Multiple European Firms Face Profit Margin Declines Raising Dividend Sustainability Concerns

Several companies across different sectors are experiencing net profit margin declines despite varying growth forecasts. Groupe Guillin's margins dropped to 6.9% amid modest revenue growth and concerns about dividend sustainability due to slower top-line expansion and margin compression. Proact IT Group's margins fell to 3.6%, but analysts anticipate a recovery supported by cloud and AI-driven recurring revenues, though regional risks remain. Atea faces margin reduction to 2.1% but is forecasted for strong revenue and earnings growth, relying on service and AI-related offerings to boost future profitability. Sparebanken Møre shows a margin decline to 20% alongside slower earnings growth, raising doubts about sustaining dividends amid narrowing profitability. Lastly, AAK AB's margins slipped to 7.3%, with expectations that ongoing cost-saving and efficiency initiatives may stabilize earnings despite volume and sustainability challenges. Across these firms, a recurring theme is margin pressure balanced by strategic efforts to improve profitability and investor concerns over dividend security.