This report does not constitute a rating action. 3M finished 2025 with S&P Global Ratings-adjusted leverage of 2.3x, which is consistent with our expectations for the rating. We expect that the company's internal resources will be sufficient to continue funding the extraordinary obligations for its legal settlements, as well as its debt maturities and dividends. We assume 3M generates annual run-rate free operating cash flow (FOCF) of about $4.5 billion over the next few years, which will provide it with a good cash buffer to absorb its obligations and shareholder returns. We also assume the company's S&P Global Ratings-adjusted EBITDA margins will settle in the 27%-28% range as it increases its revenue by the low-single-digit percent area annually and generates
