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Introduction & Market Context
Doxa AB (DOXA) presented its Q2 2025 interim report on July 17, 2025, revealing continued financial challenges as the company pursues significant restructuring efforts. The Swedish property developer is trading near its 52-week low at 0.45 SEK per share, reflecting ongoing investor concerns about the company’s financial position and strategic direction.
The presentation highlighted Doxa’s efforts to streamline operations while focusing on its flagship Karlastaden development in Gothenburg, which includes the tallest skyscraper in the Nordic region. The company continues to divest non-core assets to strengthen its balance sheet amid substantial quarterly losses.
Quarterly Performance Highlights
Doxa reported significant losses for Q2 2025, with net income attributable to shareholders reaching -122.8 MSEK for the April-June period and -162.6 MSEK for the first half of the year. Earnings per share stood at -0.10 SEK for the quarter, reflecting the company’s ongoing financial struggles.
The operating result was particularly impacted by substantial write-downs of 53.9 MSEK attributable to project properties, resulting in an operating profit of -61.4 MSEK for the quarter. Management noted that operational costs have decreased compared to Q1 through adjustments made during the year.
As shown in the following financial summary:
A major financial setback during the quarter came from the Administrative Court of Appeal’s rejection of Doxa’s VAT appeal, resulting in a payment of 148.1 MSEK (including 16.0 MSEK in interest) to the Swedish Tax Agency in June. The company has appealed this decision to the Supreme Administrative Court.
Strategic Initiatives & Restructuring
Doxa is actively restructuring its operations to improve its financial position. Key initiatives include reducing operational size and employee numbers to steadily decrease expenses, while divesting non-core assets.
A significant transaction during the quarter was the sale of Fastighetsstaden i Halmstad AB at book value (426.7 MSEK), which reduced debt by 371.6 MSEK and increased cash by 55.1 MSEK. The company also completed final settlements for all six remaining housing cooperative apartments during the quarter.
The company’s balance sheet has contracted significantly, with total assets decreasing from 8,195.5 MSEK at the end of 2024 to 4,512.8 MSEK as of June 30, 2025. Equity also declined from 2,309.4 MSEK to 2,147.2 MSEK during the same period.
The financial position breakdown shows the significant changes in Doxa’s balance sheet:
The company also announced changes to its board of directors, with Magnus Koch, Lars Kongstad, and Anders Pettersson newly elected. Greg Dingizian was re-elected as Chairman, and Lena Grimslätt was also re-elected to continue serving on the board.
Karlastaden Development Focus
Doxa’s asset portfolio remains heavily concentrated in the Karlastaden development, with building rights in this project accounting for 65% of the company’s portfolio value at 2,343.6 MSEK. Other significant assets include Gothenburg View (650.6 MSEK, 18% of portfolio) and Karlastaden Media (354.3 MSEK, 10% of portfolio).
The asset breakdown illustrates Doxa’s concentrated portfolio:
The Karlastaden development is positioned as Gothenburg’s new city center, featuring eight blocks and the Karlatornet skyscraper, which stands as the tallest in the Nordic region at 246 meters with 74 floors. Two buildings in the development, Karlatornet and Capella, were completed in 2024.
The following overview shows the various buildings planned for the Karlastaden development:
Doxa’s specific holdings in the Karlastaden development will allow it to develop up to 1,000 apartments, along with more than 20,000 square meters of office space, hotels, education facilities, service establishments, shops, and restaurants:
The company describes Karlastaden as a vibrant, mixed-use urban area covering approximately 31,000 square meters. When completed, it will accommodate over 2,000 residences across approximately 200,000 square meters, along with 70,000 square meters of commercial spaces for offices, hotels, shops, restaurants, schools, and healthcare centers.
Project Development and Sales
Beyond Karlastaden, Doxa maintains approximately 30 projects across Sweden’s three major cities, with a potential gross area of 450,000 square meters. The company’s sales of apartments have fluctuated over recent quarters, with 12 units sold in Q2 2025, up from just 1 in Q1 2025 and 3 in Q4 2024.
The following chart shows the company’s quarterly apartment sales:
Forward-Looking Statements
Doxa outlined three primary goals for its future operations:
1. Creating value through property development, including strategic partnerships
2. Divesting assets that do not align with the company’s long-term strategy
3. Ensuring sustainable long-term financing for the group
The company expects to release its Q3 2025 interim report on October 24, 2025, followed by its full-year 2025 report on February 27, 2026.
Despite the optimistic vision for Karlastaden and other developments, Doxa faces significant financial challenges that will require successful execution of its divestment strategy and careful management of its development projects to return to profitability.
Full presentation:
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