About Michael Roman
During 3M's second quarter 2026 earnings call on July 21, 2026, Michael Roman discussed the company's progress in operational restructuring and new product innovation. He stated that new product introduction (NPI) cycle times had decreased substantially from two years prior, with the company aiming for a 20% reduction in overall cycle time by 2027. Roman noted that while the company was launching more incremental "class 3" products, it was pivoting toward "class 4" and "class 5" products, which he described as entering adjacent markets or creating entirely new product categories. He said the impact of these products would become more meaningful in the second half of 2026 and into 2027, and that the team was focused on "design to cost" to both add features and reduce costs.
Source: AI-verified profile updated from Michael Roman's recent appearances.
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Transcript (6 segments)
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Sara0:10
Good to have you.
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Michael Roman0:12
Yeah. Good morning, Sara. Thank you for having me on today.
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Sara0:14
Good morning. So what happened here? Looks like the organic revenue growth was a miss and the guidance looks like some were saying was conservative or light. What are you telling investors?
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Michael Roman0:26
Yeah. I would say, Sara, there's a lot of discussion about the outlook for 2024. I would start with how we finished out in '23. We had a strong delivery of our Q4. We improved our operational performance that showed up in our results. We had EPS that beat our guidance and beat consensus. We had another strong cash flow, double-digit growth in the quarter, and our revenue in the quarter was in line with what we guided. The total year similarly we executed well, delivered on... As we look at '24 we expect to build on that. Another year of strong growth in margins and we will grow earnings. We will drive robust cash flow and we'll see improving organic growth. The discussion was around how that organic growth guidance we have for the year, 1 to 3%, excluding some portfolio actions, which is an important priority for us. I would say we're building on our momentum and we do expect a successful 2024.
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Sara1:40
Well, it is a little messy and you reference this because you are spinning off the health care business, right, and that's going to be factored into the outlook in 2024. You have these big settlements coming when it comes to all of the legal issues. So how much of that is incorporated in here, and if you...
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Michael Roman2:11
With health care. We're on track to spin out our health care business in the first half of '24 and continue to make progress in reducing risk and uncertainty related to legal matters. Two settlements focused on taking to final approval, one in early February and another one later in March. So those are part of our priorities as we come into '24. In our guidance, we subtract health care from 3M. There's other factors we have to consider. We spend a lot of time with analysts walking...
