Nice FacilityWorks <1717> announced its second quarter results for the 2025 fiscal year (April-September 24th year). Revenue increased by 10.3% year-on-year to 2.658 billion yen, operating profit increased by 27.6% to 0.695 billion yen, ordinary profit increased by 27.6% to 0.697 billion yen, and interim net profit increased by 27.3% to 0.511 billion yen.
The revenue of the office business increased by 28.4% year-on-year to 0.535 billion yen. The company's CM (Construction Management=Client Support Business) law provides support from the conceptual stage of office relocation and work style improvement projects to selecting buildings and moving, with one-stop advanced specialized support, evaluating the feasibility of office relocation and the direction of work style reform. There is increasing demand for the company's high expertise in relocation projects involving high-level expertise in newly constructed buildings. Also, as the company actively engages in work style reform and DX initiatives, its recognition as an advanced enterprise has increased, leading to a rise in inquiries for work style reform support and office environment improvement projects from large corporate group integrations and public entity facilities.
The revenue of the CM business increased by 3.7% to 1.529 billion yen. The company's CM services have been adopted in numerous public facilities. In private enterprises, the company has accumulated achievements in various fields such as large research facilities, production facilities, reconstruction of educational facilities, complex facilities by railway companies, regional bases, and updates of electrical, air conditioning, and sanitation facilities owned by IT companies, receiving continuous inquiries from existing customers. Moreover, in the changing construction environment, the societal role of the company's CM in supporting clients with high expertise has increased, resulting in a growing number of inquiries from new major domestic clients.
The revenue of the Corporate Real Estate Management (CREM) business increased by 11.8% to 0.405 billion yen. During the interim accounting period, the company provided efficient management of new construction projects, maintenance of multi-facility sites, and cost reductions through LCM, centralizing and visualizing the progress of individual projects, managing construction costs and schedules, and unifying asset information through database management. The company's unique 'value proposition of CM' utilizing DX to streamline the development of multi-site facilities for customers was highly evaluated.
The revenue of the Digital Transformation (DX) support business increased by 20.7% to 0.187 billion yen. There is a rising demand for MeihoAMS system, which quantifies and analyzes one's activities for productivity enhancement, and the MPS system, which visualizes and manages construction projects and maintenance tasks across multiple facilities simultaneously, supporting customer facility management's digital transformation. Recently, there has been a significant interest in cases where the company collaborates with customers to add new functionalities to its own systems to streamline maintenance processes due to staff shortages and enhance expertise.
Regarding the full year of the 2025 fiscal year, on the same day, an upward revision of the performance forecast was announced. Revenue is expected to increase by 0.6% compared to the previous period to 5.3 billion yen, operating profit is expected to increase by 4.8% (compared to the previous forecast of 2.8%) to 1.12 billion yen, ordinary profit is projected to increase by 4.6% (compared to the previous estimate of 2.8%) to 1.12 billion yen, and net income for the year is anticipated to rise by 3.1% (compared to the previous growth of 1.9%) to 0.815 billion yen.
Furthermore, based on the revised performance forecast, a dividend per share of 0.50 yen increase to 38.50 yen was announced for the year-end dividend for the 2025 fiscal year.