3M has provided an upbeat assessment of its second quarter performance and demand trends during investor meetings last week, according to Bank of America analysts. The company expects second-quarter organic sales growth to be solidly above 3%, supported by continued order strength and higher backlog levels, with backlog coverage rising to roughly 27% to 29% of the next quarter's sales compared with a more typical range of 23% to 24%. Bank of America noted that 3M's margin outlook remains supported by productivity initiatives and price-cost discipline, and the company no longer expects to use a previously discussed contingency worth $0.05 to $0.15 per share. The bank also highlighted growth opportunities tied to 3M's optical intellectual property portfolio, with the company increasing its estimate for the total addressable market to $2 billion from $1 billion cited during its first-quarter earnings report. Following the meetings, Bank of America reiterated its 'Buy' rating on 3M and raised its 2026 earnings per share estimate by $0.10 to $8.80, while also increasing its second-quarter EPS forecast by $0.02 to $2.28, reflecting an expectation for 4.0% organic growth.
3M CompanyCompany expects solid organic sales growth above 3% driven by continued order strength and higher backlog levels.