3M entered the second quarter of 2025 with the goal of building on its improving results from the start of the year - and it succeeded in most key metrics. Organic revenue growth continued for the third consecutive quarter, earnings per share adjusted for extraordinary costs grew at a double-digit pace, and operating margins improved across major divisions. These results come at a time when the company continues to face significant litigation-related expenses, primarily around PFAS-containing products and historical military shipments, which continue to weigh on GAAP results.

Despite these complications, however, the company raised its full-year earnings guidance and reaffirmed its ability to generate strong free cash flow. The internal transformation model, "3M eXcellence," is also beginning to show positive signs of delivering long-term efficiencies and operational discipline. While some short-term hurdles remain, investors are getting an important signal: the core business is…