3M Company: A fresh look at 3M’s legal liabilities; lowering liability estimates

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3M Company: A fresh look at 3M’s legal liabilities; lowering liability estimates

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3M Company

A fresh look at 3M’s legal liabilities;

lowering liability estimates

Maintain Rating: BUY | PO: 200.00 USD | Price: 156.39 USD

Legal liabilities deep dive with lowered liability estimates 11 June 2026

The 2023 Combat Arms and Public Water Supplier settlements represent ~40% of legal Equity

liabilities by our estimate. The key remaining areas of liability are: natural resource

damage, personal injury, and Superfund site. Key takeaways: 1) Personal injury is likely a Andrew Obin Research Analyst

2H26 story. 2) Natural Resource Damage cases are likely being pushed to 2027. 3) We BofAS

are watching international lawsuits, but historical settlements suggest these will likely andrew.obin@bofa.com

be manageable. 4) Insurance recoveries (historically 20%+) remain an upside vs our DavidResearchRidley-Lane,Analyst CFA

estimates as we only put in actual recoveries and do not forecast future recoveries. We BofAS

david.ridleylane@bofa.com

maintain our Buy rating given renewed focus on execution and more PFAS visibility.

Devin Leonard

How our expectations have changed ResearchBofAS Analyst

We lower our all-in Natural Resource Damage estimate to $9bn (from $11.5bn), devin.leonard@bofa.com

reflecting additional NRD settlements that reduce the implied $/person. We push out the

expected start of payments for Natural Resource Damages and Personal Injury on MDL

timing. Together, these changes reduce our total litigation NPV to $22bn from $24bn. Stock Data

International lawsuits less concerning Price 156.39 USD

Outside the U.S., lawsuits are primarily in Belgium, the Netherlands, Australia, and Price Objective 200.00 USD

Canada.