has also been cutting costs and exiting less-profitable consumer product lines to address slowing demand.

Financial Performance and Outlook

The Saint Paul, Minnesota-based manufacturer reported an operating income margin of 19.6% last year. It has reaffirmed its forecast for organic sales growth between 2% and 3% for the year.

The company is set to provide further details during its annual investor day event.